tag:blogger.com,1999:blog-22375985325277836592024-02-07T15:56:07.247-08:00B SCHOOLS MATERIALSUnknownnoreply@blogger.comBlogger35125tag:blogger.com,1999:blog-2237598532527783659.post-1094040127996744442016-02-27T11:17:00.001-08:002016-02-27T11:17:32.424-08:00Ethics in Finance And Accounting<div dir="ltr" style="text-align: left;" trbidi="on">
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<span class="apple-style-span"><b><span style="background: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">Business Ethics<o:p></o:p></span></b></span></div>
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<span class="apple-style-span"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">Business
ethics</span></span><span class="apple-converted-space"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;"> </span></span><span class="apple-style-span"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">(also</span></span><span class="apple-converted-space"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;"> </span></span><span class="apple-style-span"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">corporate ethics</span></span><span class="apple-style-span"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">) is a form of</span></span><span class="apple-converted-space"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;"> </span></span><a href="http://en.wikipedia.org/wiki/Applied_ethics" title="Applied ethics"><span style="background: white; color: black; font-family: "Times New Roman","serif"; line-height: 115%; mso-bidi-font-size: 10.0pt; mso-themecolor: text1; text-decoration: none; text-underline: none;">applied ethics</span></a><span class="apple-converted-space"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;"> </span></span><span class="apple-style-span"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">or</span></span><span class="apple-converted-space"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;"> </span></span><a href="http://en.wikipedia.org/wiki/Professional_ethics" title="Professional ethics"><span style="background: white; color: black; font-family: "Times New Roman","serif"; line-height: 115%; mso-bidi-font-size: 10.0pt; mso-themecolor: text1; text-decoration: none; text-underline: none;">professional ethics</span></a><span class="apple-converted-space"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;"> </span></span><span class="apple-style-span"><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">that examines ethical
principles and moral or ethical problems that arise in a business environment.
It applies to all aspects of business conduct and is relevant to the conduct of
individuals and entire organizations.<o:p></o:p></span></span></div>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 14pt;">Finance</span></b><b><span style="background: white; font-family: 'Times New Roman', serif; font-size: 14pt;"><o:p></o:p></span></b></div>
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<span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">Fundamentally, finance is a
social science discipline. The discipline borders</span><span style="font-family: 'Times New Roman', serif;"> </span><a href="http://en.wikipedia.org/wiki/Behavioral_economics" title="Behavioral economics"><span style="color: black; font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">behavioral economics</span></a><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">, sociology,</span><span style="font-family: 'Times New Roman', serif;"> </span><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">economics, accounting and management.</span><span style="font-family: 'Times New Roman', serif;"> </span><span style="background: white; font-family: 'Times New Roman', serif; line-height: 115%;">Finance
ethics is overlooked for mainly one reason—issues in <b>finance are often addressed as matters of law rather than ethics.</b></span><b><span style="background: white; font-family: 'Times New Roman', serif; font-size: 10pt; line-height: 115%;"><o:p></o:p></span></b></div>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt;">Ethics in Finance:<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman', serif;">The
public seems to have the perception that the financial sector is more unethical
than other areas of business, this misperception persists for several reasons.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Wingdings;">Ø<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif;">First
of all, the industry itself is quite large. It encompasses banks, securities
firms, insurance companies, mutual fund organizations, investment banks,
pensions funds, mortgage lenders—any company doing business in the financial
arena. Because of its vast size, the industry tends to garner lots of
headlines, many of which tout its ethical lapses.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Wingdings;">Ø<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif;">With
trillions of dollars of assets, billions of transactions every year—every day
probably—when a small percentage of them is inappropriate, the absolute numbers
are still pretty big.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Wingdings;">Ø<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif;">The
industry is also highly regulated, so it’s likely that a higher percentage of
these bad transactions are identified and reported, perhaps more so than in
other less regulated industries.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">Five
reasons why these misdeeds may happen. <o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif;">1)
Self-interest sometimes morphs into greed and selfishness, </span></b><b><span style="font-family: 'Times New Roman', serif;">which is unchecked self-interest at the
expense of someone else.</span></b><span style="font-family: 'Times New Roman', serif;"> This greed becomes a kind of accumulation
fever. If you accumulate for the sake of accumulation, accumulation becomes the
end, and if accumulation is the end, there’s no place to stop. The focus shifts
from the long-term to the short-term, with a big emphasis on profit
maximization.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif;">2)
Some people suffer from stunted moral development:</span></b><span style="font-family: 'Times New Roman', serif;"> T</span><span style="font-family: 'Times New Roman', serif;">his happens in three areas: the failure to be
taught, the failure to look beyond one’s own perspective, and the lack of
proper mentoring.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">Business
schools, too often reduce everything to an economic entity. They do this by
saying the fundamental purpose of a business is to make money, maximize profit,
or the really jazzy words ‘maximize shareholder value’ , if the fundamental
purpose never gets questioned, the ethics never get questioned.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif;">3)
Some people equate moral behavior with legal behavior:</span></b><span style="font-family: 'Times New Roman', serif;"> </span><span style="font-family: 'Times New Roman', serif;">disregarding the fact that even though an
action may not be illegal, it still may not be moral. “You ought to remember
that the reason for all laws is that the moral agreement begins to break down,
and the way to get other people in line is to legislate so that we can stipulate
punishments”. Yet some people contend that the only requirement is to obey the
law. They tend to ignore the spirit of the law in only following the letter of
the law.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif;">4)
Professional duty can conflict with company demands: </span></b><span style="font-family: 'Times New Roman', serif;"> </span><span style="font-family: 'Times New Roman', serif;">For example, a faulty reward system can
induce unethical behavior. A purely self-interested agent would choose that
course of action which contains the highest returns to himself or herself and
not for client.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif;">5)
Individual responsibility can wither under the demands of the client.</span></b><span style="font-family: 'Times New Roman', serif;"> </span><span style="font-family: 'Times New Roman', serif;">Sometimes the push to act unethically comes
from the client. How many clients expect their insurance agents to falsify
their applications or claims? <o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">Some
of the suggestions included:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: 12.75pt;"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 8.5pt; mso-fareast-font-family: "Times New Roman";">incentive
compensation better aligned with customers’ interests, rather than agents’</span><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 8.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 12.75pt;"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 8.5pt; mso-fareast-font-family: "Times New Roman";">more
industry trade associations supporting ethics initiatives<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 12.75pt;"><span style="font-family: "Times New Roman","serif"; mso-bidi-font-size: 8.5pt; mso-fareast-font-family: "Times New Roman";">consumers
need to be better informed<o:p></o:p></span></li>
</ul>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt;">Ethics
in Accounting:<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><span style="font-family: Wingdings;">Ø<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif;">The term accounting
ethics was developed by Luca Pacioli <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Wingdings;">Ø<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif;">In the present business
scenario when there has been so much of accounting misdeeds and the corporate
collapses, have spread negative vibes among the people concerning the profession
of accounting.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Wingdings;">Ø<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="font-family: 'Times New Roman', serif;">In order to improve the
image of accounting as a profession and also to prevent fraudulent accounting
from taking place the organizations, the accounting firms as well as the
governments have started fomenting ethics among the accountants and have
introduced various regulations within the accounting profession. <br />
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The people who use the financial statements, the share holders, the stock
holders are just a few among the many who use the statements that are prepared
by the accountants and then later on verified by the auditors. Thus it becomes
imperative for the accountants to present a true as well a fair opinion on the
current financial standings of the company. Although it might not be beneficial
for the company as such, still the accountant has to keep in mind the larger
interest of the public who solely rely on the reports prepared by the
accountants. <o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-83426976411895955732016-02-27T11:14:00.000-08:002016-02-27T11:14:24.536-08:00A Project Report : A study of the functions of a hr manager in a company.<div dir="ltr" style="text-align: left;" trbidi="on">
<b><span style="font-size: 18.0pt;">Contents<o:p></o:p></span></b><br />
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 200%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="font-size: 14.0pt; line-height: 200%;">Introduction<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 200%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="font-size: 14.0pt; line-height: 200%;">Traditional role of HR manager<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><strong><span style="font-family: Symbol; font-size: 14.0pt; font-weight: normal; line-height: 200%; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span></strong><!--[endif]--><strong><span style="font-size: 14.0pt; line-height: 200%;">Strategies to Improve Human Resource Manager’s Value to the
Organisation<o:p></o:p></span></strong></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 200%; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 200%; mso-fareast-font-family: "Times New Roman";">New
HR manager roles<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 200%; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 200%; mso-fareast-font-family: "Times New Roman";">Problem
faced by HR manager<o:p></o:p></span></b></div>
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</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 200%; mso-fareast-font-family: "Times New Roman";">Conclusion<o:p></o:p></span></b></div>
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<b><span style="font-size: 16.0pt;">Introduction<o:p></o:p></span></b><br />
<br />
The <strong>Human Resource Manager</strong> deals with management of people
within the organisation. There are a number of responsibilities of human
resource manager. First of all, the Department is responsible for <strong>hiring
members of staff; this will involve attracting employees, keeping them in their
positions and ensuring that they perform to expectation</strong>. Besides, the
Human Resource manager also clarifies and sets day to day goals for the
organisation. It is responsible for organisation of people in the entire
Company and plans for future ventures and objectives involving people in the
Company. <br />
Research has shown that the human aspect of resources within an organisation
contributes approximately <u>eighty percent</u> of the organisation’s value.
This implies that if people are not managed properly, the organisation faces a
serious chance of falling apart. The Human Resource Department’s main objective
is to bring out the best in their employees and thus contribute to the success
of the Company.<br />
These roles come with certain positive and negative aspects. However, the
negative aspects can be minimised by improvements to their roles and functions.
These issues shall be examined in detail in the subsequent sections of the
essay with reference to case examples of businesses in current operation.<br />
<strong>Human resource manager roles<o:p></o:p></strong><br />
<ul type="disc">
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Human Resource
Planning<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Recruitment<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Selection<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Placement<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Inductions<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Transfer & Planning<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Job Analysis<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Performance Appraisal<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">HR Audit<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Total </span><a href="http://barackoli.com/quality-management/" title="Quality Management"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">Quality Management</span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Quality of Working Environment<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Quality Cycle<o:p></o:p></span></li>
</ul>
<br />
<br />
<br />
<br />
<strong><span style="font-size: 14.0pt;">Recruitment of Employees</span></strong><span style="font-size: 14.0pt;"><o:p></o:p></span><br />
This is one of the most fundamental <strong>roles of the HR Manager</strong>.
This is because this function ensures that the Company under consideration
selects the most skilful and competent person from a sea of applicants at that
time. This function involves evaluation of ability and competency of potential
employees in relation to what the Company needs. This role falls under the
Staffing role of management. If this function is performed well, then the
organisation will increase value consequently being on the right pathway to
achieve its organisational and departmental goals and objectives. <br />
Effective recruitment can be done through a number of ways. First of all the
Company can conduct <em>educational and psychological measurements</em>. This
task will involve assessment of abilities, skills and character evaluation of
applicants. Through psychometric evaluation, the Company can ensure that
employees have the right attitude necessary to fit into the organisation.
Another method Companies use to recruit members of staff is through interviews.
Here, the Human Resource Department can ask applicants questions that evaluate
their decision making abilities and how they would deal with certain situations
if presented with them. The Department can also employ the use of written
interviews where applicants answer questions addressing key issues in the
organisation. Through these channels, the Department contributes towards
organisational performance.<br />
<br />
<br />
<span style="height: 315px; margin-left: 6px; margin-top: 24px; mso-ignore: vglayout; position: absolute; width: 591px; z-index: -1;"><br /></span>
<br />
<div style="margin-right: -9.0pt;">
<strong><br /></strong></div>
<div style="margin-right: -9.0pt;">
<br /></div>
<div style="margin-right: -9.0pt;">
<strong><span style="font-size: 14.0pt;">Recruitment
methods used <o:p></o:p></span></strong></div>
<div style="margin-right: -9.0pt;">
<strong>Traditional<o:p></o:p></strong></div>
<div style="margin-bottom: 5.0pt; margin-left: 38.25pt; margin-right: -9.0pt; margin-top: 5.0pt; mso-list: l2 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->Campus recruitment<b><o:p></o:p></b></div>
<div style="margin-bottom: 5.0pt; margin-left: 38.25pt; margin-right: -9.0pt; margin-top: 5.0pt; mso-list: l2 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->Consultancy<b><o:p></o:p></b></div>
<div style="margin-bottom: 5.0pt; margin-left: 38.25pt; margin-right: -9.0pt; margin-top: 5.0pt; mso-list: l2 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->Walk in.<b><o:p></o:p></b></div>
<div style="margin-bottom: 5.0pt; margin-left: 38.25pt; margin-right: -9.0pt; margin-top: 5.0pt; mso-list: l2 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->Advertisements<b><o:p></o:p></b></div>
<div style="margin-right: -9.0pt;">
<br /></div>
<div style="margin-right: -9.0pt;">
<b>New
Methods used<o:p></o:p></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Asking
people you know or taking on family members</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
If company really are on a tight budget.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> Candidate Database</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Try picking up database of recently graduated students from a nearby college.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Employee
Referrals</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
One of the most successful methods of recruitment in Call Centre Industry. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Professional
Groups</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
There are lots of Professional Groups where company looks out for professionals
in different fields. For Eg; This is an excellent site to look out for good HR
professionals; there lots of groups on Yahoo.com<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 0.0001pt; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Body
Shopping</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Contact the training institutes for profiles of their students. For Eg: NIIT for
IT candidates, NIS for marketing Candidates. They would have profiles of both
experienced and freshers.<o:p></o:p></span></div>
<br />
<br />
<strong> </strong><strong> </strong><br />
<strong><span style="font-size: 14.0pt;">Improvement of Compensation Packages</span></strong><span style="font-size: 14.0pt;"><o:p></o:p></span><br />
One of the major functions of the HR department is to motivate employees.
This can be done through rewards especially for those who have done well. The
HR department needs to evaluate performance of employees and those who have
exceeded expectations should be compensated for their actions. Research has
shown that rewarding employees for good performance is the number one incentive
for keeping up this trend. These compensation packages can come in the
following ways;<br />
- Holiday Offers<br />
- End of Year Bonuses<br />
- Equities<br />
- Awards<br />
- Salary Increments<br />
- Provision of Flexible Working Hours<br />
- Straight forward Promotion Schemes and Career Developments<br />
If the HR department includes these incentives, then it will ensure that
employees are satisfied with the Company. It will also contribute towards good
staff retention rates. This is especially crucial in increasing stability
within the organisation. It also makes employees identify with the firm and
instils a sense of loyalty.<br />
<strong><br /></strong>
<strong><br /></strong>
<strong>Planning in the Organisation</strong><br />
The <strong>Human Resource Manager</strong> is placed with the
responsibility of ensuring that it plans adequately for all the organisation’s
future engagements that will involve people. One important aspect of this is
planning for employees in the organisation. It is important that the
organisation ensures that all the employees under its wing are just enough to
increase value to the organisation.<br />
The Department must ensure that staff members are not too many because if
they exceed this amount, then the organisation stands too lose. It must plan
adequately to ensure that staff members are not too few either, otherwise they
will be overworking those who are already in place. Consequently, there will be
poor motivation resulting from fatigue.<br />
The HR department is also bestowed with the responsibility of <strong>planning
future organisational goal</strong> in relation to people or clarifying these
same goals to staff members. This function of the department ensures that
people in the organisation have a general direction which they are working
towards. Organisations that have a clear direction are always more effective;
those members of staff will be more result oriented rather than just working
for the sake of it. The Department is also responsible for setting day to day
objectives necessary for streamlining activities within the organisation and
thus ensuring that work is not just done haphazardly. <br />
<br />
<br />
<strong><span style="font-size: 14.0pt;">Strategies to Improve Human Resource
Manager’s Value to the Organisation</span></strong><span style="font-size: 14.0pt;"><o:p></o:p></span><br />
<strong>Training and Internships</strong><br />
It is not necessarily a guarantee that a candidate who did well in the
recruitment exercise is the best in performing an organisation’s functions. New
employees need orientation into the Company’s functions and can also improve
some inefficiency that these new employees may have in relation to their
skills. This is the purpose of placing them on internships.<br />
Training is also essential for members of staff who have been working for
the organisation for a long time. This is especially so in the wake of
technological advancements, legal changes and changes in service delivery. It
is important for an Organisation to keep up with industry trends otherwise it
faces the danger of becoming obsolete; especially in the background of
increasing competition.<br />
Training need not be restricted to improvement of skills; it can also
involve improvement of attitudes. This is normally characterised by attendance
of workshops and other forms of talks. Training also increases motivation of
employees and gives them that extra boost of energy needed to get them through
tough times in their jobs. All the above tasks are placed under the Department
of Human Resource because it is the one that will asses when training is
needed, who needs the training, where and by whom. This aspect is a sure to
improve value of the HR Department in the organisation.<br />
An example of a company that adheres to this principle is <strong>Marks and
Spencer </strong>retail chain outlet. The Company offers training for twelve months.
Here new employees are taught all that is necessary to meet organisational
goals and objectives then they can start work when they are ready to do so.<br />
<strong><br /></strong>
<strong>Making Better Use of Time </strong><br />
The Human Resource is conferred with the responsibility of ensuring that all
members of staff perform to their best ability. It could improve this area by
facilitating better use of time in all departments within the organisation.
Time is one of the most crucial yet intangible assets of the Company. The
proper use of this resource could maximise production and achievement of
organisational goals. <br />
The Department can do this by planning activities to be carried out in the
organisation. It can make schedules for the various activities that have to be
done in the organisation and thus facilitate better flow of information. In
addition to this, the Company can also ensure that all members of staff are
held accountable for not performing a certain task. This is especially in
regard to maintenance of the schedules. In so doing, human the Human Resource
Department will be ensuring that employees do not simply report to work and
that the time spent at work is directly proportional to output.<br />
<br />
<strong>Improving Organisational Culture</strong><br />
The Human Resource Department can try to improve organisational culture
through a three step procedure.<br />
The first step of the process is observation. In this step HR finds
out what makes ups or what the company’s culture is like. HR should also be
very intense on the organisational needs. Here, HR should realise that personal
fulfilment works better and therefore should try to ensure that the change is
relevant to every staff member. In this stage, HR should try to explain to all
staff members or stakeholder the advantage of transforming the culture in the
organisation. This should be made clear so that all can see the advantages at
the individual level and not simply at the organizational level.<br />
Then HR should try to eliminate all inhibitions in staff member’s minds. It
is possible that some may claim that they tried one or two strategies before
and it did not succeed. This are what are called ‘cries of despair’ and
HR should try its best to explain to staff members the need of changing the
culture of the organisation.<br />
The next step is the analysis of various aspects. Here, there is collection
of data needed in making certain that culture changes. This stage involves
checking out the success features or the factors that can facilitate its success.
There should be calibration of data collected. Staff members should be made to
understand that there are no perfect situations for implementation of changes.
The analysis should involve assessing whether the information is sensible or
not. Whether data gathered will be helpful or not and if it is too little or
too much. Staff members should be requested for data that will help change the
culture.<br />
Of course when trying to bring in change HR Department should have perceived
benefits, a deadline for execution and also the realised gains in relation to
the change in culture. In this step, there should be reality checks which
should be done often. There should also be continuous integration. Through this
scheme HR Department should be able to change the culture in the organisation
and add value to it.<br />
<br />
<b>Preventing and stopping harassment
and discrimination<o:p></o:p></b><br />
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Key role in five aspects of
preventing and stopping harassment and discrimination. These aspects are:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">supporting management by developing Center policy and
procedures for preventing and stopping harassment and discrimination;<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">educating staff, particularly through induction and
retraining, with specialized training for line managers;<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">assisting management in establishing avenues of
assistance at all duty stations for staff members who have experienced
harassment or discrimination;<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">providing support and guidance to people directly
involved in harassment and discrimination issues; and<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">providing guidance to committees investigating
harassment and discrimination complaints.<o:p></o:p></span></li>
</ul>
<o:p><br /></o:p>
<o:p><br /></o:p>
<br />
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">New HR manager roles<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> Business and Strategic Partner</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In today’s organizations, to
guarantee their viability and ability to contribute, HR managers need to think
of themselves as strategic partners. In this role, the HR person contributes to
the development of and the accomplishment of the organization-wide business
plan and objectives.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The HR business objectives are
established to support the attainment of the overall strategic business plan
and objectives. The tactical HR representative is deeply knowledgeable about
the design of work systems in which people succeed and contribute. This
strategic partnership impacts HR services such as the design of work positions;
hiring; reward, recognition and strategic pay; performance development and appraisal
systems; career and succession planning; and employee development.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">To be successful business partners,
the HR staff members have to think like business people, know finance and
accounting, and be accountable and responsible for cost reductions and the
measurement of all HR programs and processes. It's not enough to </span><a href="http://humanresources.about.com/cs/strategichr/a/exec_success.htm"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">ask for a seat at the executive table</span></a><span style="font-family: 'Times New Roman', serif; font-size: 12pt;">;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> HR people will have to prove they have the business savvy
necessary to sit there. <o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> Employee Advocate</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">As an employee sponsor or advocate,
the HR manager plays an integral role in organizational success via his
knowledge about and advocacy of people. This advocacy includes expertise in how
to create a work environment in which people will choose to be motivated,
contributing, and happy.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Fostering effective methods of goal
setting, communication and empowerment through responsibility, builds employee
ownership of the organization. The HR professional helps establish the
organizational culture and climate in which people have the competency, concern
and commitment to serve customers well.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In this role, the HR manager
provides employee development opportunities, employee assistance programs, gain
sharing and profit-sharing strategies, organization development interventions,
due process approaches to problem solving and regularly scheduled communication
opportunities.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Change Champion</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The constant evaluation of the
effectiveness of the organization results in the need for the HR professional
to frequently champion change. Both knowledge about and the ability to execute
successful change strategies make the HR professional exceptionally valued.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Knowing how to link change to the
strategic needs of the organization will minimize employee dissatisfaction and
resistance to change.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The HR professional contributes to
the organization by constantly assessing the effectiveness of the HR function.
He also sponsors change in other departments and in work practices. To promote
the overall success of his organization, he champions the identification of the
organizational mission, vision, values, goals and action plans. Finally, he
helps determine the measures that will tell his organization how well it is
succeeding in all of this.<o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Ethical
management<o:p></o:p></span></b></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In the very narrow context of
corporate "human resources" management, there is a contrasting pull
to reflect and require </span><a href="http://en.wikipedia.org/wiki/Workplace_diversity" title="Workplace diversity"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">workplace diversity</span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> that echoes the diversity of a global customer base. Such
programs require foreign language and culture skills, ingenuity, humor, and
careful listening. These indicate a general shift through the human capital
point of view to an acknowledgment that human beings contribute more to a
productive enterprise than just "work": they bring their character,
ethics, creativity, social connections and, in some cases, pets and children,
and alter the character of a workplace. The term </span><a href="http://en.wikipedia.org/wiki/Corporate_culture" title="Corporate culture"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">corporate culture</span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">
is used to characterize such processes at the organizational level<o:p></o:p></span></div>
<br />
<br />
<br />
<br />
<br />
<br />
There are a number of problems that arise as the manager goes about its
activities<br />
<strong><br /></strong>
<strong>Problems in Recruitment</strong><br />
The department may sometimes be unable to adequately coordinate and
incorporate all the employees needed in the Company’s operations. One such
example is the NHS. In the year <strong>2004,</strong> the organisation was
found to be wanting in its human resource department’s functions. The Company
was recruiting a large proportion of its employees; <strong>40%</strong> from
Asian and African countries. This means that the organisation was draining
medical personnel from those needy countries and using them for themselves.<br />
Such a practice showed that the HR department had exercised bad judgement in
its staffing function. Instead, it could have used these foreign nurses as
temporary measure and put in place a strategy to train local nurses such that
it could stop depending on those poor countries for supply of nurses.<br />
<strong>Problems in Remuneration</strong><br />
In the process of trying to motivate members of staff to perform better, the
Human Resource may make deals that eventually cause problems.<strong> <o:p></o:p></strong><br />
<br />
<strong>Problems in Planning</strong><br />
Sometimes the HR Department can employ people who may not contribute towards
organisational principles. A classic example is the <strong>Arthur Andersen</strong>
<strong>Company</strong> that fell apart in the year <strong>2002</strong>.
This was an American Company that dealt with audits. It was initially very
successful in its operations prior to that fateful year. But in the latter
years of its operations, the Company was involved in two accounting scandals
that tarnished its name and subsequently caused failure.<br />
The Company failed to plan well for the kind of employees it recruited. This
was witnessed when one of its employees in the Legal Department called <strong>Nancy
Temple</strong> was fined in the Court of law for non adherence to accounting
laws. This problem could have been prevented if the HR department had evaluated
this employee before hiring her and also evaluation should have been done
during her performance. If HR had been extremely critical, then they would have
realised that the employee did not adhere to Company principles and would
therefore have terminated her employment.<br />
<br />
<br />
<br />
<strong><span style="font-size: 14.0pt;">Conclusion</span></strong><span style="font-size: 14.0pt;"><o:p></o:p></span><br />
The role of the <b>Human Resource
Manager</b> is evolving with the change in competitive market environment and
the realization that Human Resource Management must play a more strategic role
in the success of an organization. Organizations that do not put their emphasis
on attracting and retaining talents may find themselves in dire consequences,
as their competitors may be outplaying them in the strategic employment of
their human resources. <br />
With the increase in competition, locally or globally, organizations must
become more adaptable, resilient, agile, and customer-focused to succeed. And
within this change in environment, the HR professional has to evolve to become
a strategic partner, an employee sponsor or advocate, and a change mentor
within the organization. In order to succeed, HR must be a business driven
function with a thorough understanding of the organization’s big picture and be
able to influence key decisions and policies.<br />
The <strong>Human Resource Manger’s</strong> main function is to manage
people. There are positive and negative aspects of this function; first of all,
the HR department enriches the organisation through recruitment procedures and
an example an effective HR team in this area is Tesco Ireland. HR department
also ensures that members of staff follow a general direction by frequently
clarifying and reminding them of the organisation’s goals. Besides this, they
are also responsible for organising incentives or compensation packages to
motivate employees. All these functions contribute towards organisational effectiveness.
However, there are some negative aspects of HR; it has to bear the burden of
blame if an employee performs poorly like the Arthur Andersen Company. Besides
this, some policies made by the department may be detrimental to the Company
like in the Home Depot Company’s case. Improvements to their role can be done
by arranging training for staff members, organising activities for the
organisation and changing organisational culture.<br />
<br />
<div class="MsoNormal">
<br /></div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-2237598532527783659.post-41441291820964199292016-02-16T11:52:00.000-08:002016-02-16T12:09:36.806-08:00Industrial or Company Intership / College Project report general guidelines<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal">
<span style="background: yellow; color: red; font-family: "times new roman" , "serif"; font-size: 14.0pt;">INTERNSHIP /PROJECT GUIDELINES</span><span style="color: red; font-family: "times new roman" , "serif"; font-size: 14.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">Part I<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">Internship is an organization study, the
instruction sheet is enclosed herewith and the report has to be made
accordingly.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">Part II<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">It is compulsory for the students to
take up specific assignment or problem given by the organization during their
study period.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">The final report is a management
problem. The student may work on an organization centric problem or on a
general theme. The final project is expected to provide practical solutions to the
problem studied.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">The following are the suggested steps:<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">a) Problem Identification<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">b) Synopsis preparation (Generally not
exceeding two pages)<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;"> The headlines of a synopsis could be:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">i.The background<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">ii.The problem
statement<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">iii.Objective of
the study<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">iv.Hypotheses to
be tested<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">v.Method<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">vi.Limitation(s)<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">vii.Chapter
Scheme<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">viii.
Expectation from the study<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">c) Formatting (Research Proposal)<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">-Title<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">-Problem<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">- Methodology<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in;">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">-Time & cost
expectation ( to be approved by the industry)<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">d) Formatting dissertation: Executive
summary (Before introduction)<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">
Primary Research may not be always needed<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">e) Hypothesis testing: experimental
research (for establishing relationships)<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">
For survey/Description Research – Hypothesis test not required.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">Report:
1 copy to college, 1 student copy and one for company if required.<o:p></o:p></span></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">General points kept in mind<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Size-50-60 pages (Indicative)-<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Hard Bound<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Font Size=12/14<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− 1.5 line spacing.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− A4 Size Exe. Bond Paper.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Font style Time/Arial.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Foot notes- End of each chapter.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− References at the end of each chapter.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Bibliography.</span></div>
<div class="MsoNormal">
<span style="font-family: "times new roman" , "serif"; font-size: 14.0pt;">− Bar, Charts, Diagrams can be used<o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-91496073544210086602016-02-16T11:39:00.001-08:002016-02-16T11:39:51.067-08:00Hindu Law ( Notes )<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Q. Discuss the sources
of Hindu Law.</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Hindu Law</b><br />
From thousands of years people living in the Indian subcontinent have
been leading their lives by following the guidelines and concepts given in the
Vedas. These guidelines have evolved into rules followed by the people and
enforced by the rulers and have thus become de facto law. In this modern times,
the same laws have been retrofitted to suit present conditions and have been
codified in the form of several acts of which the important ones are - Hindu
Marriage Act 1955, Hindu Adoption and Maintenance Act 1956, Hindu Minority and
Guardianship Act 1956, and Hindu Succession Act 1956.<br />
<br />
<b>Application of Hindu Law</b><br />
A precise definition of Hinduism does not exist. Hence, it is impossible to
define a fixed criteria for determining who is a Hindu. So a negative
definition of 'who is not a Hindu' is used. Further, in this land, several
religions have been born and they they follow the same customs and practices.
So it cannot be said that Hindu Law can be applied only to people who are
Hindus by religion. Due to these reasons, in general, the following people are
considered to be Hindu with respect to application of Hindu Law.<br />
<!--[if !supportLineBreakNewLine]--><br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Hindu by Religion</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> -
A person who is Hindu, Jain, Bauddha, or Sikh by religion. In <b>Shastri
v Muldas SC AIR 1961</b>, SC has held that various sub sects of Hindus such
as Swaminarayan, Satsangis, Arya Samajis are also Hindus by religion
because they follow the same basic concept of Hindu Philosophy. Converts
and Reconverts are also Hindus. SC, in the case of <b>Peerumal v
Poonuswami AIR 1971, </b>has held that a person can be a Hindu if
after expressing the intention of becoming a Hindu, follows the customs of
the caste, tribe, or community, and the community accepts him. In <b>Mohandas
vs Dewaswan board AIR 1975</b>, Kerala HC has held that a mere declaration
and actions are enough for becoming a Hindu.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Hindu by Birth</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> -
A person who is born of Hindu parents. If only one parent is a Hindu, the
person can be a Hindu if he/she has been raised as a Hindu. In <b>Sapna
vs State of kerala, Kerala HC</b>, the son of Hindu father and
Christian mother was held to be a Christian.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Persons who are not Muslim, Christian, Jew, or Parsee
by religion.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Persons who are not governed by any other religious law
will be governed by Hindu Law.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Origins of Hindu Law</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
It is believed that Hindu law is a divine law. It was revealed to the people by
God through Vedas. Various sages and ascetics have elaborated and refined the
abstract concepts of life explained in the Vedas.<br />
<br />
<b>Sources of Hindu Law</b><br />
Sources of Hindu Law can be divided into two parts - Ancient and Modern.<br />
<br />
<b>1. Ancient Sources</b><br />
Before the codification of Hindu Law, the ancient literature was the only
source of the law. These sources can be divided into four categories:<br />
<br />
<b>A. Shruti</b><br />
Shruti means "what is heard". It is believed that
the rishis and munis had reached the height of spirituality where they
were revealed the knowledge of Vedas. Thus, shrutis include the four vedas -
rig, yajur, sam, and athrava along with their brahmanas. The brahmanas
are like the apendices to the Vedas. Vedas primarily contain theories about
sacrifices, rituals, and customs. Some people believe that Vedas contain no
specific laws, while some believe that the laws have to be inferred from the
complete text of the Vedas. Vedas do refer to certain rights and duties,
forms of marriage, requirement of a son, exclusion of women from inheritance,
and partition but these are not very clearcut laws. <br />
During the vedic period, the society was divided into varns and life was
divided into ashramas. The concept of karma came into existence during
this time. A person will get rewarded as per his karma. He can attain salvation
through "knowledge". During this period the varna system became quite
strong. Since vedas had a divine origin, the society was governed as per the
theories given in vedas and they are considered to be the fundamental source of
Hindu law. Shrutis basically describe the life of the Vedic people.<br />
<br />
The vedic period is assumed to be between 4000 to 1000 BC. During this time,
several pre-smriti sutras and gathas were composed. However, not much is known
about them today. It is believed that various rishis and munis incorporated
local customs into Dharma and thus multiple "shakhas" came into
existence.<br />
<br />
<b>B. Smruti</b><br />
Smrit means "what is remembered". With smrutis, a systematic
study and teaching of Vedas started. Many sages, from time to time, have
written down the concepts given in Vedas. So it can be said that Smrutis are a
written memoir of the knowledge of the sages. Immediately after the Vedic
period, a need for the regulation of the society arose. Thus, the study of
vedas and the incorporation of local culture and customs became
important. It is believed that many smrutis were composed in this period
and some were reduced into writing, however, not all are known. The smrutis can
be divided into two - Early smritis (Dharmasutras) and Later smritis
(Dharmashastras).<br />
<br />
<b>Dharmasutras</b><br />
The Dharmansutras were written during 800 to 200 BC. They were mostly
written in prose form but also contain verses. It is clear that they were meant
to be training manuals of sages for teaching students. They incorporate the
teachings of Vedas with local customs. They generally bear the names of their
authors and sometime also indicate the shakhas to which they belong.<br />
Some of the important sages whose dharmasutras are known are : Gautama,
Baudhayan, Apastamba, Harita, Vashistha, and Vishnu.<br />
They explain the duties of men in various relationship. They do not pretend to
be anything other than the work of mortals based on the teachings of Vedas, and
the legal decisions given by those who were acquainted with Vedas and local
customs.<br />
<br />
Gautama - He belonged to Sam veda school and deals exclusively with legal and
religious matter. He talks about inheritance, partition, and stridhan.<br />
<br />
Baudhayan - He belonged to the Krishna Yajurved school and was probably
from Andhra Pradesh. He talks about marriage, sonship, and inheritance. He also
refers to various customs of his region such as marriage to maternal uncle's
daughter.<br />
<br />
Apastamba - His sutra is most preserved. He also belonged to Krishna Yajurveda
school from Andhra Pradesh. His language is very clear and forceful. He
rejected prajapatya marriage.<br />
<br />
Vashistha - He was from North India and followed the Rigveda school. He
recognized remarriage of virgin widows.<br />
<br />
<br />
<b>Dharmashastras</b><br />
Dharmashastras were mostly in metrical verses and were based of Dharmasutras.
However, they were a lot more systematic and clear. They dealt with the
subject matter in three parts<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Aachara : This includes the theories of religious
observances,<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Vyavahar : This includes the civil law.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Prayaschitta : This deals with penance and expiation.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">While early smrutis
deal mainly with Aachara and Prayaschitta, later smrutis mainly dealt with
Vyavahar. Out of may dharmashastras, three are most important.<br />
<br />
<b>Manusmriti</b><br />
This is the earliest and most important of all. It is not only defined the way
of life in India but is also well know in Java, Bali, and Sumatra. The name of
the real author is not known because the author has written it under the
mythical name of Manu, who is considered to the the first human. This was
probably done to increase its importance due to divine origin. Manusmriti
compiles all the laws that were scattered in pre-smriti sutras and gathas.<br />
He was a brahman protagonist and was particularly harsh on women and
sudras. He holds local customs to be most important. He directs the king
to obey the customs but tries to cloak the king with divinity. He gives
importance to the principle of 'danda' which forces everybody to follow the
law.<br />
Manusmriti was composed in 200 BC.<br />
<br />
There have been several commentaries on this smruti. The main ones are:
Kalluka's Manavarthmuktavali, Meghthithi's Manubhashya, and Govindraja's
Manutika.<br />
<br />
<b>Yajnavalkya Smriti</b><br />
Though written after Manusmruti, this is a very important smruti. Its language
is very direct and clear. It is also a lot more logical. He also gives a lot of
importance to customs but hold the king to be below the law. He considers law
to be the king of kings and the king to be only an enforcer of the law. He did
not deal much with religion and morality but mostly with civil law. It includes
most of the points given in Manusmriti but also differs on many points such as
position of women and sudras. He was more liberal than Manu.<br />
This was composed in around 0 BC.<br />
<br />
Vijnaneshwar's commentary 'Mitakshara' on this smruti, is the most important
legal treatise followed almost everywhere in India except in West Bengal and
Orissa.<br />
<br />
<b>Narada Smriti</b><br />
Narada was from Nepal and this smriti is well preserved and its complete text
is available. This is the only smriti that does not deal with religion and
morality at all but concentrates only on civil law. This is very logical and
precise. In general, it is based on Manusmriti and Yajnavalkya smriti but differ
on many points due to changes in social structure. He also gives a lot of
importance to customs.<br />
<br />
This was composed in 200 AD.<br />
<br />
<b>C. Commentaries and Digest: </b><br />
After 200 AD, most the of work was done only on the existing material given in
Smrutis. The work done to explain a particular smriti is called a commentary.
Commentaries were composed in the period immediately after 200 AD. Digests were
mainly written after that and incorporated and explained material from all the
smruitis. As noted ealier, some of the commentaries were, manubhashya,
manutika, and mitakshara. While the most important digest is Jimutvahan's
Dayabhag that is applicable in the Bengal and Orissa area.<br />
Mitakshara literally means 'New Word' and is paramount source of law in all of
India. It is also considered important in Bengal and orissa where it
relents only where it differs from dayabhaga. It is a very exhaustive treaties
of law and incorporates and irons out contradicts existing in smritis.<br />
<br />
The basic objective of these texts was to gather the scattered material
available in preceeding texts and present a unified view for the benefit of the
society. Thus, digests were very logical and to the point in their approach.
Various digests have been composed from 700 to 1700 AD.<br />
<br />
<b>D. Customs</b><br />
Most of the Hindu law is based on customs and practices followed by the people
all across the country. Even smrutis have given importance to customs. They
have held customs as transcendent law and have advised the Kings to give
decisions based on customs after due religious consideration. Customs are of
four types:<br />
<!--[if !supportLineBreakNewLine]--><br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Local Customs</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> -
These are the customs that are followed in a given geographical area.
In the case of <b>Subbane vs Nawab</b>, Privy Council observed
that a custom gets it force due to the fact that due to its observation
for a long time in a locality, it has obtained the force of law.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Family Customs</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> -
These are the customs that are followed by a family from a long time.
These are applicable to families where ever they live. They can be
more easily abandoned that other customs. In the case of <b>Soorendranath
vs Heeramonie</b> and <b>Bikal vs Manjura</b>, Privy Council
observed that customs followed by a family have long been recognized
as Hindu law.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Caste and Community Customs</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> - These are the customs that are followed by
a particular cast or community. It is binding on the members of that
community or caste. By far, this is one of the most important source of
laws. For example, most of the law in Punjab belongs to this type. Custom
to marry brother's widow among the Jats is also of this type.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Guild Customs</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> -
These are the customs that are followed by traders.<o:p></o:p></span></li>
</ol>
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<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Requirements for a
valid custom</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Ancient : Ideally, a custom is valid if it has been
followed from hundreds of years. There is no definition of ancientness,
however, 40yrs has been determined to be a ancient enough. A custom cannot
come into existence by agreement. It has to be existing from long before.
Thus, a new custom cannot be recognized. Therefore, a new form of Hindu
marriage was not recognized in Tamil Nadu.<br />
In the case of <b>Rajothi vs Selliah</b>, a Self Respecter’s Cult
started a movement under which traditional ceremonies were substituted
with simple ceremonies for marriage that did not involve Shastric rites.
HC held that in modern times, no one is free to create a law or custom,
since that is a function of legislature.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Continuous: It is important that the custom is being
followed continuously and has not been abandoned. Thus, a custom may be
400 yrs old but once abandoned, it cannot be revived. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Certain: The custom should be very clear in terms of
what it entails. Any amount of vagueness will cause confusion and thus the
custom will be invalid. The one alleging a custom must prove exactly what
it is.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Reasonable: There must be some reasonableness and
fairness in the custom. Though what is reasonable depends on the current
time and social values.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Not against morality: It should not be morally wrong or
repugnant. For example, a custom to marry one's granddaughter has been
held invalid.<br />
In the case of <b>Chitty vs. Chitty 1894</b>, a custom that permits
divorce by mutual consent and by payment of expenses of marriage by one
party to another was held to be not immoral. In the case of <b>Gopikrishna
vs. Mst Jagoo 1936</b> a custom that dissolves the marriage and
permits a wife to remarry upon abandonment and desertion of husband was
held to be not immoral.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Not against public policy: If a custom is against the
general good of the society, it is held invalid. For example, adoption of
girl child by nautch girls has been held invalid. In the case of <b>Mathur
vs Esa</b>, a custom among dancing women permitting them to adopt one or
more girls was held to be void because it was against public policy.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Not against any law: If a custom is against any
statutory law, it is invalid. Codification of Hindu law has abrogated most
of the customs except the ones that are expressly saved. In the case of <b>Prakash
vs Parmeshwari</b>, it was held that law mean statutory law.<o:p></o:p></span></li>
</ol>
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<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Proof of Custom</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The burden of proving a custom is on the person who alleges it. Usually,
customs are proved by instances. In the case of <b>Prakash vs Parmeshwari</b>,
it was held that one instance does not prove a custom. However, in the case of <b>Ujagar
vs Jeo</b>, it was held that if a custom has been brought to notice of the
court repeated, no further proof is required.<br />
existence of a custom can also be proved through documentary evidence such as
in Riwaz-i-am. Several treaties exist that detail customary laws of Punjab.<br />
<br />
<b>Usage and Custom</b><br />
The term custom and usage is commonly used in commercial law, but
"custom" and "usage" can be distinguished. A usage is a
repetition of acts whereas custom is the law or general rule that arises from
such repetition. A usage may exist without a custom, but a custom cannot arise
without a usage accompanying it or preceding it. Usage derives its authority
from the assent of the parties to a transaction and is applicable only to
consensual arrangements. Custom derives its authority from its adoption into
the law and is binding regardless of any acts of assent by the parties. In
modern law, however, the two principles are often merged into one by the
courts.<br />
<br />
<b>Modern Sources</b><br />
Hindu law has been greatly influenced by the British rule. While it might seem
that the British brought with them the modern concepts of equity and justice,
these concepts existed even in dharamashastras albeit in a different form.
Narada and Katyayana have mentioned the importance of dharma (righteousness) in
delivering justice. However, we did not have a practice of recording the cases
and judgments delivered. So it was not possible to apply stare decisis. This
process started from the British rule.<br />
<br />
The following are the modern sources of Hindu law:<br />
<br />
<b>1. Equity, Justice, and Good conscience </b><br />
Equity means fairness in dealing. Modern judicial systems greatly rely on being
impartial. True justice can only be delivered through equity and good
conscience. In a situation where no rule is given, a sense of
'reasonableness' must prevail. According to Gautama, in such situation, the decision
should be given that is acceptable to at least ten people who are knowledgeable
in shastras. Yagyavalkya has said that where ever there are conflicting rules,
the decision must be based on 'Nyaya'.<br />
This principle has been followed by the privy council while deciding cases.<br />
<br />
<b>2. Precedent</b><br />
The doctrine of stare decisis started in India from the British rule. All cases
are now recorded and new cases are decided based on existing case laws.Today,
the judgment of SC is binding on all courts across India and the judgment of HC
is binding on all courts in that state.<br />
<br />
<b>3. Legislation</b><br />
In modern society, this is the only way to bring in new laws. The parliament,
in accordance with the needs society, constitutes new laws. For example, a new
way of performing Hindu marriages in Tamil Nadu that got rid of rituals and
priests was rejected by the SC on the basis that new customs cannot be
invented. However, TN later passed an act that recognized these marriages.<br />
Also, most of the Hindu laws have now been codified as mentioned in the
beginning.<br />
<br />
<b>Critical Comments</b><br />
In the past, due to the vast size of the country, various kinds of customs
prevailed. Further, due to lack of effective communication, there were several
contradictions among the practices and the judgment delivered. Thus, the
country went on the way to being divided. Instead of becoming the law of the
land (lex-loci), Hindu Law became the law of a person. However, this can only
be an excuse for the past. Today, because of media and communication, judgement
delivered in one place is felt in another. A practice or custom followed in a
village can be repugnant to people in cities. We must take advantage of this
situation and put the country on the course of a unified law. Instead of being
a country of personal laws, we should true have a single law of the land. Time
is ripe for implementing article 44. This will ensure the future unity and
integrity of our country.<br />
<br />
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<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Q. Define the term
"Guardian" under Hindu Minority and Guardianship Act 1956. What are
the powers and liabilities of a guardian? How and when can a testamentary
guardian be removed?</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
In Hindu dharmashastras, not much has been said about guardianship. Due to the
concept of joint families, a child without parents was usually cared for by the
head of the joint family. Further, it was well accepted that the king is the
guardian of all the orphans. Thus, no specific laws were required regarding
guardianship. During British period, guardianship was primarily based on the
extension of paternal authority. Thus, after parents, elder brothers,paternal
uncles, and then maternal relations used to look after the interests of the
minor. The British also introduced the concept of testamentary guardians in
India.<br />
<br />
The concept of guardianship has changed from paternal power to the idea of
protection in modern times and the HMG Act 1956 codifies the laws regarding
minority and guardianship with the welfare of the child at the core.<br />
<br />
A person below the age of 18 yrs is considered to be a minor as per Section 4
of HMGA 1956. Such a person is not capable of taking care of himself or of
handling his affairs and thus requires help, support, and most importantly,
protection, which is usually provided by the parents. However, in many
unfortunate cases, parents are not available and in those cases other relatives
or persons come to the rescue. Thus, parents and other people who look after a
minor are called as guardians in general parlance. Sec 4 of HMGA 1956 defines
Guardian as follows:<br />
<br />
<b>Definition as per Section 4 of HMG 1956</b><br />
Guardian means a person having the care of a person of a minor or of his
property or of both the person and his property. This includes:<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">natural guardian<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">guardian appointed by the will of a natural guardian
(testamentary guardian)<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">a guardian appointed or declared by court<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">a person empowered to act as such by the order of Court
of Wards.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This list of 4 types
of guardians is not exhaustive. A person who is taking care of a minor
without authority of law, can also be a guardian under the above
definition and is called a de facto guardian. De facto guardians include self
appointed guardians and guardians by affinity, such as guardians for a minor
widow. However, a person does not have right to sell or deal with minor's
property if he is merely a de factor guardian as per section 11.<br />
<b><br />
<br />
Natural Guardian (Sec 6)<br />
</b><br />
Section 6 of HMG Act 1956 defines only three natural guardians:<b><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For a legitimate boy or a girl, the father, and after
father, the mother, provided that the custody of a child less than 5 yrs
of age will be with the mother.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For an illegitimate boy or a girl, the mother, and
after mother, the father.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For a married woman, the husband.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">It further states that
no person shall be entitled to be a natural guardian of a minor if<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">he ceases to be a Hindu or<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">he renounces the world completely by becoming a
sanyasi.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Here, by father and
mother, natural father and mother are meant. Step father or step mother do not
have any right to guardianship unless appointed by court.<br />
<br />
As per <b>section 7</b>, natural guardianship of an adopted son passes on
to his adoptive father and after adoptive father, to adoptive mother.<br />
<br />
<b>Position of Father</b><br />
Pre- 1956, the right of the father was supreme. He could even appoint a person
to act as a guardian after his death even if the mother was alive. This is not
the case now. Further, as held in the case of <b>Lalita vs. Ganga AIR 1973
Raj.</b>, a fathers right to guardianship is subordinate to the welfare of the
child. In the case of <b>Githa Hariharan vs RBI AIR 1999 SC</b> held
the mother to be the natural guardian in spite of the father being alive
and further held that the word "after" means "in the
absence" rather than "after the life" of the father. Thus, if a
father is incapable of protecting the interests of a minor due to any reason,
he can be removed from guardianship.<br />
<br />
<b>Position of Mother</b><br />
The mother is the natural guardian of her illegitimate minors. In case of
legitimate minors, the mother has right to custody of a minor less than 5 yrs
of age. This does not mean that mother does not have the right to custody after
5 yrs of age. In case of <b>Sheela vs Soli, 1981 Bom HC</b>, it was held
that a mother's right to guardianship is not lost upon conversion to another
religion if she is able to provide proper care to the minor. Further, in <b>Kumar
vs Chethana AIR 2004</b>, SC has held that the mother's right to guardianship
is not lost automatically after her remarriage. In all such cases,
welfare of the child has to be considered above all including the convenience
and pleasure of the parents.<br />
<br />
<b>Position of Husband</b><br />
In Hindu shastras, husband and wife are considered to be one. Thus, it is
believed that the guardianship of a minor wife belongs to the husband. However,
due to section 13, a court may revert the guardianship to the father or mother
depending on the best interests of the minor.<br />
<br />
<b>Powers of a natural guardian (Sec 8)</b><br />
Section 8 of HMGA 1956 describes the powers of a natural guardian as follows:<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">A guardian can do any act, subject to provisions of
this section, that are necessary or are reasonable and proper for the
benefit of the minor or the benefit of the minors estate. But the
guardian, in no case, shall bind the minor by a personal covenant.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The guardian cannot, without prior permission from
the court,<o:p></o:p></span></li>
<ul type="circle">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">mortgage, charge, or transfer the immovable property
of the minor by way of sale, gift, exchange, or otherwise.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">lease the immovable property for a term more than 5
years or where the lease ends one year after the minor attains majority.<o:p></o:p></span></li>
</ul>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Any sale of immovable property in violation of the
above two points, is voidable at the insistence of the minor.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The court shall not give permission for sale of
immovable property unless it is necessary or clearly in the benefit
of the minor.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">These powers also
include the following<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">right in education<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">right to determine religion<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">right to custody<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">right to control movement<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">right to chastisement<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In the case of <b>Manik
Chandra vs Ram Chandra AIR 1981 SC</b> has held that the meaning of
"necessity" and "advantage" of a minor are quite wide and
the courts have the power to widen their scope as per the case facts before
giving the permission. As per section 12, no guardian can be appointed for the
undivided interest in the joint property of the minor. However, the court may
appoint a guardian for the complete joint family if required.<br />
<br />
<b>Custody of a minor</b><br />
Custody of a minor is also subordinate to section 13, which declares the
welfare of the child to be of paramount interest. Regarding a child, who is at
the age of discretion, his wishes are also to be considered, though his
wishes may be disregarded in his best interest.<br />
<br />
That a mother is preferred to father for custody is not right. Better economic
condition of the father than maternal grandfather is considered to be in favor
of the father. In <b>Kumar vs Chethana AIR 2004, SC</b> has held that
mother's remarriage is not a sufficient cause in itself to lose custody of a
minor. It was further held that convenience of the parents is irrelevant.<br />
To ensure the welfare of the child, the custody may even be given to the third
person as was given to the mother and grand father by SC in case of <b>Poonam
vs Krishanlal AIR 1989.</b><br />
In the case of <b>Re Madhab Chandra Saha 1997</b>, a father was never
active in the interest a minor and after a long time demanded the
guardianship. His claim was rejected.<br />
In the case of <b>Chakki vs Ayyapan 1989</b>, a mother who says she will
keep living with friends and may beget children from others, was not considered
appropriate for custody in the minor's interest.<br />
<br />
<b>Power over minor's property</b><br />
In general, a guardian may do all acts that are in the interest of the minor. A
third party may deal safely with the guardian in this respect. However, this
excludes fraudulent, speculative, and unnecessary deals. Before this act, a
natural and testamentary guardian had the power to alienate the minor's
property if it is necessary as determined by SC in <b>Hanuman Prasad vs
Babooee Mukharjee 1856</b>. However, this rule has been restricted through sec
8, which mandates courts permission before alienating the minor's interest in
the minor's property. Also, a guardian does not have any right over the
joint family interest of a minor.<br />
In the case of <b>Vishambhar vs Laxminarayana, 2001, SC</b> has held
that a sale of minor's immovable property without courts permission is voidable
and not void ab-initio. It further held that Sec 60 of Limitations Act would be
applicable when the minor repudiates the transaction.<br />
<br />
In case, a minor repudiates an improper alienation made by the guardian, he is
liable to return the consideration.<br />
<br />
<b>Liabilities of a guardian</b><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Since the legal position of a guardian is fiduciary, he
is personally liable for breach of trust.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">he is not entitled to any compensation unless
explicitly specified in a will.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">A guardian cannot take possession of minor's properties
adversely.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">must manage the affairs prudently.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">liable to render all accounts.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If the minor, after
attaining majority, discharges the guardian or reaches a settlement of account,
the guardian's liability comes to an end.<br />
<br />
<b>Rights of a guardian</b><br />
A guardian has a right to<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">represent the minor in litigations.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">get compensation for legal expenses from minor's
property.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">sue the minor after he attains majority to recover
expenses.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">refer matters to arbitration if it is in the best
interest of the minor.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">have exclusive possession of minor's property.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Removal of a guardian</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Court has the power to remove any guardian in accordance to section 13.<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">ceases to be a Hindu.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">becomes hermit or ascetic.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">court can remove if it finds that it is not in the best
interest of the child.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Testamentary Guardian (Sec
9)</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b><br />
</b>A person who becomes a guardian due to the will of a natural guardian is
called a testamentary guardian. Section 9 defines a testamentary guardian
and his powers.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For a legitimate boy or a girl, the father, who is a
natural guardian, may appoint any person to act as the guardian of the
child after the death of the father. However, if the mother is
alive, she will automatically become the natural guardian and after her
death, if she has not named any guardian, the person appointed by the
father will become the guardian.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">A widow mother who is a natural guardian, or a mother
who is a natural guardian because the father is not eligible to be a
natural guardian, is entitled to appoint a person to act as a guardian
after her death.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For an illegitimate child, the power of appointing a
testamentary guardian lies only with the mother.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Powers </span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
A testamentary guardian assumes all powers of a natural guardian subject to
limitations described in this act and to the limitations contained in the will.
A testamentary guardian is not liable personally for the expenses and he can
ask the guardian of the property of the minor to meet the expenses through the
property.<br />
The rights of the guardian appointed by will cease upon the marriage of
the girl.<br />
<br />
<b>Guardianship by Affinity</b><br />
In <b>Paras Nath vs State, Allahbad HC 1960</b>, held that the
father-in-law is the rightful guardian of a minor widow. However, this view has
not been adopted by Nagpur HC. Madras HC also did not hold this view and
held that the welfare of the child is to be considered first before anything
else.<br />
<br />
<b>De Facto Guardian</b><br />
Section 11 says that a de facto guardian is not entitled to dispose or deal
with the property of the minor merely on the ground of his being the de facto
guardian. There is controversy regarding the status of a de facto guardian.
Some HC consider that alienation by de facto guardian is void while alienation
by de jure guardian is voidable (<b>Ashwini Kr vs Fulkumari, Cal HC 1983</b>),
while some HC have held that both are voidable (<b>Sriramulu' case 1949</b>).
It is now well settled that de facto guardian does not have the right to assume
debt, or to gift a minor's property, or to make reference to arbitration.<br />
<br />
<br />
<b>Welfare of the minor is of paramount importance (Sec 13)</b><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">While appointing or declaring a guardian for a minor,
the count shall take into account the welfare of the minor.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">No person shall have the right to guardianship by
virtue of the provisions of this act or any law relating to the
guardianship in marriage if the court believes that it is not in the
interest of the minor.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Thus,
under this doctrine, any guardian may be removed depending on the circumstances
on per case basis and the court may appoint a guardian as per the best
interests of the minor.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Q. What are the
requisites/essential conditions of a valid adoption according to Hindu Adoption
and Maintenance Act 1956? What are the effects of a valid adoption? Can a valid
adoption be canceled?</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Historical Perspective</b><br />
Since the Vedic period, Hindu society has given a lot of importance to male
child. It was said that a male child saves the father from 'put' hell, hence
the male child is called Putra. This was the main reason which has prompted the
son-less to adopt a male child.<br />
<br />
<b>Manusmriti</b> says that when the natural father and mother give
wholeheartedly their son with the offering of water to another person in
distress, it is called Dattak.<br />
<br />
<b>Vashistha</b> has given several guidelines on dattak. It says that the
father and the mother of an offspring have complete right on selling or giving
the offspring to another. A Dattak cannot be taken from the person who has only
one son. A child whose kinsmen are not known cannot be taken as dattak. A woman
had no right to adopt.<br />
<br />
<b>Sounaka</b> has said metaphorically that a Dattak son must be a
reflection of the father, which means that a Dattak can only be taken from a
mother whom the person could have married before her marriage. Thus, one could
not adopt doughter's son, sister's son, or mother's sister's son.<br />
<br />
Thus, the practice of Dattak in the old days had been practiced mostly for
religious reasons. This is also evident from the fact that only a male child
was to be adopted because only he can perform the religious duties for the
father. Slowly, the secular reasons such as continuance of the family
name also became important. More recently, ulterior motives such as changing
the course of inheritance of property has also prompted people to adopt.<br />
<br />
Based on the above three authors and many other customs, the Dattak ceremony
primarily involved a Dattak grahan, i.e. the actual giving and taking of the child
and a Dattak homam. However, there were several controversies because there was
no one standard rule. So, in 1956, the Hindu Adoption and Maintenance Act
was enforced which standardized as well as modernized the rules and process for
adoption.<br />
<br />
Some important features of this act are:<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Adoption has been made a secular thing. There is no
necessity of any religions ceremonies or other religious aspects.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Both a man and a woman can adopt on their own right.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Both a boy or a girl can be adopted.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Orphans, out of cast children, or children in close
relation, can also be adopted.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Widow, widower, and bachelors can also adopt.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In the case of <b>Naidu vs Naidu AIR 1970, SC</b> has
held that the court need not look into the motives of adoption.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Requisites for Adoption</b><br />
<b>Section 6</b> of the HAM Act 1956 lays down the following 4
requirements<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The person who is adopting must have the capacity and
the right to adopt.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The person who is giving the child in adoption must
have the capacity to give.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The person who is being adopt must be eligible to be
adopted.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The adoption must satisfy all the rules given in this
act.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 7</b> describes which Hindu Male is capable of adoption:<br />
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<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Any Hindu male who has attained the age of majority and
who is of sound mind can adopt.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If he is married, he must take consent from his wife.
If he has multiple wives, consent from all the wives is required. In the
case of <b>Bhooloram vs Ramlal AIR 1989, MP HC </b>has held that
if the consent of the wife living with the husband is obtained but the
consent of the wife living away has not been obtained then the adoption is
void.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">A wife's consent is not required is the wife has
completely renounced the world and has become a Sanyasin, has changed her
religion and has ceased to be a Hindu, or has been proven by a competent
judge to be mentally unsound.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 8</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> describes which Hindu Female is capable
of adoption:<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">She must be a major and must not be mentally unsound.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">She is unmarried, is a widow or a divorcee. In the case
of <b>Vijayalakshamma vs B T Shankar, AIR 2001, SC</b> has held
that consent from a co-widow is not required because a widow can adopt on
her own right.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">A married woman is allowed to adopt only if the
husband has renounced the world completely, or is of unsound mind, or has
ceased to be a Hindu.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This is a big change
from pre-act situation. Earlier, a woman had no right to adopt.<br />
<br />
<b>Section 9</b> describes who has the capacity to give a child in
adoption<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Only the natural father has the right to give a
legitimate child in adoption. However, the father must get consent from
the natural mother unless the mother has been declared by a competent
court to be of unsound mind, has renounced the world, or has ceased to be
a Hindu.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If the father is mentally unsound, or has renounced the
world, or has ceased to be a Hindu, or is dead, the mother can give the
child in adoption.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Only the mother of an illegitimate child has the right
to give the child in adoption. However, she cannot adopt the child herself
because a giver cannot be taker at the same time.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If both the natural mother and father are dead, or have
renounced the world, or have abandoned the child, or are of unsound mind,
a guardian, testamentary or court appointed can give a child in adoption,
including to the guardian himself, upon prior permission of the court.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">While granting permission, the court must see the
welfare of the child and the wishes of the child depending on the child's
age.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In the case of <b>Dhanraj
vs Suraj, 1981 SC</b> held that guardian includes - de jure and de facto.
Thus, a manager or secretary of an orphanage, or the person in whose case the
child is, of the person who has brought up the child can give the child in
adoption.<br />
<br />
<b>Section 10</b> describes who is capable of being adopted<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The child must be a Hindu.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The child must not have already been adopted.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The child must be unmarried. However, if a custom to
the contrary exists, such an adoption may take place.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The child must be less than 15 yrs of age. However, if
a custom to the contrary exists, such an adoption may take place.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">There is no
restriction on who can be adopted regarding Sapinda relationships. Even a
daughter's son, or sister's son can be adopted.<br />
<br />
<b>Section 11</b> describes some other conditions for a valid adoption<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a male child is being adopted, the person who is
adopting must not already have a son, son's son, or son's son,
whether natural or adopted.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a female child is being adopted, the person who is
adopting must not already have a daughter or son's daughter.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a male is adopting a female child, then their age
difference must be greater than 21 yrs.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a female is adopting a male child, then their
age difference must be greater than 21 yrs.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Two persons cannot adopt the same child.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The actual giving and taking of the child must happen.
Only mere intention of giving and taking is not enough. The child must be
transfered from the home of the natural parents, or in case of orphans,
from the place he grew up, to the adoptive parent's home. The ritual or
ceremony of Dattak homam is not necessary.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In the case of <b>Sandhya
Supriya Kulkarni vs Union of India, AIR 1998</b>, these conditions were
challenged on the ground that they violate fundamental rights, however, SC held
that personal laws do not fall under the ambit of part III of the constitution.<br />
<br />
<b>Effects of Adoption</b><br />
<b><br />
Section 12</b> says that an adopted child is deemed to be a natural child
of his adopted parents for all purposes. All relations with the natural parents
and family are severed and new relationships with the adopted parents are
established. Only exception is that the adopted child cannot marry anybody from
his natural family in contravention of Sapind and prohibited relationships.<br />
It further says that the adopted child is not divested of his property that has
vested in him before adoption and that an adopted child cannot divest anybody
of his vested property after adoption.<br />
<br />
An important change from the old law here is that the concept of "relating
back", which means that when a widow adopts a child the adoption is
considered to be done from the date the husband died, has been abolished.
However, in the case of <b>Sawan Ram vs Kalawati AIR 1967</b>, SC has held
that the deceased father is sill considered the adoptive father.<br />
<br />
<b>Section 13</b> says that subject to any ante-adoption agreement, the
adoptive parents do not lose their right of alienation of their property after
adoption.<br />
<br />
<b>Section 14</b> describes the position of mothers in certain situations:<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">When a male adopts with the consent of the wife, the
wife becomes the adoptive mother.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a single adoptive father later marries, the wife of
the adoptive father becomes the step mother.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a single adoptive mother later marries, the husband
of the adoptive mother becomes the step father.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If an adoptive father has multiple wives, the senior
most by marriage, not by age, wife becomes the adoptive mother and other
wives become the step mothers.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Section 15</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> says that a <b>valid adoption cannot be canceled</b> either
by the adoptive father or mother. Neither can the adopted child renounce the
adoptive parents and go back to the family of his birth.<br />
<br />
<b>Section 16</b> says that whenever any document made under any law in
force at the time, purporting to record an adoption, and has been signed
by the giver and taker of the child, is produced before the court, the court
shall presume that the adoption has been made in accordance with the provisions
of this act unless and until it is disproved.<br />
<br />
In the case of <b>Pentakota Satyanarayana vs Pentakota Seetharatham
AIR 2005 SC</b>, the plaintiff brought a suit for partition and possession.
However, he failed to provide any proof of the adoption. His adoptive father
was estranged from adoptive mother and the adoptive mother had asked for
maintenance for herself but not for the adoptive son. There was no document or
agreement. The plaintiff could not provide any essential details such as date of
adoption or fixing of Muhurtam etc. Thus, SC held that there was no
adoption and the alleged adopted son had no right in the property.<br />
<br />
<b>Section 17</b> forbids receipt of any payment as a consideration for
the adoption. If any such payment is taken, he shall be punishable by 6 months
imprisonment and/or a fine or both.<br />
.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Q. Who are
"dependents" for the purpose of maintenance under Hindu
Adoption and Maintenance Act, 1956? What do you understand by maintenance? In
what cases a wife can claim separate residence without forfeiting her right to
maintenance from husband?</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Historical Perspective</b><br />
Joint family system has been a main feature of the Hindu society since vedic
ages. In a joint family, it is the duty of the able male members to earn money
and provide for the needs of other members such as women, children, and aged or
infirm parents.<br />
In Manusmriti, it has been said that wife, children, and old parents must be
cared for even by doing a hundred misdeeds.<br />
<br />
HAMA 1956 codifies a lot of principles governing the maintenance of dependents
of a Hindu male. Under this act, the obligation can be divided into two
categories - personal obligation and obligation tied to the property.<br />
<br />
<b>Dependents based on personal obligation</b><br />
Personal obligation means that a Hindu is personally liable, irrespective of
the property that he has inherited or his earnings, to provide for certain
relations who are dependent on him. These relations have been specified in the
following sections of HAMA 1956.<br />
<br />
<b>Section 18(1)</b> declares that whether married before or after this
act, a Hindu wife shall be entitled to claim maintenance by her husband during
her lifetime. Sec 18(2) says that a wife is entitled to live separately
without forfeiting her right to claim maintenance in certain situations. 18(3)
that a wife shall not be entitled to separate residence and maintenance of she
is unchaste or ceases to be a Hindu.<br />
In the case of <b>Jayanti vs Alamelu, 1904 Madras HC</b> held that
the obligation to maintain one's wife is one's personal obligation and it
exists independent of any property, personal or ancestral.<br />
<br />
<b>Section 20(1)</b> declares that a Hindu is bound to maintain his
children, legitimate or illegitimate, and aged or infirm parents. 20(2) says
that a child, legitimate or illegitimate, can claim maintenance from father or
mother, until the child is a minor. 20(3) says that the right to claim
maintenance of aged or infirm parents and unmarried daughter extends in so far
as they are not able to maintain themselves through their other sources of
income.<br />
In this case, a childless step-mother is also considered a parent.<br />
<br />
<b>Dependents based on obligation tied to property</b><br />
A person has obligation to support certain relations of another person whose
property has devolved on him. In this case, this obligation is not personal but
only up to the extent that it can be maintained from the devolved
property.<br />
<br />
Section 21 specifies these relations of the deceased who must be supported by
the person who receives the deceased property.<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">father<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">mother<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">widow, so long as she does not remarry<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">son, predeceased son's son, or predeceased son's
predeceased son's son until the age of majority. Provided that he is not
able to obtain maintenance from his father or mother's estate in the case
of grandson, and from his father or mother, or father's father or father's
mother, in the case of great grandson.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">daughter or predeceased son's daughter, or
predeceased son's predeceased son's daughter until she gets
married. Provided that he is not able to obtain maintenance from his
father or mother's estate in the case of granddaughter, and from his
father or mother, or father's father or father's mother, in the case of
great granddaughter.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">widowed daughter, if she is not getting enough
maintenance from her husband's, children's, or father in law's estate.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">widow of predeceased son, or widow of predeceased son's
son, so long as she does not remarry and if the widow is not getting
enough maintenance from her husband's, children's or her father or
mother's estate in the case of son's widow. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">illegitimate son, until the age of majority<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">illegitimate daughter, until she is married.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 22 (1) says
that heirs of a Hindu are bound to maintain the dependents of the deceased out
of the estate inherited by them from the deceased. Thus, this obligation is to
be fulfilled only from the inherited property and so it is not a personal
obligation. 22(2) says that where a dependent has not received any share, by
testamentary or intestate succession, he shall be entitled to maintenance from
those who take the estate. 22(3) says that the liability of each heir is in
proportion to the estate obtained by him. 22(4) says that a person who himself
is a dependent cannot be forced to pay any amount of maintenance if the amount
causes his share to reduce below what is required to maintain himself.<br />
<br />
<b>Maintenance</b><br />
Maintenance means the right of dependents to obtain food, clothing, shelter,
medical care, education, and reasonable marriage expenses for marriage of a
girl, from the provider of the family or the inheritor of an
estate. The basic concept of maintenance originated from the existence of
joint families where every member of the family including legal relations as
well as concubines, illegitimate children, and even slaves were taken care of
by the family. However, maintenance does not mean unreasonable expectations or
demands.<br />
<br />
In the case of <b>Ekradeshwari vs Homeshwar in 1929</b>, Privy Council had
enunciated certain principles in governing the amount of maintenance. It said
that maintenance depends on a complete analysis of the situation, the amount of
free estate, the past life of the married parties and the family, the
requirements of the claimants, and a consideration regarding future changes.<br />
<br />
<b>How much maintenance</b><br />
Section 23(1) says that courts will have complete discretion upon whether and
how much to maintenance should be given. While deciding this, the courts shall
consider the guidelines given in sections 23(2) and 23(3).<br />
Section 23(2) says that that while deciding the maintenance for wife, children,
and aged or infirm parents, the courts will consider:<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the position and status of the parties.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the reasonable wants of the claimants.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If a claimant has a separate residence, is it really
needed.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the value of the estate and the income derived from it
or claimant's own earning or any other source of income.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the number of claimants.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 23(3) says
that while determining the maintenance for all other dependents the courts
shall consider the following points:<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the net value of the estate after paying all his debts.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the provisions, if any, made in the will in favor of
the claimants.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the degree of the relationship between the two.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the reasonable wants of the dependent.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the past relations between the deceased and the
claimants.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">claimant's own earnings or other sources of income.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">the number of dependents claiming under this act.<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Discretion of Court</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of <b>Mutyala vs Mutyala 1962 AP HC</b> held
that amount of maintenance cannot be a matter of mathematical certainty.<br />
<b>Position and Status of parties</b><br />
In the case of <b>Kiran Bala vs Bankim 1967 Calcutta
HC</b> observed the living standard of the wife, and her reasonable wants
in determining the maintenance amount.<br />
<b>Reasonable wants</b><br />
In the case of <b>Kiran Bala vs Bankim 1967 Calcutta
HC</b> observed that the husband had a second wife and so the fact that
the claimant is living separately will not go against her in determining the
amount.<br />
In the case of <b>Krishna vs Daimati 1966 Orrisa HC</b> held
that when a minor child lives with the mother, the necessities of the child
constitute reasonable demands of the mother.<br />
<b>Separate earning of the claimant</b><br />
Whether the claimant has separate earning on income is a
question of fact and not a question of presumption. It cannot be, for example,
presumed that a college educated girl can maintain herself.<br />
In the case of <b>Kulbhushan vs. Raj Kumari</b> wife
was getting an allowance of 250/- PM from her father. This was not considered
to be her income but only a bounty that she may or may not get. However, income
from inherited property is counted as the claimant’s earning.<br />
<b>Arrears of Maintenance</b><br />
In the case of <b>Raghunath vs Dwarkabai 1941 Bom HC</b> held
that right of maintenance is a recurring right and non-payment of maintenance
prima facie constitutes proof of wrongful withholding.<br />
<br />
<br />
<b>Wife's right to separate residence without forfeiting the right to
maintenance<br />
<br />
</b>Section 18(2) says that a wife can live separately and still claim
maintenance from husband in the following situations.<br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Desertion: It the husband is guilty of deserting the
wife without her consent, against wife's wishes, and without any
reasonable cause, the wife is entitled to separate residence. In the case
of <b>Meera vs Sukumar</b> <b>1994 Mad</b>, it was held that
willful neglect of the husband constitutes desertion.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Cruelty: If husband through his actions creates
sufficient apprehension in the mind of the wife that living with the
husband is injurious to her then that is cruelty. In the case of<b>Ram
Devi vs Raja Ram 1963 Allahbad</b>, if the husband treats the wife with
contempt, resents her presence and makes her feel unwanted, this is
cruelty.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If the husband is suffering from a virulent form of
leprosy.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If the husband has another wife living. In the case of <b>Kalawati
vs Ratan</b> <b>1960 Allahbad</b>, is has been held that it is not
necessary that the second wife is living with the husband but only that
she is alive.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If the husband keeps a concubine or habitually resides
with one. In the case of <b>Rajathi vs Ganesan 1999 SC</b>, it was
held that keeping or living with a concubine are extreme forms of
adultery.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If the husband has ceased to be a Hindu by converting
to another religion.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For any other reasonable cause. In the case of <b>Kesharbai
vs Haribhan 1974 Mah</b>, it was held that any cause due to which
husband's request of restitution of conjugal rights can be denied could be
a good cause for claiming a separate residence as well as maintenance. In
the case of <b>Laxmi vs Maheshwar 1985 Orrisa</b>, it was held that
if the husband fails to obey the order of restitution of conjugal rights,
he is liable to pay maintenance and separate residence. In the case of <b>Sobha
vs Bhim 1975 Orrisa</b>, mere drinking habit is not a sufficient cause for
separate residence. <o:p></o:p></span></li>
</ol>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Section
18(3) says that a wife is not eligible for separate residence and maintenance
if she is unchaste or has ceased to be a Hindu.<br />
In the case of <b>Dattu vs Tarabai 1985 Bombay</b>, it was held that mere
cohabitation does not by itself terminate the order of maintenance passed under
18(2). It depends on whether the cause of such an order still exists.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Concept of Marriage -
Sacramental or Contractual?<br />
</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Historical Perspective - Manu, ardhangini, marriage is an essential sanskara,
man is incomplete without wife. Once performed, it cannot be dissolved.<br />
Modern Perspective - Civil contract. Can be dissolved. Cannot force to live
together. Equality of sexes. Can't be done without consent.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<table border="1" cellpadding="0" class="MsoNormalTable" style="mso-cellspacing: 1.5pt; mso-padding-alt: 1.5pt 1.5pt 1.5pt 1.5pt; mso-yfti-tbllook: 1184; width: 826px;">
<tbody>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 50.0%;" width="50%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Why is it Sacramental?<o:p></o:p></span></b></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Why is it Contractual?<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">As per Contract Act
1872, contract with a minor is void ab initio. Even though section 5(2) says
that valid consent is required and section 5(3) says that the boy should be
above 21 yrs and the girl should be above 18 yrs, marriage done in
contravention of these provisions is not void. Marriage with a minor is not
even voidable only on that ground. In the case of <b>Venkatacharyalu vs
Rangacharyalu 1980</b>, it was held that the person married may be a minor or
even of unsound mind, yet if the marriage rite is duly solemnized, it is a
valid marriage.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The fact that
consent of the boy and the girl is required means that it is contractual. If
the consent is obtained by force or fraud, the marriage is voidable.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 7 of HMA1955
requires that religious ceremonies are a must to complete a marriage. A
marriage done without "saptapadi" is void.<br />
In the case of <b>Dr. A N Mukherji vs State 1969</b>, a person could not
be convicted of bigamy because he performed 3 marriages without doing
necessary ceremonies.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Marriage is no more
permanent since divorce is available by mutual consent.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;"></td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Marriage is no more
eternal since widow remarriage is permissible.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Even now bachelors
are not eligible to perform several religious ceremonies. Only married
couples are allowed. Thus, it still retains its sacramental property.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Marriage is no more
holy because a marriage can be done without all the ceremonies such as vivah
homam. Only saptapadi is required.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">No-fault
divorce, as available in western countries, is not available in HMA
1955. Thus, breaking up of a marriage is very difficult.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;"></td>
</tr>
</tbody></table>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Conclusion: It is has a unique blend of sacramental and contractual
characteristics.<br />
<br />
<b>Essential conditions of a valid Hindu marriage. Is there a provision for
punishment for violating the conditions?<br />
</b><br />
<b>Section 5</b><br />
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<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 5 (1) Must not have a spouse alive.<br />
<b>Kanwal Ram vs H. P.</b> - Essential ceremonies are a must for
committing the offence of second marriage.<br />
<b>Priya vs Suresh</b> - Mere admission by the parties is not enough.
Proof of essential ceremonies is required.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 5 (2) neither party is<o:p></o:p></span></li>
<ol start="1" type="1">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">incapable of giving consent due to unsoundness of
mind.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">though capable of giving consent, is unfit for
marriage and procreation of children due to mental disorder.<br />
<b>Alka vs Abhinash</b> - MP HC held that "and" must be
read as "or".<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">suffers from recurrent attacks of insanity.<br />
<b>Balakrishna vs Lalitha</b> - "Incurable" is not a
requirement. Only recurrent attacks, irrespective of whether curable or
incurable, provided enough ground.<o:p></o:p></span></li>
</ol>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Boy is over 21 and girl is over 18.<br />
<b>Rabindra vs Sita</b> - Marriage in contravention of this clause
is, nevertheless, valid.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">parties are not within degrees of prohibited
relationship.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">parties are not sapindas<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Punishment</span></b><span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Section 17 says that section 494 (bigamy without concealment - 7yr + fine) and
495 (bigamy with concealment - 10 Yrs + fine) of IPC will apply for
bigamy.<br />
Section 18(a): 15 days + 1000/- for contravention of 5(3)<br />
Section 18(b) : 30 days + 1000/- for contravention of 5(4) and 5(5)<br />
<br />
<b>What is the difference between Void and Voidable marriage? What are the
consequences of a Void marriage?</b><br />
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<table border="1" cellpadding="0" class="MsoNormalTable" style="mso-cellspacing: 1.5pt; mso-padding-alt: 1.5pt 1.5pt 1.5pt 1.5pt; mso-yfti-tbllook: 1184; width: 1007px;">
<tbody>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 30.0%;" width="30%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Void<o:p></o:p></span></b></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Voidable<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Defined by section
11<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Defined by section
12<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;" valign="top">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Grounds -<o:p></o:p></span></div>
<ol start="1" type="1">
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Performed in contravention of
5(i), 5(iv), or 5(v)<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Ceremonies in section 7 not
performed.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In contravention of section
15 - Divorce not granted yet or time to appeal has not elapsed.<o:p></o:p></span></li>
</ol>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Grounds:<o:p></o:p></span></div>
<ol start="1" type="1">
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Unable to consummate -
Impotence (not same as incapacity to conceive or impregnate)<br />
<b>Samar vs Snigdha</b> - Full and complete penetration (vera
copula) is an essential ingredient of ordinary intercourse though degree
of satisfaction is immaterial.<br />
<b>Kanthy vs Harry</b> - Unduly large male organ amounts to
physical abnormality and thus impotence.<br />
<b>Laxmi vs Babulal</b> - Absence of vagina, even though an
artificial vagina was created, was held impotence.<br />
<b>Jagdeesh vs Seela</b> - Husband lived with wife for 3 days and
nights immediately after marriage but could not consummate. Held that it
was because of incapacity, nervousness, or hysteria. Thus, was impotent.<br />
<b>Shewanti vs. Bharua 1971</b> - Wife was sterile and suffering
from non-menses, though she was capable of normal sexual intercourse.
Held not impotent because capacity to bear children is not impotence.
Impotence only refers to sexual intercourse.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In contravention of 5(ii) -
Mentally unsound. <b>Alka vs Abhilash, Balakrishna vs Lalitha</b> (see
above)<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Consent obtained by force or
fraud. <o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin: 0in 0in 12pt 0.5in;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Force - <b>Rice vs Rice</b> - threatened with
pistol.<br />
Fraud - <b>Rama vs Mohinder 1996</b> - Did not tell that she had a
child with cesarean.<br />
Fraud - <b>Purbi vs Basudev 1969</b> - Husband's pre-marriage
boasting about high prospects in life is not fraud.<br />
Fraud - <b>Som Dutt vs Raj Kumar 1986</b> - Wife concealed her age.
She was 7 yrs elder.<o:p></o:p></span></div>
<ol start="4" type="1">
<li class="MsoNormal" style="color: #191919;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Girl was pregnant by some
other person<o:p></o:p></span></li>
</ol>
<div class="MsoNormal" style="margin: 0in 0in 0.0001pt 0.5in;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Mahendra vs Sushila 1965</span></b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> -Girl's admission to pre-marriage
pregnancy when husband had no access to her.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Marriage does not
exist at all.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Marriage is fully
valid until it is declared void by the court.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">No consequences of
marriage - right in property, conjugal rights, maintenance.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Full consequences
while marriage lasts.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">No decree of court
is necessary. Decree can be obtained by either person.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Court decree is
necessary. Marriage can be avoided only on the petition of one spouse. If one
person does not petition for annulment, marriage will remain valid. If one
person dies, the marriage will remain valid for ever.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">If someone calls the
wife a concubine, it will not amount to defamation.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Decree is given
retroactively.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Effects of a void marriage</b><br />
Section 16 - Children of void (sec 11) or annulled voidable (sec
12) marriage, though termed legitimate under section 16, do not get any
right in the joint family of parents. They have right in personal self earned
property of parents.<br />
Spouses cannot claim any matrimonial reliefs.<br />
Illustration - A and B are brothers. W is B's wife but marriage is void. A dies
without any children. B can claim all of A's property.<br />
In the case of <b>Sudarsan vs State 1988</b>, it was held that this
legitimacy is conferred only in cases when marriage is void on account of sec
11 and not if a marriage is void due to another reason such as lack of proper
ceremonies.<br />
<br />
<b>Explain Judicial separation. What is the difference between Judicial
Separation and Divorce? On what grounds can a decree of Judicial Separation be
passed?<br />
</b>Judicial separation is a state of marriage authorized by the court where a
husband and wife do not live like a married couple. In many situations it
becomes impossible for either spouse to live with the other person. At the same
time, they either do not want a divorce or do not have enough ground for
divorce. In such a situations, court may grant a decree of judicial separation.<br />
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<table border="1" cellpadding="0" class="MsoNormalTable" style="mso-cellspacing: 1.5pt; mso-padding-alt: 1.5pt 1.5pt 1.5pt 1.5pt; mso-yfti-tbllook: 1184; width: 826px;">
<tbody>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 50.0%;" width="50%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Judicial Separation<o:p></o:p></span></b></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Divorce<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 10 -
Marriage still exists therefore cannot do adultery etc.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Section 13 -
Marriage ends. Can remarry subject to sec 15.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Not obligatory for
the petitioner to cohabit with the partner.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Cannot be undone.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Can be rescinded by
petition of either party if court is satisfied.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;"></td>
</tr>
</tbody></table>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
</div>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Grounds for Judicial separation are same as given in section 13(1), which are
applicable for divorce. A wife has the grounds given in section 13(2)
as well. These are given below under Divorce.<br />
<br />
<b>Section 13 (1) At fault Grounds</b><br />
<br />
(i)<br />
<b>Adultery - </b> Voluntary intercourse with third person. Does not
include rape.<br />
<b>Vira Reddy vs Kistamma 1969</b> - One single act of adultery is enough
for divorce or judicial separation.<br />
Burden of proof is on the petitioner. Earlier it had to be proved beyond doubt
but now only high probability is required.<br />
<b>Sanjukta vs Laxmi 1981</b> - Circumstantial evidence is sufficient.<br />
<b>Cruelty</b><br />
Legal concept of cruelty has varied from time to time, place to place, and
situation to situation. In early law, intention was considered an essential
element of cruelty but in modern law it is not so. The intention of the law is
to protect the innocent party from any harm -physical or mental. Scolding or
nagging have also been considered as cruelty.<br />
<br />
<b>Definition</b><br />
There is no precise definition of cruelty because the term is so wide. Several
situations and cases over past 100 years have shown that cruelty can be mental
or physical. In the case of <b>Dastane vs Dastane 1970 Bom</b>, it was
held that cruelty could be through words, gestures, or even by mere silence.<br />
A general explanation of cruelty can be found in the case of <b>Russel vs
Russel 1897</b>, in which it was held that any conduct that poses a danger to
life, limb, or health - physical or mental, or causes reasonable apprehension
of such danger, is cruelty.<br />
Earlier, the petitioner had to show that the act of the respondent caused
reasonable apprehension of danger. Thus, in the case of <b>Sayal vs
Sarla 1961 Punjab</b>, when wife administered love-potion to the husband,
causing his hospitalization, it was held to be cruelty even though she did not
mean to hurt her husband because it caused reasonable apprehension of danger.
However, now it is not required. The clause merely says, "if the
respondent has treated the petitioner with cruelty". In the case of <b>GVN
Kameshwara Rao vs G Jalili 2002</b>, SC held that it is not necessary that the
act has caused a reasonable apprehension in the mind of petitioner. The
emphasis will be on the act or conduct constituting cruelty. It further held
that social status of the parties, their education must be considered while
determining whether the act constitutes cruelty or not. Thus, what
amounts to cruelty in one case may not amount to cruelty in another.<br />
<br />
<b>Intention to be cruel is not material</b><br />
Earlier intention was necessary but now it is not so. In the case of <b>Jamieson
vs Jamieson 1952</b>, House of Lords observed that unintentional acts may also
amount to cruelty. In<b>Williams vs Williams 1963 Allahbad</b>, the necessity
of intention in cruelty was finally rejected in India. In this case husband was
insane and constantly accused the wife of adultery. This was cruelty without
intention.<br />
Thus, in the case of <b>Bhagwat vs Bhagwat 1976 Bom</b>, when husband tried
to strangulate wife's brother and he younger son in a fit of insanity, he was
held to be cruel. Temporary insanity or schizophrenia cannot be a defense
against the plea of cruelty.<br />
<br />
<b>Cruelty need not only be against the petitioner</b><br />
In <b>Bhagwat vs Bhagwat,</b> cruelty against his step daughter was
held as cruelty against wife.<br />
<br />
<b>The act or omission need not only be of the respondent</b><br />
Since most women have to live in husband's joint family, they have to put up
with their actions also. In the case of <b>Shyam Sundar vs Santa Devi 1962</b>,
the wife was ill treated by the in-laws and husband stood their idly without
caring for wife. This was held as cruelty.<br />
However, in the case of <b>Gopal vs Mithilesh 1979 Allahbad</b>, husband's
stand of neutrality regarding wife and mother and his inaction about his
mother's nagging of his wife was not considered cruelty because it is normal
wear and tear of a married life.<br />
<br />
<b>Cruelty of Child</b><br />
Generally, cruelty by child towards one parent does not amount to cruelty.
However, in the case of <b>Savitri vs Mulchand 1987 Delhi</b>, mother and
son acted in concert and the son tortured the father by squeezing his testicles
to force him to do what they wanted him to do, was considered cruelty against
the wife.<br />
<br />
<b>Types of cruelty - Physical and Mental</b><br />
<br />
<b>Physical Cruelty</b><br />
Injury to body, limb, or health, or apprehension of the same. In the case of <b>Kaushalya
vs Wisakhiram 1961 Punj</b>, husband beat his wife so much so that she had to
lodge police complaint even though injury was not serious. It was held that
serious injury is not required.<br />
<br />
<b>Mental Cruelty</b><br />
In <b>Bhagat vs Bhagat 1994 SC</b> held that a conduct that causes
such a mental pain and suffering that makes it impossible to live with that
person is mental cruelty. Mental cruelty must be such that it cannot reasonably
be expected to live together. This has to be judged on the circumstances of the
case.<br />
<br />
In the case of <b>N Sreepadchanda vs Vasantha 1970 Mysore</b>, wife hurled
abuses at the husband and quarreled over trivial matters so much so that he
became a laughing stock in the locality. This was held to be mental cruelty
against the wife.<br />
<br />
In <b>Saptami vs Jagdish 1970 Calcutta</b>, false accusations of adultery
were held to be mental cruelty.<br />
<br />
<b>Yashodabai vs Krishnamurthi 1992</b> - Mere domestic quarrels with
mother in law is not cruelty.<br />
<br />
<b>Shobha vs Madhukar 1988 SC</b> - Constant demand for dowry is cruelty.<br />
<br />
In the case of <b>Jyotishchandra vs Meera 1970</b>, husband was not
interested in wife, he was cold, indifferent, sexually abnormal and perverse.
It was physical as well as mental cruelty.<br />
<br />
<br />
<b>Desertion</b><br />
<br />
3 Types - Actual Desertion, Constructive Desertion, Willful neglect.<br />
<br />
<b>Actual Desertion</b> - factum of desertion, animus deserdendi, Without
reasonable cause, without consent, 2 yrs must have passed.<br />
<br />
<b>Lachman vs Meena - 1964</b> - Wife was from rich family. She was
required to live in joint family of husband. She went back to parents. Kept
making fake promises of return but never did. Held desertion.<br />
<b>Jagannath vs Krishna</b> - Wife became brahma kumari and refused
to perform marital obligations. Held desertion.<br />
<b>Bipinchandra vs Prabhavati SC 1957</b> - Husband went to England.
Husband's friend came to house in India. Husband came back. Alleged affair,
which was refuted by wife. Wife went to her parents for attending
marriage. Prevented her from coming back. Held no desertion by wife.<br />
<b>Sunil Kumar vs Usha 1994</b> - Wife left due to unpalatable atmosphere
of torture in husband's house. Held not desertion.<br />
<br />
<b>Constructive Desertion</b> - If a spouse creates an environment that
forces the other spouse to leave, the spouse who created such an environment is
considered deserter.<br />
<b>Jyotishchandra vs Meera 1970</b> - Husband was not interested in
wife, he was cold, indifferent, sexually abnormal and perverse. Went to
England. Then came back and sent wife to England for PhD. When wife came back,
did not treat her well. Abused her and his inlaws physically. Wife was forced
to live separately. Held desertion by husband.<br />
<br />
<b>willful Neglect</b> - If a spouse intentionally neglects the other
spouse without physically deserting, it is still desertion.<br />
<b>Balihar vs Dhir Das 1979</b> - Refusing to perform basic marital
obligations such as denial of company or intercourse or denial to provide
maintenance is willful neglect.<br />
<br />
<b>Reasonable Cause</b><br />
1. If there is a ground for matrimonial relief. ( ground for void, voidable
marriage or grounds for maintenance under sec 18 of HAMA).<br />
2. If spouse is guilty of a matrimonial misconduct that is not enough for
matrimonial relief but still weighty and grave.<br />
3. If a spouse is guilty of an act, omission, or conduct due to which it is not
possible to live with that spouse.<br />
<b>Chandra vs Saroj 1975</b> - Forcing a brahmin wife to eat meat.<br />
<br />
<b>Without Consent</b><br />
<b>Bhagwati vs Sadhu Ram 1961</b> - Wife was living separately under a
maintenance agreement. Held not desertion.<br />
<br />
<b>Other Grounds</b><br />
<br />
Section 13 (ii) : ceased to be a Hindu.<br />
<br />
Section 13 (iii) unsound mind. - includes mental disorders such a incomplete
development of brain or psychopathic disorder or schizophrenia<br />
Section 13 (iv) virulent and and incurable Leprosy<br />
Section 13 (v) communicable venereal disease<br />
Section 13 (vi) renounced the world<br />
Section 13 (vii) presumed dead - not heard of in 7 years.<br />
<br />
<b>Section 13 (1-A) Breakdown Theory</b><br />
(i) no cohabitation for 1 yr after passing the decree of judicial separation.<br />
(ii) no cohabitation for 1 yr after passing the decree of restitution of
conjugal rights.<br />
Effected by provisions in section 23.<br />
<br />
<b>Section 13(2) Additional grounds for wife</b><br />
(i) Another wife of the husband is alive.<br />
(ii) Rape, Sodomy, Bestiality.<br />
(iii) Wife was awarded maintenance under section 15 of HAM 1956 or under
section 125 of CrPC and no cohabitation has occurred for 1 yr after the award.<br />
(iv) If wife was under 15 at the time of marriage and if she repudiates the
marriage before 18.<br />
<br />
<b>Section 13-A Alternate relief in divorce proceedings</b> - If the judge
feels that sufficient grounds do not exist for divorce, he can grant judicial
separation.<br />
<br />
<b>Section 13-B Divorce by mutual consent</b> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-2237598532527783659.post-91139252253980520722016-02-16T11:30:00.002-08:002016-02-16T11:30:58.141-08:00Law of Contract ( Notes)<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Distinguish between proposal and invitation to proposal. </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Section 2(a) says that when a person signifies to another, his
willingness to do or to abstain from doing something with a view to
obtaining the assent of that another to such act or abstinence, he is said to
make a proposal. Thus, when an offer is made with such finality that the only
thing remaining is the assent of the party to whom it is proposed, it is called
a proposal. If the offer does not reflect such finality, it is merely an
invitation to proposals. Thus, when a person advertises that he has books to
sell, it is only an invitation for proposals.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
When a person, without expressing his final willingness, proposes certain terms
on which he wishes to negotiate, he is merely making an invitation to
proposals.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Harvy vs Facie 1893</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, plaintiff telegraphed, "Will you sell
Bumper Hall pen? Send lowest price." Defendants responded with
"Lowest price of Bumper Hall Pen, $900". Plaintiffs then sent,
"we agree to buy bumper hall pen for $900". However, defendants
refused to sell. It was held that defendants had not signified a final
willingness to sell. They had only told the lowest price. This, it was only an
invitation to proposal and not a proposal.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Pharmacutical Society
of GB vs Boots Cash Chemists Ltd. 1952</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that display of goods is also an invitation to
sell even if it is a self service shop.<br />
<br />
<b>MC Pherson vs Appanna 1951</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Proposal to buy property at 6000/- was replied with, "
won't accept less than 10000". This was not considered a proposal but an
invitation to proposal.<br />
<br />
<b>Auctions</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">: Announcement to hold
auction is not an offer. Highest bid is nothing more than an offer to buy.<br />
<br />
<b>Definiteness of proposal</b>: "Cocks and Hens - 25s each" is not
an offer to sell.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Q. Define contract.
State essential elements of a valid contract.<br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Section 2(h)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">of Indian Contract Act 1972 - An agreement
enforceable by law is a contract.<br />
Def. by</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Anson</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A contract consists in an actionable promise
or promises.<br />
Def. by <b>Sevigni</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Contract is a
combination of agreement and responsibility.<br />
Def. by</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Pollock</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- An agreement or promise enforceable by law
is contract.<br />
<br />
<b>Essential Elements</b><br />
Section 10 - All agreements that are made by people competent to contract, with
free consent, for a lawful object and lawful consideration and not expressly
declared to be void are contracts.<br />
<br />
Thus, we get the following elements -<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There must be two or
more people involved.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There must be an
intention to contract.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Balfour vs Balfour
1919</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Husband promised to
send money to wife. Not a contract because there was no intention to contract.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There must be an
agreement to do or to abstain from doing something.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">The agreement must
involve a lawful purpose, which means - agreement must not be against marriage,
trade, legal proceedings, or it must not be a wagering agreement or must not be
expressly prohibited by law.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Agreement must not be
uncertain<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Must not be
impossible. Sec 56.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Free consent - not
vitiated by coercion, undue influence, fraud, or misrepresentation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Parties must be
competent to contract.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Lawful consideration.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">10.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Lawful object.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">11.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Legal formalities<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">12.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Must be enforceable by
law, which means must not be immoral or against public policy.<o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Q. What is a general offer? How is a contract created through
general offer? Refer to leading cases.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
An offer may be made to the world at large. Such an offer is a general offer.
However, a contract is not done with the whole world but only with the person
who comes forward and accepts the offer. The acceptance might be express or
implied.<br />
As per Anson, "An offer need not be made to an asertained person, but no
contract can arise until it is accepted by an ascertained person".<br />
<br />
<b>Case of Carllil vs Cabolic Smoke Ball Company.</b><br />
<br />
<b>Creation of the contract</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- If the person performs the conditions of the offer. Thus, a
person who finds a lost dog fulfills the condition of the prize money and thus
a contract with the owner of the dog is created.<br />
<br />
General Offer of Continuing Nature - Some offers such as finding a lost object
close when it is accepted by the first person. However, some offers, such as in
the Carllil case, it can be accepted by any number of persons until the closing
date of offer or until it is retracted.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Describe the law relating to communication of proposals, their acceptance and
their revocation.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 2(a)</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">of Indian Contract Act
1972 says that when a person signifies his willingness to do or to abstain from
doing something to another, with a view to obtaining the assent of that
another, he is said to make a proposal. Further,</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">section 2(b)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that when the person to whom the proposal is made signifies
his assent, the proposal is said to be accepted. The important point to note
here is that the party making the proposal or the party accepting the proposal
must "signify" their willingness or assent to the other party. Thus,
a promise cannot come into existence unless the willingness or assent is
communicated to the other party. Further, even the revocation, if any, must be
communicated to the other party for it to take effect. Therefore, communication
is the most critical aspect in the making of a contract.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Communication</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 3</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">defines how a
communication, acceptance, or revocation can be signified:<br />
The communication, acceptance, and revocation are deemed to be made by an act
or omission of the party proposing, accepting, or revoking, by which he intends
to communicate such proposal, acceptance, or revocation, or which has the
effect of communicating it.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Thus, a proposal may be made by any way, which has the effect of laying before
another person his willingness to do nor not do something. The acceptance can
be signified similarly. <b>Section 9</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">specifies that a promise (i.e. a proposal and its acceptance)
can be formed either by words, written or oral, is which case it is called
express or by action, in which case it is called implied. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Haji Mohd Ishaq vs Mohd Iqbal SCC 1978</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, the defendants accepted the goods supplied
by the plaintiff through a go between man and also paid part of the price. It
was held that the defendants were liable to pay the remaining balance because
the proposal and its acceptance were signified by their actions.<br />
<br />
<br />
<b>Section 4</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">specifies when a
communication is complete:<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Communication of a proposal is complete when it comes
to the knowledge of the party to whom the proposal is made.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">For example, if A
sends a proposal in the mail to B and if the mail is lost, it can be held that
the communication of the proposal is not complete. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Lalman vs Gauridatta 1913</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that the reward for the missing
child cannot be claimed by a person who traced the child without any knowledge
of the announcement. There was no contract between the two in the first place
because the proposal never came to the knowledge of the person who found the
child and thus he could never accept it.<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Communication of the acceptance is complete, as against
the promisor, when it is put in course of transmission to the
promisor so as to be out of the power of the acceptor, as against the
acceptor, when it comes to the knowledge of the promisor.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">For example, as soon
as B drops a letter of acceptance in mail back to A, A is bound by the promise.
However, B is not bound by it unless A receives the acceptance letter. In the
case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Adams vs Lindsell 1818</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that a contract arose as soon as
the acceptance was posted by the acceptor. In this case, the plaintiff received
the offer to sell wool on 5th and they posted an acceptance, which was received
on 9th by the defendants. The defendants, however, had already sold the wool on
8th. The court observed that the contract must arise as soon as the acceptance
is posted and is gone out of the reach of acceptor otherwise this will result
in an infinite loop.<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Communication of a revocation is complete as against
the party who makes it when it is put in course of transmission to the
party to whom it is made, so as to be out of the power of the party who
makes it; as against the party to whom it is made, when it comes to the
knowledge of the party to whom it is made.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">For example, if A
sends a letter revoking his proposal, it will be complete against A as soon as
the letter is dropped in the mailbox and is out of his control. However, the
revocation will be held complete against B only when B receives the letter.<br />
Further, if B revokes his acceptance by telegram, it will he deemed complete
against B as soon as he dispatches the telegram. It will be held complete
against A, when A receives the telegram.<br />
<br />
<b>Section 5</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">specifies when a
proposal and acceptance can be revoked:<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">A proposal can be revoked anytime before the
communication of its acceptance is complete as against the proposer but
not afterwards.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">For example, if A
propose to B through a letter, A can revoke the proposal as long as B has not
posted a letter of acceptance to A. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Henthorn vs Fraser 1862</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, an offer to sell a property was made to a
person. This person was to reply to it within 14 days. He lived in
another town and he posted an acceptance at 3.50PM, which reached the offerer
at 8.30 PM. Meanwhile, the offerer posted the revocation letter at 1 PM, which
reached the person at 5.30PM. Thus, the revocation did not reach the offeree
before the communication of the acceptance was complete as against the offerer.
Thus, the revocation was held ineffective.<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">An acceptance may be revoked anytime before its
communication is complete as against the acceptor.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">For example, B can
revoke his acceptance that was sent by letter, by a telegram that reaches A
before the acceptance letter. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Union of India vs Bhimsen Walaiti Ram 1969</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, the defendant won an auction for a liquor
shop and paid 1/6 of the cost upfront. However, the bid was supposed to be
finalized by the financial commissioner, which he had not done. Meanwhile, the
defendant failed to pay the remaining amount and the commissioner ordered a
re-auction. In the re-auction, less money was realized and the plaintiff sued
to recover the shortfall. However, SC held that since the commissioner had not
given is final approval for the bid, the communication of acceptance was not
complete against the defendant, thus the defendant was free to withdraw or
revoke his proposal (i.e the bid).<br />
<br />
<b>Section 6</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">specifies how a
revocation can be made:<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">A proposal is revoked<o:p></o:p></span></li>
<ul type="circle">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">by the communication of the notice of revocation by
the proposer to the other party.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">by the lapse of prescribed time in the proposal for
acceptance or if no time is prescribed, by the lapse of a reasonable time
in communication of the acceptance.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">by the failure of the acceptor to perform a condition
precedent to acceptance.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">by death or insanity of the proposer, if the fact of
the death or insanity comes to the knowledge of the acceptor before
acceptance.<o:p></o:p></span></li>
</ul>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Acceptance<br />
<br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Section 7</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">specifies that an acceptance must be absolute
and unqualified. A partial acceptance or a clarification regarding a proposal,
or specifying a condition on acceptance is no acceptance. <br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Hyde vs Wrench 1840</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, an offer was made to sell a farm for
#1000, which was rejected by an plaintiff, who counter offered #950 for
it. This was rejected by the defendant, upon which the plaintiff agreed to pay
#1000. However, it was held than the defendant was not bound by any such second
acceptance.<br />
<br />
<b>Section 7</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">further says that the
acceptance must be in some usual and reasonable manner, unless the proposal
prescribes the manner in which the acceptance should be made. If the
proposal prescribes the manner, and if the acceptance is not done in that
manner, the proposer may insist that the acceptance be made in the manner
prescribed, and if he fails to do so, he accepts the acceptance. Thus, if
the acceptance is sent by any way other than what is prescribed by the
proposal, the proposer must reject it in a reasonable time otherwise the
proposer accepts it. This is markedly different from English law where a
proposal must be accepted in the manner required in the proposal otherwise, the
acceptance is invalid. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Elliason vs Henshaw 1819</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that an acceptance sent by mail instead of through
the wagon that brought the offer, was not valid.<br />
<br />
<b>Section 8</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">specifies that a
proposal is accepted when the acceptor performs conditions prescribed for the
acceptance or when he accepts the consideration given along with the offer for
a reciprocal promise. When acceptance consists of an act as in the case
of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">State of Bihar vs Bengal C & P Works 1954</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that, when an order is sent for
goods, the posting of goods itself is equivalent to acceptance. No
further communication of acceptance is necessary.<br />
<br />
In the case of <b>Carlill vs Carbolic smoke ball co 1893</b>, it was held
that, purchasing and consuming the medicine performs the condition of the
proposal.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Requirements for an acceptance</b><br />
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<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Acceptance must be
from a person to whom the proposal was made. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Powel vs Lee 1908</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that communication of an
acceptance from an unauthorized person is invalid.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Acceptance must be
signified to the proposer. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Felthouse vs Bindley 1863</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that unless an acceptance is given to the offerer,
it is no acceptance.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">It is required that
there be an act that signifies the acceptance. As held in the case of</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Bhagvandas Goverdhandas Kedia vs Girdharilal
Pursottamdas & Co SC AIR 1966</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, for an acceptance to be completed, a mere mental decision is
not sufficient. An external manifestation of the decision is a must. <o:p></o:p></span></div>
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<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Communication and acceptance of General Offers<br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A general offer, such
as an advertisement for the sale of an article at a fixed price, or to give
prize to the one that does something first, is not made to a particular person.
Whoever the contract is done with the person who responds or who does the task
first. Communication of such as offer is done through public media such as a
newspaper. S general offer can be perpetual or end as soon as the condition is
fulfilled.<br />
No explicit acceptance of such offers is usually required. Performing the
conditions specified in the offer acts as the acceptance of the offer. For
example, in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Carlill vs Carbolic Smoke Ball Company 1893</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, it was held that it
was a general offer and anybody who fulfilled the condition was eligible for
the $100 compensation as advertised.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Revocation of General
Offers</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
A general offer can be revoked in the same manner as it was made. For example,
by printing a revocation in a newspaper. It will be considered complete, even
if a person who is ignorant of the revocation, performs the conditions after
the revocation is published.<o:p></o:p></span></div>
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<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
"An agreement enforceable by law is a contract" as per section 2(h)
of Indian Contract Act 1872 but "agreements enforceable by law have
been defined in section 10". Discuss the statement. Write essential
elements of a valid contract.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
In our regular day to day life we make several comments and statements. We say
several things to people whom we talk to. Most of these are not with any
intention to create any legal obligation. For example, if we say to someone
that we will go to lunch with him, it is not a legal obligation. But some,
which are related to business or civil matters, are understood to be in a serious
mood and have a potential to be legally enforceable. For example, when we
hire an Auto-rickshaw for going from point A to point B, we are legally
bound to pay and the driver is legally bound to take us from A to B.
Indian Contract Act 1872 defines these activities in precise terms in
Section 2.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Definition of Terms</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Sec. 2 (a) When a person signifies to the other, to do something or to abstain
from doing something, with a view to obtaining the assent of that other to such
act or abstinence, he is said to make a Proposal.<br />
Sec. 2 (b) When the person to whom the proposal is made signifies his assent
thereto, the proposal is said to be accepted. An accepted proposal becomes a
promise.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Sec. 2 (c) The person making the promise is called Promisor, while the person
accepting the promise is called Promisee.<br />
Sec. 2 (d) When, at the desire of the Promisor, the Pomisee or any other person
has done or abstained from doing, or does or abstains from doing, or promises
to do or abstain from doing, something, such act or abstinence is called a
consideration for the promise.<br />
Sec. 2 (e) Every Promise and every set of Promises forming a consideration for
each other, is an Agreement.<br />
Sec. 2 (f) Promises which form the consideration or part of consideration
for each other are "Reciprocal Promises".<br />
Sec. 2 (g) An agreement not enforceable by law is void.<br />
Sec. 2 (h) An agreement enforceable by law is a Contract.<br />
Sec. 2 (i) An agreement that is enforceable by law at the option of one
or more of the parties thereto but not at the other or others is a voidable
Contract.<br />
Sec. 2 (j) A Contract that ceases to be enforceable by law becomes void when it
ceases to be enforceable by law.<br />
<br />
From sec 2(e) and 2(h), it is clear that Agreement and Contract are two
different things. For an agreement to become a contract, it has to be
enforceable by law.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 10</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">states that all
agreements that are made by free consent of the people who are competent to
contract, for a legal object and legal consideration, and are not hereby
expressly declared to by void, are contracts and are thus legally enforceable.
Thus, there are five factors that determine whether an agreement can be legally
enforced or not. These are discussed below:<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">1. Competency of the
people doing the agreement. (What do you understand by competency to contract?
Who are competent to contract? What protections are offered to minors?)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
All the parties doing the agreement must be competent to contract.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Section 11</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">determines who are competent to contract. As per this section,
person who has attained the age of majority according to the law to which is
subject, who is of sound mind, and who is not prohibited/disqualified
from contracting by law to which he is subject. Majority is 18 years
except when a guardian is appointed by the court in which case it is 21 yrs.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mohoribibee vs
Dharmodas Ghosh</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">in 1903, a minor had
taken a loan and then he sued to avoid the contract. Privy Council council held
that any contract with a minor is void ab initio</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">and so the loaner cannot get any money that he
gave as advance back. This rule is adopted all over India whether or not it
benefits the minor. <br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mir Sarwarjan vs
Fakhruddin Mohd. Chaudhary 1912</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, a contract to purchase a property was done on behalf of minor.
It was held that the minor could not sue for getting the possession of
property.<br />
<br />
However, since in today's times minors are coming a lot in public life, it is
not always possible to consider an agreement with a minor to be always void.
Therefore, in the case of<b>Srikakulam Sbhramanyam vs Kurra Sabha Rao
1949</b>, Privy Council held that a sale of inherited property of a minor to
pay off inherited debt effected by the guardian was binding on the minor.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Protections offered
to minors:</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">No estoppel against
minor</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- It has now been
settled that a minor who enters into a contract by misrepresenting his age can
later on tell his correct age and avoid the contract.<br />
<br />
<b>No liability in tort or in contract arising out of a contract</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- If a minor enters into a contract, he can
neither be held liable in contract nor in torts. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Jennings vs Rundall 1799</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, when an infant hired a horse for riding
short distance but rode it for long distance resulting in injury to horse, he
was not held liable because it was a contractual obligation. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Hari Mohan vs Dulu Mia 1934, Calcutta HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">held minor not liable in tort for money lent
on bond.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
However, in absence of a contract, a minor may be liable in tort. Thus, in the
case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Burnard vs Haggis
1863,</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">when a minor
"borrowed" a mare only for riding and then lent it to a friend who
jumped her and killed her, he was held liable in tort.<br />
<br />
<b>Doctrine of restitution</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- If a minor obtains
property or goods by misrepresenting his age, he can be forced to return it but
only as long as the goods are traceable in the minor's possession. This is
called doctrine of equitable restitution. If the minor sells or converts
the property, the value of the goods cannot be retrieved because that would
amount to enforcing a void contract. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Leslie vs Sheill</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, a minor got 400 pounds from money lenders by
misrepresenting his age. The money lenders could not recover it under any
of fraud, quasi-contract, or doctrine of restitution. This was followed in the
case of Mohoribibee vs Dharmodas Ghosh as well..<br />
<br />
<b>Beneficial Contracts</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- In contract where a
minor has already supplied consideration, the minor can enforce the contract.
Thus, in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Ulfat Rai vs Gauri
Shakar 1911</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that a
minor can sue to take possession of a property for which he has already paid.
But where the contract is still executor and consideration has not been given,
the principle adopted in Mohoribibee will prevail. Thus, in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Raj Rani vs Prem Adib 1949</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, it was held that the film producer was not
bound by a contract with minor's father to give a role to minor in his movie.
This is because minor could not be forced to give consideration and father
had not given any consideration. However, a contract of marriage of a minor
enter into by the father is not void for want of consideration because it is
for the benefit of the minor.<br />
<br />
<b>Liabilities for necessities (Section 68)</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- If a minor is supplied with necessaries that are in accordance
with his living standard, the supplier can get paid through the minors
property.<br />
<br />
<b>Persons of unsound mind</b><br />
Section 12 says that a person is of sound mind for the purpose of
contracting if at the time of contracting, he is capable of understanding the
contract and capable of making a rational judgement as to the effects of the
contract upon his interests. A person who is usually of sound mind but
sometimes of unsound mind may not make a contract when he is of unsound mind,
while a person who is usually of unsound mind but sometime of sound mind may
make a contract when he is of sound mind. Thus, a person, who is too drunk, or
who is temporarily delirious due to sickness such as high fever, may not make a
contract at that time. A patient in a lunatic asylum, who is at intervals of
sound mind may make a contract when he is of sound mind.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
In India, a contract done by a person of unsound mind is absolutely void ab
initio. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Indersingh vs
Parmeshwardhari Singh</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Patna HC in 1957 held
that a contract to sell property worth 25000 in 7000, was voidable because the
mother claimed that her son was of unsound mind and did not understand the
implications.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">2. Consent and Free
Consent</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 13</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">defines that two or
more people are said to consent when they agree upon the same thing in the same
sense. However, many a times, a consent may not reflect the true intentions of
a party. For example, one party may give consent because of being financially
pressured or criminally threatened. Thus, such a consent should not make
the agreement enforceable. <b>Section 14</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">determines what factors can vitiate a consent
and when a consent is considered free of any complication that affects the
enforceability of an agreement . It states that a consent that is not
obtained through coercion, undue influence, fraud, misrepresentation, or
mistake subject to section 20, 21, and 22, is a free consent.<br />
<br />
<b>a. Coercion (Sec 15):</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Coercion is committing or threatening to commit any act
forbidden by the Indian Penal Code, or unlawful detaining or threatening to
detain the property, to the prejudice of any other person, with an intention to
cause that other person to enter into an agreement. It is immaterial whether
IPC is or is not in force where coercion is applied. Thus, an act that is
unlawful as per IPC but not as per England law and that has been used to induce
the consent, will be considered coercion.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
A clear example would be force someone to consent on gun point or by hurting or
threatening to hurt. In</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Chikham Amiraju vs
Chikham Seshamma</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Madras HC 1912 held
that threatening to commit suicide is coercion. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Astley vs Reynolds 1771</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, the plaintiff had pledged his plate for #20
and when he went to claim it back, the defendant asked for #10 more as
interest. To redeem his plate, the plaintiff paid the money but later sued to
recover #10. The court allowed it.<br />
<br />
<b>b. Undue Influence (Sec 16):</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Undue influence occurs when because of the nature of the
relationship that exists between the parties, one party is able to dominate the
will of the other and uses this dominance to obtain unfair advantage over the
other. A person is in a dominant position when he holds a real or apparent
position of authority for example manager employee, or stands in a fiduciary
relationship with the other for example money lender and loanee. A person could
also be in a dominant position if the mental capacity of other party is
temporarily or permanently effected due or illness, age, or distress.<br />
The burden of proof that undue influence has not occurred is on the
person who is in the dominant position, if the agreement is unconscionable
otherwise it is on the party that alleges undue influence.<br />
Examples:</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Father (A) give some money to son (B) when B was a minor.
Upon majority, A makes B execute a bond for a much larger amount.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
A person (A) who is old and sick is induced into paying an unreasonably
large amount of sum to his doctor (B).<br />
A village moneylender (A) lends money to a villager (B), who is
already in debt, at a very high interest. It lies on A to prove that he has not
used undue influence to induce the contract.<br />
At a time of financial crises, a bank manager gives loan to
a person at a substantially higher rate. This is not considered to be undue
influence but a simple business transaction.<br />
In</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mannu singh vs Umadat Pandey</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Allahbad HC 1890, a guru induced his devotee
into giving all the devotee's property to himself. This was considered undue
influence.<br />
<br />
<b>c. Fraud (Sec 17):</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">When a person
intentionally tries to cheat another person, it is called as fraud in a general
sense. Section 17 defines fraud precisely as such - Fraud means and includes
any of the following activities done by a party or by his connivance or by his
agent, with an intent to deceive another party or his agent, or as to induce
the other party to enter into the contract.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">the suggestion of a
fact, of that which is not true, by the one who does not believe it to be true.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">active concealment of
a fact by one who knowledge or belief of the fact.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">making a promise
without an intention to perform.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">any act fitted to
deceive<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">any such act or
omission that the law declares to be fraudulent.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Mere
silence as to facts likely to affect the willingness of a person to enter into
the contract is not fraud unless, according to the circumstances of the case,
it is the duty of the person keeping silence to speak or unless his silence
itself is considered as speech.<br />
Examples:<br />
A sells a horse to B by auction without telling B that horse is unsound. This
is not fraud.<br />
B is A's daughter who has just come off age, then it is A's duty to tell B
about the fact. So this is fraud.<br />
B says to A, "if you do not deny it, I will assume that horse is
sound". Here, silence is considered as speech so this is fraud.<br />
A and B, being traders, enter into a contract. A has private pricing
information that will cause B to not enter the contract. A is not bound to
inform this to B. This is not fraud.<br />
Concealing the disease history while obtaining insurance is fraud because it is
the duty of the insured to give this information to the insurer.<br />
<b>Derry vs Peek</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">1889 was not fraud, because the company honestly believed in
what they said and there was no intentional misrepresentation, which is the
essence of fraud.<br />
<b>Sri Krishan vs. Kurukshetra</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Univ</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">., AIR 1976 SC the
student was not found to be fraud. Even though he knew that he was short
on attendance, he did not disclose it on examination form. He was let off
because 'mere silence' is not fraud.<br />
<br />
<b>d. Misrepresentation (Sec 18):</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">When a person makes an
unwarranted statement, however innocently, which the person believes to be
true, and which turns out to be false, it is misrepresentation. Any breach of
duty, without an intention to deceive, that gains an advantage to the person
committing it or to the person claiming under him, by misleading the
other person to his prejudice or to person claiming under him, is also misrepresentation.
Further, causing a party to an agreement to make a mistake regarding the
subject matter of the agreement, however innocently, is also misrepresentation.<br />
<br />
Examples:<br />
A claimed to B that the ship being considered under an
agreement was below 2800 tonnage. But in reality it turned out to be more than
3000 tonnage. It was held to be misrepresentation and B was entitled to avoid
the contract.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Oceanic Steam Navigation vs Soonderdas Dharmasey</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">. Bom HC 1980.<br />
A land was purchased expressly for constructing duplexes.
The seller claimed that he saw no permissioning problems. However, later on the
permission was denied. This was held to be misrepresentation and even though
the claim was innocent, the buyer was allowed to avoid the sale<br />
Where the seller of a car stated the mileage of the car to
be 20000, which turned out to be wrong, the buyer of the car was allowed to
recover compensation for misrepresentation.<br />
<br />
<b>Section 19</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">declares that a contract induced due to coercion, fraud, or
misrepresentation is voidable at the option or the party whose consent was
obtained by coercion. An exception is that when the consent is obtained
by silence fraudulent under sec 17, and when the affected party had
the means of discovering the truth with ordinary diligence. In this case, the
contract is not voidable. Further, if the fraud or misrepresentation did
not cause the party on which they were practiced to give consent, then the
contract will not be voidable.<br />
<b>Section 19A</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">declares that the party whose consent was obtained by undue
influence has the option to avoid the contract.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">3. and 4. Legal
Object and Legal Consideration</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
When four dacoits enter into an agreement to share the loot equally and if two
of them take more share than the other two, there is nothing that law can do,
except arrest them for dacoity. Needless to say, the objects and
considerations involved in the the agreement have to be legally valid.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Section 24</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">declares that
agreements are void if consideration and object are unlawful in part. If any
part of a single consideration for one or more objects, or any one or any part
of one of several considerations for a single object, is unlawful, the
agreement is void.<br />
Thus, if the unlawful part cannot be severed from the object or consideration,
the whole agreement becomes void. However, if the unlawful part can be severed,
the remaining part can still be enforced. For example, A enters into an
agreement with B to get 1 Gram of Cocain with 1 Kg or Rice for 10 Rs for rice
and 1000 Rs for Cocain, then a part of the object that is 1 gm of cocain and
1000Rs is severable from the agreement without affecting the lawful part. In
this case, the agreement can be enforced partially. In another example, A man
enters into an agreement with a married women to clean his house and live with
him in adultery, which is unlawful, for a sum per month, the whole agreement
is void because it is not possible to divide the sum properly between
lawful and unlawful objects.<br />
<br />
<b>What objects or considerations are unlawful</b><br />
Section 23 declares that any object or consideration is lawful, unless - it is
forbidden by law, or is of the nature that if permitted, defeats the provisions
of any law , or is fraudulent, or implies or involves injury to the person or
property of another, or is determined by the court to be immoral or against
public policy. Thus, an agreement to rent an apartment for prostitution or
gambling is void.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">5. Agreements
expressly declared to be void by this act</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Some other agreements that satisfy all the four conditions given is section 10
can still be void. Such agreements are:<br />
Sec 20 : when both the parties are under mistake as to the matter of fact, the
agreement is void.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Sec 24 : agreement in which any part of a single consideration for one or more
objects, or any consideration or part of a consideration out one or more
considerations for a single object is unlawful, is void.<br />
Sec 25 : agreement without any consideration except if it is registered, or a
promise to pay for something already done, or is a promise to pay time barred
debt.<br />
Sec 26: agreement in restraint of marriage.<br />
Sec 27 : agreement in restraint of trade.<br />
Sec 28 : agreement against legal proceedings.<br />
Sec 29 : agreement that is uncertain</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Sec 30 : agreement by way of wager.<br />
Sec 56 : agreement to do impossible act is void. If an act becomes impossible
after the contract it done, the contract becomes void when the act becomes
impossible to do.<br />
<br />
Legal formalities: Certain agreements such as agreement for the sale of
immovable property, or agreement for insurance become a contract only when they
are properly registered. For such agreements, the procedure prescribed by law
must be followed to make them a contract.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Explain - Coercion, Undue Influence, Fraud, and Misrepresentation. </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
According to Section 10, free consent is an integral part of a contract. An
agreement cannot become a contract unless it is done by free consent of
parties.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Section 14 says that a consent is free when it is not vitiated by coercion,
undue influence, fraud, misrepresentation, or by mistake subject section 20,
21, 22.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">Coercion</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 15</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">defines coercion as
follows -<br />
Coercion is committing or threatening to commit an act that is prohibited by
IPC, or any unlawful detaining or threatening to detain, any property, to
the prejudice of any person whatever, with an intention of causing any person
into entering a contract. It is immaterial whether IPC is in operation at a
place where such act took place.<br />
<br />
<b>Illustrations</b><br />
A threatens B at gun point to sell his land to A.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
A while in an English ship on high seas enter into a contract with B by
intimidating B that is unlawful in India. Later on A sues B of breach of
contract in Calcutta. This is coercion.<br />
<br />
<b>Chikham Amiraju vs Chikham Seshamma 1912</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Husband threatened to suicide unless wife gave property to his
brother. This was held coercion.<br />
<b>Askari Mirza vs Bibi Jai Kishori 1912</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Threatening a criminal prosecution is not coercion per
se. It could be coercion if the threat is to file false charges.<br />
<b>Astley vs Reynolds 1731</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Plaintiff had
pledged his place for $10. When he went to take it back, pledgee asked for $10
more. He paid the additional $10, but sued to get recover it back. It was held
coercion.<br />
<b>Andhra Sugars vs State of AP 1968</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A factory was bound to take the sugar cane from the
farmer under an act. This was not held to be coercion.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">Undue Influence</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 16</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">defines Undue
Influence as follows -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
A contract is said to be induced by Undue Influence when the relationship
between the parties is such that one party is able to dominate his will on the
others and uses that position to gain an unfair advantage. A person is
deemed to be in the position of dominating the will of the other if -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">if the person holds a real or apparent position of
power<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">If stands in a fiduciary relationship with the other.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">if the other person is mentally weak because of
sickness, disease, or economic distress<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">It further says that
if a contract is unconscionable the burden of proof lies of the person in whose
favor the contract is to prove that it was not induced by Undue Influence,
other wise the burden of proof is on the one who alleges it.<br />
<br />
<b>Illustrations</b><br />
A advances some money to his minor son B. Upon majority, A makes B sign a
contract to pay back more than the sum advanced.<br />
A is sick and physically feeble and is attended by his nurse B. B influences A
to enter a contract to pay him an unreasonable amount for his professional
services.<br />
A being in debt of B, the village money lender goes to B for getting a loan. B
gives the loan on terms that are unconscionable. It lies on B to prove that
undue influence was not used to create the contract.<br />
A applies for loan to a banker B while there is a stringent crises in the money
market. B declines to give the loan only at a very high rate. This is not
coercion but simple business transaction.<br />
<br />
<b>Ability to dominate the will</b><br />
<b>Mannu Singh vs Umadat Pandey 1890</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Spiritual guru induced the plaintiff, his devotee, to gift all
his property to the guru.<br />
<br />
<b>Relations of dominion over other</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- parties are not on equal footing.<br />
<b>Williams vs Baylex 1866</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- father being afraid
of bank manager, entered into a contract to mortgage his house. This was held
voidable.<br />
<br />
<b>Real of Aparant authority</b><br />
Income tax office, magistrate, police officer etc.<br />
It may not be real but if a person shows off as such then also it is
applicable.<br />
<br />
<b>Fiduciary Relation</b><br />
Every relationship of trust and confidence is a fiduciary relationship.<br />
Solicitor - client, doctor - patient, spiritual guru - devotee.<br />
<br />
<b>Mental Distress</b><br />
<b>Ranee Annapurni vs Swaminatha 1910</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A poor widow who was in dire need to money to establish her
right to maintenance, was persuaded by a money lender to take loan at the rate
of 100%. It was held to be undue influence while a person was under mental
distress and the court reduced the rate to 24%.<br />
<br />
<b>Burden of Proof</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- The person must show
that the other party was in position of dominating the will and that he used
that position to gain advantage.<br />
<br />
<b>Presumption of undue influence</b><br />
In certain cases, when it is established that the defendant was in a position
to dominate the will of the plaintiff, it will be presumed that he must have
used his position to obtain an unfair advantage. Thus, it will be up to the
defendant to prove that the plaintiff freely consented.<br />
<br />
<b>Lancashire Loans Ltd. vs Black 1934</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">: It was held that a daughter may not necessarily be independent
and may be under the influence of the mother.<br />
<br />
Presumption is raised in the following cases -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>1. Unconscionable bargains</b><br />
<b>Wajid Khan vs Raja Ewaz Ali Khan 1891</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- An old illiterate woman conferred upon her managing agent a
bug pecuniary benefit without any valuable consideration under the guise of a
trust. This was held to be under undue influence.<br />
<br />
<b>2. Inequality in bargaining power</b><br />
<b>LLoyd's Bank vs Bundy</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Farmer pledged
his farmhouse for securing a loan for his son. Later bank tried to take
possession of the house. It was held that the contract might have been done
under undue influence.<br />
<br />
<b>3. Contracts with Pardanashin women</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
A contract with a pardanashin woman is presumed to have been induced by undue
influence. However, such a woman must be totally secluded from ordinary
society. In the case of<b>Ismail vs Amir Bibi 1902</b>, a lady stood as
witness, put tenants, collected rents in respect of her house. She was held not
a pardanashin woman.<br />
<br />
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<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Coercion - Section 15<o:p></o:p></span></b></div>
</td>
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<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Undue Influence - Section 16<o:p></o:p></span></b></div>
</td>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There is a clear
threat involved and the person being coerced knows it.<o:p></o:p></span></div>
</td>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There is no outward
sign on undue influence and the person being influenced may not realize it.<o:p></o:p></span></div>
</td>
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<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">No relationship has
to exist.<o:p></o:p></span></div>
</td>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">A relationship that
allows a person to dominate the will of other must exist.<o:p></o:p></span></div>
</td>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Contract induced by
coercion is voidable under section 19<o:p></o:p></span></div>
</td>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Contract induced by
undue influence is voidable under section 19-A<o:p></o:p></span></div>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">If an act, which is
unlawful under IPC, has been used to force a person into contract, it is
immaterial where it has taken place, contract will still be voidable in
India.<o:p></o:p></span></div>
</td>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">Fraud</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Section 17 defines fraud as follows:<br />
Fraud means and includes any of the following acts done by a party to a
contract, or by his connivance, or by his agent, to decieve another party
thereto or his agent, or to induce him to enter the contract. Such acts
include-<br />
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<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">the suggestion, as a
fact, that of which the party knows or has reason to believe to be not true.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">active concealment of
a fact by the one who knows or has reason to believe to be true.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Making a promise he
does not intend to fulfill.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">any act fitted to
deceive.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">any act or omission as
the law specifically declares to be fraudulent.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Illustrations<br />
A sells, by auction, to B a horse which A knows to be unsound but does not tell
anything to B. This is not fraud.<br />
B is A's daughter who has just come of age. In this case, it is A's duty to
tell B that the horse is unsound.<br />
B says to A, "If you do not deny it, I will assume that the horse is
good.". Here, A's silence is equivalent to speech.<br />
A and B are both traders and A has private information about change in prices,
which would affect B's willingness to proceed with contract. This is not fraud.<br />
<br />
Intention to deceive is required to constitute fraud.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Suggestion of a fact</b><br />
<b>Derry vs Peek 1889</b>, it was held not to be fraud because the defendants
truly believe that permission would be granted by the board of trade because
parliament had approved it.<br />
<br />
<b>Active concealment</b><br />
Active concealment is different from passive concealment. Passive concealment
merely means silence as to material facts. However, active concealment means
making efforts to prevent the facts from reaching a party and this is fraud.<br />
<b>B R Chaudhary vs IOC 2004</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A dealer concealed
his previous employment under govt. to get dealership. SC allowed the contract
to be terminated.<br />
<br />
<b>Concealment by mere silence is not fraud</b><br />
<b>Sri Krishan vs Univ. of Kurukshetra 1976 -</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">the candidate knew that he was short of attendance but did not
write anything on the examination form. It was held not fraud because it was
the job of the university to scrutinize the forms.<br />
<br />
Silence may become fraud in certain cases - Duty to speak, Half truth, change
of circumstances.<br />
<br />
<b>Making a promise without any intention to perform</b><br />
<b>DDA vs Skipper Construction Company 2000</b>- A builder collected deposit
money from more number of people than there were flats. SC held that since the
builder knew that he cannot perform his promise and still took the money, he
was doing fraud. He was held liable to pay interest even though there was no
provision of interest on deposit.<br />
<br />
<b>Any other act fitted to deceive</b><br />
<b>Ningawwa vs Byrappa 1968</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Husband got
his illiterate wife to sign papers saying that he was mortgaging her two lands
but actually he mortgaged four. This act was obviously done to deceive and was
held to be fraud.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">Misrepresentation</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Section 18 defines
misrepresentation as follows:<br />
Misrepresentation means and includes</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">making a statement in
a manner that is unwarranted by the information of the person making it, of
that which is not true, though he believes it to be true.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">any breach of duty
which, without an intention to deceive, gains an advantage to the person
committing it or any one claiming under him, by misleading another to his
prejudice or to the prejudice of anyone claiming under him.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">causing, however
innocently, another party to commit a mistake as to the substance of the thing
which is the subject of the agreement.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Thus, when there is no
intention to deceive but still a wrong statement has been made, or a duty has
not been performed, or a mistake has been induced, it is misrepresentation.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Unwarranted Statements</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Oceanic Steam Navigation vs Soonderdas Dharmasey 1980</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- the defendants charted a ship from a
company. The plaintiff had made a claim that the ship was not more than 2800
tonnage even though the plaintiff had not known about it. In reality the ship
turned out to be more than 3000 tonnes. It was held to be misrepresentation and
the defendants were allowed to avoid the contract.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Breach of Duty</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Thake vs Maurice 1986</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Husband was not
informed of the risks and failure rate of vasectomy before the operation. Later
on wife became pregnant and the hospital was held guilty of misrepresentation
and was ordered to pay compensation for all the pains and expenses of delivery.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Inducing mistake about
subject matter</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
The subject matter of the contract is supposed by the parties to be of a
certain value or quality. If one party, however innocently, leads another party
to make a mistake as to the value of subject matter, it is misrepresentation.<br />
<b>Farrand vs Lazarus 2002</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A car dealer put a
notice on a car that the mileage is incorrect even though he knew that
the reading was grossly incorrect. This was held to be misrepresentation.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Suppression</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">of Material and Vital Facts</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>R vs Kylsant 1932</b>- Company prospectus said that company was
regularly paying dividends, which implied that is was making profit. However,
it did not say that company was making losses and dividends were being paid
from war time accumulated profits.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Expression of Opinion</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Merely expressing an opinion is not misrepresentation.<br />
<b>Bisset vs Wilkinsen 1927</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- The seller was aware
that the land was being purchased for sheep farming and he expressed an opinion
that the land could carry 200 sheep. It turned out that the land was no
suitable for sheep farming. The seller was not held liable.<br />
<br />
<b>Section 19</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that any contract
which is induced by Coercion, Fraud, or Misrepresentation is voidable at the
option of the party whose consent was caused due to coercion, fraud, or
misrepresentation.<br />
However, if the consent is obtained by misrepresentation of a fact or silence
amounting to fraud, the contract is not voidable if the party whose consent was
so caused was able to discover it with due diligence.<br />
Also, a fraud or misrepresentation that did not cause a party to give consent,
does not render a contract voidable.<br />
<br />
<b>Section 19 A</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that when an
agreement is created due to a consent induced by undue influence, such an
agreement is a contract voidable at the option of the contract whose consent is
so caused.<br />
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<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Fraud - Section 17<o:p></o:p></span></b></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Misrepresentation - Section 18<o:p></o:p></span></b></div>
</td>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There is intention
to deceive.<o:p></o:p></span></div>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">No intention to
deceive.<o:p></o:p></span></div>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">A contract involving
fraud is liable for action in tort for damages.<o:p></o:p></span></div>
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<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt;">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">No action in tort.<o:p></o:p></span></div>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Defence of ordinary
diligence is not available for fraud except for fraud by silence.<o:p></o:p></span></div>
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Can be defended on
the ground that the person could find out the truth by ordinary diligence.<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Similarity in Fraud and Misrepresentation</b><br />
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Both contain false
representation.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Both render a contract
voidable.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">In both the cases, the
consent must have been caused due to that fraud or misrepresentation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Defense of ordinary
diligence is available to fraud by silence and misrepresentation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What are different types of mistakes? Explain their effects on the validity of
the contract.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
There can be two types of mistakes - a mistake that misleads the parties to an
agreement to consent and a mistake that defeats the consent itself.<br />
<br />
For example, A contracts with B for purchasing goods coming by a ship. However,
unknown to both, the ship has already drowned at the time of the contract. In
this case, there was a mistake of a fact, which lead the parties to consent.
This type of mistake is covered by</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">sections 20, 21, and 22</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">.<br />
<br />
In another example, A enters into a agreement with B thinking that he is C. In
this case, there was no consent from A at all because of mistake in identities.
As another example, A agrees to sell to B his stock and B agrees to pay 5000Rs
for A's stock. However, A was thinking about his livestock (i.e. cattle) and B
was thinking about shares of a corporation. In this case, there was no consent
because they agreed on the same thing but not in in the same sense. These
mistakes defeat the consent itself. There is no real consent here at all.
This type of mistakes is covered by</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">section 13,</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">which says that when
two persons agree to the same thing in the same sense, they are said to
consent. Agreement on the same thing in the same sense is true consent and is
called consensus ad idem. If there is no consensus ad idem, there is no
agreement, and hence no contract.<br />
<br />
<b>Section 20</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that an agreement
is void when both the parties are under mistake as to matter of fact that is
essential to the contract.<br />
<b>Illustrations</b><br />
A agrees to buy a horse from B. At the time of agreement the horse was dead but
no one knew about it. The agreement is void.<br />
A, being entitled an estate for the life of B, sells it to C. B was dead at the
time of contract but both the parties were ignorant of the fact. The agreement
is void.<br />
<br />
<b>Section 21</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that a contract
is not voidable if it was caused by mistake as to law in India. However,
mistake as to law outside India has the same effect as mistake of fact.<br />
<br />
<b>Section 22</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that contract is
not voidable merely because one of the parties was under mistake as to fact.<br />
<br />
Thus, for an agreement to be voidable due to a mistakes three conditions are
required -<br />
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<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Both the parties are
under mistake.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mistake is of a fact.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">fact is essential to
the agreement.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Which facts are
essential to the agreement?</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
This depends on the nature of the promise in each case. Something that is
remotely linked to the agreement is not an essential fact. For example, A
agrees to hire B for taking his goods to a city. They came to know later that
there is no electricity. This fact is not essential to the contract. However,
it they come to know later that all transporters are on strike, this would be a
fact essential to the agreement.<br />
<br />
There are three types of things that are essential facts to an agreement -
identity of the parties, identity and nature of the subject matter of the
contract, and nature and content of the promise itself.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Mistake as to identity</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Mistake as to identity can occur due to</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
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<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">assumption of a false name<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">taking over a business<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">fraud<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Cundy vs Lindsay 1878</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, a fraudster, who had a similar name as that
of the defendant, sent an order to the plaintiff . Plaintiff supplied the order
which went to the defendant. It was held that since there was a mistake as to
identity, there was no contract between the parties.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
In cases where identity of the offeree is important to the offerer, a contract
cannot arise in the case of mistake as to identity. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Said vs Butt 1920</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, the plaintiff got the tickets for a show
through a friend but the defendant, the manager of the theater did not allow
him to enter. It was held that since the manager did not give the ticket
for the plaintiff, there was no contract between them.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Mistake as to Subject
matter</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
This can occur due to<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Non existent subject matter<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mistake as to title or ownership<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Different subject matters in mind <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mistake as to quality of subject matter.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Raffles
vs Witchlehaus</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">-Parties had different ships in mind but both were named
peerless. It was held that there was no consensus ad idem and so the contract
must be set aside.<br />
<b>Smith vs Huges</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- Buyer wanted to buy old oats for his horse. The seller
showed him the sample but didn't say anything about the age. The buyer kept the
sample for 24 hrs and then ordered. Later on he rejected the order saying that
the oats were new. It was held that buyer had no right to reject.<br />
<br />
<b>Mistake as to the nature of promise</b><br />
When a deed of one character is signed under the belief that it is of another
character, the agreement is wholly void.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<b>Sarat Chandra vs Kanailal</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- A gift deed was signed under the impression that it is only
power of attorney. It was held void.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Limitations</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Both Parties</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
According to Section 20 both the parties must be under a mistake for the
agreement to be void. This is further supplanted by article 22 that an
agreement is not void if only one party is under mistake.<br />
<br />
<b>Erroneous Opinion</b><br />
Explanation to section 20 says that an erroneous opinion regarding the subject
matter does not render an agreement void. This was reflected in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Smith vs Huges.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Mistake of fact and not of law</b><br />
Section 2 1 says that mistake of law does not render an agreement void. Thus,
the mistake must be of a fact. A mistake of foreign law will be treated as a
mistake of fact.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What is a lawful consideration? When would a consideration or object of an
agreement unlawful? Explain with illustration. </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 23</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that a
consideration or an object of an agreement is lawful unless,<br />
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<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is prohibited by
law.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is of such nature
that, if permitted, defeats the provisions of a law.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is fraudulent.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it involves or implies
injury to another person or property of another.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is immoral or
against public policy.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Illustrations</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
1. A promises to sell his house to B for 10000 Rs. The object is the house and
the consideration is 10000/- both are lawful.<br />
2. A promises to pay B 1000/- if C fails to pay his debt to B within next 6
months. B upon this promise give 6 more months to C repaying debt.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
3. A promises to B to superintend B's manufacture of Indigo, which is lawful,
as well as a trade in illegal items for a monthly salary of 5000/. Unlawful.<br />
4. A promises to pay 5000/- per month to B to clean his house and live with him
in an adulterous relationship.<br />
So on...<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Forbidden by Law -</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Means any law in force, including Hindu and Muslim
personal laws.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Koteswar Vittal Kamath vs K Rangappa Baliga 1969 SC</span></b><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Sale of liquor without license is void and
prices paid is irrecoverable.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Mannalal Khetan vs Kedar nath Khetan 1977 SC</span></b><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- If the intention of the law is to forbid something in
public interest, an agreement that contravenes it is void. However, if the
intention is to merely regulate something, the contract may not be void even
if the parties have to pay a penalty.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Defeats the provisions
of a law</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Fateh
Singh vs Sanval Singh 1878</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- An accused was
required to put a surety of 5000/- for good behavior. He deposited the money
with defendant and asked the defendant to become surety. Ofter the period of
surety, the accused sued to recover the deposit. Agreement was held void.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Regazzoni
vs K C Sethia 1956</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Two parties made an
agreement that one will supply jute to another in an African country so that it
can then be resold in another country to which export of jute bags was
prohibited. One party sued the other for breach of contract. Agreement was held
void.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Fraudulent</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Scott
vs Brown Doering McNab and Co 1891</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A trader asked the broker to purchase a stock of a company at
a premium to create an impression in people that the company was worth paying a
premium. Later he discovered that the broker sold his own shares to him. The
trader sued to revert the transaction. Held void because it was done to defraud
people.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Injury to person or
property</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Ram
Sarup vs Bansi Mandar 1915</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- An agreement said
that a person would work for another person for two years for borrowing rs 100.
In case of default, he was to pay an exorbitant interest and principal at once.
This was held indistinguishable from bonded labor and this was injurious to
person. Held void.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Immoral</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">What is moral depends
on the standards of morality prevailing at a particular time and approved by
the courts.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Interference in
marital relations is immoral.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Dealings with sex
workers<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Allice
Marry Hill vs William Clark 1905</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Adultery involving a married person is not only immoral but
illegal and any contract or promise related to that cannot be enforced.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Public Policy</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Under Public Policy,
sometimes the court may refuse to enforce a contract for the benefit of public
interest.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Ratanchand
Hirachand vs Askar Navaz Jung 1976</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- J Reddy of AP HC observed, "The twin touchstones of
public policy are advancement of public good and prevention of public mischief
and these are to be decided by the judges not as a men of legal learning but as
experienced and enlightened members of the society."<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Trafficking in public
offices, trading with enemy, interference with administration of justice,
champerty, marriage brokerage contracts, unfair or unreasonable dealings - when
parties are not on equal footing.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Understanding
of a lawful consideration is important because as per section24, an agreement
is void if any part of a single consideration for one or more objects, or
if any one or any part of any one of several considerations for a single object
is unlawful.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
"An Agreement without consideration is void." Explain this rule and
state exceptions if any.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Indian Contract Act 1872 in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">section 2(e)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that every promise and every set of
promises that form a consideration for each other is an agreement. Thus, it is
clear that the formation of consideration for a promise or promises is a key
ground on which a promise becomes an agreement. There cannot be an agreement if
there is no consideration. Section 25 of the act says the same thing in precise
terms and also gives three exceptions when an agreement without consideration
is a valid contract:<br />
<br />
<b>Section 25</b>: An agreement without consideration is void unless,<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is in writing and
registered and the promise has been made due to natural love and affection
between the parties standing in near relation to each other.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is a promise to
compensate, wholely or in part, a person who has voluntarily done something for
the promisor or something that the promisor was legally bound to do.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">it is a promise to pay
for a time barred debt.<o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Natural
Love and Affection</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<b><br />
Rajlukhy Debi vs Bhootnath Mukherji</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- Court found no
evidence of love.<br />
<b>Bhiwa vs Shivram</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- A person gave half of his property to his brother in order to
be reconciled with him. Court held that it was due to natural love and
affection.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<b>Past and Executed Consideration</b><br />
The definition in 2(d) says "...has done or abstained from doing...".
Thus, an act already done can be a valid consideration. However, a past
consideration and an executed consideration must be distinguished. For example,
if A saves B from drowning and if B promises to pay A 50/-, under English law,
B is not bound by the promise because there was no promise when the act was
done. The act of saving is past consideration. On the other hand, if A
promises to pay 50/- to who ever finds his dog and if B finds and produces the
dog, A is bound to pay because the promise existed before the act. This is
called executed consideration.<br />
<br />
However, in Indian law, Section 25 (2) explicitly says that a promise to
compensate a person who has voluntarily done something for the promisor is
binding. Thus, if B saves A from drowning and if A promises to pay B, then A is
bound by the promise.<br />
<br />
Further, in the case of a past service on request without any promise to pay,
it is construed that there is an implied promise to pay only the amount of
payment is not fixed. Thus, a promise to pay for a past service upon request is
a valid contract.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Sri Sandhi Ganpatji vs Abraham</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, it was held that services rendered to a
minor, which were continued after his majority upon his request is a valid
consideration for a promise to pay.<br />
<br />
<b>Value of the consideration</b><br />
It is important that the consideration has some value in the eyes of law. If A
promises to B to give his Rolls Royce if B brings it from the garage, the
promise is not binding because the consideration has no value in the eyes of
law. However, if A sells his horse worth 1000/- to B for 10/-, it is a valid
consideration even if it is not adequate provided that the consent was free.
Explanation 2 of section 25 says that inadequate consideration may be
considered to be against free consent.<br />
<b>Haigh vs Brooks</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- A promise to pay for returning a document, which later on was
found to be worthless, was held to be a valid because the document was
considered of some value at the time of the contract.<br />
<br />
However, consideration need not be adequate.<br />
<b>De La Bere vs Pearson</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- A person lost money due to a financial advice given in a
newspaper. The newspaper was held liable because the consideration of buying
the newspaper was of some value even if not adequate.<br />
<br />
<b>Debi Radha Ranee vs Ram Dass -</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Forbearance to sue to
sue is a valid consideration.<br />
<br />
<b>Performace of existing duties</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
In general performance of something that one was already required to do is not
a valid consideration.<br />
<br />
<b>Performance of Legal Obligation</b><br />
For example, a policeman is under legal obligation and performance of his
duties cannot be a valid consideration.<br />
<br />
<b>Performance of contractual Obligations</b><br />
In the case of</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Ramchandra Chintaman vs Kalu Raju 1877</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, a lawyer was
promised to get 100/- more if he wins the case. The promise was held not
binding because the lawyer was already under contractual duty to do his best in
the case.<br />
<br />
However, a performance of a pre-existing contract with a third party was
held a valid consideration. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Shadwell vs Shadwell</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, an uncle's promise
to pay his nephew if he married some girl was held valid. This was held by MP
HC in the case of <b>Gopal Co. vs Hazarilal Co AIR 1963</b>.<br />
<br />
<b>Promise to pay less than the amount due.</b><br />
Section 63 of Indian Contract Act says that payment of a smaller sum in
satisfaction of a larger dept is valid if this has been done under an agreement
between the creditors and the debtors. It further gives an illustration that if
A owes B 5000 rs and if B accepts 2000Rs as a satisfaction of the whole amount
at the time and place where 5000 rs were due, the payment of 2000
rs discharges A of his debt.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q. What are the important components of a consideration?</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 2(d)</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">defines consideration as follows:<br />
When, at the desire of the promisor, the promisee or any other person, has done
or has abstained from doing, does or abstains from doing, or promises to to or
abstain from doing, such an act or abstinence becomes a consideration for the
promise.<br />
<br />
<b>At the desire of the promisor</b><br />
To be a valid consideration, the act must be at the desire of the promisor and
not of anybody else. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Durga Prasad vs Baldeo
1880</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, the plaintiff had
build the shops on the desire of the collector and not of the defendants.
Therefore the promise by defendants to pay a percentage of sales was held not
binding.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Kedar Nath vs Gauri Mohd. 1886</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, the defendant had pledged 100/- for
construction of town hall. The plaintiff started work on that pledge and so the
defendant was held liable to pay.<br />
<br />
<b>Provider of the consideration (Privity)</b><br />
The British law has two principle governing the consideration.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
1. The consideration must move from the promisee to the promisor.<br />
2. Only the person who is a party to the contract can sue for the performance.<br />
<br />
<b>Privity of Consideration</b><br />
In India, the first rule is not followed at all. In fact section 2(d)
specifically says that consideration can be provided by the promisee or any
other person. This was held in the case of<b>Chinnaya vs Ramaya 1882</b>.<br />
<br />
<b>Privity of Contract</b><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Tweddle vs Atkinson 1882</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, it was held by the privy council that the person who is not a
party in the contract cannot sue. SC in the case of <b>MC Chacko vs State
Bank of Travancore 1969</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">has adopted the same principle and held that the since the bank
was not a party to the contract between the father and the son, it cannot
enforce the contract.<br />
However, based on Privy Council's observation of the culture in terms of
marriage and family relationship, in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Kwaja Mohd. Khan vs
Hussaini Begum 1910</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, some exceptions to this rule have been accepted.<br />
<br />
<b>1. Trust or Charge</b><br />
When an agreement forms a trust for the benefit of a third person, the third
person can enforce the agreement. This was held in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Kwaja Mohd. Khan vs
Hussaini Begum 1910</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">as well as in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Rana Uma Nath Bakhs Singh vs Jung Bahadur AIR 1938</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">.<br />
<br />
<b>2. Marriage, partition, and other family matter</b><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Daropti vs Jaspat Rai 1905</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, it was held that the wife was able to
enforce the husband to fulfill a promise that he gave to her father about
providing her a separate residence.<br />
<br />
<b>3. Acknowledgement or Estoppel</b><br />
Where by the terms of a contract a party is to make payments to a third party
and the party acknowledges this to the third party, a binding obligation is
created towards him. This was held in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Devraja Urs vs Ram
Krishnaiya AIR 1952</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Agreements in restraint of Trade are void. Explain with leading
cases. </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Section 27 "Agreement is restraint of trade, void" says thus,<br />
Every agreement by which any one is restrained from exercising lawful trade,
business, or profession of any kind is to that extent, void.<br />
<br />
Exception: Saving of agreement not to carry on business, of which goodwill is
sold.<br />
<br />
<b>Mahbub Chander vs Raj Koomar 1874</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Two shopkeeper entered into an agreement that one will pay the
other to close his business in that locality. One closed the shop but the other
refused to pay. It was held that the agreement was void. Since the wordings of
section 27 do not do not use the word "absolute" as in section 28,
even if the restraint is partial, it will be void.<br />
<br />
<b>Nordenfelt vs Maxim Nordenfelt Guns and Ammunition co ltd. 1894</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Inventor sold the goodwill of a gun company
to a buyer. The agreement was - Seller will not practice the same trade for 25
and the seller will not do any business that will compete with the business
carried on by the buyer at that time. It was held that the first part is valid
because it is reasonable but the second part is invalid because it is
unreasonable.<br />
<br />
English law tests reasonability while Indian law sees if it is allowed
under statutory exceptions or exceptions created by judicial decisions.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Collusion between
Bidders and Tenderers</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
In general mutual arrangements between bidder so as to affect the final
bid price are not considered in restraint of trade.<br />
<b>Mohd Isack vs Daddepaneni AIR 1946</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Two persons entered into an agreement where by one would not
bid on a tender floated by Postal service and the other would pay him for that.
The other person got the contract but refused to pay. It was held that it was a
valid contract.<br />
<br />
However, now such matters should be considered with respect to Monopolies and
Restrictive Trade Practices Act 1969, which forbids such collusions.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Freedom of Press</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
An agreement that puts a restraint of press not to publish on the conduct of a
person is void because it is opposed to public policy.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Restriction on Lease</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Vidya Wati vs Hans Raj AIR 1993</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Lesor of a property can put a restriction on what kind of business
can be done on the property. It is an outlet of carrying business and not a
restraint.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Exceptions</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>1. Sale of goodwill</b><br />
<b>2. Partnership</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">: Under Partnership
Act, partners of a firm may restrict their mutual liberty to do any
trade other than within their firm. An outgoing partner may also be
restricted from carrying on similar trade for a period of time.<br />
<b>3. Trade Combinations</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">: Companies doing
business in the same field may regulate their trade practices for example
opening and closing time of business even if they marginally put restraint.
However, restrain on employment are not allowed in disguise of regulation.<br />
<b>Korus Mfg vs Koluk Mfg 1959</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Companies made an agreement that they would not hire anybody
who has worked in the other company in past 5 yrs. Held void.<br />
<b>4. Exclusive dealing agreements</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>5. Restraint upon employees<br />
Niranjan Shankar Golkari vs Century Spinning and Manufacturing Co 1976 -</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"> A company was offered collaboration by a
foreign company on the condition that they will maintain complete secrecy. A
person was employed in the company on the condition that he will not work for
any other company in the same business for 5 years. SC held the agreement
valid.<br />
<br />
<b><br />
</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q. What is a wagering agreement? What are its essential
elements? </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 30</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Agreement by way of
Wager, void. -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Agreements by way of wager are void and no suit shall be brought for
recovering anything alleged to be won, or entrusted to anybody to abide by the
result of an game or uncertain event on which a wager is made.<br />
<br />
<b>Exception</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Any amount more than
500 rs can be paid to the winner or winners of any horse race.<br />
<br />
Nothing in this section shall deem to legalize any transaction connected to
horse racing to which provisions of section 294-A of IPC apply.<br />
<br />
Definition of wager was first given in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Carlill vs Carbolic Smoke Ball Company 1892</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">. It held that a wager contract is one
in which parties professing opposing views on the result of an uncertain event,
mutually agree that depending on the outcome of such event, one will pay or
hand over a sum of money or other stake. Neither party has any other interest
in the event other than their stake that they may lose or win.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Essential elements -</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Event must be
uncertain : Outcome of an event cannot be predicted.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Each party must
either win or lose depending on the result of an event <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Baba Saheb vs Raja Ram
1940</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">: Two wrestlers agreed
that if one fails to appear for a match he will pay Rs 500 to the other and the
winner will take Rs 1125 out of the gate money. Defendant failed to appear and
the plaintiff sued for Rs 500. It was held that it was not wager because had
the defendant appeared for the match no one would have lost.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Parties should not
have any control on the event <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">There should be no
other consideration except the amount that one can win or lose - This is the
difference between a wagering agreement and an insurance agreement.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<b>Speculative Transactions</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- An agreement to pay the difference between current market
price and a speculative price on a certain date is a wagering agreement. Such
agreements are usually disguised as regular trade agreement and situation and
facts of the case has to be looked into to decide whether it is a wager or
not. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Kong Yee Lone vs Lowjee Namjee 1901</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, a trader promising
to deliver 199000 bags of rice while he had no such capacity was held a
wagering agreement.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Effects of wagering
agreement</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- Such an agreement being void, it cannot be enforced by the
court.<br />
<br />
<b>Collateral Transactions</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> - Wagering agreement is only void but not necessarily
illegal, thus any agreement such as a loan given to a person to pay a wagering
debt can be enforced.<br />
<b>Gherulal Parek vs Mahadeodas Maiya AIR 1959</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- A partnership to
participate in wagering agreement is not illegal and a parter who paid for
wagering loses could sue other partners for contributing proportional funds.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Exceptions</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
1. Horse Race<br />
2. Crosswords - Anything that requires skills to win. However, betting on
a game being played by other people is wagering.<br />
<b>Moore vs Elphic 1945</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- Literary competitions which involve skill and effort is made
to select the best and most skillful competitor are not wagers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What is meant by Specific Performance of a Contract? </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Specific performance is equitable relief granted by the courts in case of
breach of contract in the form of a judgement that the defendant must actually
perform the contract according to its terms and stipulations. From every contract
arises an obligation for each party to do or to not do something. A breach of
the contract by one creates a moral right on the other to either enforce the
performance of the contract or to get a satisfactory compensation.<br />
In many cases, a party to a contract is not interested in the compensation for
breach of contract but the actual object of the contract. In some case, no
compensation can be considered enough. In such cases, law provides a way to
enforce the parties to actually fulfill their obligations. This is called
"specific performance of a contract".<br />
<br />
The obligations may not necessarily arise from contract but may also arise from
tort.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What contracts can be specifically enforced? </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 10</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">of Specific Relief Act
1963 specifies the conditions in which a contract can be specifically enforced.
These are as follows -<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">When there exists no
standard for ascertaining the actual damage caused by non-performance of the
act agreed to be done.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">When the act agreed to
be done is such that a compensation in the form of money would not afford
adequate relief. Unless contrary is proved, the court shall presume that <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">the breach of a
contract to transfer immovable property cannot be adequately relieved by
compensation in money.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">the breach of a contract
to transfer a movable property can be so relieved except <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">when the property is
not an ordinary article of commerce, or is of special value or interest to the
plaintiff or consists of goods which are not easily available in the market.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">where the property is
held by the defendant as the agent or trustee of the plaintiff.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Nivarti Govind Ingale
vs R B Patil 1997 SCC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A woman took a loan
from a relative and executed a deed of sale in favor of the relative's minor
son with an agreement of re-conveyance at the repayment of loan. This contract
was held to be specifically enforceable. The relative had sold the property off
to a buyer. This decree was allowed to be enforced against such buyer also.<br />
<br />
<b>M S Madhusoodhanan vs Kerala Kaumudi Pvt. Ltd. 2003 SCC</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- Shares of a private company were held to be
goods of such a nature as are not easily obtainable in the market. Thus, SC
allowed specific performance to be granted in such cases.<br />
<br />
<b>Section 11</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that specific
performance can be enforced when the act agreed to be done is wholly or
partly is in the performance of a trust. An exception is that the contract
must not be in excess of the power of a trustee.<br />
<br />
<b>Section 12</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">says that if, in the
discretion of the court, only a small part of a contract cannot be specifically
performed and if such part can be alternatively compensated, the rest of the
part can be specifically enforced.<br />
<br />
According to</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Section 23</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">, even if a contract includes a penalty or
fixed amount of damages in case of default, its specific performance can be
ordered depending on the intention of the penalty. If the intention of the
compensation for damages is to secure the performance of the contract and not
to give an alternative way of fulfilling the contract, it can be specifically
enforced.<br />
This principle was adopted in the case of <b>Manzoor Ahmed Magray vs.
Ghulam Hasan Aram 1999 and M L Devender Singh vs Syed Khaja 1973</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">by SC.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What contracts cannot be specifically enforced? </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Section 14 (1) </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">of Specific Relief Act
1963 specifies the conditions in which a contract can be specifically enforced.
These are as follows -<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">a.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">when compensation in
money is an adequate relief.<br />
Ordinary contract to lend or borrow money, whether with or withour security, is
an example of a contract which cannot be specifically enforced.<br />
<b>Mennakshisundara vs Rathnasami 1918</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- When a loan has already been advanced on the
understanding that a security will be provided against it, this can be
specifically enforced.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">b.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">when a contract runs
into such minute and complex details or is dependent on personal qualifications
or volition of the defendant, or otherwise from its nature is such that a court
cannot enforce specific performance of its material terms.<br />
Personal services such as painting, singing etc. cannot be specifically
enforced. However, a contract to publish a piece of music or to build a house
can be specifically enforced because they are purely mechanical functions.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">c.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">when a contract is in
its nature determinable i.e. can be brought to an end under given conditions.<br />
Illustration - A and B enter into a partnership to do certain business, without
specifying the duration of the partnership. This cannot be specifically
enforced because if enforced, either A or B might at once dissolve the
partnership.<br />
A contract to employment is not specifically enforceable. The remedy in such
cases is to sue for damages.<br />
<b>Indian Oil Corp. vs Amritsar Gas Agency 1991</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A contract for distributorship cannot be
specifically enforced.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">d.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">when a contract, the
performance of which involves performance of continuous nature, which the court
cannot supervise.<br />
Examples - An agreement to keep an airfield in operation, or an agreement by
railway to keep signals operating.<br />
<b>Rayner vs Stone 1792</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A tenant's
undertaking to cultivate a farm in a specific way was held to be not specifically
enforceable.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Section 14(2)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A contract to refer a present or future
dispute to an arbitration cannot be specifically enforced.<br />
<b>Section 14(3)</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A contract to
execute a mortgage or furnish any other security for repayment of a loan, which
the borrower is not willing to repay at once.<br />
<b>Section 17</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">- A contract involving
transfer of property when the party does not have the title or ownership of the
property.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Can the following be specifically enforced - a contract to give money on loan,
contract to write a book, contract to marry,an invitation to
dinner, a contract to sell all goods of a class that a party may
require, a contract to run a franchised shop? </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
1. No, because as per 14 (1) (a), a contract that can be adequately compensated
in money cannot be specifically enforced.<br />
2. No, because as per 14(1) (b), an act that depends on personal skills or
volition of a party cannot be specifically enforced. Here, it depends on
personal skills.<br />
3. No, because as per 14(1) (b), an act that depends on personal skills or
volition of a party cannot be specifically enforced. Here, it depends on
personal volition.<br />
4. No, because as per 14(1) (b), an act that depends on personal skills or
volition of a party cannot be specifically enforced. Here, it depends on
personal volition.<br />
4. No, because as per 14(1) (b), a contract that is too complex to be
supervised by the court cannot be specifically enforced.<br />
5. No, because as per 14(1) (c), a contract that is determinable, i.e. can
be ended, cannot be specifically enforced. Here, a franchisee agreement
can be terminated.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What grounds may be taken by a defendant in a suit for specific performance of
the contract?</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">All the grounds upon
which a contract is voidable - no free consent.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Plaintiff has not
performed the whole or part of his part of contract.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">All grounds in section
14 i.e. Compensation in money is adequate, Depends on personal qualification,
or determinable contract.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">breach of trust or
beyond its powers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Contract when made
gave unfair advantage to the plaintiff.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Involves hardship.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">Plaintiff has chosen
his remedy and obtained satisfaction for the alleged breach of contract.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-62345993998118696222016-02-16T11:26:00.002-08:002016-02-16T11:26:34.236-08:00Labor Law ( Notes)<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What are the provisions made by Factory Act 1948 for Health, Safety, and
Welfare of the workers? Who are "young persons" and what are the
provisions meant for them? What are the provisions for health, safety, and
welfare of women and children? Mention the provisions regarding "hours of
work". Mention the provisions for hazardous processes.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Working conditions of factory workers in India has been historically very
pathetic. Due to poverty and exploitation by factory owners, workers had
practically no option. Due to an increase in industrial activity in the later
half of the 19th century, attempts were made to improve the condition of the
workers many times by the reports of the Royal Commission through various
acts. The act of 1948 builds upon the act of 1934 after understanding the
defects and weaknesses of the earlier act. An important change was the widening
the definition of a 'Factory' to include any industrial establishment
employing 10 or more people that uses power, or any industrial
establishment that employs more than 20 people that does not use any
power. Other important changes were:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The distinction between seasonal and non-seasonal
factories was removed.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Increasing the minimum age of children eligible to work
from 12 to 14.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Reducing the hours of work for children from 5 to 4 and
a half.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Prohibiting children from working after 7 PM and before
6 AM.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Explicit and special focus on health, safety, and
welfare of all sorts of workers.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Definitions</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Factory Act 1948 defines the following terms.<br />
<br />
<b>Sec 2(k) Manufacturing Process </b><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Any process for making, altering, repairing,
ornamenting, finishing, packing, breaking up, demolishing, or
otherwise treating any article for use, sale, transport, delivery, or
disposal.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Pumping oil, water, sewage or any other substance.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Building, breaking ships or vessels.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Producing, transforming, transmitting power.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Printing<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Preserving or storing any thing in cold storage<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">State of Bombay vs Ali Saheb Kashim Tamboli 1955 SC</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Bidi making is a Manufacturing Process.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Ardeshir vs State of Bombay AIR 1962 SC</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Salt making is a Manufacturing Process.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Sec 2(l) Worker</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Any person employed directly or indirectly, for or
without remuneration, with or without knowledge of the principle employer,
working in a manufacturing process, or cleaning any part of machinery or
premises of a manufacturing process, or any other kind of work incidental
to or connected with the main manufacturing process or with the
subject of manufacturing process.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Includes exclusive electrical worker which otherwise
falls under worker.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">State of Bombay vs Tamboli AIR 1955 Bom</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Wages not necessary for being a worker.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Shankar Balaji vs State of Mah AIR 1962 SC</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- not a worker because - no agreement of contract, no
fixed time for work, work from home any time, leave any time. Only
adherence to bidi specs is no issue.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Sec 2(m) Factory</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">10+ people with power or 20+ people without power.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Worked at any time in previous 12 months. Shifts/Relays
are also counted as a person.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Exceptions - Railway Running Shed, Mines, Hotel, Restaurants,
Armed Forces, Any data processing unit that uses computers for office work
and does not do manufacturing.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Pragnarain v Crown 1928</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Factory means premises where anything towards making
or finishing of an article is done up to a stage when it is ready for sale
or is in suitable condition to be put in market.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">State of Bombay vs Ardeshir Hormosji Bhiwandiwala 1956</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- land used for making salt is a factory.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Sec 2 (c) Hazardous
Process</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Any Process or activity in relation to an industry specified in first schedule
where, unless special care is taken, raw materials used, final output,
intermediary product, by product, waste, or effluent can cause material
impairment to the health of a person working in the process directly or
indirectly or causes environmental pollution.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Provisions for Health<br />
<br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The following sections
deal with the health provisions for factory workers.<br />
<b><br />
Sec. 11 Cleanliness</b><br />
<!--[if !supportLineBreakNewLine]--><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Floor must be cleaned every day, if possible by
disinfectant.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the floor is wet and cannot be drained, special provisions
must be made to drain the water.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Walls must be regularly cleaned. They must be
whitewashed every 6 months. If an oil based paint/varnish is used, it must
be cleaned every year and must be repainted every 3 years.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Doors, windows, and railings must be cleaned
periodically.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A register must be maintained that logs all the
cleaning activities performed.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Sec.
12 Waste and Affluents</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
All the waste and affluents generated in the factory must be removed from the
factory with proper treatment.<br />
<br />
<b>Sec. 13 Temperature and Ventilation</b><br />
The temperature of the working place must be maintained. Special care must be
take to not let the temperature increase where any work that use or produces
heat is performed. Fresh air must be circulated through adequate ventilation.<br />
<br />
<b>Sec. 14 Dust and Fumes</b><br />
Proper steps must be taken to remove the dust and fumes from the working area.
Gases or exhaust fumes generated by any equipment such as diesel generator
should be routed and released outside the workplace.<br />
<br />
<b>Sec. 15 Artificial Humidity</b><br />
Any place where humidity is increased artificially, proper instruments must
installed to record the humidity.<br />
<br />
<b>Sec 16 Overcrowding</b><br />
A factory established before this act must have at least 9.1 sq ft of space per
person, while new factories must have 14.2 sq ft. The maximum capacity of a
room or enclosure must be posted outside the room and a log must be maintained.<br />
<br />
<b>Sec 17 Lighting</b><br />
Proper lighting arrangements must be made to ensure that it does not cause
glare in eyes. Light source must be such that a shadow is not created in the
work area.<br />
<br />
<b>Sec 18 Drinking water</b><br />
Clean safe drinking water must be provided. Water must be kept away
from any dirty place. No waste should be routed from the place where
drinking water is kept. At least six meters away from latrines, urinals,
washing place. "Drinking water" must be written in bold and legible
to all.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Sec 19 Latrines and Urinals</b><br />
A separate place must be created for men and women. Height must be the
floor and walls must be properly tiled. It must be cleaned every day.<br />
<br />
<b>Sec 20 Spittoons</b><br />
Spittoons must be placed at several appropriate locations.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">The following sections
21 to 41 deal with the safety provisions for factory workers.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>State of Gujarat vs. Jethalal 1964 SC</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- (Sec 21 – Fencing of
machinery. ) That someone without the approval or knowledge of the occupier has
removed a safety mechanism, is no defense. </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<b>Finch vs Telegraph Construction and Maintenance Co</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- (Sec 35 -
Protection to eyes) - Only hanging of goggles is not enough but the
workers must be informed of their whereabout.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">The following sections
42 to 50 deal with the welfare provisions for factory workers.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Sec 42 Washing Facilities</b><br />
<br />
<b>Sec 43 Facility for drying and storage of clothes</b><br />
<br />
<b>Sec 44 Facility for sitting</b><br />
<br />
<b>Sec 45 First Aid Appliances</b><br />
<br />
<b>Sec 46 Canteen</b><br />
<b>Bengal Water Proof Workers vs State of West Bengal 1970</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">- Held that the
liability of a company is only to set up a canteen so that workers can take
advantage of it. The terms and conditions of service of the staff of the
canteen do not come under that liability.<br />
<br />
<b>Sec 47 Shelter, rest rooms, and lunch rooms</b><br />
<br />
<b>Sec 48 Creche</b><br />
<br />
<b>Sec 49 Welfare Officer</b><br />
<br />
<b>Sec 50 Power to make rules to supplement this chapter:</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">This includes
requiring any factory or class of factories to involve workers representatives
in the management of welfare activities for the workers. It also allows
the state to exempt certain factories from welfare provisions, provided that
alternative arrangements are made.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Health and Safety In
Mines - Mines Act 1952<br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Sec. 19 - Drinking
Water<br />
Sec. 20 - Conservancy (Latrines and Urinals)<br />
Sec. 21 - Medical Appliances<br />
Notice, Prevention, and investigation of Accidents and Diseases.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Health and Welfare In
Plantations - Plantations Labor Act 1951<br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Heath</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Drinking water, conservancy, medical facilities, Annual leave with wages,
sickness and maternity benefits.<br />
<br />
<b>Welfare</b><br />
Canteens for 150+ workers, creches, recreational, educational, and housing
facilities.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Provisions for welfare
of Women</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<b><br />
Given in Factory Act : </b><br />
Sec. 19 - Toilets and Urinals,</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Sec. 27 - Prohibition of employing women and children near cotton openers.<br />
Sec. 48 - Creches<br />
Sec. 66 - Further restrictions on employment of women - no flex on working hrs,
no change of shifts except after holiday.<br />
<br />
Maternity Benefit Act 1961<br />
<br />
Equal Remuneration Act 1976<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Provisions for welfare
of Children and Young Persons<br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Adult - </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">As per section 2 (a),
a person who has completed his 18th year of age.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Adolescent - </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">As per section 2 (b),
a person who has completed his 15th year of age but not 18th.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Child - </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">As per section 2 (c),
a person who has not yet completed his 15th year of age.<b><br />
Young Person - </b>As per section 2(d) A person who is a child or an
adolescent.<br />
<br />
<b>Regulations on employment of young persons (Sections 67 to 77):</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Sec. 23 - (y)
Employment of young persons on dangerous machines.<br />
<br />
Sec. 67 -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> A
child who has not completed his 14th yr of age is prohibited from working in a
factory.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Sec. 68 - As per this section, a person who has completed 14th yr of age or is
adolescent shall not be allowed to work in a factory unless he is certified by
a surgeon. This certificate must be provided by a certifying surgeon as per
section 69, and must be kept with the manager and the person should be given a
token containing the reference of this certificate while working.<br />
<br />
Sec. 69 - A certifying surgeon should examine the person and issue a
certificate of fitness upon request by the young person or his parents. If the
child has completed 14th yr of age and has attained prescribed physical
standards, he can be given the certificate of fitness to work as a child. If
the child has completed 15th yr of age and is fit for full days work in the
factory, he can be given the certificate to work as adult.<br />
<br />
Sec 70 says that even if a person has been given a certificate to work as an
adult and who has not completed the age of 17 yrs, he can be allowed to work
only between 6 AM to 7 PM.<br />
<br />
Sec. 71 - This section prohibits a child from working for more that 4 and
a half hours in any day and only between 6am to 10pm. Further that a child will
not be allowed to work in a day if he has worked in the same day in another
factory. No female child is allowed to work except between 8 AM and 7 PM.<br />
<br />
Sec. 72 - Notice period of work for children.<br />
<br />
Sec. 73 - Register of child workers.<br />
<br />
Sec. 74 - No child shall be allowed to work except in the hours mentioned in
the notice periods given in section 72 and 73.<br />
<br />
Sec. 75 - Power to require medical examination. An inspector has the power to
serve a notice on the employer required that any person or young person shall
be examined by a certifying surgeon.<br />
<br />
Sec. 76 - This section empowers the state govt. to formulate rules for physical
standards, procedures, and other conditions for giving fitness certificate.<br />
<br />
Sec. 77 says that the regulations in this act are in addition to Employment of
Children Act 1938.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Provisions for
Hazardous Processes in Factory Act (Section 41 A to 41 H)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Sec. 41 A Constitution of Site Appraisal Committee<br />
Sec. 41 B Compulsory disclosure of information by occupier<br />
Sec. 41 C Specific Responsibility of the occupier in relation to hazardous
process<br />
Sec. 41 D Power of central govt. to appoint Inquiry Committee<br />
Sec. 41 E Emergency Standards<br />
Sec. 41 F Permissible limits of exposure of chemical and toxic substances<br />
Sec. 41 G Worker's participation in Safety management<br />
Sec. 41 H Right of workers to warn about imminent danger.<o:p></o:p></span></div>
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<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q. Explain
the terms "Dependents" and "Wages" w.r.t. WCA,
1923. What do you understand by Workers Compensation? In what situations
does an employer have to compensate a worker? Explain the phrase
"arising out of and in the course of employment" with reference
to WCA, 1923. How far is an employer liable to pay compensation to a
laborer injured in an accident arising out of and in the course of
employment? Since amount of compensation depends on the nature of
suffering, discuss the various sufferings on the which amount to be paid
differs. What are the remedies available to a workman injured in course of
an employment? How is social security is made available to the workman under
WCA, 1923? </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">What are the objectives behind Employees' State Insurance Act
1948 and how does it differ from Workmen's Compensation Act 1923? </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Dependents</b><br />
Dependents means any of the following relatives of a deceased workman.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section 2 (1) (d)</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">of WCA 1923 classifies dependents into three
classes. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">New India Insurance Co
Ltd vs Man Singh and others, 1984, MP</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">HC held that persons in these classes do not have mutually
exclusive claim to compensation. They can simultaneously claim compensation.<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Widowed mother, widow,
minor legitimate or adopted son, unmarried legitimate or adopted daughter. In
this case it is irrelevant whether they are fully or partially dependent on the
earnings of the workman.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Legitimate son or
daughter if -<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">they are fully
dependent on the earnings of the workman.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">if they are infirm.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">if they are above 18.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The persons in this
class must be dependent wholely or partially on the earnings of the workman to
claim compensation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">widower<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a parent other than
widowed mother<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">an minor illegitimate
son, an illegitimate or legitimate or adopted daughter if minor and
married or if minor and widowed<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">widowed daughter in
law<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a minor brother, an
unmarried sister, or widowed sister if minor.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a minor child of
predeceased son.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a minor child of a
predeceased daughter if no parent of the child is alive.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a paternal grandparent
if no parent of the worker is alive.<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Ramji vs Lalit Kumar Bardiya, 1995, MP</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">HC held that the parents have to the right to
claim compensation because the workman was living jointly with them. In joint
families there is a sharing of income and responsibilities. Even if workman did
not contribute to the family fund that was only because he was not being paid
by the employer. The family would have received the benefit of his wages
otherwise.<br />
<br />
<b>WagesSection 2(1) m</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">defines wages as any
benefit or privilege received by a worker from an employer that can be
estimated in money except<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">traveling allowance or
value of any concession given on traveling.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">employer's
contribution to PF or pension fund<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">any expenses
reimbursed to the workman incurred due to work.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The following benefits
are included in calculating wages:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Bonus - was held to be
wages in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Maharastra Sugar Mills
Ltd. vs Ashru Jaiwant AIR 1966 Bom</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Maternity benefits
payable to a woman after pregnancy.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Dearness Allowance<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Benefits in the form
of food, clothing, and accommodation<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Accommodation <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Overtime pay<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">M/s J C Mills vs Deshraj, AIR 1952, MP HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that paid leave is not a wage unless it
is stated expressly in the contract of employment that paid leave can be
encashed if not taken.<br />
<b>Workman</b><br />
<b>Section 2(1) n</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">defines workman as<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A railway servant as defined in Railways Act 1989
except those who are permanently employed in an administrative office.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a master, seaman, or any crewman of a ship.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">captain or a crew member of an aircraft.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">driver, mechanic, cleaner, helper or employed to any
task related to motor vehicles.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a person recruited for work abroad by a company.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a person working for any task as described in schedule
2.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Exception:</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A member of the armed forces is not a workman.<br />
<b><br />
Examples:</b><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A porter even though not included in schedule II.</span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Narayanan vs Southern Railway - Kerala 1980</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Working for 24 days in a month on daily wages.</span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Hastimal vs Arjunan - Madras 1993</span></b><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">. <o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Workmen's Compensation and Social Security</b><br />
Success of an industry depends on the productivity of the workers. Thus,
minimizing the labor cost is a prime objective of factory owners. In their zest
to reduce the labor cost, safety of the workers gets neglected thereby
increasing the chances of death or injury to the workers. An increase in the
use of complex machinery, the risk for injury to worker had increased. Further,
many times, because of the injury a worker may not be able to work, or in case
a worker dies, his dependents have no way of making ends meet. This in turn
gives rise to poverty, hopelessness, and above all insecurity among other
workmen which is detrimental to the industry itself. This is unacceptable in
any civilized country. Thus, to ensure that workers and their dependents get
enough financial security, Workmen's Compensation Act was enacted in 1923.
It obligates the employer to compensate a worker for his loss due to
personal injury while on the job. Appropriate compensation to worker and his
dependents prevents unrest among other workers. This promotes a general
well being among the working class. In the absence of such compensation,
the dependents may be forced into begging or illegal activities. Thus, WCA is a
great mechanism to enhance social security.<br />
<br />
This act has gone long way to protect workmen for accidental loss of life or
limb and to provide social security to poverty stricken workmen. Although its
main objective is to compensate the workers for injury it has also prompted the
employers to implement processes that reduce risk to the workers.<br />
<br />
<b>Main Features of the act:</b><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Modeled on the British pattern and payment is
obligatory on all employers whose employees are entitled to benefit under
this act.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The workmen or his dependents can claim compensation if
the injury has been caused by an accident arising out of and in course of
employment and if such an accident cannot be attributed to drug or drinks
or willful neglect of safety rules.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Various class of workmen have been specified. Earlier
clerical workers and workers making more than 1600 rs per month were
excluded but now the wage limit has been removed.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The amount of compensation depends, in case of death,
the average monthly wages, and in case of injury, the average monthly
wages and the type of injury.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The term wages includes -overtime page, benefits like
food, housing, and clothing.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Principles Governing
the act:</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The purpose is not to give a solatium but to compensate
the worker or his dependents for the actual loss suffered due to an
accident.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">There must be a casual connection between the injury
and the accident, and the accident and the work done in the course of
employment.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The claimant must prove the connection between the
injury and the course of work during employment.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It is not necessary that the worker is actually working
or has just finished work.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the evidence shows a greater probability which
satisfies a reasonable man that the work contributed to the injury, it is
enough to prove the claim.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Nature of liability</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
This is a different kind of liability. It is not same as a liability in torts.
It arises due to the relationship between the worker and employer. An employer
is only liable to pay the difference between the earning capacities of the
worker before and after the accident irrespective of the loss or expenses
incurred in treatment of the worker. It is also not dependent upon the neglect
or wrong doing of the employer.<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">When is an employer
liable to pay compensation?</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Section 3</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">says that an
employer is liable to pay compensation if a personal injury is caused
to the workman due to an accident arising out of and in the course of employment.
Thus, the following conditions must be satisfied to claim compensation:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Personal injury must
have been caused to a workman.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The personal injury
must have been due to an accident.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The accident must have
arisen out of and in the course of employment.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The injury must have
resulted in death or the worker must have received total or partial disability
at least for 3 days due to the injury.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The following are the
excuses or conditions in which an employer is not liable to pay any
compensation:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the injury did not
cause total or partial disablement for more than 3 days.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the injury did not
result in death or permanent total disablement and<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The worker was under
the influence of drinks or drugs.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The worker willfully
disobeyed the orders expressly given or a rule expressly framed for the
safety of the workman.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The worker willfully
did not wear or removed protective gear as required to work while having known
that such devices exist and were available.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Employer's liability
in case of occupational diseases</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Section 3 also discusses many diseases that can be caused due to employment in
certain industries. These diseases are divided in 3 parts and are listed in
Schedule 3. There are different rules for the compensation arising due to
diseases of different parts.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Indian News Chronicle
vs Mrs Lazarus - Punjab AIR 1961</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- it was held that Injury need not only be physical. Pneumonia
caused due to change in temperature is also injury because of job.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Sunil Industries vs
Ram Chander Pradhan - SC 2001</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- It was held that it is not necessary for a workman to be
working in a factory as defined in Factories Act 1948 to claim compensation.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Arising out of and in the course of Employment</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
arising out of == suggests the cause of the accident<br />
in the course of == refers to the time, place, and circumstances of the
accident<br />
<br />
The claimant must prove that the accident has occurred due to the circumstances
arising out of employment.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the risk taken by
the workman was only because of the employment, it is a valid casual
connection. If the risk taken was on the worker's own account and not due to
employment, then the employer is not liable. Worker was doing something for the
furtherance of the employer's business and not for his own benefit, it is a valid
connection. Worker should not be doing something which is way out of scope of
his employment - doctrine of added peril.<br />
<br />
It is not necessary that the accident has taken place within the work place, or
even within working hours but that the employment has some casual relationship
with the cause of the accident. A worker might get hurt while going to
quench his thirst or bodily needs, and that would be a valid ground for
compensation. Thus, the activity of the worker may not necessarily be exactly
the same but must be reasonably linked to the work that he is supposed to do.<br />
<br />
<b>Trustees Port of Bombay vs Yamunabai - AIR 1952 Bom</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- A worker was injured by a bomb placed by
somebody in the workplace. HC held that it was arising out of employment. HC
stipulated that if a particular accident would not have happened to a workmen
had he not been in the employment at that time and place, it would be an
accident arising out of the employment.<br />
<br />
<b>State of Raj vs Ram Prasad - 2001 SC</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Worker died due natural lightning. SC held that since the
workman was exposed to lightning only because of the job, employer is liable to
pay compensation.<br />
<br />
<b>R B Moondra and Co vs Mst Bhanwari - AIR 1970 Raj</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Worker entered a petrol tank to check leak.
He lighted a match and died of burns. HC held that it was in due course of
employment and that he did not take any additional risk because he did not
believe there was any risk since the tank was partially filled with water.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Notional Extension of
Employer's premises</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Ordinarily, going to and coming home from work place is not considered
within the course of employment. However, there may be reasonable cases where
an extension of employer's premise and time may be applied if while going to or
coming from work the worker has to use part of the employer's facilities.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
This was discussed by the House of Lords in the case of <b>St Hellen's
Colliery Ltd. vs Hewlston</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">in 1924. In this case,
the worker was not obligated to use employer's train to work. He could use any
other means to commute. So it was held that an accident arising while on
the special train was not in the course of employment.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Varadarajulu vs Masaya
Boyan AIR 1953, Mad. HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that the worker
had no other means to go to the work place other than to use the employer's
lorry. So, accident happening while in the lorry is in due course of
employment.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Willful disobedience
of orders or safety devices etc</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In order to disown any claim for compensation, it is not enough to show that
the workman neglected the safely measures or disobeyed the orders. The employer
must show that such neglect was willful and the orders that he disobeyed were
express. Mere disobedience is not enough because it could be because or
forgetfulness or due to the result of impulse of the moment.<br />
<br />
In the case, of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Arya Muni vs Union of
India 1965</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, a workman lost is
right eye due to an accident. The employer claimed that there were instructions
to use goggles but the worker did not use them. However, it was held that since
the worker did not know English, it cannot be said that he understood the
message. Also, while the worker was aware of goggles that did not mean that he
understood that they were mandatory. The supervisor also did not tell him so.
Thus, the employer was liable to pay compensation.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Negligence of the workman</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Padam Debi vs
Raghunath AIR 1950 Orrisa HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that once it is
established that an accident happened without any design and in course of
employment, the question of negligence, great or small, is irrelevant.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Roshan Deen vs Preeti
Lal 2002 SC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that liability to
pay compensation cannot be reduced or avoided by any agreement with the worker
to that affect.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Alternative Remedies</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In case of an injury, a workman has the following alternative remedies<br />
<!--[if !supportLineBreakNewLine]--><br />
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<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">he can claim compensation
under WCA 1923.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">he can claim damages
in torts.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">he can claim under the
Employer's liability act.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">However, a workman is
not allowed to put his employer into double jeopardy of proceedings or
compensation as per section 3(5). Thus, he cannot make any claim for
compensation under this act if he has instituted any civil proceeding for the
same injury. Similarly, a workman is not allowed to institute any civil
proceeding for damages against the employer or any other person for the same
injury if,<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">he has made a claim
for compensation before a commissioner or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the amount of
compensation has been settled between him and the employer in accordance with
the provisions of this act.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A
workman cannot get compensation twice through any means for the same injury.<br />
Section 3(5) uses the word "instituted", which is more specific than
that the just filing a claim. "Instituted" means setting on foot an
inquiry. Thus, if a workman has filed a claim and then withdrawn it before any
inquiry was started, it will not be considered as instituted.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Amount of compensation</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
The amount of compensation for an injury depends on the extent of the loss of
earning capacity, which usually depends on the type of injury and resulting
disablement. Section 4 defines detailed rules for determining the amount of
compensation.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
a) If the injury results in death, the amount of compensation is equal to the
amount of 50% of the monthly wages of the deceased workman multiplied by a
relevant factor or 80,000/- which ever is more.<br />
b) If the injury results in total permanent disability, the amount of
compensation is equal to the amount of 60% of the monthly wages of the workman
multiplied by a relevant factor or 90,000/- which ever is more.<br />
In these cases, if the monthly wage is more than 4000 Rs then the monthly wage
considered in the calculation will be 4000/-. The relevant factor must be seen
in schedule IV and it depends on the number of years in service.<br />
c) If the injury results in partial permanent disability, the amount of
compensation is equal to the amount determined under permanent total disability
multiplied by the percentage of loss of earning capacity as given in schedule
I, if the injury is mentioned in schedule I, or is equal to the percentage
of amount determined under permanent total disability as the percentage of
loss of earning capacity as determined by a qualified medical practitioner.<br />
d) If the injury results in temporary, partial or total, disablement, the
workman must be paid half monthly payments of 25% of his monthly wages for the
time he is disabled.<br />
<br />
Any payment received by the workman for the treatment of his injury from his
employer will not be considered against the amount of compensation.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Employees' State
Insurance Act 1948<br />
<br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">While Worker's
compensation act was instrumental in providing a secure working environment to
workers to quite an extent, it still lacked the aspect of insurance.
Worker's compensation Act is geared towards providing an assistance
in case of an accident causing an injury, that too only when the accident
happens in due course of employment. However, there are several other
factors such as disease and age, which may cause a worker to become unable to
do any job. In such cases, WCA 1923 does not provide any help. Further,
no welfare activity is done under WCA.<br />
<br />
Dr Adarkar studied the social conditions of labor in India and made a detailed
report on the problems and solutions. Based on his reports and suggestions made
by several prominent experts of ILO, ESI Act was enacted. The main object of
ESIA 1948 is to provide a comprehensive insurance to the workers. ESIA is the
first legislation that looks after the general welfare of the labor in India.
It provides health, disability, and unemployment insurance to workers. The term
welfare is quite wide and includes any activity done for the physical,
economical, and intellectual betterment of the workers and their dependents.<br />
<br />
In the first instance this act applies to factories all over India. A state
govt. can all extend provisions of this act to any industry or any class of
industries, or establishment in any part of the state.<br />
<br />
<b>Section 3</b><br />
Under this section, the Central Govt. has formed a corporation by the name of
Employees' State Insurance Corporation, which is a legal entity.<br />
<br />
<b>Section 4</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">defines the constitution of the ESI Corporation. It details the
provisions regarding president, board of directors, managers, etc.<br />
<br />
<b>Section 38</b><br />
This sections specifies that all employees working in factories are covered. In
the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Hyderabad Asbestos vs. ESI Court AIR 1978</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, SC held that the
term employee is wide enough to included anybody who works for the factory
directly or indirectly.<br />
<br />
<b>Section 39</b><br />
It obligates the factory occupier to contribute to the ESI fund. This
contribution includes Employer's share as well as Employee's share.<br />
<b><br />
Section 46</b><br />
This section details the benefits that Employees' state insurance provides.
This includes sickness, maternity, disability, medical, dependent, and funeral
benefits.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q. Define
Trade Union. Is the registration of a Trade Union necessary? Write
down the procedure of registration, amalgamation, and cancellation of a trade
union. Under what conditions can a Registrar of Trade Unions cancel the
registration of a Trade Union? State the appellate provisions against the
decisions of the Registrar. What are the rights, privileges, immunities,
and liabilities of a registered trade union? What are the various
functions performed by a trade union and how do they promote the welfare of the
workers (what is the utility of a Trade Union)? </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Due to a surge in
industrial activity in the later part of 19th century, the population of
working class increased. Since the employers were mainly interested only in
profitability, workers were at a mercy of the employers. Slowly, the concept of
a union started taking hold in India. In 1890, mill workers of Bombay
associated under the name of Bombay Millhands Association. Although it was not
a trade union in a strict sense, it was nevertheless a start in India.<br />
After the first world war the cost of living increased and the workers
frequently agitated to demand more pay. In the early 20th century Royal Trade
Commission studied the condition of workers and suggested the formations of
Trade Unions. As per the recommendations of the Royal Commission, Indian Trade
Unions Act was passed in 1926. However, due to strong opposition from
employers, it was enforced only in 1927. The original act lacked teeth in
the sense that the formation of a Trade Union itself dependent on the
recognition by the employer. Later on several amendments were made to fix the
issues. In 1947, the act was amended widely as per the socialist inclination of
the polity.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Definition</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 2(h)</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">of the Trade Unions
Act 1926 defines Trade Union as a combination, temporary or permanent, formed primarily
for the purpose of regulating the relations between workmen and employer,
workmen and workmen, or employers and employers, or for imposing restrictive
condition on the conduct of any trade or business, and includes the federation
of two or more trade unions.<br />
<br />
It is the object of the association or combination that determines whether it
is a trade union or not.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
A society or authors, publishers, and other owners of copyright meant to
protect their copyright in music and songs, was held NOT to be a Trade Union by
the House of Lords.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Tamil Nadu NGO Union
vs Registrar, Trade Unions, AIR 1962, Madras HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that Tamil Nadu NGO Union, which was
an association of sub magistrates of the judiciary, tahsildars, etc., was not a
trade union because these people were engaged in sovereign and regal functions
of the State where were its inalienable functions.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">GTRTCS and Officer's
Association, Bangalore and others vs Asst. Labor Commissioner and anothers AIR
2002, Kar. HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that the
definition of workmen for the purpose of Trade Unions is a lot wider than in
other acts and that the emphasis is on the purpose of the association rather
than the type of workers and so it is a valid Trade Union.<br />
<br />
The registration of a trade union is not necessary. However, upon registration,
a trade union gets several benefits including some immunities that are not
available to an unregistered Trade Union. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Workers of B and C Co vs Labor Commissioner,
AIR 1964 Mad</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">it was held that a
Trade Union can raise or sponsor a trade dispute and represent on behalf of its
members in legal proceedings arising out of a trade dispute.<br />
<b>Section 13</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">specifies that upon
registration, a trade union gets a legal entity status, due to which it</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
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<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">has perpetual succession and a common seal.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">can acquire and hold movable as well as immovable
properties.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">can contract through agents.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">can sue and can be sued.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Procedure of
Registration</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<b>Section 3</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">(Appointment of the
Registrar) : The appropriate government appoints a person to be the registrar
or trade unions for each state.<br />
<br />
<b>Section 4</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">(Mode of registration)
says that to register a Trade Union, </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">an application must be sent to the Registrar of Trade
Unions appointed by an appropriate government. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the application must be made by seven or more persons
who are engaged in the trade or industry in connection to which the Trade
Union is to be formed. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">all the applicants must subscribe their names to the
rules of the Trade Union and comply with the provisions of this act
regarding registration.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">there must be at least 10% or 100, whichever is less,
members who are engaged or employed in the establishment or industry to
which it is connected.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">there must be not be less than seven members who
are engaged or employed in the establishment or industry to which it is
connected.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If more that half of
the persons who applied for the registration cease to be members of the union
or expressly disassociate themselves from the application, the application will
be deemed to be invalid.<br />
<br />
<b>Section 5</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">(Application of
Registration) gives the details of the application. It says that the
application should be sent to the registrar along with the copy of the rules of
the trade union and a statement of the following particulars<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The name, occupation, and addresses of the applicants.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The name of the trade union and the address of its head
office.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The titles, names, ages, addresses, and occupations of
the office bearers of the trade union.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the trade union has been in existence for more than
1 yr, a general statement of its assets and liabilities.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section 6</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">(Provisions to be contained in the rules of a
Trade Union) specifies the provisions that should be contained in the rule book
of the trade union. A copy of this rule book must be supplied along with the
application for registration of the trade union. This rule book details the
internal administration of the trade union and also determines and governs the
relationship between the trade union and its members. It must contain the
rules for the following matters:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">name of the trade
union<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the whole object of
the trade union<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the whole purposes for
which the general funds can be used.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the maintenance of the
list of members and adequate facilities to inspect it by the members of the
trade union.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the membership of ordinary
members who are actually engaged or employed in an industry with which it is
connected as well as the membership of the honorary or temporary members.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the appointment of
members of the executive body.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the membership or
subscription fee, which shall not be less that 25 paisa per member per month<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the conditions under
which a member can get the benefits or has to pay fines.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the safe custody of
funds and provisions for inspecting or auditing the statements, or other
documents of the trade union.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">10.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">dissolution of the
trade union.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">M T Chandersenan vs Sukumaran AIR 1974</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that if a member fails to pay
subscription fee, he cannot be considered a member of the trade union. However,
subscriptions cannot be refused under some pretext which results in the denial
of membership.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Bokajan Cement
Corporation Employees Union vs Cement Corporation of India, 2004, SC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that membership of the union does not
automatically cease upon termination of the employment.<br />
<br />
Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 7</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, the registrar has the power to ask for further information
from the trade union to satisfy himself that the trade union complies with
section 5 and is eligible to be registered under section 6. The registrar can
refuse to register the trade union until he receives the information. Further,
he has the power to ask to change the name of the trade union if a union with
the same name already exists or if he feels that the name could be deceiving or
confusing to the public or the members of the trade union.<br />
<br />
Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 8</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, upon satisfaction of all the requirements, the Registrar of
the Trade Unions will register the trade union. It is mandatory for the
registrar to register a trade union if the union satisfies all the technical
requirements of this act.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">re Indian Steam
Navigation Workers Union AIR 1936 SC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that a Registrar only has to see whether all the technical
requirements are being fulfilled and not whether it could be described as
unlawful.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">ACC Rajanka Limestone
Quarries Worker's Union vs Registrar of Trade Unions, AIR 1958</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, it was held that if the registrar does not
register the trade union within 3 months of application, an appeal can be made
to the High Court under art 226.<br />
<br />
Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 9</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, the registrar will issue the certificate of registration in
the prescribed form, which shall be a conclusive evidence that the trade union
is registered under this act.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Procedure for
amalgamation</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 24</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">says that any two or
more registered trade unions may become amalgamated together into one trade
union with or without dissolution or division of the funds of such trade unions
or either or any of them, provided that votes of at least one half of the
members of each trade union are recorded and at least 60% of the votes of each
trade union are in favor of the proposal.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The notice of such
amalgamation, signed by the secretary and seven members of each of the trade
unions, should be sent to the registrar of the state where the head office of
the amalgamated trade union is to be located. If the registrar is satisfied
that all the provisions of this act have been complied with and the trade union
formed thereby is entitled to registration under section 6, he will register
the new trade union under section 8 and the amalgamation will take effect from
the date of registration.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Cancellation of
Registration</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 10</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, the Registrar of Trade Unions has the power to cancel the
registration of a trade union in the following conditions:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">On the application of
the trade union to be verified in the prescribed manner.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the registrar is
satisfied that registration was obtained by fraud or mistake.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the trade union has
ceased to exist.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the trade union
willfully, upon notice of the registrar, has contravened or allowed any rule to
continue in force, which is inconsistent with the provisions of this act.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the trade union
rescinds any rule providing for any matter, provision for which is required to
be made in section 6.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If the registrar is
satisfied that a trade union of workmen has ceased to have the requisite number
of members.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Tata Electric Companies Officer's Guild vs
Registrar of Trade Unions, 1994, Bombay HC</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that for a registrar to cancel the registration, willful
neglect of the notice is a must. If the trade union sends the account statement
upon notice of the registrar, the registrar cannot cancel the registration on
the ground that the account statement was not filed earlier.<br />
<br />
Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 27</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, upon dissolution of a trade union, seven or more members must
send a notification to the registrar within 14 days of dissolution and the
registrar shall register ir after verifying that the dissolution has been done
as per the provisions of this act. Further, if the rules of the trade union do
not provide for distribution of the funds upon dissolution, the registrar may
distribute the funds in such manner as may be prescribed.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Appeal against the
decision of Registrar</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b>Section 11</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">grants a limited right
to appeal the decisions or orders passed by the registrar.<br />
<br />
An appeal may be made to<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the high court, if the
head office of the trade union is located in a presidency town.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the labour court or
industrial tribunal, if the head office of the trade union is located in its
jurisdiction.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">if the head office of
the trade union in any other location, to such court, not inferior to the court
of an additional or assistant judge of a principal civil court of original
jurisdiction, as the appropriate govt. may appoint in this behalf for that
area.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">An appeal must be made
within 60 days of the date on which registrar passed the order against which
the appeal is made.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Registrar of Trade
Unions, West Bengal vs Mihir Kumar Guha 1963, Cal</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, it was settled that a trade union whose head
office is in a presidency town has only a single chance of appeal against the
decision of the registrar, which is to the high court while a trade union whose
head office is in muffasil has two chances of appeals, first in the local court
and second in the high court.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Liabilities of a
registered Trade Union</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
A registered trade union must follow the provisions of the Trade Unions Act
1926. In particular, the following are some restrictions in a registered trade union:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A Trade Union
cannot spend the funds on anything the office bearers want. It can spend funds
only on the activities specified in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section 15</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">.
These include:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">salaries of the
office bearers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">expenses required for
the administration of the trade union<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">compensation to
workers due to loss arise of any trade dispute.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">welfare activities of
the workers including housing, clothing, or any such activity.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">benefits to the
workers or their dependents in the case of unemployment, disability, or death.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">publishing material
for creating awareness in the workers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">legal expenses
required for defending or bringing a suit.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">education of workers
or their dependents.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">expenses for medical
treatment of workers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">10.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">taking insurance
policies for workers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Mario Raposo vs H M
Bhandarkar and others 1994</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Office bearers of a trade union invested the money from
general fund into shares of UTI. This was held invalid because it is a
speculative investment.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A trade union cannot
force members to subscribe to political fund under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 16</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 20</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a trade union must make available all its record books of
accounts and list of membership for inspection upon request of any member or
his representative.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section
21</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">allows minors more than 15 yrs of age to be
members of a trade union. However, such minors cannot hold office.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 21-A</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, a trade union cannot appoint a person who has been convicted
of a crime involving moral turpitude and has been imprisoned for 6 months or
more within last 5 years.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">As per</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 22</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, at least half of the office bearers of a trade union of
workers of unorganized sector must be engaged or employed in an industry to
which the trade union is connected. Also, while a union has a right to remove
any office bearer, this power must be used judiciously and rules of natural
justice must be followed.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 28</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, a general statement, audited in a prescribed manner, of
all income and expenses must be sent to the registrar every year.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Rights and Priviledges
of a registered Trade Union</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">As per</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 13</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, upon registration, a trade union becomes a legal entity and as
a consequence, it gets perpetual succession and a corporate seal, it can
acquire and hold movable and immovable property, contract through agents, and
can sue and get sued.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 15</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a registered trade union has a right to
establish a general fund.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 16</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, a registered trade union has a right to establish a political
fund. Subscription to this fund is not necessary for a member.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 17, 18, and 19</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">a registered trade union gets immunity in
certain criminal, civil, and contractual proceedings.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 24</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, trade unions have the right to amalgamate.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Under</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">section 28-F</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, the executive of a registered trade union has a right to
negotiate with the employer the matters of employment or non-employment or the
terms of employment or the condition of labor of all or any of the members of
the trade union and the employer shall receive and send replies to letters
and grant interviews to such body regarding such matters. It further provides
that the executive is entitled to post notices of the trade union meant for its
members at any premises where they are employed and that the employer shall
provide reasonable facilities for that.<o:p></o:p></span></div>
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<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Immunites available to
a registered Trade Union</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 12pt; margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section
17</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">confers immunity from liability in the case of
criminal conspiracy under section 120-B of IPC, committed by an office bearer
or a member. However, this immunity is partial in the sense that it is
available only with respect to the legal agreements created by the members for
the furtherance of valid objects of a trade union as described in section 15 of
the act. The immunity cannot be claimed for an act that is an
offence. Registered Trade Unions have certain rights to do in furtherance
of their trade disputes such as calling for strike, persuading members.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">West India Steel
Company Ltd. vs Azeez 1990 Kerala</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, a trade union leader obstructed work inside the factory for 5
hrs while protesting against the deputation of a workman to work another
section. It was held that while in a factory, the worker must submit to the
instructions given by his superiors. A trade union leader has no immunity
against disobeying the orders. A trade union leader or any worker does not have
any right by law to share managerial responsibilities. A trade union can
espouse the cause of workers through legal ways but officials of a trade union
cannot direct other workers individually or in general about how to do their
work. They do not have the right to ask a worker to stop his work or otherwise
obstruct the work of the establishment. An employer may deal with a person
causing obstruction in work effectively.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section
18</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">confers immunity from civil proceedings in
certain cases to a trade union or its office bears or members. In general, a
person is liable in torts for inducing another person to breach his contract of
employment or for interfering with the trade or business of another. However, a
trade union, its officers, and its members are immune from this liability
provided that such an inducement is in contemplation or furtherance of a
trade dispute. Further, the inducement should be lawful. There is no immunity
against violence, threats, or any other illegal means.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">P Mukundan and others
vs Mohan Kandy Pavithran 1992 Kerala</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, it was held that strike per se is not an actionable wrong.
Further, it was held that the trade union, its officers, and its members are
immune against legal proceedings linked with the strike of workmen by the
provisions of section 18.<br />
In the leading case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Rohtas Industries
Staff Union vs State of Bihar AIR 1963</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, it was held that employers do not have the right to claim
damages against the employee participating in an illegal strike and thereby
causing loss of production and business.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Simpson & Group
Companies Workers & Staff Union vs Amco Batteries Ltd 1992 Karn.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, it was held that physical obstruction of
movement of management officials, contractors, goods, or vehicles carrying
raw materials, is not a trade union right or a fundamental right under art 19.
Immunity under section 18 cannot be claimed for such activities. Right to
picket is a very intangible right and it extends only up to the right of free
movement of others. The methods of persuasion are limited to oral and visual
and do not include physical obstruction of vehicles or persons.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Section
19 Enforceability of agreements</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- In India, an agreement in restraint of trade is void as per
section 25 of Indian Contract Act. However, such an agreement between trade
union members is neither void nor voidable. It is important to note that this
right is available only to registered trade unions. An unregistered trade union
must follow the principles of general contract law.<o:p></o:p></span></div>
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<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Activities of a Trade
Union</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Fatta<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Problems with Trade
Unions</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Too many unions causes
intra-union and inter-union rivalry and thus loss of precious resources that
can be used for worker's welfare.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Due to politicization
of unions causes the union to overlook the true welfare and benefits of the worker.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Outside Leadership
causes unions to lose focus because such leadership does not understand the
problems of the laborers.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Closed Shop/Union Shop
companies forces laborers to join the union and thus causes monopoly. Close
shops/Union Shops are now illegal in many countries.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Sometime the employers
do not recognize unions<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What do you understand by Collective Bargaining? Write down the bargaining
process. What are its benefits?</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Collective Bargaining is a term adopted for the negotiation process between
workers, represent by a Union such as a Trade Union, and their
employer, represented by the management, for issues related to the terms and
conditions of their employment.such as wages, working hours, benefits, and
workload. An agreement arrived at by this negotiation process is called as
Collective Bargaining Agreement (CBA) or Collective Employment Agreement (CEA).<br />
Practically, a worker and his employer are not on an equal footing because of
the financial power of the employer and as such, it is extremely difficult, if
not impossible, for a single worker to pressure his employer to provide
equitable benefits for his work. Historically, this has proven to be the main
cause of dissatisfaction among workers, resulting in decreased productivity,
and poor condition of workers. The objective of collective bargaining is
to mitigate the disadvantage of economic disparity between the worker and
the employer by bargaining with the employer collectively instead of
individually.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Approaches to
Collective Bargaining </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<b><br />
1. Traditional or Positional or Adversarial or Distributional or Win-Lose
Bargaining</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- In this type of
bargaining both the parties, i.e. the union and the management, come out with
their own agenda with little or no understanding of each others problems. The
process mostly involves a give and take type of negotiation. This is the most
common type of collective bargaining and is used all over the world.<br />
<br />
<b>2. Principled or Mutual Gains or Integrative or Win-Win Bargaining</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- In this type of bargaining both the parties
understand the issues involved and they approach it to solve the problems
jointly. Thus, an equitable solution without any acrimony can be found. This
process works when there is not much disparity between the education level of
both the parties, such as in IT industry.<br />
<br />
The principle of collective bargaining is recognized by International Labor
Organization (ILO) as well.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Bargaining Process</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The process starts
with the workers uniting to form an association in the form of a Trade Union.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Workers of B and C Co
vs Labour Commissioner, AIR 1964 Mad</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">it was held that a Trade Union can raise or sponsor a trade
dispute and represent on behalf of its members in legal proceedings arising out
of a trade dispute.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Trade Union of
registered and gets the power to represent the issues of the workers. Though it
is not necessary for a TU to be registered. In the same case mentioned above,
it was also held that an unregistered Trade Union that has the support of the
majority of the workers has a better claim to negotiation than a recognized
trade union that does not have majority support.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The members of the
trade union adopt a resolution to authorize the Trade Union to represent them
and put their issues across to the management.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Employer recognizes
the Trade Union and gets ready to discuss the issues with the Trade Union
representatives.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The union
representatives put their list of demands to the management and the
management discusses those with the representatives.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">After a give and take
either a mutually agreeable solution is found or pressurizing tactics such as
strike or lock-out are adopted.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If no solution is
found, the matter could be referred to arbitration. If the solution is found,
it is implemented and the process ends.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Benefits of Collective
Bargaining</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<br />
Benefits for Workers<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It provides uniformity
and equality in conditions of labor for all laborers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It ensures progress of
workers and increases their importance and respect.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It prevents
arbitrariness by owners regarding working conditions.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It preserves personal
interest of workers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It promotes welfare of
workers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">A worker does not feel
alone and helpless, on the contrary, he feels powerful.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It provides a check on
employers and inspectors.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Benefits for Employers<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It is cheaper, easier,
and safer option.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It saves time and it
benefits all the parties equally.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Compromises reached by
this process are not only applicable to the parties but also to those who are
not a party.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Upon success of
collective bargaining, industrial peace prevails and mutual understanding and
production increases.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Compromises done
through collective bargaining are binding on all the parties.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Benefits in General</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Helps in satisfactory
solution of problems and allows old customs and traditions.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It reduces tension in
parties and establishes a tradition of industrial peace.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It has been proved
helpful in bringing social change.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Upon failure of the
process, no party is insulted or hurt.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Virundhachalam vs Management, Lotus Ltd, Lord
Roland</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">said that it ends the
arbitrariness of inspectors by preventing them from becoming legal kings.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Notes on Lay off, Lockout, Retrenchment, Strike.</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Section 2(kkk) - Lay
off</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Lay-off means failure, refusal, or inability of a employer to give employment
to a workman whose name is on the muster rolls of his industrial establishment
and who has not been retrenched, on the account of lack of coal, lack of power,
lack of raw material, over stocking of output, failure of machinery, due to
natural calamity, or due to any other connected reason.<br />
<br />
<b>Central India Spinning, Weaving, and Manufacturing Co. Ltd. Nagpur vs State
Industrial Court 1959</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Held that the words,
"failure, refusal, or inability" are key to the definition and means
that the unemployment is due to a cause independent of any action or inaction
of the workmen.<br />
<br />
Temporary<br />
Due to reasons beyond employer's control<br />
Due to economic reasons<br />
non-intentional<br />
<br />
<b>Rights and Obligations Resulting from lay-off</b><br />
Layoff is not a right conferred upon the employer but an obligation that the
unemployment is temporary in nature and in a reasonable time the laid off
worker will be restored his position. However, there is no indication regarding
the time layoff will continue.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">25C. RIGHT OF WORKMEN
LAID OFF FOR COMPENSATION</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Whenever a workman (other than a badli workman or a casual workman) whose name
is borne on the muster rolls of an industrial establishment and who has
completed not less than one year of continuous service under an employer is
laid off, whether continuously or intermittently, he shall be paid by the
employer for all days during which he is so laid off, except for such weekly
holidays as may intervene, compensation which shall be equal to fifty per cent
of the total of the basic wages and dearness allowance that would have been
payable to him had he not been so laid off :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Provided that if during any period of twelve months, a workman is so laid-off
for more than forty-five days, no such compensation shall be payable in respect
of any period of the lay-off after the expiry of the first forty-five days, if
there is an agreement to that effect between the workman and the employer :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Provided further that it shall be lawful for the employer in any case falling
within the foregoing proviso to retrench the workman in accordance with the
provisions contained in section 25F at any time after the expiry of the first
forty-five days of the lay-off and when he does so, any compensation paid to
the workman for having been laid-off during the preceding twelve months may be
set off against the compensation payable for retrenchment.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Explanation : "Badli workman" means a workman who is employed in an
industrial establishment in the place of another workman whose name is borne on
the muster rolls of the establishment, but shall cease to be regarded as such
for the purposes of this section, if he has completed one year of continuous
service in the establishment.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">25M. PROHIBITION OF
LAY-OFF. -</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
(1) No workman (other than a badli workman or a casual workman) whose name is
borne on the muster-rolls of an industrial establishment to which this Chapter
applies shall be laid-off by his employer except with the prior permission of
the appropriate Government or such authority as may be specified by that
Government by notification in the Official Gazette (hereinafter in this section
referred to as the specified authority), obtained on an application made in
this behalf unless such lay-off is due to shortage of power or to natural calamity,
and in the case of a mine, such lay-off is due also to fire, flood, excess of
inflammable gas or explosion.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(2) An application for permission under sub-section (1) shall be made by the
employer in the prescribed manner stating clearly the reasons for the intended
lay-off and a copy of such application shall also be served simultaneously on
the workmen concerned in the prescribed manner.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(3) Where the workmen (other than badli workmen or casual workmen) of an
industrial establishment, being a mine, have been laid-off under sub-section
(1) for reasons of fire, flood or excess of inflammable gas or explosion, the
employer, in relation to such establishment, shall, within a period of thirty
days from the date of commencement of such lay-off, apply, in the prescribed
manner, to the appropriate Government or the specified authority for permission
to continue the lay-off.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(4) Where an application for permission under sub-section (1) or sub-section
(3) has been made the appropriate Government or the specified authority, after
making such inquiry as it thinks fit and after giving a reasonable opportunity
of being heard to the employer, the workmen concerned and the persons
interested in such lay-off, may, having regard to the genuineness and adequacy
of the reasons for such lay-off, the interests of the workmen and all other
relevant factors, by order and for reasons to be recorded in writing, grant or
refuse to grant such permission and a copy of such order shall be communicated
to the employer and the workmen.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(5) Where an application for permission under sub-section (1) or sub-section
(3) has been made and the appropriate Government or the specified authority
does not communicate the order granting or refusing to grant permission to the
employer within a period of sixty days from the date on which such application
is made, the permission applied for shall be deemed to have been granted on the
expiration of the said period of sixty days.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(6) An order of the appropriate Government or the specified authority granting
or refusing to grant permission shall, subject to the provisions of sub-section
(7), be final and binding on all the parties concerned and shall remain in
force for one year from the date of such order.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(7) The appropriate Government or the specified authority may, either on its
own motion or on the application made by the employer or any workman, review
its order granting or refusing to grant permission under sub-section (4) or
refer the matter, or, as the case may be, cause it to be referred, to a
Tribunal for adjudication :<br />
<br />
Provided that where a reference has been made to a Tribunal under this
sub-section, it shall pass an award within a period of thirty days from the
date of such reference.<br />
<br />
(8) Where no application for permission under sub-section (1) is made, or where
no application for permission under sub-section (3) is made within the period
specified therein, or where the permission for any lay-off has been refused,
such lay-off shall be deemed to be illegal from the date on which the workmen
had been laid-off and the workmen shall be entitled to all the benefits under
any law for the time being in force as if they had not been laid-off.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(9) Notwithstanding anything contained in the foregoing provisions of this
section, the appropriate Government may, if it is satisfied that owing to such
exceptional circumstances as accident in the establishment or death of the
employer or the like, it is necessary so to do, by order, direct that the
provisions of sub-section (1), or, as the case may be, sub-section (3) shall
not apply in relation to such establishment for such period as may be specified
in the order.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(10) The provisions of section 25C (other than the second proviso thereto)
shall apply to cases of lay-off referred to in this section.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Explanation : For the purposes of this section, a workman shall not be deemed
to be laid-off by an employer if such employer offers any alternative
employment (which in the opinion of the employer does not call for any special
skill or previous experience and can be done by the workman) in the same
establishment from which he has been laid-off or in any other establishment
belonging to the same employer, situate in the same town or village, or situate
within such distance from the establishment to which he belongs that the
transfer will not involve undue hardship to the workman having regard to the
facts and circumstances of his case, provided that the wages which would
normally have been paid to the workman are offered for the alternative
appointment also.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Section 2(oo) -
Retrenchment</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Retrenchment means
termination of service of an employee by an employer for any reason other than
as a punishment due to disciplinary action. This does not include - voluntary
retirement, superannuation, non-renewal of contract, termination on the ground
of continued ill-health.<br />
<br />
For any reason what so ever - surplusage, redundancy due to advanced
machinery, slowdown in business. Reason does not matter.<br />
<br />
<b>DC & G Mills vs Shambhu Nath 1978</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Due to reorganization, a few workers were made
redundant. Instead of retrenching them, they were absorbed in other places. One
worker was given employment in another dept. with same pay. However, due to
lack of performance, he was shifted to another dept. However, he refused to go
to another dept. and asked for one more chance. He was then removed from the
rolls. This was held retrenchment.<br />
<br />
<b>Morinda Coop Sugar Mills vs Ram Kishen and others 1996</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Workers were employed in the sugar mill only
during the season and then they ceased to work. Held that it is not
retrenchment because it is only seasonal work.<br />
<br />
<b>Santosh Gupta vs SBI 1980</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- A worker was removed
after he failed a test that he was required to pass for confirmation of
service. SC held it to be retrenchment because termination for any reason is
retrenchment except if it is because of the reasons mentioned in the act.<br />
<br />
<b>VRS</b><br />
<b>Panjab National Bank vs Virendra Kumar Goel 2004</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- SC held that employees who opted for
voluntary retirement and availed any part of retirement benefits were not eligible
for retraction.<br />
<br />
<b>Ill-health</b><br />
<b>Lalit Mohan Puri vs Pure Drinks 1992</b></span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- A employee was asked to appear before ESI doctor to prove ill
health. He failed to appear. He was then removed. SC held merely refusal to
appear for medical examination should not be construed as ill health and held
it to be retrenchment.<br />
<br />
<b>Contract of Employment (subclause bb)</b><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Dilip Hanuman Shirke
vs Zilla Parishad Yavatmal 1990</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Held that the sub clause bb that allows an employer to not
renew the employment contract must be read restrictively. The duration of
employment must be read as per the nature of work and not from just the
employment letter otherwise it will be abused by the employers.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">25F. CONDITIONS PRECEDENT TO RETRENCHMENT OF
WORKMEN</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
No workman employed in any industry who has been in continuous service for not
less than one year under an employer shall be retrenched by that employer until
-</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
(a) the workman has been given one month's notice in writing indicating the
reasons for retrenchment and the period of notice has expired, or the workman
has been paid in lieu of such notice, wages for the period of the notice;</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
(b) the workman has been paid, at the time of retrenchment, compensation which
shall be equivalent to fifteen days' average pay for every completed year of
continuous service or any part thereof in excess of six months; and</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
(c) notice in the prescribed manner is served on the appropriate Government or
such authority as may be specified by the appropriate Government by
notification in the Official Gazette.<br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">25G. PROCEDURE FOR RETRENCHMENT</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Where any workman in an industrial establishment, who is a citizen of India, is
to be retrenched and he belongs to a particular category of workmen in that
establishment, in the absence of any agreement between the employer and the
workman in this behalf, the employer shall ordinarily retrench the workman who
was the last person to be employed in that category, unless for reasons to be
recorded the employer retrenches any other workman. </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section 25N.
CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">No workman employed in
any industrial establishment to which this Chapter applies, who has been in
continuous service for not less than one year under an employer shall be
retrenched by that employer until -<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the workman has been
given three months' notice in writing indicating the reasons for retrenchment
and the period of notice has expired, or the workman has been paid in lieu of
such notice, wages for the period of the notice; and<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the prior permission
of the appropriate Government or such authority as may be specified by that
Government by notification in the Official Gazette (hereafter in this section
referred to as the specified authority) has been obtained on an application
made in this behalf. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">An application for
permission under sub-section (1) shall be made by the employer in the
prescribed manner stating clearly the reasons for the intended retrenchment and
a copy of such application shall also be served simultaneously on the workmen
concerned in the prescribed manner.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Where an application
for permission under sub-section (1) has been made, the appropriate Government
or the specified authority, after making such inquiry as it thinks fit and
after giving a reasonable opportunity of being heard to the employer, the
workmen concerned and the persons interested in such retrenchment, may, having
regard to the genuineness and adequacy of the reasons stated by the employer,
the interests of the workmen and all other relevant factors, by order and for
reasons to be recorded in writing, grant or refuse to grant such permission and
a copy of such order shall be communicated to the employer and the workmen.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Where an application
for permission has been made under sub-section (1) and the appropriate Government
or the specified authority does not communicate the order granting or refusing
to grant permission to the employer within a period of sixty days from the date
on which such application is made, the permission applied for shall be deemed
to have been granted on the expiration of the said period of sixty days.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">An order of the
appropriate Government or the specified authority granting or refusing to grant
permission shall, subject to the provisions of sub-section (6), be final and
binding on all the parties concerned and shall remain in force for one year
from the date of such order.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The appropriate
Government or the specified authority may, either on its own motion or on the
application made by the employer or any workman, review its order granting or
refusing to grant permission under sub-section (3) or refer the matter or, as
the case may be, cause it to be referred, to a Tribunal for adjudication
:Provided that where a reference has been made to a Tribunal under this
sub-section, it shall pass an award within a period of thirty days from the
date of such reference.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Where no application
for permission under sub-section (1) is made, or where the permission for any
retrenchment has been refused, such retrenchment shall be deemed to be illegal
from the date on which the notice of retrenchment was given to the workman and
the workman shall be entitled to all the benefits under any law for the time
being in force as if no notice had been given to him.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Notwithstanding
anything contained in the foregoing provisions of this section, the appropriate
Government may, if it is satisfied that owing to such exceptional circumstances
as accident in the establishment or death of the employer or the like, it is
necessary so to do, by order, direct that the provisions of sub-section (1)
shall not apply in relation to such establishment for such period as may be
specified in the order.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"> Where permission
for retrenchment has been granted under sub-section (3) or where permission for
retrenchment is deemed to be granted under sub-section (4), every workman who
is employed in that establishment immediately before the date of application
for permission under this section shall be entitled to receive, at the time of
retrenchment, compensation which shall be equivalent to fifteen days' average
pay for every completed year of continuous service or any part thereof in
excess of six months.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">25H. RE-EMPLOYMENT OF RETRENCHED WORKMEN</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Where any workmen are retrenched, and the employer proposes to take into his
employment any persons, he shall, in such manner as may be prescribed, give an
opportunity to the retrenched workmen who are citizens of India to offer
themselves for re-employment, and such retrenched workmen who offer themselves
for re-employment shall have preference over other persons. </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Section 2(l) - Lock
Out</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Lockout means temporary closing of the place of employment or suspension of
work or refusal by the employer to continue to employ any number of persons
employed by him.<br />
<br />
Used as a measure of coercion - Antithesis of strike.<br />
due to a trade dispute.<br />
intentional<br />
<br />
<b>4 ingradients of Lockout</b><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Temporary closure of a
place of employment by employer or suspension or work by the employer, or
refusal to employ any number of persons by the employer.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">motivate by coercion<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">in an industry<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">due to a dispute in
such industry.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Workmen of Itakhoolie
Tea Estate vs Management 1952</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- In lock out workmen are asked by the employer to keep away
from work and thus they are not under any obligation to present themselves for
work.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Section 2(q) - Strike</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Strike means a cessation of work by a body of persons employed in any industry
acting in combination, or a concerted refusal, or a refusal under a common
understanding, of any number of persons who are or have been so employed to
continue to work or to accept employment.<br />
<br />
<b>Indian Iron and Steel Co vs Its Workmen</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Held that mere cessation of work is not strike unless it is
shown that it is due to an industrial demand.<br />
<b>Ram Sarup vs Rex</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Mere absence from
work is not enough but there should be a concerted refusal to accept employment
to call it a strike.<br />
<b>Patiala Cement Co. vs Certain Workers</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Cessation of work for even half an hour can be a strike.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Types of Strike</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- General, Go Slow, Work to Rule, Tools
down/Stay In, Sympathetic, Hunger.<br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">22. PROHIBITION OF STRIKES AND LOCK-OUTS</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">No person employed in
a public utility service shall go on strike in breach of contract -<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">without giving to the
employer notice of strike, as hereinafter provided, within six weeks before
striking; or <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">within fourteen days
of giving such notice; or <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">before the expiry of
the date of strike specified in any such notice as aforesaid; or <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">during the pendency of
any conciliation proceedings before a conciliation officer and seven days after
the conclusion of such proceedings.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">No employer carrying
on on any public utility service shall lock-out any of his workmen - <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">without giving them
notice of lock-out as hereinafter provided, within six weeks before
locking-out; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">within fourteen days
of giving such notice; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">before the expiry of
the date of lock-out specified in any such notice as aforesaid; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">during the pendency of
any conciliation proceedings before a conciliation officer and seven days after
the conclusion of such proceedings. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The notice of lock-out
or strike under this section shall not be necessary where there is already in
existence a strike or, as the case may be, lock-out in the public utility
service, but the employer shall send intimation of such lock-out or strike on
the day on which it is declared, to such authority as may be specified by the
appropriate Government either generally or for a particular area or for a
particular class of public utility services.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The notice of strike
referred to in sub-section (1) shall be given by such number of persons to such
person or persons and in such manner as may be prescribed.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The notice of lock-out
referred to in sub-section (2) shall be given in such manner as may be
prescribed.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If on any day an
employer receives from any person employed by him any such notices as are
referred to in sub-section (1) or gives to any person employed by him any such
notices as are referred to in sub-section (2), he shall within five days
thereof report to the appropriate Government or to such authority as that
Government may prescribe, the number of such notices received or given on that
day.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">25. PROHIBITION OF FINANCIAL AID TO ILLEGAL
STRIKES AND LOCK-OUTS</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
No person shall knowingly expend or apply any money in direct furtherance or
support of any illegal strike or lock-out.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Section</span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">26. PENALTY FOR ILLEGAL STRIKES AND LOCK-OUTS</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
(1) Any workman who commences, continues or otherwise acts in furtherance of, a
strike which is illegal under this Act, shall be punishable with imprisonment
for a term which may extend to one month, or with fine which may extend to
fifty rupees, or with both.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
(2) Any employer who commences, continues, or otherwise acts in furtherance of
a lock-out which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to one month, or with fine which may
extend to one thousand rupees, or with both.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Section 2(j) -
Industry</span></b><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Industry means any trade, business, undertaking, manufature, or calling of
service of employers and includes any calling, service, employment, handicraft,
industrial occupation, or avocation or workers.<br />
<br />
<b>State of Bombay vs Bombay Hospital Mazdoor Sabha</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"> - Any activity systematically or
habitually undertaken for the production or distribution of goods or for the
rendering of material service to the community at large or a part of such
community with the help of employees is an industry.<br />
<br />
<b>Bangalore Water Suppy vs A Rajappa</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Practially reiterated the principles in Bombay Hospital
Mazdoor Sabha case.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Triple Test -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Systematic Activity<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">organized by a cooperation
of employer and employees<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">for the production and
or distribution of goods or services calculated to satisfy human wants and
wishes.<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The following points
were also observed -<br />
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<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Does not include
spiritual or religious services e.g. making, on a large scale, prasad. It only
includes material services and things.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Absence of profit
motive or gainful objective is irrelevant be the venture public, private, or
joint.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The true focus is on
the function and the decisive test is the nature of the activity with special
emphasis on employee-employer relationship.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">If an organization is
a trade or business, it does not cease to be an industry merely because
philanthropy is animating the undertaking.<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Dominant Nature Test -
If an undertaking includes several activities some of which are industry and
some not, the predominate nature of the business and the integration of the
departments is the true test.<br />
<br />
Exceptions - Certain gurukuls, or research labs, or clubs operating on a
small scale are not industry.<br />
<br />
In the Bangalore Water Suppy case, Bombay Hospital Mazdoor Sabha case was
rehabilitated and Hospital is considered an industry.<br />
<br />
<b>DN Banerjee vs PN Mukherjee</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Municipal Corporation is an industry.<br />
<br />
<b>Brahmo Samaj Education Society vs WB College Employees Associaltion</b></span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Whether a University or Educational
institution is an industry or not depends on the evidence in each case. If the
evidence points that there is no much importance of individual teachers and the
focus is mainly profit, it is an industry. In general Universities are industry
even though its workers may not be Workers as per the the act.<br />
<br />
Clubs such as Cricket Club of India, Lawyers Office, Indian Standards Institute
are all Industry.<br />
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<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<br />
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<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-68715559275874791252016-02-16T11:23:00.000-08:002016-02-16T11:23:38.083-08:00Constitution of India ( Notes )<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: #000033; font-family: Arial, sans-serif; font-size: 18pt;">Q.
What is the nature of Indian Constitution? On what grounds is its spirit of
federalism challenged? Mention its important features.</span><span style="color: #000033; font-family: Arial, sans-serif; font-size: 9pt;"><br />
<br />
Typically, democratic constitutions are classified into two categories -
Unitary and Federal. In a unitary constitution, all the powers are concentrated
in a central authority. The states or the constituents of the country are
subordinate to such central authority. In a federal constitution, powers are
distributed among the center and the states. States are not subordinates of the
center. According to Prof. Wheare, the constitutions of USA, Australia, and
Switzerland are prime examples of a federal constitution.</span><span style="color: #000033; font-family: Arial, sans-serif; font-size: 9pt;"> </span><span style="color: #000033; font-family: Arial, sans-serif; font-size: 9pt;"><br />
Dr. Ambedkar has categorically said in Constituent Assembly discussions that
notwithstanding certain provisions that centralize the powers, Indian
Constitution is essentially federal. Prof. Wheare and some other academicians,
however, are hesitant in calling it a federal constitution and prefer to term
it as "quasi-federal" or "federal with strong centralizing
tendency".<br />
<br />
Though, it should be noted that even prof. Wheare accepts the existence of
certain provisions in the American constitution, such as dependence of Senate
on States, that are contrary to federal character. However, he says that while
the principles of federalism should be rigid, the terminology of "federal
constitution" should be wide. A constitution should be called federal if
it displays federal character predominantly.<br />
<br />
The following are the defining features of federalism.<br />
<br />
1. Distribution of Powers between center and states.<br />
2. Supremacy of the Constitution.<br />
3. Written Constitution.<br />
4. Rigidity of the Constitution.<br />
5. Independent Judiciary.<br />
<br />
All the above characteristics are present in the Indian Constitution. However,
there are certain provisions that affect its federal character.<br />
<br />
1. Appointment of the Governor of a State<br />
Art 155 and 156 provide that the Governor, who is the constitutional head of a
State, is to be appointed by the President and stays only until the pleasure of
the President. Further, that the Governor can send the laws made by the state
for assent from the President, who can veto the law.</span><span style="color: #000033; font-family: Arial, sans-serif; font-size: 9pt;"> </span><span style="color: #000033; font-family: Arial, sans-serif; font-size: 9pt;"><br />
It should be noted that Governor is only a ceremonial held and he works on the
advice of council of ministers. In past 50 yrs, there has been only one case (re
Kerala Education Bill), where amendments to a state law were asked by the
center and that too after the opinion of the Supreme Court. Thus, it does not
tarnish the federal character and states are quite free from outside control.<br />
<br />
2. Power of the parliament to make laws on subjects in the State list.<br />
Under art 249, center is empowered to make laws on subjects in the state list.
On the face of it, it looks a direct assault on the power of the states.
However, this power is not unlimited. It is exercised only on the matters of
national importance and that too if the Rajya Sabha agrees with 2/3 majority.
It should be noted that Rajya Sabha is nothing but the representative of the
states. So an approval by Rajya Sabha means that States themselves are giving
the power to the center to make law on that subject.<br />
<br />
3. Power to form new states and to change existing boundaries<br />
Under Art 3, center can change the boundaries of existing states and can carve
out new states. This should be seen in the perspective of the historical
situation at the time of independence. At that time there were no independent
states. There were only provinces that were formed by the British based on
administrative convenience. At that time States were artificially created and a
provision to alter the boundaries and to create new states was kept so that
appropriate changes could be made as per requirement. It should be noted that
British India did not have states similar to the States in the USA.<br />
<br />
4. Emergency Provisions<br />
Center has the power to take complete control of the State in the following 3
situations :<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: 'Times New Roman', serif; font-size: 12pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">An act of foreign
aggression or internal armed rebellion (Art 352) <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Failure of
constitutional machinery in a state (art 356)<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Financial Emergency
(art 360)<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In all the above
cases, an elected state government can lose control of the state and a central
rule can be established. In the first case, it is very clear that such a
provision is not only justified but necessary to protect the existence of a
state. A state cannot be left alone to defend itself from outside aggression.
In the third case also, it is justified because a financial emergency could
cause severe stress among the population, plunge the country into chaos
and jeopardize the existence of the whole country. Such provisions exist even
in USA. The second provision is most controversial. It gives the center the
power to take over the control of a state. However, such an action can be taken
only upon the advice of the governor and such an advice is not beyond the
purview of the Supreme Court. In a recent case, Supreme court ruled that the
imposition of Presidential rule in the state of Bihar was unconstitutional.<br />
<br />
Thus, it can be safely said that Indian Constitution is primarily federal in
nature even though it has unique features that enable it to assume unitary
features upon the time of need. <br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Features of Indian
Constitution</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Constitution was written by a committee headed by Dr Ambedkar. Took 2 yrs, 11
mos, 18 days. Adopted on 26th Nov (celebrated as Law Day), enforced fully on
26th Jan.<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Longest written
constitution - 447 articles, 26 parts, 12 schedules. Original US constitution
had 7 articles and Australia had 128.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Establishment of
sovereign, socialist, secular, democratic, republic.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Parliamentary form of
govt.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Unique blend of
Federal and Unitary features<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Independent and
supreme Judiciary -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Keshavand Bharati vs
State of Kerala</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">&</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">L Chandra Kumar vs Union of India</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Advisory Jurisdiction
of SC - Art 143 - Does not exist in US constitution.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Rigidity and
flexibility <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Emergency Provisions<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Single Citizenship<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Single Electorate /
Adult Suffrage<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Positive Secularism -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">St. Xavier's College vs State of Gujarat</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">,</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">S R Bommai vs Union of India, Aruna Rai vs Union of India</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Indian Socialism -
Combination of Marxist and Gandhian ideology. Right to work is absent.<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Economic Democracy<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Other features<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Fundamental rights - J
Bhagvati in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Menaka Gandhi vs Union
of India</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"> <o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Directive Principles -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Unnikrishnan vs State of AP</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Directive Principles are as good as
fundamental rights.<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Fundamental Duties<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What do you understand by fundamental rights? Discuss with respect to Indian
Constitution.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The general concept of
fundamental rights</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The rights that are basic to the advancement of the human race are called
Fundamental Rights. All other rights are derived from these rights as direct
implications or application of their principles. It is an accepted belief
among the philosophers that these rights are nothing but "natural
human rights", which distinguish between humans and animals and which have
been so instrumental in bringing humans from the stone age to the present age.
Among all, the right to life and liberty is considered to be the most basic.<br />
<br />
The history of legally enforceable fundamental rights probably starts
from Magna Carta, which was a list of rights extracted from Kind John by the
people of England in 1214 AD. This was followed by the "Bill of
Rights" in 1689 in which Englishmen were given certain civil and political
rights that could not be taken away. Later on the French compiled
the "Declaration of the rights of Man and of the Citizen" after
the French Revolution in 1789.<br />
<br />
The most important advancement in history of fundamental rights occurred when
the USA incorporated certain fundamental rights in the form on "Bill of
Rights" in their constitution by the way of first 10 amendments. These
rights were deemed to be beyond the vagaries of politics. The protection
by the constitution meant that these rights could not be put to vote and were
not dependent on the whims of politicians or of the majority.<br />
<br />
After this, nearly all democracies of the world have given a constitutional
sanctity to certain inalienable rights available to their citizens.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Need for Fundamental
Rights</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
1. Rule of Law</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
These rights are a protection to the citizens against the govt and are
necessary for having the rule of law and not of a a govt or a person. Since
explicitly given by the constitution to the people, these rights dare not be
transgressed by the authority. The govt. is fully answerable to the courts and
is fully required to uphold these rights.<br />
<br />
2. First fruits of the freedom struggle<br />
After living in subjugation for such a long time, people had forgotten
what is meant by freedom. These rights give people hope and belief that there
is no stopping to their growth. They are free from the whims of the rulers. In
that sense, they are first fruits of the lengthy freedom struggle and bring a
sense of satisfaction and fulfillment.<br />
<br />
3. Quantification of Freedom<br />
Even citizens in gulf countries or communist countries are free. Then how is
our freedom different from theirs? The list of fundamental rights is a clear
measurement for how free we really are. As an example, every Indian
citizen in free to practice a religion of his choice, but that is not so in the
gulf countries. Our right to speech and expression allows us to freely
criticize the govt. but this is not so in China.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Fundamental Rights in
India</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Technically speaking, the rights specified in Part III (Art 12 to 35) of
the constitution are the fundamental rights available to the citizens of
India. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Menaka Gandhi vs Union
of India AIR 1978</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, J. Bhagvati has
said that these rights represent the values that are cherished by the people of
this country since the vedic ages and are calculated to protect the dignity of
individual and to create conditions in which every human being is able to
develop his personality to the fullest. These rights are necessary for a human
being for attaining full social, intellectual, and spiritual status.<br />
<br />
These rights can be grouped into 6 categories -</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
1. Articles 14-18 Right to Equality<br />
Art. 14 ensures that all citizens are treated equally. It enshrines the
principle of "Equality before law and Equal protection of law".
However, this brings us to an important question. Should people
living in unequal circumstance be treated equally? In Indian Constitution,
the answer is a resounding no. We have adopted the mantra of "equal
treatment under equal circumstances". This is reflected in Art 15, which,
while prohibits the state from discriminating between the citizens only on the
grounds of Caste, Race, Religion, Sex, and Place of Birth or all of them[
Art 15(1) ], also allows the state to make special provisions for Women and
Children [Art 15(3)] and for Backward classes [Art 15(4)].<br />
Art. 16 takes the same principle further to employment in govt. jobs.<br />
Art. 17 abolishes untouchability and Art. 18 abolishes various titles such
as Rai Bahadur that used to be given in the British rule.<br />
The cases of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Lindsley v Natural
Carbonic Gas Co, US SC 1910</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">and</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Chiranjit Lal v Union of India SC AIR 1951</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">are important cases that illustrate the
concept of equal protection of the laws. In these cases, the SC of both the
countries held that all persons similarly circumstanced should be treated
equally. Only like should be treated alike and thus a reasonable classification
can be done.<br />
Several cases such as Randhir Singh vs Union of India 1982</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">(Equal pay for equal work) illustrate the
principle of equality.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The SC judgment in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Indra Sawhney vs Union
of India AIR 1993</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">incorporates the
element of fairness in dealing with inequalities in the society, while
balancing the aspirations of the socially forward classes.<br />
<br />
2. Artticles 19-22 Right to Freedom<br />
A citizen of India is given freedom of Speech and Expression, freedom of
Assembly, freedom of Association, freedom of Movement, freedom of Residence,
and Freedom of Profession and Occupation through Art. 19.<br />
Art. 20 gives protection with respect to conviction of offenses. This includes
the principles of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">ex-post facto law : A person can only be with charged
with an offence of an action if the said action was illegal as per the law
of the time when the action was committed. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">double jeopardy: A person cannot be charged with the
same crime if he has already been produced before the court and
a verdict has been pronounced.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">self incrimination: A person will not be forced to
testify against himself.<o:p></o:p></span></li>
</ul>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Art.
21, which is the most important and diverse of all the rights to freedom,
is the Protection of Life and Personal Liberty. SC in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Menaka Gandhi v Union
of India AIR 1978</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">was a landmark case that gave wide interpretation of this
right. In this case the SC held that his right is not only about having
any kind of life but a life of dignity. The freedom is not just physical but
mental as well as spiritual. This encompasses several rights such
as right to travel abroad (</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Satvant Singh v Ass.
Passport Office AIR 1967</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">) and right to pollution free water and air (</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Subhash Kumar vs State
of Bihar AIR 1991</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">) . Further, Constitution Amendment Act 86, 2002 makes free
and compulsory education to children under 14 a fundamental right.<br />
Art. 22 gives protection from illegal arrest or detention. It provides
that a person must be informed of the grounds of arrest as soon as
possible, be allowed to speak to a lawyer of his choice, and be produced
before a magistrate within 24 hrs of detention.<br />
<br />
3. Art 23-24 Right Against Exploitation<br />
Under Art. 23, the govt. has banned trade in human beings. This includes flesh
trade and forced work or work without pay (begar system).</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Art. 24 prohibits children from being employed in factories and hazardous
conditions.<br />
<br />
4. Art 25-28 Freedom of Religion<br />
Unlike several countries of the world, we are free to practice, profess,
and propagate any religion under Art. 25. Art. 26 allows us to establish and
maintain institutions for religious and charitable purposes. It also gives the
right to manage our own religious matters. Art. 27 provides tax
benefits for promotion of religion and art. 28 prohibits religious
teaching in govt and govt aided schools.<br />
<br />
5. Art 29-30 Cultural and Educational Rights<br />
Art. 29 allows any section of citizens living anywhere in India who have a
distinct language, script, or culture, to preserve the same. Art. 30
allows minorities to establish and maintain educational institutions. To
prevent discrimination, however, art 29(2) prohibits them from discrimination
in admissions only on the grounds of religion, race, caste,
language, or any of them.<br />
<br />
6. Art 32 Right to Constitutional Remedies<br />
Dr. Ambedkar, the chief architect of our constitution, has said
that Article 32 is the soul of our constitution. All the talk of rights is
useless if there is no recourse against their transgression. Under this
article, a citizen is free to go to the Supreme Court for violation of
his rights.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Scope of Fundamental
Rights</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Widest Possible Interpretation<br />
SC in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A K Gopalan vs State of Madras AIR 1950</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">had held that the
various rights given under part III talk about different things and are
not be interlinked. This view, however, has been rightly rejected by the SC in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Menaka Gandhi vs.
Union of India AIR 1978</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">case. In this case, J Bhagvati said that the role of SC
should be to interpret these rights in the widest possible manner and it should
not attenuate these rights by being confined to their narrow definition. All
these rights are not mutually exclusive and form an integrated theme of the
constitution. J Beg said that their waters must mix to form a grand flow
of unimpeded and impartial justice. Thus, any law that takes away the
life or liberty of a person, must also satisfy the test of reasonableness under
art. 14.<br />
<br />
Natural Justice and Due Process<br />
In Menaka Gandhi's case, SC has held that any law that takes away the life or
liberty of a person under art. 21, must be just, fair, and reasonable. It must
satisfy the principle of natural justice, which is a basic component of
fair procedure under Art. 21. While Art 21 does not contain the "due
process" clause of the American Constitution, the effect is the same
because natural justice is a distillate of due process i.e. natural
justices can only be delivered through due process.<br />
<br />
Expanding the role of writ of Habeas Corpus<br />
The case of Sunil Batra vs Delhi Admin AIR 1980 has given tremendous power to
the writ of Habeas Corpus. It allows the judiciary to even enforce the
fundamental rights in a prison. Even prisoners are humans and must be treated
with dignity. They cannot be stripped off of their fundamental rights, thus
menial or forced work without pay, solitary confinement, degrading punishment,
is not allowed. This case has also allowed people who are not directly involved
but have any kind of interest to approach the court. The objective is to remove
injustice wherever it is found in the society.<br />
<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Absoluteness of
Fundamental Rights</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
"Your freedom ends where my freedom starts" is a well known saying.
The constitution gives you the right to propagate your religion. But does that
mean you should force me to hear religious activities over the loudspeaker? The
constitution gives you the freedom of speech and expression. But does that mean
you can publish and sell pornography freely in open market?</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
These things clearly tell us that no right is absolute. Indian Constitution
also takes the same stand and specifies the limits of these rights. These
rights extend only until they do not affect security of the state, public order,
and social decency. The constitution allows reasonable restrictions to be
placed on these rights. SC in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A K Gopalan vs State of Madras 1950</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">has also held that
Fundamental Rights are not absolute.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Suspension of
Fundamental Rights</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Under art 358, freedoms given under art 19 are suspended when the president
proclaims emergency. Further, under art 359, president may suspend the right to
move courts for violation of rights given in part III except art 20 and 21.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Critical Analysis</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Indian Constitution was written after a through analysis of existing
constitution of the world. The framers of the constitution have incorporated
the good things from all the places. As such it is more fair and consistent
than religious books. It is for the foresight of the framers of the
constitution that the country is integrated and has progressed. While the
framers had thought about a lot of things, the one thing that they
probably missed was the safeguards against the degrading morality of
politicians.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What do you understand by freedom of speech and expression? What restrictions
can be applied on it?</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Freedom of speech and expression is the most basic of all freedoms granted to
the citizens of India. J Patanjali Shastri has said in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Romesh Thaper vs State of Madras AIR 1950
SC</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">that freedom of speech and that of the press
lay at the foundation of a democratic society, for without free political
discussions, no public education is possible, which is so important for the
proper functioning of the govt.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
It allows us to freely express our ideas and thoughts through any medium such
as print, visual, and voice. One can use any communication medium of visual
representation such as signs, pictures, or movies. Freedom of speech would
amount to nothing if it were not possible to propagate the ideas. Th us, the
freedom of publication is also covered under freedom of speech. Freedom
of speech serves 4 purposes -<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">allows an individual to attain self fulfillment.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">assists in the discovery of truth.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">it strengthens the capacity of a person to make
decisions.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">it facilitates a balance between stability and social
change.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">This right is not only
about communicating your ideas to others but also about being able to publish
and propagate other people's views as well. Thus, freedom of speech and
expression is linked to the people's right to know. Freedom of speech and
expression is a broad term and encompasses several things. The following are
important cases that have determined the extent of this right from time to
time.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Right to Know</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Prabhu Datt vs Union of India SC AIR 1982 :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SC held that right to know news and
information about the functioning of the govt. is included in the freedom of
press.<br />
<br />
Union of India vs Association for Democratic Reforms SC AIR 2002 :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SC held that people have right to know about
the candidate before voting. Thus, the law preventing the Election
Commission from asking for a candidates wealth, assets, liabilities, education
and other such information, is invalid.<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><br />
Right to tell and propagate</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
LIC vs Manubhai D Shah SC AIR 1992 :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In this case, Manubhai wrote an article in LIC's magazie about
the problems with LIC that affected policy holders. LIC published a response to
that but did not give a chance to public a rejoinder. SC held that LIC being a
State as per Art 12, must publish his response. It also held that it does not
mean every body has a right to publish in a magazine and this right should be
determined on a case by case basis.<br />
<br />
Secretary, Ministary of I & B vs Cricket Association of Bengal SC AIR
1995 :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In this historic
judgment, SC has held that one has the right to publicize his expression as
well. A game of cricket is an expression and the organizers have a right to
propagate it every where in the world. So Doordarshan must provide its
uplinking facilities to CAB for transmitting the signals out of country. Art 19
(2) does not allow restrictions on 19 (1) (a) on the grounds of creating
monopoly of the govt.<br />
<br />
Tata Press Ltd. vs MTNL SCC 1995 SC:</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In this case, SC held that commercial advertisement is protected
under freedom of speech.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Restrictions on
Freedom of Speech and Expression<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Every human desires to
do many things. However, in a civil society such desires must be curbed to
certain extent in respect of similar desires of other human beings. Thus, no
right is an absolute right. Art 19 (2) says that nothing in Art 19 (1) (a)
shall affect the operation of any law or prevent the state from making any law,
in so far as such law imposes reasonable restrictions on exercise of the right
conferred by the said clause in the interest of -<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">sovereignty and integrity of the country.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">security of the state<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">friendly relations with foreign states.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">public order<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">decency and morality<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">defamation<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">contempt of court<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">incitement of an offence.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the original
version of this article several grounds such as public order, friendly
relations with foreign states, incitement of an offences were not there. After
the historic judgement in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Romesh Thaper vs State of Madras SC AIR 1950</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, these grounds were added. In that case,
Madras Govt. prevented the entry an circulation of the new paper 'Cross Roads'
published by Romesh Thaper, in the state of Madras. It argued that the
circulation of the paper affects public safety. However, SC held that the public
safety falls outside the scope of 19 (2) and thus the govt action was invalid.
This decision prompted the govt. to amend the constitution to include
additional grounds as mentioned above.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
It is important to note that the current clause mentions the words
"reasonable restrictions". Thus, any law restricting the
freedom of speech and expression must satisfy the grounds mentioned in 19(2)
and must also satisfy the criteria of reasonableness. Reasonable restriction
means intelligent care and discussion that the restriction is not beyond what
is required for public interest. It should not be arbitrary and excessive.
Further, the restriction can only be imposed by law and not by executive or
departmental decision.<br />
<br />
Test of reasonable restrictions<br />
<br />
Spanning several cases, SC has laid down the following guidelines :<br />
<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It is the courts and
not the legislature that will decide whether a law is reasonable or not.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Reasonable means that
the law is not arbitrary and the restriction is not beyond what is required in
public interest. The time and duration of the restriction cannot be unlimited.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">There is no fixed
standard for reasonableness. Each case must be decided on its own merits.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The restriction must
be reasonable from substantiative as well as procedural stand point.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Restrictions imposed
due to implementation of Directive Principles may deemed to be reasonable.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The test of
reasonability must be objective in the sense that it does not matter what a
Judge or Court thinks what is reasonable but what a normal reasonable person
would think.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The restriction must
have a relation to the object that is sought through the law and must not be
excessive.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">It is the
reasonableness of the restriction that a count has to determine and not the
reasonableness of the law itself.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Restriction may amount
to prohibition.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
The following are important cases that have attenuated the scope of this right.<br />
<br />
CPI (M) vs Bharat Kumar AIR 1998 SC :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">In this case SC has
held that bundhs called by various political parties are illegal because they
prevent the citizens from exercising their right to freedom. I<br />
<br />
Ranjit Udeshi vs State of Mah. AIR 1965 SC :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">In this case, a
bookseller was prohibited from selling book containing obscene material.<br />
<br />
Hamdard Dawakhana vs Union of India AIR 1960 SC :</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">In this case, SC held
that obnoxious and fraudulent advertising is not protected under freedom of
speech.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Critical Analysis</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Freedom of speech and expression is indeed the most important of all freedoms.
However, today, this right is being routinely suppressed under the guise of
morality and decency or public order. Even a slight criticism of a public
leader or past king causes the political parties to involve in damage of public
property. Any book that talks about problems in a religion is banned in the name
of public order. It is extremely unfortunate that the executive, instead of the
upholding peoples' right to speech and expression by preventing unscrupulous
element from hurting the author, is more interested in stifling the voice by
banning their works. By doing this they are not doing their job responsibility.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q. How
is the independence of the judiciary ensured? Describe the various
jurisdictions of the Supreme Court of India. Explain the writ jurisdiction of a
High Court. What is meant by Judicial Review?</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">India has adopted a
federal constitution with distribution of powers between center and the states.
An independent judiciary is the essence of the federal character of the
constitution. It is imperative that the judiciary be impartial and independent
of the legislative and executive branches of the country to ensure the
functioning of the government in accordance with the constitution. The supreme
court, being the guardian of the constitution, ensures that the fundamental
rights of the citizens are not violated. To let the judiciary fulfill this big
responsibility efficiently, the constitution has provided several measures that
ensure the independence of the judiciary. However, owing to the nature of
Indian politics, there have been several attempts by the govt. to extend
its supremacy over the judiciary and to reduce its independence. To
understand the dynamics between the govt. and the judiciary, we need to look at
the provisions present in the constitution.<br />
<br />
Composition of the Supreme Court<br />
Art 124 specifies that the SC will be composed of a Chief Justice and at most 7
other judges. The number of other judges has now been increased to 25.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
To be appointed as a judge of the supreme court, a person must be a citizen of
India and</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
a) has been a Judge of a High Court for 5 yrs .<br />
b) has been an advocate of a High Court for 10 yrs.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
c) in the opinion of the president, a distinguished Jurist.<br />
<br />
Appointment of the Judges<br />
The procedure of appointment of the Chief Justice and other judges has created
a lot of controversy because it is the key aspect of the independence of the
judiciary. Art 124 specifies that the Chief Justice is appointed by the
president after consulting with the judges of the supreme court and the high
courts. Further, that while appointing other judges, the CJ must be consulted.
Thus, the constitution clearly tried to prevent the executive from having
complete discretionary powers in the appointment of the judges.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Until 1973, the senior most judge of the supreme court was appointed as the
Chief Justice. However, this convention was broken when Justice AN Ray was
appointed as the CJ by passing 3 more senior judges. This was seen as a blatant
assault on the independence of the judiciary. The govt. pleaded that the word
"consult" does not mean that the president is bound by the advise. He
is free to make his own decision.<br />
<br />
In 1977, in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Union of India vs
Sankalchand Seth</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, which was related to
the transfer of a Judge from one high court to another under art 222, SC held
that the President has the right to differ from the advice provided by the
consultants.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Judges Transfer Case 1<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">S P Gupta vs Union of
India, 1982</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SC unanimously agreed
with the meaning of the word 'consultation' as determined in the Sankalchand's
case. It further held that the only ground on which the decision of the govt.
can be challenged is that it is based on mala fide and irrelevant
consideration. In doing so, it substantially reduced its own power in
appointing the judges and gave control to the executive.<br />
<br />
Judges Transfer Case 2<br />
This matter was raised again in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SC Advocates on Record Association vs Union of India, AIR 1982</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">. In this case, the SC overruled the decision
of the S P Gupta case and held that in the matter of appointment of judges of
high courts and supreme court, the CJ should have the primacy and the
appointment of the CJ should be based on seniority. It further held that the CJ
must consult his two senior most judges and the recommendation must be made
only if there is a consensus among them.<br />
<br />
Judges Transfer Case 3<br />
A controversy arose again when the CJ recommended the names for appointment
without consulting with other judges in 1999. The president sought advice from
the SC (re Presidential Reference 1999) and a 9 member bench held that
an advice given by the CJ without proper consultation with other judges is not
binding on the govt.<br />
<br />
As of now, due to the decision in Judges Transfer Case 2, the appointment of
the judges in SC and High Courts are fairly free from executive control. This
is an important factor that ensure the independence of the judiciary.<br />
The following are other provisions that work towards the same goal:<br />
<br />
1. Fixed Tenure<br />
A SC Judge has a fixed tenure until retirement age. He cannot be removed except
by a presidential order passed with a simple majority as well as by
2/3 majority of each house of the parliament present and voting.<br />
No judge has ever been removed by a presidential order in India. The
proceedings to remove were started to Justice V Ramaswamy, but the motion
was not approved because lack of required majority.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">C Ramachandran Iyer vs
A N Bhattacharjee 1995</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, pressure was put the
the local bar association on the judge to resign. In this case, the SC held
that only the Chief Justice of the SC can be the prime mover of the action
against erring judges. Thus, after this case, action against judges was
allowed only through in-house procedures of the judiciary.<br />
<br />
2. Salary<br />
The salary of the judges cannot be changed after the appointment for their disadvantage.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
3. Jurisdiction of the courts<br />
The jurisdiction of the SC can be increased but not decreased i.e. their power
cannot be curtailed.<br />
<br />
4. Art 121<br />
No discussion about the judges in the parliament is permitted as per art 121
except for the discussion about his removal.<br />
<br />
5. Art 129 and 215<br />
Power to punish for its contempt.<br />
The SC and the High Courts have the power to punish anybody for civil and
criminal contempt of itself under art 129 and 215.<br />
<br />
6. Art 50 Separation of judiciary from executive<br />
Art 50 urges the state to take steps to separate the judiciary from the
executive in the public service of the state.<br />
<br />
7. Appointment of the judges only after consultation with legal experts.<br />
As discussed above, the executive does not have unlimited power over
appointment of judges.<br />
<br />
8. Art 124(7) Prohibition on practicing before any court<br />
Art 124 prohibits a retired judge from appearing and pleading before any court
or tribunal.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">Jurisdictions
of Supreme Court</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Art 129 Court of
Record</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
SC is a court of record and has all the powers including power to punish for
civil or criminal contempt of court. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Delhi Judicial Service Asso. vs State of
Gujarat 1991</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that It can
even punish for contempt of any subordinate court in India as well.<br />
In the aftermath of babri masjid demolition, UP CM Kalyan Singh was punished
for contempt of court for failing to deliver on his promise not to allow any
construction in disputed area.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Art 131 Original
Jurisdiction</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The SC has original jurisdiction in any dispute arising between:<br />
a) Center and one or more states.<br />
b) Center and one or more states on one side and one or more states on another.<br />
c.) two or more states.<br />
<br />
Under original jurisdiction, individuals cannot bring a suit again Govt. of India.
The suit must involves a question of law or fact on which a legal right
depends. Further, the suit cannot be because of any commercial relation or
political relation between the two parties.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">State of Karnataka vs
Union of India 1978</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that the
suit filed by State of Karnataka against the Govt. regarding its objection to
the appointment of an inquiry commission is maintainable.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Union of India vs
State of Rajasthan 1984</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">,
it was held that a suit to recover damages under Railway Act is not
maintainable. SC's original jurisdiction is not attracted for ordinary
commercial disputes.<br />
<br />
The following are some exceptions under which SC does not have
jurisdiction:<br />
1. Any treaty, covenant, sanad, agreement, or any such instrument that
was executed before the commencement of the constitution, and which is still in
operation or provides that the jurisdiction of SC does not extend to such
a dispute.<br />
2. The parliament by law may restriction the jurisdiction of SC in disputes
related to use, distribution, or control of the water or an interstate river or
river valley.<br />
3. Any matter referred to the Financial Commission.<br />
4. Matters related to the adjustment of the expenses between the center and the
state.<br />
<br />
<br />
Enforcement of Fundamental Rights Art 32<br />
SC is the guardian of the constitution. It is the supreme defender of the
people's fundamental rights. This position has been enforced by Art 32 that
given any citizen to petition the SC if his fundamental rights are violated.
The SC is empowered to give directions, orders, or writs including the writs of
habeas corpus, mandamus, prohibition, and certiorari for the enforcement of the
rights given in part III.<br />
L Chandra Kumar vs Union of India AIR 1997</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Power of judicial review vested in HC by art 226 and in
SC by art 32 is a basic feature on the constitution and cannot be amended.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Art 132 Appellate
Jurisdiction - Constitutional</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The SC is the highest court of appeal in the country. The writs and the decrees
of the SC run throughout the country. A person can appeal to the SC under its
appellate jurisdiction if he is not satisfied with the decision of the lower
courts. Art 132(1) allows an appeal to be filed in the SC if three
conditions are satisfied:<br />
1. The order appealed must be against the judgement of a high court in civil,
criminal, or other proceedings.<br />
2. The case involves a question of law as to the interpretation of the
constitution.<br />
3. The High Court, under 134A certifies that the case be heard by the SC.<br />
<br />
Krishnaswamy vs Governer General in Council 1947</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- If there is a difference of opinion
among High Courts and if there is no direct decision by SC on that point, it is
a substantial question of law that can permit appeal in SC.<br />
<br />
Art 133 Appellate Jurisdiction - Civil<br />
An appeal shall lie to SC from any judgement, decree, or a final order
in civil proceedings of a High Court only if the High Court certifies
under 134A that<br />
1. the case involves an substantial question of law of general importance.<br />
2. in the opinion of the High Court, the said question needs to be decided by
the SC.<br />
<br />
Madan Gopal vs State of Orrisa 1956</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- The pecuniary value of a dispute is immaterial. There
may be matters which cannot be measured in money but the decision could have a
far reaching effect and such cases can be permitted to be appealed in SC.<br />
<br />
Art 134 Appellate Jurisdiction - Criminal<br />
An appeal shall lie to SC from any judgement, decree, or a final order in
criminal proceedings of a High Court in two ways - with or without a
certificate from High Court.<br />
1. Without Certificate<br />
a) If the High Court, on appeal, has reversed an order of
acquittal of an accused and sentenced him to death</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
b) if the High Court has withdrawn a case before itself from
any subordinate court and in such a case has convicted the accused and
sentenced him to death.<br />
<br />
2. With Certificate<br />
If the High Court certifies that this is a fit case for appeal to SC.<br />
<br />
Siddheshwar Ganguly vs State of WB 1958</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- In this case SC issued guidelines for issuing certificated
under 134A. A mere question of fact is not enough but it must also involve a
substantial question of law.<br />
<br />
Art 135</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Federal Court's (the
one that existed before the commencement of the constitution) jurisdiction to
be exercised by the SC.<br />
<br />
Art 136 Special Leave to appeal by SC<br />
Under this article, the SC is authorized to grant, on its discretion, special
leave to appeal from any judgement, decree, determination, sentence, or order,
in any case or matter, passed or made by any court or tribunal in the territory
of India.<br />
Ramakant Rai vs Madan Rai AIR 2004</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- Private party can appeal against the acquittal even if the
state govt. hasn't. SC cannot refrain from doing its duty just because a
private party and not the state has appealed against the order.<br />
Pritam Singh vs State AIR 1950</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">-SC explained how this discretionary power is to be used - Since
the power is exceptional is very wide, it must be used sparingly and in
exceptional circumstances. Beyond this point it is not possible to fetter the
exercise of this power by any set formula.<br />
<br />
Art 137</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Power to review its
judgement.<br />
Under exceptional circumstance, the SC may review its judgement.<br />
<br />
Art 139 A<br />
Under this article the SC has the power to withdraw before itself any case or
cases from High Courts if it feels that these cases involves the same or
similar question of law that is of general importance.<br />
Union of India vs SGPC 1986</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">- SC may transfer a case from one High Court to another
under art 136 if it feels that the case cannot be dealt with fairly in one High
Court due to exceptional circumstances.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Art 143 Advisory
Jurisdiction</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Art 143 provides that if at any time it appears to the president that a
question of law or fact has arisen or is likely to arise and that
the question is of such public importance that expedient opinion of
the SC is required, then he may refer it to the SC. The SC, after such hearing
as it may deem fit, will report back to the president. Under 143(2), the SC is
can be asked to give opinion even on matters not permitted under art 131.<br />
There is no similar provision in the American constitution. In US, the court
can give ruling only on concrete cases.<br />
<br />
In</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">re Kerala Education Bill 1953</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC has interpreted the word "may"
in clause 1 as it is not bound to give its opinion. If it has a good reason, it
may refuse to express its opinion.<br />
In</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">re Special Courts Bill 1979</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">case, SC has held that opinions given by it
under this jurisdiction are binding on all courts in the country.<br />
In re Cauvery Disputes Tribunal 1992, SC declared that the
ordinance passed by the State of Karnataka to not follow the order of the
tribunal to release water to TN, is unconstitutional.<br />
<br />
In the landmark case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Ayodhya Dispute and
Advisory opinion 1994</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, the SC refused to
express its opinion on whether a temple existed on the disputed location
because it was superfluous, unnecessary, and favors a particular religion.<br />
<br />
Art 141<br />
Judgement of the SC is binding on all courts, except itself. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Bengal Immunity Co vs State of Bihar. 1955</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that the principle of Stare decisis
is not an inflexible rule of law and cannot be used to perpetuate errors.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 24.0pt; mso-fareast-font-family: "Times New Roman";">Writ Jurisdiction
of High Courts</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The constitution gives wide powers to all High Courts to ensure that injustice
is not tolerated in any sphere. Art 226 provides that notwithstanding anything
in article 32 every High Court shall have power, throughout the territories in
relation to which it exercises jurisdiction, to issue to any person or
authority, including in appropriate cases, any Government, within those
territories directions, orders or writs, including writs in the nature of
habeas corpus, mandamus, prohibition, quo warranto and certiorari, or any of
them, for the enforcement of any of the rights conferred by Part III and for
any other purpose.<br />
It is important to note that the power is not only to enforce fundamental
rights but for any other purpose, which makes its powers even wider than
Supreme Court. Here, any other purpose means any legal right of legal duty.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In a landmark case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">L Chandra Kumar vs
Union of India AIR 1997</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">,
SC has held that the power of judiciary over legislative action vested in a
High Court is a basic feature of the constitution and cannot be removed through
constitutional amendment.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Locus Standi : Who can
apply</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In general, the person whose constitutional right or legal right has been
infringed has the right to apply. However, due to judicial activism, the
"doctrine of sufficient interest" has originated. According to
this, any person who is even remotely affected can petition the High Court. It
also allows public spirited persons to file a writ petition for any person or
class if that person or class is not able to do so himself due to poverty or
any other reason.<br />
In</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">ABSK Sangh vs Union of India AIR 1991</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that even an unregistered trade
union has right to file a petition for redressal of a common grievance.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Chairman, Railway
Board vs. Chandrima Das AIR 2000</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that an advocate of Cal. High Court has sufficient
interest in making a public place like a railway station a safe place and so
she has right to demand compensation for the bangladeshi woman gang raped by
railway employees.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Scope of Art 226</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Basappa vs Naggapa,
AIR 1954</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC has held that the
art 226 confers wide powers to remedy injustice where ever it is found. Art 226
says, "...or writs or the kind of...", which means that it is not
limited only the mentioned types of writs. It can issue orders orders of any
kind that the situation may require. Thus, it makes the scope of Art 226 a lot
wider than art 32.<br />
<br />
Court Martial and art 226<br />
In a significant case (which case?), Delhi High Court held that section 18 of
India Army Act is not beyond the scope of High Court. While High Court may not
interfere in the sentence awarded in a court martial, such an order cannot be
arbitrary and mala fide. Thus, it is open to judicial review.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Union of India vs R K
Sharma, AIR 2001</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SC has held that court
should not interfere only on compassionate grounds. Only when there is a
perverseness or gross injustice on the face of it, there can be judicial
review.<br />
<br />
Dispute between private parties - No Jurisdiction<br />
In</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Mohan Pandey vs Usha Rani Rajgaria SCC 1992</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that the extraordinary jurisdiction
of High Court cannot be exercised in the private party disputes relating to
property rights unless there is a violation of statutory rights by statutory
authorities.<br />
<br />
Natural Justice<br />
Natural Justice is not exclusively the principle of administrative law. The
courts are also bound by the same principle. Every administrative action must
be supported by reasons. The reasons must be recorded to ensure that there is
no arbitrariness.<br />
<br />
Territorial extent of writ jurisdictions<br />
Art 226 imposes two limits on HC's writ. First, it can run only in the
territorial jurisdiction of the High Court and secondly the person or authority
must lie in that jurisdiction.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Election Commision of
India vs Venkata Rao, AIR 1975</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SC held that Madras High Court cannot issue a writ to ECI
because it is based in New Delhi and so is out of its jurisdiction. The law
commission recommended that these are serious limitations and they defeat the
very purpose of this article. So it was amended by 15th amendment in 1963. High
Court can now issue a writ even to a central authority if the cause of action
in whole or part arises in its jurisdiction.<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">ONGC vs Utpal Kumar
Basu SCC 1994</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, it was held that the
averment in the petition did not disclose that a part of the cause of action
arose in the jurisdiction of Calcutta and so High Court does not have any
jurisdiction to entertain the writ petition.<br />
<br />
Discretionary Remedy - Not to be exercised if alternate remedy is available<br />
The remedy available in 226 is a discretionary remedy and the High Court has
the discretion to accept or refuse a petition. In general, if a remedy is
available elsewhere, writs under 226 are discourages. However, this does not
mean that any remedy available can be a ground for not entertaining the
petition under 226. The remedy must be effective and sufficient. In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Vellaswamy v IG Police, Madras 1982</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that the remedy under Police Rules
of TN was not sufficient and so High Court was wrong in dismissing the
petition.<br />
<br />
Effect of Laches or delay<br />
Remedy under 226 should be sought with in a reasonable time. However, High
Court may accept a petition is there is a reasonable cause for delay in seeking
justice. Poverty has been held to be reasonable ground.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Judicial Review</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The concept of Judicial Review started from the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Marbury vs Madison in 1800</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">in the USA. In this case, justice John
Marshall held that judiciary has inherent power to review actions by
legislature even if no explicit provision is given in the constitution.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Indian Situation</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
By adopting a written constitution and an independent judiciary, India has
provided the rule of law instead of rule on men to the citizens. However, the
rule of law will be rendered useless if the legislature is able to make laws
that violate the fundamental rights of the citizen. Thus, the constitution in
Art 13 has provided the judiciary with the power to review laws made by the
legislature. This is called Judicial Review.<br />
<br />
Art 13</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">says:<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">All laws in force in
the territory of India immediately before the commencement of this
Constitution, in so far as they are inconsistent with the provisions of this
Part, shall, to the extent of such inconsistency, be void.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The State shall not
make any law which takes away or abridges the rights conferred by this Part and
any law made in contravention of this clause shall, to the extent of the
contravention, be void.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In this article,
unless the context otherwise requires,—<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Courier New"; font-size: 10.0pt; mso-bidi-font-size: 9.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">(a) “law” includes any Ordinance, order, bye-law,
rule, regulation, notification, custom or usage having in the territory of
India the force of law;<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 1in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Courier New"; font-size: 10.0pt; mso-bidi-font-size: 9.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">“laws in force” includes laws passed or made
by a Legislature or other competent authority in the territory of India before
the commencement of this Constitution and not previously repealed,
notwithstanding that any such law or any part thereof may not be then in
operation either at all or in particular areas.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Nothing in this
article shall apply to any amendment of this Constitution made under article 368.<o:p></o:p></span></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">In
the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">L Chandra Kumar vs Union of India SC AIR 1997</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">held that the power
vested in SC by art 32 and High Court by art 226 over legislative action is a
basic feature.<br />
<br />
Doctrine of Severability<br />
AK Gopalan vs State of Madras SC AIR 1950</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">: Only section 14 of
Preventive detention act is void and not the whole act.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Doctrine of Eclipse<br />
Bhikaji vs State of MP SC AIR 1955: Applies to pre-constitutional law<br />
Deep Chand vs State of UP SC AIR 1959: Does not apply to post -
constitutional law.<br />
State of Gujrat vs Ambika Mills SC AIR 1974</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">: Applies to post
constitutional law for non-citizens.<br />
Dulare Lodh vs 3rd additional district judge SC AIR 1984: Applies to
post constitutional law as well.<br />
<br />
Doctrine of Waiver<br />
Basheshar Nath vs Income tax commissioner SC AIR 1959</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">: Citizen cannot waive
right.<br />
<br />
Meaning of Law</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
Keshavanand Bharati vs State of Kerala SC AIR 1973: Rules and
regulations made under legislative power and not amendments.<o:p></o:p></span></div>
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<br /></div>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
What is the procedure for amending the constitution? On what grounds an
amendment may be held ultra vires by the Supreme Court?</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
A rigid constitution is a must in a federal system of governance. In case of
Indian constitution, it has been argued that it is not rigid enough. That there
have been 93 amendments in last 50 years proves this fact. As a comparison,
there have been only 27 amendments in the constitution of USA in the past
200 years. This has been done deliberately to ensure that the constitution can
be changed as per the needs of the times. However, to prevent excessive changes
on the whims of the ruling party, sufficient safeguards have been put.<br />
<br />
The procedure of amending the constitution is given in Article 368. It says
that the parliament can amend the constitution under its constituent power. A
bill must be presented in either house of the parliament and must be approved
by a majority of each houses and not less than 2/3 majority of each house
present and voting. After such approval the bill is presented to the president
for his assent, upon whose assent the constitution shall stand amended as per
the provisions of this article. However, if the amendment seeks to make a
change in</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Articles 54, 55, 73, 162, or 241<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Chapter 4 of part 5, chapter 5 of chapter 6, or chapter
1 of part 11<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">any of the lists in the 7th schedule<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">representation of the states in the parliament<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">in this article itself<o:p></o:p></span></li>
</ul>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">the
bill must also be ratified by not less than half of the states before it is
presented to the president for his assent.<br />
<br />
For amending articles 5, 169, or 239-A, only a simple majority of both the
houses of the parliament is required.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Power of the
parliament to amend the constitution</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
There has been a lot of controversy on the power of the parliament to amend the
constitution. Article 13 of the original constitution said that the state
shall not make any law that takes away or abridges the rights given to the
citizens in Part III and any such law made in contravention of this article
shall be deemed void to the extent of contravention. Thus, it seemed that
parliament cannot amend the constitution in a way that takes away the
fundamental rights of the citizens.<br />
<br />
This logic was first tested by the Supreme Court in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Shankari Prasad vs
Union of India AIR 1951</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">. In this case, an amendment to add art 31 A and 31 B to the constitution
was challenged on the ground that they take away fundamental right of the
citizens and therefore not allowed by article 13. It was argued that
"State" includes parliament and "Law" includes
Constitutional Amendments. However, SC rejected the arguments and held that
power to amend the constitution including fundamental rights is given to the
parliament by art 368 and that "Law" is art 13 refers only to
ordinary law made under the legislative powers.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Sajjan Singh vs State of Raj. AIR 1965</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, SC followed the
judgement given in the case of Shankari Prasad and held that the words
"amendment of the constitution" means amendment of all provisions of
the constitution.<br />
<br />
However, in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Golak Nath vs State of Punjab, AIR 1971</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, SC reversed its
previous judgement and held that parliament has no power from the date of this
judgement to amend part III of the constitution so as to take away any
fundamental right. It held that "amendment" is a law as meant under
art 13 and so is limited by art 13(2).<br />
<br />
To overcome the judgement in the case of Golak Nath, the parliament added
another clause in art 13by the 24th amendment in 1971 It says that this article
does not apply to the amendment of the constitution done under art 368. A
similar clause was added in art 368 for clarity in the same amendment, which
says that amendment done under art 368 shall not come under the purview of art
13.<br />
<br />
This amendment itself was challenged in the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Keshavanand Bharati vs
State of Kerala AIR 1973</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">. In this case, SC reversed its judgement again and held that
"Law" in art 13 only means ordinary law made under legislative power,
The 24th amendment is only clarifying that position and so it is valid.
However, it further held that "amendment" means that the original spirit
of the constitution must remain intact after the amendment. Thus, the basic
structure or features of the constitution cannot be changed. According to C J
Sikri, the basic structure of the constitution includes - Supremacy of the
Judiciary, democratic republic, secularism, separation of powers among
judiciary, legislative, and the executive, and the federal character of the
constitution.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
<br />
This judgement was delivered by 7:6 majority and is one of the most important
judgements in the history of independent India. The effect of this judgement
can be seen in the case ofIndra Sawhney vs Union of India 1993, where SC
prevented the politicians from running amok in the matter of reservation. It
this case it held that inclusion of creamy layer violates the fundamental right
of equality, which is a basic feature of the constitution and so its inclusion
cannot be permitted even by constitutional amendment.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Conclusion</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br />
During Constituent Assembly Discussions, it was noted that rigid constitutions
such as that of USA cause a lot of problems and is undesirable. Dr. Ambedkar
said that flexible federation is a distinguished feature of the constitution.
In the hindsight, it can be said that the safeguards to prevent the spirit of
the constitution were not enough. Politicians have time and again shown that
they can modify it easily to serve their vote based politics.<o:p></o:p></span></div>
<div class="MsoNormal">
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<div class="MsoNormal">
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Q.
Explain the emergency provisions of the constitution. What do you understand by
proclamation of Emergency? Describe various types. What are the effects of
emergency on fundamental rights? What are the effects of emergency arisen
out of the failure of the constitutional machinery in a state? What changes
have been made by the 44th amendment regarding emergency provisions?</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Emergency is a unique feature of Indian Constitution that allows the center to
assume wide powers so as to handle special situations. In emergency, the center
can take full legislative and executive control of any state. It also allows
the center to curtail or suspend freedom of the citizens. Existence of
emergency is a big reason why academicians are hesitant to call Indian
constitution as fully federal. Emergency can be of three types - Due to
war, external aggression or armed rebellion, failure of constitutional
machinery in a state, or financial emergency. However, technically,
Proclamation of Emergency is only done upon external aggression or armed
rebellion. In the second case, it is called Presidential Rule, and in the third
case it is called "Proclamation of Financial Emergency:<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Proclamation of
Emergency</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Art 352 says that if the President is satisfied that a grave emergency exists
whereby the security of India or any part of India is threatened due to outside
aggression or armed rebellion, he may make a proclamation to that effect regarding
whole of India or a part thereof.<br />
However, sub clause 3 says that President can make such a proclamation only
upon the written advise of the Union Cabinet. Such a proclamation must be
placed before each house of the parliament and must be approved by each house
with in one month otherwise the proclamation will expire.<br />
<br />
An explanation to art 352 says that it is not necessary that external
aggression or armed rebellion has actually happened to proclaim emergency. It
can be proclaimed even if there is a possibility of such thing happening.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">In the case of</span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Minerva
Mills vs Union of India AIR 1980, SC</span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">held that there is no bar to judicial review of the
validity of the proclamation of emergency issued by the president under
352(1). However, court's power is limited only to examining whether the
limitations conferred by the constitution have been observed or not. It
can check if the satisfaction of the president is valid or not. If the
satisfaction is based on mala fide or absurd or irrelevant grounds, it is
no satisfaction at all.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Prior to 44th amendment, duration of emergency was two
months initially and then after approval by the houses, it would continue
indefinitely until ended by another proclamation. However after 44th
amendment, the period is reduced to 1 month and then 6 months after
approval.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Effects of
Proclamation of emergency</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
The following are the effects arising out of proclamation of emergency in art
352.<br />
Art 353<br />
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<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">executive power of the
Union shall extend to giving directions to any state.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">parliament will get
power to make laws on subjects that are not in Union list.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">if the emergency is
declared only a part of the count, the powers in 1 and 2 shall extend to any
other part if that is also threatened.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Art 354<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Provisions of art 268
to 279, which are related to taxation, can be subjected to exceptions as deem
fit by the president. Every law such made shall be laid before each house of
the parliament.<br />
<br />
Art 355</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">says that it is the
duty of the Union to protect States against external aggression.<br />
<br />
Art 358<br />
While proclamation of emergency declaring that security of India or any part of
the territory of India is threatened due to war or external aggression, is in
operation, the state shall not be limited by art 19. In other words, govt may
make laws that transgress upon the freedoms given under art 19 during such
emergency. However, such a law will cease to have effect as soon as emergency
ends. Further, every such law or very executive action that transgresses upon
freedoms granted by art 19 must recite that it is in relation to the emergency
otherwise, it cannot be immune from art 19.<br />
It also says that any acts done or omitted to be done under this provision
cannot be challenged in the courts after the end of emergency.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">M M Pathak vs Union of
India AIR 1978</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC held that the
rights rights granted by 14 to 19 are not suspended during emergency but only
their operation is suspended. This means that as soon as emergency is over,
rights transgressed by a law will revive and can be enforced. In this case, a
settlement that was reached before emergency between LIC and its employees was
rendered ineffective by a law during emergency. After emergency was over, SC
held that the previous settlement will revive. This is because the emergency
law only suspended the operation of the existing laws. It cannot completely
wash away the liabilities that preexisted the emergency.<br />
<br />
Art 359<br />
This article provides additional power to the president while proclamation of
emergency is in operation, using which the president can, by an order, declare
that the right to move any court for the enforcement of rights conferred by
part III except art 20 and 21, shall be suspended for the period the
proclamation is in operation of a shorter period as mentioned in the order.
Further, every such law or every executive action recite that it is in relation
to the emergency.<br />
<br />
In the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Makhan Singh vs State
of Punjab AIR 1964</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">, SC distinguished
between art 358 and 359 as shown below:<br />
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Art 358<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 335.25pt;" width="447">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Art 359</span><span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Freedoms given by
art 19 are suspended. <o:p></o:p></span></div>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Fundamental rights
are not suspended. Only the courts cannot be moved to enforce fundamental
rights.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 172.5pt;" width="230">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Any actions done or
omitted to be done cannot be challenged even after emergency. <o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 335.25pt;" width="447">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Any action done by
the legislature or executive can be challenged after the suspension is over.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 172.5pt;" width="230">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Art 19 is suspended
for the period of emergency. <o:p></o:p></span></div>
</td>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Right to move courts
is suspended for the period of emergency or until the proclamation of the
president to remove suspension.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 172.5pt;" width="230">
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<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Effective all over
the country.<o:p></o:p></span></div>
</td>
<td style="padding: 1.5pt 1.5pt 1.5pt 1.5pt; width: 335.25pt;" width="447">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #191919; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">May be confined to
an area.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Art 83(2)</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">While the proclamation
is in operation, the president may extend the normal life of the Lok Sabha by
one year each time up to a period not exceeding beyond 6 months after
proclamation ceases to expire.<br />
<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Provisions in case of
failure of constitutional machinery is States</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Art 356</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">says that if, upon the
report of the Governor of a state, the president is satisfied that the govt. of
the state is cannot function according to the provisions of the constitution,
he may, by proclamation, assume to himself all or any of the functions of the
govt, or all or any of the powers vested in the governor, or anybody or any
authority in the state except the legislature of the state. The power of the
legislature of the state shall be exercised by the authority of the parliament.<br />
Under this article, president can also make such incidental and consequential
provisions which are necessary to give effect to the objectives of the
proclamation. This includes suspension of any provision of this constitution
relating to any body or authority in the state.<br />
<br />
However, this article does not authorize the president to assume the powers
vested in the High Courts.<br />
<br />
Art 357</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">provides that in the
case of proclamation under art 356</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">parliament can confer upon the president the power of
legislature of the state to make laws or the power to delegate the power
to make laws to anybody else.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">the parliament or the president can confer power or
impose duties on the Union or Union officers or Union authorities.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">president can authorize the expenditure from the
consolidated fund of the stat pending sanction of such expenditure by the
parliament.<o:p></o:p></span></li>
</ul>
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<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Important instances of
invocation of Art 356</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
This article has been invoked over a hundred times.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Dissolution of 9 state
assemblies in 1977 by Janata Party govt..<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">This was challenged in
the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">State of Rajasthan vs
Union of India AIR 1977</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">.
In this case, SC held that the the decision of the president is not only
dependent on the report of the governor but also on other information. The
decision is entirely political and rests with the executive. So it is not
unconstitutional per se. However, courts can validate the satisfaction of the
president that it is no mala fide.<br />
<br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Dissolution of 9 state
assemblies in 1980 by Congress party govt.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Dissolution of BJP
govt in MP, HP, and Raj. in 1992.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">This was challenged in
the case of</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">SR Bommai vs Union of
India AIR 1994</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">. In this case SC held
that secularism is a basic feature of the constitution and a state govt. can be
dismissed on this ground. It further observed that no party can simultaneously
be a religious party as well as a political party.</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><br />
<br />
Financial Emergency</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
Art 360 provides that if the president is satisfied that a situation has arisen
whereby the financial security of India or the credit of India or of any part
of India is threatened, he may make a declaration to that effect. Under such
situation, the executive and legislative powers will go to the center. <br />
This article has never been invoked.<br />
</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Changes made by 44th
Amendment</span><span style="color: #000033; font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><br />
44th amendment substantially altered the emergency provisions of the
constitution to ensure that it is not abused by the executive as done by Indira
Gandhi in 1975. It also restored certain changes that were done by 42nd
amendment. The following are important points of this amendments-<br />
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<ul type="disc">
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">"Internal disturbance" was replaced by
"armed rebellion" under art 352.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">The decision of proclamation of emergency must be
communicated by the Cabinet in writing.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Proclamation of emergency must be by the houses within
one month.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">To continue emergency, it must be re approved by the
houses every six month.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Emergency can be revoked by passing resolution to that
effect by a simple majority of the houses present and voting. 1/10 of the
members of a house can move such a resolution.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Art 358 - Under this article art 19 will be suspended
only upon war or external aggression and not upon armed rebellion.
Further, every such law that transgresses art 19 must recite that it
is connected to art 358. All other laws can still be challenged if they
violate art 19.<o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Art 359, under this article, suspension of the right to
move courts for violation of part III will not include art 20 and
21. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: #000033;"><span style="font-family: "Arial","sans-serif"; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";">Reversed back the term of Lok Sabha from 6 to 5 years.<o:p></o:p></span></li>
</ul>
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</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-88997436985819120952013-11-28T09:06:00.002-08:002013-11-28T09:09:33.346-08:00IPC Questions<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Q. How far is mistake of fact,
accident, act of child, insanity, and intoxication are valid and good defences
under IPC? In IPC, mistake of law is no defence but mistake of fact is a good
defence. How? What exemptions have been given by IPC to minors for an offence
under General Exceptions? What has to be proved by a person claiming immunity
from criminal liability on the ground of Insanity?</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 67.5pt; margin-right: 58.5pt; margin-top: 0in;">
<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;"><br />
The general rule is that it is the duty of the prosecution to prove the
prisoner's guilt beyond doubt and if there is any reasonable doubt then the
benefit of doubt is given to the accused. The prosecution must prove beyond
doubt that the accused performed the act with intention and with full knowledge
of the consequences of the act. This is based on the maxim, "actus non
facit reum, nisi mens sit rea", which means that mere doing of an act will
not constitute guilt unless there be a guilty intent'.<br />
IPC defines certain circumstances in which it is considered that the accused
had no evil intention. These circumstances are nothing but exceptional
situations that negate mens rea. They create a reasonable doubt in the case of
the prosecution that the act was done by the accused with evil intention.
However, it is the burden of the accused to prove that such circumstances
existed at the time of crime and the presumption of such circumstances is
against the accused. If the accused proves that such circumstances indeed
existed, then his act is not considered a crime. In K M Nanavati vs State
of Maharashtra AIR 1962, it was held that it is the duty of the prosecution to
prove the guilt of the accused or the accused is presumed to be innocent until
his guilt is established by the prosecution beyond doubt.<br />
Chapter IV (Sec 76 to 106) of IPC defines such circumstances. Upon close
examination of these sections, it can be seen that they define two types of
circumstances - one that make the act excusable (Sec 76 to 95), which means
that the act itself is not an offence, and second (Sec 96 to 106) that make the
act justifiable, which means that although the act is an offence but it is
otherwise meritorious and the accused is justified by law in doing it.<br />
Mistake of fact, accident, act of child, insanity, and
intoxication - All these cases are defined in General Exceptions of
IPC and they make the act of the accused excusable. The presence of any of
these conditions is a good defence because they negate the mens rea. Let
us look at them one by one.<br />
Mistake of fact<br />
Sometimes an offence is committed by a person inadvertently. He neither intends
to commit an offence nor does he know that his act is criminal. He may be
totally ignorant of the existence of relevant facts. The knowledge of relevant
facts is what really makes an act evil or good. Thus, if a person is not aware
of the facts and acts to the best of his judgment, his act cannot be
called evil. Under such circumstances he may take the plea that his acts were
done under the misconception of the facts. Such a mistake of fact is
acknowledged as a valid defence in section 76 and 79 of IPC.<br />
Section 76 - Act done by a person bound or by mistake of fact believes to
be bound by law - Nothing is an offence which is done by a person who is
or who by reason of a mistake of fact and not by a reason of a mistake of law,
in good faith believes himself to be bound by law to do it.<br />
Illustration -<br />
A, a soldier fires on a mob upon orders from his superior,
in conformity with the commands of the law. He has committed no offence.<br />
A, an officer of court of justice, upon ordered by that
court to arrest Y, after due inquiry, believing Z to be Y, arrests Z. He has
committed no offence.<br />
Section 79 - Act done by a person justified or by a mistake of fact
believing himself justified by law - Nothing is an offence which is done by the
a person who is justified by law , or who by reason of a mistake of fact and
not by reason of a mistake of law in good faith believes himself to be
justified by law, in doing it.<br />
Illustration -<br />
A sees Z doing what appears to be murder. A, in the exercise to the best of his
judgment, exerted in good faith of the power which the law gives to all persons
of apprehending murderers in the act, seizes Z, in order to bring Z before the
proper authorities. A has committed no offence though it may turn out that Z
was acting in self defence.<br />
Difference between sec 76 and 79<br />
The only difference between sec 76 and 79 is that in section 76, a person
believes that he is bound by to do a certain act while in 79, he believes that
he is justified by law to do a certain act. For example, a policeman believing
that a person is his senior officer and upon that person's orders fires on a
mob. Here, he is bound by law to obey his senior officer's orders. But if
the policeman believes that a person is a thief, he is not bound by law to
arrest the person, though he is justfied by law if he arrests the person.<br />
To be eligible in either of the sections, the following conditions must be
satisfied -<br />
A mistake means a factual error. It could be because of wrong information, i.e.
ignorance or wrong conclusion. For example, an ambulance driver taking a very
sick patient to a hospital may be driving faster than the speed limit in
order to reach the hospital as soon as possible but upon reaching the hospital,
it comes to his knowledge that the patient had died long time back and there
was no need to drive fast. However, since he was ignorant of the
fact, breaking the speed limit is excusable for him. A person sees someone
remove a bulb from a public pole. He thinks the person is a thief and catches
him and takes him to the police only to learn that the person was replacing the
fused bulb. Here, he did the act in good faith but based on wrong conclusion so
his act is excusable.<br />
To be excusable, the mistake must be of a fact and not of law. A mistake of
fact means an error regarding the material facts of the situation, while a
mistake of law means an error in understanding or ignorance of the law. A
person who kills someone cannot take the defence of mistake saying he didn't
know that killing is a crime because this is a mistake of law and not of fact.
But, as in Waryam Singh vs Emperor AIR 1926, he can take a defence of
mistake saying he believed that the killed person was a ghost because that
would be a mistake of a fact.<br />
<br />
R vs Prince 1875, is an important case where a person was convicted of
abducting a girl under 18 yrs of age. The law made taking a woman under 18 from
her guardian without her guardian's permission a crime. In this case,
the person had no intention to abduct her. She had gone with the person
with consent and the person had no reason to believe that the girl was under
18. Further, the girl looked older than 18. However, it was held that by taking
a girl without her guardian's permission, he was taking a risk and should be
responsible for it because the law made it a crime even if it was done without
mens rea. In this case, five rules were laid down which are guidelines
whenever a question of a mistake of fact or mistake of law arises in England
and elsewhere -<br />
<br />
<u1:p></u1:p>To be excusable, the mistake must be of a fact and not of law. A
mistake of fact means an error regarding the material facts of the situation,
while a mistake of law means an error in understanding or ignorance of the law.
A person who kills someone cannot take the defence of mistake saying he didn't
know that killing is a crime because this is a mistake of law and not of fact.
But, as in Waryam Singh vs Emperor AIR 1926, he can take a defence of
mistake saying he believed that the killed person was a ghost because that
would be a mistake of a fact.<br />
R vs Prince 1875, is an important case where a person was convicted of
abducting a girl under 18 yrs of age. The law made taking a woman under 18 from
her guardian without her guardian's permission a crime. In this case,
the person had no intention to abduct her. She had gone with the person
with consent and the person had no reason to believe that the girl was under
18. Further, the girl looked older than 18. However, it was held that by taking
a girl without her guardian's permission, he was taking a risk and should be
responsible for it because the law made it a crime even if it was done without
mens rea. In this case, five rules were laid down which are guidelines
whenever a question of a mistake of fact or mistake of law arises in England
and elsewhere -<br />
<br />
<u1:p></u1:p>R vs Prince 1875, is an important case where a person was
convicted of abducting a girl under 18 yrs of age. The law made taking a woman
under 18 from her guardian without her guardian's permission a crime. In this
case, the person had no intention to abduct her. She had gone with the
person with consent and the person had no reason to believe that the girl was
under 18. Further, the girl looked older than 18. However, it was held that by
taking a girl without her guardian's permission, he was taking a risk and
should be responsible for it because the law made it a crime even if it was
done without mens rea. In this case, five rules were laid down which are
guidelines whenever a question of a mistake of fact or mistake of law arises in
England and elsewhere -<br />
<u1:p></u1:p>In R vs Tolson 1889, a woman's husband was believed to be
dead since the ship he was traveling in had sunk. After some years, when
the husband did not turn up, she married another person. However, her
husband came back and since 7 years had not elapsed since his disappearance,
which are required to legally presume a person dead, she was charged with
bigamy. It was held that disappearance for 7 yrs is only one way to reach a
belief that a person is dead. If the woman, and as the evidence showed, other
people in town truly believed that the husband died in a shipwreck, this was a
mistake of fact and so she was acquitted.<br />
However, in R vs White and R vs Stock 1921, a person was convicted of
bigamy. Here, the husband with limited literacy asked his lawyers about his
divorce, who replied that they will send the papers in a couple of days. The
husband construed as the divorce was done and on that belief he married another
woman. It was held that it was a mistake of law.<br />
<br />
Good faith<br />
Another condition that must be satisfied to take a defence of mistake of fact
is that the act must be done in good faith. Section 52 says that
nothing is said to be done or believed in good faith which is done or believed
without due care and attention. Thus, if one shoots an arrow in the
dark without ascertaining no one is there, he cannot be excused because he
failed to exercise due care.<br />
If a person of average prudence in that situation can ascertain the facts with
average deligence, a person taking the defence of mistake of those facts cannot
be said to have taken due care and thus, is not excusable.<br />
<br />
Accident<br />
<br />
Accidents happen despite of nobody wanting them. There is no intention on the
part of anybody to cause accident and so a loss caused due to an accident
should not be considered a crime. This is acknowledged in Section 80 of IPC,
which states thus -<br />
<br />
Section 80 - Nothing is an offence which is done by accident or
misfortune, and without any criminal intention or knowledge in doing of a
lawful act, in a lawful manner by lawful means with proper care and caution.<br />
<br />
Illustration - A works with a hatchet; the head flys off and kills a
person standing nearby. Here, if there was no want of proper caution on
the part of A, his act is excusable and is not an offence.<br />
<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage, then
he cannot hold anybody responsible for suffering that damage. Thus, a person
watching another litting up firecrackers agrees to take the risk of getting
burned and must not hold anybody responsible if he gets burned. In Nageshwar vs
Emperor, a person asked the accused to try dao on his hand believing that his
hand was dao proof due to a charm. He got hurt and bled to death. However, the
accused was acquitted because he was protected under this section. The deceased
consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>However, in R vs White and R vs Stock 1921, a person was
convicted of bigamy. Here, the husband with limited literacy asked his lawyers
about his divorce, who replied that they will send the papers in a couple of
days. The husband construed as the divorce was done and on that belief he
married another woman. It was held that it was a mistake of law.<br />
Good faith<br />
Another condition that must be satisfied to take a defence of mistake of fact
is that the act must be done in good faith. Section 52 says that
nothing is said to be done or believed in good faith which is done or believed
without due care and attention. Thus, if one shoots an arrow in the
dark without ascertaining no one is there, he cannot be excused because he
failed to exercise due care.<br />
If a person of average prudence in that situation can ascertain the facts with
average deligence, a person taking the defence of mistake of those facts cannot
be said to have taken due care and thus, is not excusable.<br />
<br />
Accident<br />
<br />
Accidents happen despite of nobody wanting them. There is no intention on the
part of anybody to cause accident and so a loss caused due to an accident
should not be considered a crime. This is acknowledged in Section 80 of IPC,
which states thus -<br />
<br />
Section 80 - Nothing is an offence which is done by accident or
misfortune, and without any criminal intention or knowledge in doing of a
lawful act, in a lawful manner by lawful means with proper care and caution.<br />
<br />
Illustration - A works with a hatchet; the head flys off and kills a
person standing nearby. Here, if there was no want of proper caution on
the part of A, his act is excusable and is not an offence.<br />
<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would anticipate.
For example, a owner of a borewell must fence the hole to prevent children
falling into it because any person with average prudence can anticipate that a
child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought that
there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or intoxication.
Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven years
of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Good faith</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Another condition that must be satisfied to take a
defence of mistake of fact is that the act must be done in good
faith. Section 52 says that nothing is said to be done or believed in
good faith which is done or believed without due care and attention. Thus, if
one shoots an arrow in the dark without ascertaining no one is there, he
cannot be excused because he failed to exercise due care.</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">If a person of average prudence in that situation
can ascertain the facts with average deligence, a person taking the defence of
mistake of those facts cannot be said to have taken due care and thus, is not
excusable.<br />
Accident<br />
<br />
Accidents happen despite of nobody wanting them. There is no intention on the
part of anybody to cause accident and so a loss caused due to an accident
should not be considered a crime. This is acknowledged in Section 80 of IPC,
which states thus -<br />
<br />
Section 80 - Nothing is an offence which is done by accident or
misfortune, and without any criminal intention or knowledge in doing of a
lawful act, in a lawful manner by lawful means with proper care and caution.<br />
<br />
Illustration - A works with a hatchet; the head flys off and kills a
person standing nearby. Here, if there was no want of proper caution on
the part of A, his act is excusable and is not an offence.<br />
<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an armed
constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this section.
The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Accident<br />
Accidents happen despite of nobody wanting them. There is no intention on the
part of anybody to cause accident and so a loss caused due to an accident
should not be considered a crime. This is acknowledged in Section 80 of IPC,
which states thus -<br />
<br />
Section 80 - Nothing is an offence which is done by accident or
misfortune, and without any criminal intention or knowledge in doing of a
lawful act, in a lawful manner by lawful means with proper care and caution.<br />
<br />
Illustration - A works with a hatchet; the head flys off and kills a
person standing nearby. Here, if there was no want of proper caution on
the part of A, his act is excusable and is not an offence.<br />
<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can anticipate
that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a person
watching another litting up firecrackers agrees to take the risk of getting
burned and must not hold anybody responsible if he gets burned. In Nageshwar vs
Emperor, a person asked the accused to try dao on his hand believing that his
hand was dao proof due to a charm. He got hurt and bled to death. However, the
accused was acquitted because he was protected under this section. The deceased
consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Accidents happen despite of nobody wanting them. There is no
intention on the part of anybody to cause accident and so a loss caused due to
an accident should not be considered a crime. This is acknowledged in Section
80 of IPC, which states thus -<br />
Section 80 - Nothing is an offence which is done by accident or
misfortune, and without any criminal intention or knowledge in doing of a
lawful act, in a lawful manner by lawful means with proper care and caution.<br />
<br />
Illustration - A works with a hatchet; the head flys off and kills a
person standing nearby. Here, if there was no want of proper caution on
the part of A, his act is excusable and is not an offence.<br />
<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Section 80 - Nothing is an offence which is done by accident
or misfortune, and without any criminal intention or knowledge in doing of a
lawful act, in a lawful manner by lawful means with proper care and caution.<br />
Illustration - A works with a hatchet; the head flys off and kills a
person standing nearby. Here, if there was no want of proper caution on
the part of A, his act is excusable and is not an offence.<br />
<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient maturity
to commit a crime and whether he is sufficiently mature to understand the
nature and consequences of the act needs to be determined from the facts of the
case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Illustration - A works with a hatchet; the head flys off and
kills a person standing nearby. Here, if there was no want of
proper caution on the part of A, his act is excusable and is not an
offence.<br />
From section 80, it can be seen that there are four essential conditions when a
person can take the defence of an accident -<br />
<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were wresting
and one got thrown away on a stone and died. This was held to be an accident
and since it was not done without any criminal intention, the defendant was
acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>From section 80, it can be seen that there are four essential
conditions when a person can take the defence of an accident -<br />
1. The act is done by accident or misfortune - Stephen in his
digest of criminal law explains that an effect is said to be accidental if the
act that caused it was not done with an intention to cause it and if the
occurance of this effect due to that act is not so probable that a person of
average prudence could take precautions against it. The effect comes as a
surprise to the doer of average prudence. SInce he does not expect it to
happen, he is unable to take any precaution against it.<br />
For example, a firecraker worker working with Gun powder knows that it can
cause explosion and must take precaution against it. If it causes an explosion
and kills a third person, he cannot claim defence of this section because the
outcome was expected even though not intended.<br />
However, if a car explodes killing a person, it is an accident because a person
on average prudence does not expect a car to explode and so he cannot be
expected to take precautions against it.<br />
<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but accidently
hit the baby who was killed. He was not allowed protection under this section
because he was not doing a lawful act in a lawful manner by lawful means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>1. The act is done by accident or misfortune -
Stephen in his digest of criminal law explains that an effect is
said to be accidental if the act that caused it was not done with an intention
to cause it and if the occurance of this effect due to that act is not so
probable that a person of average prudence could take precautions against it.
The effect comes as a surprise to the doer of average prudence. SInce he does
not expect it to happen, he is unable to take any precaution against it.</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">For example, a firecraker worker working with Gun
powder knows that it can cause explosion and must take precaution against it.
If it causes an explosion and kills a third person, he cannot claim defence of
this section because the outcome was expected even though not intended.</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">However, if a car explodes killing a person, it is
an accident because a person on average prudence does not expect a car to
explode and so he cannot be expected to take precautions against it.<br />
2. There must not be a criminal intent or knowledge in the doer of the
act - To claim defence under this section, the act causing the accident
must not be done with a bad intention or bad motive. For example, A prepares a
dish for B and puts poison in it so as to kill B. However, C comes and eats the
dish and dies. The death of C was indeed an accident because it was not
expected by A, but the act that caused the accident was done with a criminal
intention.<br />
In Tunda vs Rex AIR 1950, two friends, who were fond of wrestling, were
wresting and one got thrown away on a stone and died. This was held to be an
accident and since it was not done without any criminal intention, the
defendant was acquitted.<br />
<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>2. There must not be a criminal intent or knowledge in the doer of
the act - To claim defence under this section, the act causing the
accident must not be done with a bad intention or bad motive. For example, A
prepares a dish for B and puts poison in it so as to kill B. However, C comes
and eats the dish and dies. The death of C was indeed an accident because it
was not expected by A, but the act that caused the accident was done with a
criminal intention.</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">In Tunda vs Rex AIR 1950, two friends, who were
fond of wrestling, were wresting and one got thrown away on a stone and died.
This was held to be an accident and since it was not done without any criminal
intention, the defendant was acquitted.<br />
3. The act must be lawful, and done in a lawful manner, and by lawful means
- An accident that happens while doing an unlawful act is no defence. Not
only that, but the act must also be done in a lawful manner and by lawful
means. For example, requesting rent payment from a renter is a lawful act but
threatening him with a gun to pay rent is not lawful manner and if there is an
accident due to the gun and if the renter gets hurt or killed, defence under
this section cannot be claimed.<br />
In Jogeshshwar vs Emperor, where the accused was fighting with a man and
the man's pregnant wife intervened. The accused aimed at the woman but
accidently hit the baby who was killed. He was not allowed protection under
this section because he was not doing a lawful act in a lawful manner by lawful
means.<br />
<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no response
he fired the shot. However, it was proven that the shot was fired from a close
range and it was held that he did not take enough precaution before firing the
shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage, then
he cannot hold anybody responsible for suffering that damage. Thus, a person
watching another litting up firecrackers agrees to take the risk of getting
burned and must not hold anybody responsible if he gets burned. In Nageshwar vs
Emperor, a person asked the accused to try dao on his hand believing that his
hand was dao proof due to a charm. He got hurt and bled to death. However, the
accused was acquitted because he was protected under this section. The deceased
consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient maturity
of understanding to judge the nature and consequences of this conduct on that
occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>3. The act must be lawful, and done in a lawful manner, and by
lawful means - An accident that happens while doing an unlawful act is no
defence. Not only that, but the act must also be done in a lawful manner and by
lawful means. For example, requesting rent payment from a renter is a lawful
act but threatening him with a gun to pay rent is not lawful manner and if
there is an accident due to the gun and if the renter gets hurt or killed,
defence under this section cannot be claimed.</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">In Jogeshshwar vs Emperor, where the accused
was fighting with a man and the man's pregnant wife intervened. The accused
aimed at the woman but accidently hit the baby who was killed. He was not
allowed protection under this section because he was not doing a lawful act in
a lawful manner by lawful means.<br />
4. Proper precautions must be taken while doing the act - The act that
causes the harm must have been done with proper care and precautions. An
accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.<br />
In Bhupendra Singh Chudasama vs State of Gujarat 1998, the appellant, an
armed constable of SRPF shot at his immediate supervisor while the latter was
inspecting the dam site in dusk hours. The appellant took the plea that it was
dark at that time and he saw someone moving near the dam with fire. He thought
that there was a miscreant. He shouted to stop the person but upon getting no
response he fired the shot. However, it was proven that the shot was fired from
a close range and it was held that he did not take enough precaution before
firing the shot and was convicted.<br />
<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>4. Proper precautions must be taken while doing the act - The
act that causes the harm must have been done with proper care and precautions.
An accident caused due to negligence is not excusable. A person must take
precautions for any effects that any person with average intelligence would
anticipate. For example, a owner of a borewell must fence the hole to prevent
children falling into it because any person with average prudence can
anticipate that a child could fall into an open borewell.</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">In Bhupendra Singh Chudasama vs State of
Gujarat 1998, the appellant, an armed constable of SRPF shot at his immediate
supervisor while the latter was inspecting the dam site in dusk hours. The
appellant took the plea that it was dark at that time and he saw someone moving
near the dam with fire. He thought that there was a miscreant. He shouted to
stop the person but upon getting no response he fired the shot. However, it was
proven that the shot was fired from a close range and it was held that he did
not take enough precaution before firing the shot and was convicted.<br />
Accident in a act done with consent<br />
Section 87 extends the scope of accident to cases where an act was done with
the consent of the victim. It says thus -<br />
<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini 1874 ,
it was held that merely the proof of age of the child would be a conclusive
proof of innocence and would ipso facto be an answer to the charge against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Accident in a act done with consent</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Section 87 extends the scope of accident to cases
where an act was done with the consent of the victim. It says thus -<br />
Section 87 - Nothing which is not intended to cause death or grevious hurt
and which is not known to the doer to be likely to cause death or grevious hurt
is an offence by reason of any harm that it may cause or be intended by the
doer to cause to any person above eighteen years of age, who has given consent
whether express or implied, to suffer that harm; or by reason of any harm which
it may be known by the doer to be likely to cause to any such person who has
consented to take the risk of that harm.<br />
<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Section 87 - Nothing which is not intended to cause death or
grevious hurt and which is not known to the doer to be likely to cause death or
grevious hurt is an offence by reason of any harm that it may cause or be
intended by the doer to cause to any person above eighteen years of age, who
has given consent whether express or implied, to suffer that harm; or by reason
of any harm which it may be known by the doer to be likely to cause to any such
person who has consented to take the risk of that harm.<br />
Illustration - A and Z agree to fence with each other for amusement. This
agreement implies the consent by each to suffer any harm which in the course of
such fencing may be caused without foul play; and if A, while playing fairly,
hurts Z, A committs no offence.<br />
<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand believing
that his hand was dao proof due to a charm. He got hurt and bled to death.
However, the accused was acquitted because he was protected under this section.
The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Illustration - A and Z agree to fence with each other for
amusement. This agreement implies the consent by each to suffer any harm which
in the course of such fencing may be caused without foul play; and if A, while
playing fairly, hurts Z, A committs no offence.<br />
This is based on the premise that every body is the best judge for himself. If
a person knowingly undertakes a task that is likely to cause certain damage,
then he cannot hold anybody responsible for suffering that damage. Thus, a
person watching another litting up firecrackers agrees to take the risk of
getting burned and must not hold anybody responsible if he gets burned. In
Nageshwar vs Emperor, a person asked the accused to try dao on his hand
believing that his hand was dao proof due to a charm. He got hurt and bled to
death. However, the accused was acquitted because he was protected under this
section. The deceased consented to the risk of trying dao on his hand.<br />
<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>This is based on the premise that every body is the best judge for
himself. If a person knowingly undertakes a task that is likely to cause
certain damage, then he cannot hold anybody responsible for suffering that
damage. Thus, a person watching another litting up firecrackers agrees to take
the risk of getting burned and must not hold anybody responsible if he gets
burned. In Nageshwar vs Emperor, a person asked the accused to try dao on his
hand believing that his hand was dao proof due to a charm. He got hurt and bled
to death. However, the accused was acquitted because he was protected under
this section. The deceased consented to the risk of trying dao on his hand.<br />
Act of child, insanity, intoxication<br />
<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Act of child, insanity, intoxication<br />
As mentioned before, to hold a person legally responsible for a crime, in
general, evil intention must be proved. A person who is not mentally capable of
distinguishing between good and bad or of understanding the implications of an
action cannot be said to have an evil intention and thus should not be
punished. Such incapacity may arise due to age, mental illness, or
intoxication. Let us look at each of these one by one -<br />
<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>As mentioned before, to hold a person legally responsible for a
crime, in general, evil intention must be proved. A person who is not mentally
capable of distinguishing between good and bad or of understanding the
implications of an action cannot be said to have an evil intention and thus
should not be punished. Such incapacity may arise due to age, mental illness,
or intoxication. Let us look at each of these one by one -<br />
Act of child<br />
<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Act of child<br />
It is assumed that a child does not have an evil mind and he does not do things
with evil intention. He cannot even fully understand the implications of the
act that he is doing. Thus, he completely lacks mens rea and should not be
punished. IPC contains for following exemptions for a child -<br />
<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>It is assumed that a child does not have an evil mind and he does
not do things with evil intention. He cannot even fully understand the
implications of the act that he is doing. Thus, he completely lacks mens rea
and should not be punished. IPC contains for following exemptions for a child -<br />
Section 82 - Nothing is an offence which is done by a child under seven
years of age.<br />
<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Section 82 - Nothing is an offence which is done by a child
under seven years of age.<br />
Section 83 - Nothing is an offence which is done by a child above seven
years of age and below twelve years of age who has not attained the sufficient
maturity of understanding to judge the nature and consequences of this conduct
on that occasion.<br />
<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Section 83 - Nothing is an offence which is done by a child
above seven years of age and below twelve years of age who has not attained the
sufficient maturity of understanding to judge the nature and consequences of
this conduct on that occasion.<br />
Through these sections, IPC acknowledges the fact that children under seven
years of age cannot have suffient maturity to commit a crime and is completely
excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>Through these sections, IPC acknowledges the fact that children
under seven years of age cannot have suffient maturity to commit a crime and is
completely excused. In Indian law, a child below seven years of age
is called Doli Incapax. In Queen vs Lukhini Agradanini
1874 , it was held that merely the proof of age of the child would be a
conclusive proof of innocence and would ipso facto be an answer to the charge
against him.<br />
However, a child above seven but below twelve may or may not have sufficient
maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<br />
<u1:p></u1:p>However, a child above seven but below twelve may or may not have
sufficient maturity to commit a crime and whether he is sufficiently mature to understand
the nature and consequences of the act needs to be determined from the facts of
the case. To claim a defence under section 83, a child must<br />
<u1:p></u1:p>In English law, a boy below 14 years is deemed incapable of raping
a woman but no such protection is offered in India and in Emperor vs Paras
Ram Dubey, a boy of 12 years of age was convicted of raping a girl.<br />
Insanity<br />
<br />
A person may be rendered incapable of judging an action as right or wrong due
to several kinds of deficienty in mental faculty or a disease of mind. Such
people are called insane. Their position is same as childern below the age of
discretion. From time to time several approches have been adopted to understand
insanity and to see whether a person was insane or not at the time of his act.<br />
<br />
Wild Beast Test<br />
This test was evolved in R vs Arnold 1724. Here, the accused was tried for
wounding and attempting to kill Lord Onslow. By evidence, it was clear that the
person was mentally deranged. J Tracy laid the test as follows, "If
he was under the visitation of God and could not distinguish between good and
evil and did not know what he did, though he committed the greatest offence,
yet he could not be guilty of any offence against any law whatsoever."<br />
<br />
Insane Delusion Test<br />
This test was evolved in Hadfield's Case in 1800, where Hadfield was
charged with high treason and attempting the assasination of Kind George III.
He was acquitted on the ground of insane delusion. Here, the counsel
pleaded that insanity was to be determined by the fact of fixed insane
delusions with which the accused was suffering and which were the direct cause
of his crime. He pointed out that there are people who are deprived of their
understanding, either permanently or temporarily, and suffer under delusions of
alarming description which overpowers the faculties of their victims.<br />
<br />
M' Naghten's Rules<br />
In this case, Danial M'Naghten was tried for the murder of a private
secretary of the then prime minister of England. He was acquitted on the ground
of insanity. This caused a lot of uproar and the case was sent to bench of
fifteen judges who were called upon to lay down the law regarding criminal
responsibility in case of lunacy. Some questions were posed to the judges which
they had to answer. These questions and answers are knows as M'Naghten's Rules
which form the basis of the modern law on insanity. The following principals
were evolved in this case -<br />
<br />
<u1:p></u1:p>Insanity<br />
A person may be rendered incapable of judging an action as right or wrong due
to several kinds of deficienty in mental faculty or a disease of mind. Such
people are called insane. Their position is same as childern below the age of
discretion. From time to time several approches have been adopted to understand
insanity and to see whether a person was insane or not at the time of his act.<br />
<br />
Wild Beast Test<br />
This test was evolved in R vs Arnold 1724. Here, the accused was tried for
wounding and attempting to kill Lord Onslow. By evidence, it was clear that the
person was mentally deranged. J Tracy laid the test as follows, "If
he was under the visitation of God and could not distinguish between good and
evil and did not know what he did, though he committed the greatest offence,
yet he could not be guilty of any offence against any law whatsoever."<br />
<br />
Insane Delusion Test<br />
This test was evolved in Hadfield's Case in 1800, where Hadfield was
charged with high treason and attempting the assasination of Kind George III.
He was acquitted on the ground of insane delusion. Here, the counsel
pleaded that insanity was to be determined by the fact of fixed insane
delusions with which the accused was suffering and which were the direct cause
of his crime. He pointed out that there are people who are deprived of their
understanding, either permanently or temporarily, and suffer under delusions of
alarming description which overpowers the faculties of their victims.<br />
<br />
M' Naghten's Rules<br />
In this case, Danial M'Naghten was tried for the murder of a private
secretary of the then prime minister of England. He was acquitted on the ground
of insanity. This caused a lot of uproar and the case was sent to bench of
fifteen judges who were called upon to lay down the law regarding criminal
responsibility in case of lunacy. Some questions were posed to the judges which
they had to answer. These questions and answers are knows as M'Naghten's Rules
which form the basis of the modern law on insanity. The following principals
were evolved in this case -<br />
<br />
<u1:p></u1:p>A person may be rendered incapable of judging an action as right
or wrong due to several kinds of deficienty in mental faculty or a disease of
mind. Such people are called insane. Their position is same as childern below
the age of discretion. From time to time several approches have been adopted to
understand insanity and to see whether a person was insane or not at the time
of his act.<br />
Wild Beast Test<br />
This test was evolved in R vs Arnold 1724. Here, the accused was tried for
wounding and attempting to kill Lord Onslow. By evidence, it was clear that the
person was mentally deranged. J Tracy laid the test as follows, "If
he was under the visitation of God and could not distinguish between good and
evil and did not know what he did, though he committed the greatest offence,
yet he could not be guilty of any offence against any law whatsoever."<br />
<br />
Insane Delusion Test<br />
This test was evolved in Hadfield's Case in 1800, where Hadfield was
charged with high treason and attempting the assasination of Kind George III.
He was acquitted on the ground of insane delusion. Here, the counsel
pleaded that insanity was to be determined by the fact of fixed insane
delusions with which the accused was suffering and which were the direct cause
of his crime. He pointed out that there are people who are deprived of their
understanding, either permanently or temporarily, and suffer under delusions of
alarming description which overpowers the faculties of their victims.<br />
<br />
M' Naghten's Rules<br />
In this case, Danial M'Naghten was tried for the murder of a private
secretary of the then prime minister of England. He was acquitted on the ground
of insanity. This caused a lot of uproar and the case was sent to bench of
fifteen judges who were called upon to lay down the law regarding criminal
responsibility in case of lunacy. Some questions were posed to the judges which
they had to answer. These questions and answers are knows as M'Naghten's Rules
which form the basis of the modern law on insanity. The following principals
were evolved in this case -<br />
<br />
<u1:p></u1:p>Wild Beast Test</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">This test was evolved in R vs Arnold 1724.
Here, the accused was tried for wounding and attempting to kill Lord Onslow. By
evidence, it was clear that the person was mentally deranged. J Tracy laid
the test as follows, "If he was under the visitation of God and could
not distinguish between good and evil and did not know what he did, though he committed
the greatest offence, yet he could not be guilty of any offence against any law
whatsoever."<br />
Insane Delusion Test<br />
This test was evolved in Hadfield's Case in 1800, where Hadfield was
charged with high treason and attempting the assasination of Kind George III.
He was acquitted on the ground of insane delusion. Here, the counsel
pleaded that insanity was to be determined by the fact of fixed insane
delusions with which the accused was suffering and which were the direct cause
of his crime. He pointed out that there are people who are deprived of their
understanding, either permanently or temporarily, and suffer under delusions of
alarming description which overpowers the faculties of their victims.<br />
<br />
M' Naghten's Rules<br />
In this case, Danial M'Naghten was tried for the murder of a private
secretary of the then prime minister of England. He was acquitted on the ground
of insanity. This caused a lot of uproar and the case was sent to bench of
fifteen judges who were called upon to lay down the law regarding criminal
responsibility in case of lunacy. Some questions were posed to the judges which
they had to answer. These questions and answers are knows as M'Naghten's Rules
which form the basis of the modern law on insanity. The following principals
were evolved in this case -<br />
<br />
<u1:p></u1:p>Insane Delusion Test</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">This test was evolved in Hadfield's Case in
1800, where Hadfield was charged with high treason and attempting the
assasination of Kind George III. He was acquitted on the ground of insane
delusion. Here, the counsel pleaded that insanity was to be determined by the
fact of fixed insane delusions with which the accused was suffering and which
were the direct cause of his crime. He pointed out that there are people who
are deprived of their understanding, either permanently or temporarily, and
suffer under delusions of alarming description which overpowers the faculties
of their victims.<br />
M' Naghten's Rules<br />
In this case, Danial M'Naghten was tried for the murder of a private
secretary of the then prime minister of England. He was acquitted on the ground
of insanity. This caused a lot of uproar and the case was sent to bench of
fifteen judges who were called upon to lay down the law regarding criminal
responsibility in case of lunacy. Some questions were posed to the judges which
they had to answer. These questions and answers are knows as M'Naghten's Rules
which form the basis of the modern law on insanity. The following principals
were evolved in this case -<br />
<br />
<u1:p></u1:p>M' Naghten's Rules</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">In this case, Danial M'Naghten was tried for
the murder of a private secretary of the then prime minister of England. He was
acquitted on the ground of insanity. This caused a lot of uproar and the case
was sent to bench of fifteen judges who were called upon to lay down the law
regarding criminal responsibility in case of lunacy. Some questions were posed
to the judges which they had to answer. These questions and answers are knows
as M'Naghten's Rules which form the basis of the modern law on insanity. The
following principals were evolved in this case -<br />
<u1:p></u1:p>The Indian Law recognizes the first two principals and
incorporates them in section 84.<br />
Section 84 - Nothing is an offence which is done by a person who, at the
time of doing it, by the reason of unsoundness of mind, is incapable of knowing
the nature of the act or that he is doing what is either wrong or contrary to
law.<br />
<br />
Thus, a person claiming immunity under this section must prove the existence of
the following conditions -<br />
<br />
<u1:p></u1:p>Section 84 - Nothing is an offence which is done by a person
who, at the time of doing it, by the reason of unsoundness of mind, is
incapable of knowing the nature of the act or that he is doing what is either
wrong or contrary to law.<br />
Thus, a person claiming immunity under this section must prove the existence of
the following conditions -<br />
<br />
<u1:p></u1:p>Thus, a person claiming immunity under this section must prove the
existence of the following conditions -<br />
<br />
<u1:p></u1:p>Intoxication<br />
Several times intoxication due to drinking alcohol or taking other substances
cause the person to lose the judgment of right or wrong. In early law, however,
this was no defence for criminal responsibility. In recent times this has
become a valid defence but only if the intoxication was involuntary. Section 85
says thus -<br />
<br />
Section 85 - Nothing is an offence which is done by a person who at the
time of doing it is by reason of intoxication, incapable of knowing the nature
of the act or that he is doing what is either wrong or contrary to law :
provided that the thing which intoxicated him was administered to him without his
knowledge or against his will.<br />
<br />
This means that to claim immunity under this section, the accused mus prove the
existence of following conditions -<br />
<br />
<u1:p></u1:p>Intoxication</span><span style="font-size: 11pt;"><br />
</span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Several times intoxication due to drinking alcohol
or taking other substances cause the person to lose the judgment of right or
wrong. In early law, however, this was no defence for criminal responsibility.
In recent times this has become a valid defence but only if the
intoxication was involuntary. Section 85 says thus -<br />
Section 85 - Nothing is an offence which is done by a person who at the
time of doing it is by reason of intoxication, incapable of knowing the nature
of the act or that he is doing what is either wrong or contrary to law :
provided that the thing which intoxicated him was administered to him without
his knowledge or against his will.<br />
<br />
This means that to claim immunity under this section, the accused mus prove the
existence of following conditions -<br />
<br />
<u1:p></u1:p>Section 85 - Nothing is an offence which is done by a person
who at the time of doing it is by reason of intoxication, incapable of knowing
the nature of the act or that he is doing what is either wrong or contrary to
law : provided that the thing which intoxicated him was administered to him
without his knowledge or against his will.<br />
This means that to claim immunity under this section, the accused mus prove the
existence of following conditions -<br />
<br />
<u1:p></u1:p>This means that to claim immunity under this section, the accused
mus prove the existence of following conditions -<br />
<br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;"><u1:p></u1:p>1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">it is a mistake
of fact and not a mistake of law that is excusable.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">the act
must be done in good faith.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Meaning of Mistake -<br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">When an
act is in itself plainly criminal and is more severely punishable if certain
circumstances coexist, ignorance of the existence is no answer to a charge for
the aggravated offence.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">When an
act is prima facie innocent and proper unless certain circumstances co-exist,
the ignorance of such circumstances is an answer to the charge.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">3.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">The
state of the mind of the defendants must amount to absolute ignorance of the
existence of the circumstance which alters the character of the act or to a
belief in its non-existence.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">4.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">When an
act in itself is wrong, and under certain circumstances, criminal, a person who
does the wrongful act cannot set up as a defence that he was ignorant of the
facts which would turn the wrong into a crime.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">5.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">When a
statute makes it penal to do an act under certain circumstances, it is a
question upon the wording and object of the statute whether responsibility of
ascertaining that the circumstances exist is thrown upon the person who does
the act or not. In the former case, his knowledge is immaterial.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">The above guidelines were brought in
Indian law in the case of The King vs Tustipada Mandal AIR 1951 by Orissa
HC.<br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">be above
seven and below twelve years of age.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">not have
attained sufficient maturity to understand the nature and consequences of his
act.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">3.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">be
immature at the time of commission of the act.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Section 83 provides qualified immunity
because presumes that a child above seven and below twelve has sufficient
maturity to commit a crime and the burdon is on the defence to prove that he
did not possess sufficient . Thus, in Hiralal vs State of Bihar 1977, the
boy who participated in a concerted action and used a sharp weapon for a
murderous attack, was held guilty in the absence of any evidence leading to
boy's feeble understanding of his actions.<br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Regardless
of the fact that the accused was under insane delusion, he is punishable
according to the nature of the crime if, at the time of the act, he knew that
he was acting contrary to law.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Every
man must be presumed to be sane until contrary is proven. That is, to establish
defence on the ground of insanity, it must be clearly proven that the person
suffered from a condition due to which he was not able to understand the nature
of the act or did not know what he was doing was wrong.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">3.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">If the
accused was conscious that the act was one that he ought not to do and if that
act was contrary to law, he was punishable.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">4.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">If the
accused suffers with partial delusion, he must be considered in the same
situation as to the responsibility, as if the facts with respect to which the
delusion exists were real. For example, if the accused, under delusion that a
person is about to kill him and attacks and kills the person in self defence,
he will be exempted from punishment. But if the accused, under delusion that a
person has attacked his reputation, and kills the person due to revenge, he
will be punishable.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">5.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">A
medical witness who has not seen the accused previous to the trial should not
be asked his opinion whether on evidence he thinks that the accused was insane.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;"><br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">He was
of unsound mind - Unsound Mind is not defined in IPC. As per Stephen, it
is equivalent to insanity, which is a state of mind where the functions of
feeling, knowing, emotion, and willing are performed in abnormal manner. The
term Unsoundness of mind is quite wide and includes all varieties of want of
capacity whether temporary or permanent, or because of illness or birth defect.
However, mere unsoundness of mind is not a sufficient ground. It must be accompanied
with the rest of the conditions.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Such
incapacity must exist at the time of the act - A person may become
temporarily out of mind or insane for example due to a bout of epilepsy or some
other disease. However, such condition must exist at the time of the act.
In S K Nair vs State of Punjab 1997, the accused was charged for murder of
one and greivious assault on other two. He pleaded insanity. However, it was
held that the words spoken by the accused at the time of the act clearly show
that he understood what he was doing and that it was wrong. Thus, he was
held guilty.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">3.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Due to
incapacity, he was incapable of knowing - </span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">either
the nature of the act.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">or that
the act is wrong. </span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">3.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">or that
the act is contrary to law.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 67.5pt; margin-right: 58.5pt; margin-top: 0in;">
<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">The accused in not protected if he
knows that what he was doing was wrong even if he did not know that what he was
doing was contrary to law. In Chhagan vs State 1976, it was held that mere
queerness on the part of the accused or the crime does not establish that he
was insane. It must be proved that the cognitive faculties of the person are
such that he does not know what he has done or what will follow his act.<br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">He was
intoxicated.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 67.5pt; margin-right: 58.5pt; margin-top: 0in; text-indent: -.25in;">
<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Because
of intoxication, he was rendered incapable of knowing the nature of the act or
that what is was doing was wrong or contrary to law.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 67.5pt; margin-right: 58.5pt; margin-top: 0in; text-indent: -.25in;">
<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">3.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">The
thing that intoxicated him was administered to him without his knowledge or
against his will.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 67.5pt; margin-right: 58.5pt; margin-top: 0in;">
<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Director of Public Prosecution vs
Beard 1920 was an important case on this point. In this case, a 13 yr old
girl was passing by a mill area in the evening. A watchman who was drunk saw
her and attempted to rape her. She resisted and so he put a hand on her mouth to
prevent her from screaming thereby killing her unintentionally. House of lords
convicted him for murder and the following principles were laid down -<br />
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">1.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">If the
accused was so drunk that he was incapable of forming the intent required he
could not be convicted of a crime for which only intent was required to be
proved.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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<span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">2.</span><span color:="" mso-bidi-font-weight:bold="" new="" roman="" serif="" style="font-family: "; font-size: 11.0pt;" times=""> <span class="apple-converted-space"> </span></span><span style="color: #000033; font-family: ""serif"","serif"; font-size: 11.0pt; mso-bidi-font-weight: bold;">Insanity
whether produced by drunkenness or otherwise is a defence to the crime charged.
The difference between being drunk and diseases to which drunkenness leads is
another. The former is no excuse but the later is a valid defence if it causes
insanity.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-86125965079677057032011-12-05T18:40:00.000-08:002011-12-05T18:40:25.837-08:00CASE ANALYSIS OF Financial Inclusion Network and Operations (FINO)<div dir="ltr" style="text-align: left;" trbidi="on"><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> 1:</span></b><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> Microfinance has long presented a challenge to the industry. Loans are much small, clients are widely dispersed, most of them in difficult-to-access rural areas, and the paperwork and procedures associated with a lending transaction are very high. All of those factors contribute to the high interest rates for microfinance loans. These problems are common with other financial institutions like Banks, and also with various governmental departments. </span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-bidi-font-weight: bold; mso-themecolor: text1;">Financial Inclusion Network and Operations (FINO) prodiveds a decent solution to the above problems face by the financial institutions and governmental departments.</span></span></div><div class="MsoListParagraphCxSpFirst" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><b><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">(FINO)</span></b></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">is an</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/India" title="India"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">Indian</span></a><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Inclusion Solutions and Services company, formed in 2006.</span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"><span style="mso-spacerun: yes;"> </span>It is promoted by some Public and Private sector banks including the</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/ICICI_Bank" title="ICICI Bank"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">ICICI Bank</span></a><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">, and insurance companies like the</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India" title="Life Insurance Corporation of India"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">Life Insurance Corporation of India</span></a><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">,</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/ICICI_Lombard" title="ICICI Lombard"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">ICICI Lombard</span></a><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">and</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/ICICI_Prudential" title="ICICI Prudential"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">ICICI Prudential</span></a><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">.</span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">The company offers technological solutions and services to enable financial inclusion. </span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">The company serves its client companies through invention, innovation and implementation of integrated biometric or smart card technology solutions for institutions like Banks, Microfinance Institutions, Government entities, Insurance companies to enable financially inclusive environment for the micro customers especially in rural areas.</span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">The company is mainly run by its wide network of</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><i><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Bandhus</span></i></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">or Business Correspondents across the country who are mostly the local people appointed by the company. These agents are equipped with</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/GPRS" title="GPRS"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">GPRS</span></a><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">enabled hand-held Biometric devices which reads the</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/Smart_Card" title="Smart Card"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">Smart Card</span></a><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">information with the clients and hence the financial transactions are done in an easy, accessible and cheap way. </span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Its key areas of operation are to provide branch-less banking and insurance infrastructure, and assisting government schemes through its technology and agent network. </span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Today FINO, with its highly systematic and technologically advanced services, plays a key role in developing branchless banking infrastructure in</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/India" title="India"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">India</span></a><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">.</span></span><span class="apple-style-span"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"></span></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">FINO is not principally a microfinance institution (MFI), although it has a US$1.5 million microfinance loan portfolio spread across 8,500 borrowers.</span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Lending only accounts for between 1% and 2% of FINO's business, but FINO had set targets of US$4.5 million for 2010 and a 10-fold jump to US$45 million in 2011.</span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">But now, the controversy surrounding India's microfinance industry may hamper its expansion.</span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Although FINO is going slow on its lending operations, but management says that they can lower its interest rate below 20%. The company borrows from the banks at the same rate as other MFIs, but their cost of operations is 4-6%. Reasons are</span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 74.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level2 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: "Courier New"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Courier New"; mso-themecolor: text1;"><span style="mso-list: Ignore;">o<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">First; lending operations would use the same bandhu network, which means shared costs. </span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 74.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level2 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: "Courier New"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Courier New"; mso-themecolor: text1;"><span style="mso-list: Ignore;">o<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Second, the average monthly payout for a bandhu is only around US$35, though it could be higher in some cases. Some 95% of FINO's bandhus are in rural areas, whose monthly compensation is less than that of urban bandhus. </span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 74.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level2 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: "Courier New"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Courier New"; mso-themecolor: text1;"><span style="mso-list: Ignore;">o<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Third, the use of technology reduces the paperwork associated with micro-banking and micro-insurance operations. This saves time for bandhus.</span></div><div class="MsoListParagraphCxSpLast" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Not everybody is totally enthusiastic about the potential of FINO's bandhu network, however. Argument given was - It adds one more layer of intermediation, but four more layers of costs: commission to the BC; cost of technology -- smart cards, point-of-sales terminals; cost of regulation; and the cost of the carrier -- mobile or VSAT (satellite ground station). And there are enough margins to justify the costs.</span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><span class="apple-style-span"><b style="mso-bidi-font-weight: normal;"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> 2: </span></b></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Yes, FINO’s business model for microfinance can be a considered as E-business because its operations work on the same principle of e-business. It uses technology and a sustainable business model to provide business solution to various financial institutions and Governmental Departments. Also it acts as an intermediary to provide solutions to customers of various institutions in a cost effective way. It also sells products of these financial institutions. It uses the innovative technology, internet and GSAT facilities and thus does operations on a real time basis. </span></span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><span class="apple-style-span"><b style="mso-bidi-font-weight: normal;"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> 3: </span></b></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">FINO has two main lines of business that include </span></span></div><div class="MsoListParagraphCxSpFirst" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -0.25in;"><span class="apple-converted-space"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Technology Products (like</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><a href="http://en.wikipedia.org/wiki/Smart_Card" title="Smart Card"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">Smart Card</span></a><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">, </span></span><a href="http://en.wikipedia.org/wiki/Biometric" title="Biometric"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1; text-decoration: none; text-underline: none;">Biometric</span></a><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">devices) and Business Correspondent Services. FINO as a technology solution provider provides solutions to enable financial inclusion, microfinance, remittances by using both technology and human resource.</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> </span></span></div><div class="MsoListParagraphCxSpLast" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -0.25in;"><span class="apple-style-span"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">As a Business Correspondent services provide, FINO provides the agent network to facilitate the last mile services for banks and financial organizations.</span></span></div><div class="MsoNormal" style="line-height: 150%; margin: 4.8pt 0in 6pt; text-align: justify;"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">FINO has been working on several National and State Level Schemes of the government by providing technical support through Smart Card and</span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"> </span><a href="http://en.wikipedia.org/wiki/Biometric" title="Biometric"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">Biometric</span></a><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"> <span style="background: white;">devices. It is also providing its wide network of business correspondent services to support the access of these schemes to the poor, especially rural customers. The government schemes undertaken by FINO are:</span></span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 1.2pt 19.2pt; mso-list: l2 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 10pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><a href="http://en.wikipedia.org/wiki/Rashtriya_Swasthya_Bima_Yojana" title="Rashtriya Swasthya Bima Yojana"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">Rashtriya Swasthya Bima Yojana</span></a><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">(RSBY) </span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 1.2pt 19.2pt; mso-list: l2 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 10pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><a href="http://en.wikipedia.org/wiki/Mahatma_Gandhi_National_Rural_Employment_Guarantee_Act" title="Mahatma Gandhi National Rural Employment Guarantee Act"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">Mahatma Gandhi National Rural Employment Guarantee Act</span></a><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"> <span style="background: white;">(NREGA) </span></span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 1.2pt 19.2pt; mso-list: l2 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 10pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><a href="http://en.wikipedia.org/w/index.php?title=Swavalamban_Pension_Scheme&action=edit&redlink=1" title="Swavalamban Pension Scheme (page does not exist)"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; text-decoration: none; text-underline: none;">Swavalamban Pension Scheme</span></a><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"></span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><span class="apple-style-span"><b style="mso-bidi-font-weight: normal;"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> 4:</span></b></span><span class="apple-style-span"><span style="background: white; color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> FINO operates through a network of 10,000 field force — also called Bandhu (friend in Hindi). This field force serves as a doorstep bank and electronic teller machines in areas where banks are yet to reach or have any ATM. </span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Each bandhu is equipped with a small, handheld biometric device that they take into the field and use to transact with clients, who access banking services through smart cards. Balance transfers, deposits and withdrawals can all be done through the smart card system.</span></div><div class="MsoListParagraphCxSpFirst" style="line-height: 150%; margin: 0in 0in 0pt; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> 5:</span></b><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;"> Although FINO is going slow on its lending operations, but management says that they can lower its interest rate below 20%. The company borrows from the banks at the same rate as other MFIs, but their cost of operations is 4-6%, which is much less than that of traditional process. Some of its reasons are</span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">First; lending operations would use the same bandhu network, which means shared costs. </span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Second, the average monthly payout for a bandhu is only around US$35, though it could be higher in some cases. Some 95% of FINO's bandhus are in rural areas, whose monthly compensation is less than that of urban bandhus. </span></div><div class="MsoListParagraphCxSpLast" style="line-height: 150%; margin: 0in 0in 0pt 38.25pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span style="color: black; font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-themecolor: text1;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="color: black; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-themecolor: text1;">Third, the use of technology reduces the paperwork associated with micro-banking and micro-insurance operations. This saves time for bandhus.</span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><br />
</div></div>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-2237598532527783659.post-91546282830534738142011-12-05T18:34:00.000-08:002011-12-05T18:34:45.526-08:00DEBATE :- TAX HAVENS ARE BEING UNDULY CRITICISED, THEY HAVE ACTUALLY PROMOTED<div dir="ltr" style="text-align: left;" trbidi="on"><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">INTRODUCTION</span></u></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">A <b>tax haven</b> is a state or a country or territory where certain </span><span lang="EN-IN"><a href="http://en.wikipedia.org/wiki/Tax" title="Tax"><span style="color: windowtext; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; text-decoration: none; text-underline: none;">taxes</span></a></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"> are levied at a low rate or not at all while offering </span><span lang="EN-IN"><a href="http://en.wikipedia.org/wiki/Due_process" title="Due process"><span style="color: windowtext; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; text-decoration: none; text-underline: none;">due process</span></a></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">, </span><span lang="EN-IN"><a href="http://en.wikipedia.org/wiki/Good_governance" title="Good governance"><span style="color: windowtext; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; text-decoration: none; text-underline: none;">good governance</span></a></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"> and a low </span><span lang="EN-IN"><a href="http://en.wikipedia.org/wiki/Political_corruption" title="Political corruption"><span style="color: windowtext; font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; text-decoration: none; text-underline: none;">corruption</span></a></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"> rate. Major tax havens have 2.3 percent of world gross domestic product (GDP), but they host 5.7 percent of the foreign employment and 8.4 percent of foreign property, plant, and equipment of American firms. Per capita real GDP in tax haven countries grew at an average annual rate of 3.3 percent between 1982 and 1999, which compares favourably to the world average of 1.4 percent. Tax haven governments appear to be adequately funded: their average 25 percent ratio of government to GDP exceeds the 20 percent ratio for the world as a whole, though the small populations and relative affluence of these countries would normally be associated with even larger governments. </span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">BENEFITS OF TAX HAVENS</span></u></div><div class="MsoListParagraphCxSpFirst" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">High tax rate helps in breading unsocial elements within the country, thus hampering the growth of the country. Example: - Smuggling is more prominent in the countries having high tax rates.</span><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"></span></u></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Many of the tax havens are well developed and having transparent governance within the country, as compare to the countries having high taxes. Example: - Mauritius is one of the most developed states with transparent governance in Africa.</span><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"></span></u></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Some tax havens are tax havens because their government uses the taxpayer’s money efficiently. Thus meeting all the requirements of public with very less money. </span><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"></span></u></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Mostly tax havens have more privatization, thus it gives a ground for competitive environment to be develop, making the system even more efficient.</span><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"></span></u></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">More corruption is found in the country having high tax rate, because of the huge amount of money at stake. </span><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"></span></u></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">It attracts investments into the country, even if this is simply in the form of planting funds into the country. Such funds are usually a much-needed commodity for the country to develop itself, particularly where the country is resource-constrained. It is for this reason that many tax havens promote themselves as financial centers with excellent banking environments.</span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">Investments coming into the country can also allow for spin-offs in other areas. For instance, the entrance of an MNC would spell employment opportunities for the local population, thereby lowering unemployment rates. Where the investment is a technologically advanced one (and invariably the ventures tend to be so), it means that intelligence is brought into the country.</span></div><div class="MsoListParagraphCxSpLast" style="line-height: 150%; margin: 0in 0in 10pt 0.5in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">It was observed earlier that in the late 1950s and early 1960s, when Singapore was desperately trying to get out of the rut that it was in and establish itself despite the lack of resources and poor skills levels among the local population, tax incentives were seen as a major source for drawing the investments into the country.</span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">. The best example of tax havens can be <b style="mso-bidi-font-weight: normal;">Mauritius.</b></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;"></span></div><div class="MsoListParagraph" style="line-height: 150%; margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo3; text-align: justify; text-indent: -0.25in;"><span lang="EN-IN" style="font-family: Wingdings; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7pt "Times New Roman";"> </span></span></span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">Mauritius combines the traditional advantages of being an offshore financial centre (no capital gains tax, no withholding tax, no capital duty on issued capital, confidentiality of company information, exchange liberalization and free repatriation of profits and capital) with the distinct advantages of being a treaty</span><span lang="EN-IN" style="font-family: "Cambria Math", "serif"; font-size: 12pt; line-height: 150%;">‐</span><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">based jurisdiction with a substantial network of treaties and DTAAs.</span></div><ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l0 level1 lfo2; text-align: justify;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">Mauritius has signed an Investment Promotion and Protection Agreements (an “IPPA”) with India which provides for free repatriation of investment capital and returns, guarantee against expropriation, a most favoured nation rule regarding treatment of investors, and compensation for losses in case of war, armed conflict or riot, as well as arrangements for the settlement of disputes between investors and The contracting states.</span></li>
</ul><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt 0.5in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt 0.5in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt 0.5in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt 0.5in; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">DISADVATAGES OF TAX HAVENS</span></u></div><ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l3 level1 lfo4; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Tax havens inevitably receive lower tax revenues then would a high tax country. </span></li>
<li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l3 level1 lfo4; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Another possible disadvantage is the fact that undesirable influences may be brought into the tax haven country through its opening up for investments to MNCs and other Large Corporations.</span></li>
<li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l3 level1 lfo4; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">It is often the case that multinational companies and other big players only have a small set-up in the tax haven. The main decision-making body continues to remain in the home country or in another country where a branch operates from. This means that all the decisions are not made within the tax havens. Such decisions are passed through bankers, accountants and lawyers who handle all the necessary work. This suggests that there is no room for development in the tax haven. This is in effect a counter argument to the fact that investor coming into the country means that skills and development are imported as well.</span></li>
<li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l3 level1 lfo4; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Some people worry about the inaccessibility of their money as it is located in a far away <b>offshore tax haven</b>. </span></li>
<li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l3 level1 lfo4; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">The main disadvantage for offshore companies located in tax havens is that many government and governmental agencies will not accept tenders from these types of offshore entities. These contracts would include defense, civil engineering, education, health authority and other such civil contracts. </span></li>
<li class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; mso-list: l3 level1 lfo4; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Offshore Accounts are not cheap to set up. Depending on the individual's investment goals and the jurisdiction he or she chooses, an offshore corporation may need to be started. Setting up an offshore corporation may mean steep legal fees, corporate or account registration fees and in some cases , investors are even required to own property (a residence) in the country in which they have an offshore account or operate a holding company. Furthermore many offshore accounts require minimum investments of between $100,000 and $1 million. Businesses that make money facilitating offshore investment know that their offerings are in high demand by the very wealthy and they charge accordingly. </span></li>
</ul><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><u style="text-underline: thick;"><span lang="EN-IN" style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%;">CONCLUSION</span></u></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; line-height: 150%; mso-ansi-language: EN-US;">Tax haven as a separate entity is a boom for the society, but when tax havens are exist with countries having high tax then it can become a ban on society, as this tax havens are used by the people in highly tax countries to evade tax. Therefore, each government should try to make their countries a tax haven. Moreover, if all countries in world become tax havens then there would be no issue of evading taxes and, corruption and unsocial activity will itself be reduced to minimum</span></div><div class="MsoNormal" style="line-height: 150%; margin: 0in 0in 10pt; text-align: justify;"><br />
</div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-30995767739264759112011-07-23T05:19:00.000-07:002011-07-23T05:19:38.008-07:00CASE ANALYSIS: COME BACK OF CATERPILLAR<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div style="language: en-US; line-height: normal; margin-bottom: 0pt; margin-left: 0.4in; margin-top: 6pt; mso-line-break-override: none; punctuation-wrap: hanging; text-align: left; text-indent: -0.31in; unicode-bidi: embed; word-break: normal;"><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b><span style="font-size: 18pt; line-height: 115%; mso-bidi-font-size: 14.0pt;"><span style="font-family: Calibri;">Case summary</span></span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">In 1904 – Emergence of Caterpillar</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Product line – earth moving equipment, off highway trucks, construction cranes, mixers, pavers & related equipments, parts & attachments</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Crisis in early 1980s</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Turnaround (1985-1999) : George Schafaer and Donald Fites – implementation of various strategies</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">By 2000 – Glen Barton – declination of sales</span></b><b><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b><span style="font-size: 18pt; line-height: 115%; mso-bidi-font-size: 14.0pt;"><span style="font-family: Calibri;">Strategies implemented</span></span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in;"><span style="font-family: Calibri;"><b><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 12.0pt;">Schaefer’s period as CEO</span></b><b><span style="font-size: 16pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 12.0pt;"> </span></b><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 12.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l7 level1 lfo2; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Congenial leader.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l7 level1 lfo2; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Social skills were on focus in his management strategy.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l7 level1 lfo2; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Strategies that focused on purchasing, manufacturing, marketing, personnel and labor relations.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Following were the strategies followed:-</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l10 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Introduction of cost cutting measures</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l10 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Global outsourcing</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l10 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Broader product line</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l10 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Labor relations</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l10 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Employee involvement</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l10 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Plant with a future</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><b><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 12.0pt;">Donald Fite’s period as CEO</span></b><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 12.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l1 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Structural reorganization of Caterpillar</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l1 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Diversification was the key in his strategic management.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">The key points in his strategy planning were:-</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo5; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Leadership</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo5; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Reorganization</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo5; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Marketing and dealership</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo5; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Information technology</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo5; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Diversification & liberalization</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><b><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Glen Barton as a CEO</span></b><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l11 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">New markets</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l11 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Diversification</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l11 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">New distribution channel</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l11 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Joint ventures</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Challenges for Barton:-</span></b><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">To sustain the market trends and changes.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">To maintain the position of being market leaders in construction & mining equipments.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">To overpower the competitors.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l6 level1 lfo7; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">To adapt with new trends.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 18pt; line-height: 115%; mso-bidi-font-size: 14.0pt;"><span style="font-family: Calibri;">SWOT</span></span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Strength</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l9 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Innovative ideas</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l9 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Broad product line</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l9 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Global market leader</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l9 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Strong portfolio of brands</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l9 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Wide logistic network</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Weakness</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l8 level1 lfo9; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Slow down in the market with increasing inflation</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l8 level1 lfo9; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Weak labor relations</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l8 level1 lfo9; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Premium pricing</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l8 level1 lfo9; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span lang="EN-IN" style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;">Lack of foresight</span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Opportunity</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l3 level1 lfo10; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span lang="EN-IN" style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;">Global infrastructure development</span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l3 level1 lfo10; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Strategic alliances & joint ventures</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l3 level1 lfo10; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Intrusion into developing countries</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Threat</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l5 level1 lfo11; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Intense competitive pressures</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l5 level1 lfo11; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Foreign exchange & interest rate fluctuations</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l5 level1 lfo11; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Rise in raw material prices</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l5 level1 lfo11; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Arial", "sans-serif"; font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-family: Calibri;"><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Possibility of a partner or supplier pulling out of a joint venture or SCM deal</span><span style="font-size: 14pt; line-height: 115%; mso-ansi-language: EN-IN; mso-bidi-font-size: 11.0pt;"> </span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b><span style="font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Suggestions</span></span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">ERP implementation</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Penetration into new market</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Enlargement of distribution channel</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Differentiation of product lines-automation-quality</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">HR required to solve the disputes among trade unions</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Identifying the wastages and eliminating them-ERP</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Statistical process control</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Online process control</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; tab-stops: list .5in; text-indent: -0.25in;"><span style="font-family: "Wingdings 2"; font-size: 14pt; line-height: 115%; mso-bidi-font-family: "Wingdings 2"; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Wingdings 2";"><span style="mso-list: Ignore;"><span style="font: 7pt "Times New Roman";"> </span></span></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="font-family: Calibri;">Go for a blend of strategies that were time tested by the former CEO’s </span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div></div></div>Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-2237598532527783659.post-81506310355738089572011-06-12T10:34:00.000-07:002011-06-12T10:34:39.085-07:00MARKETING REPORT ON DEMAND OF COLLEGE BAGS<div dir="ltr" style="text-align: left;" trbidi="on"><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: 48pt; line-height: 115%;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span></span></span><span style="font-size: 16pt; line-height: 115%;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>BAGAZ-----“Carry your thoughts” </span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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<span style="font-size: 20pt; line-height: 115%;"><span style="font-family: Calibri;">Demand for college bags</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span class="apple-style-span"><span style="color: #333333; font-family: "Georgia", "serif";">The total value of the bags market in urban India for the youth is estimated at Rs 1,470 crore a year.</span></span><span class="apple-converted-space"><span style="color: #333333; font-family: "Georgia", "serif";"> </span></span><span style="color: #333333; font-family: "Georgia", "serif";"><br />
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<span class="apple-style-span">The market for college bags is 25 per cent of the total bags market and is valued at Rs 370 crore.</span><span class="apple-converted-space"> </span><br />
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<span class="apple-style-span">The total volume of the college bags market in urban India is estimated at 0.46 crore units a year, which is 34 per cent of the total market for bags.</span><span class="apple-converted-space"> </span><br />
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<span class="apple-style-span">On an average, men spend Rs 570 per unit on college bags, while women spend Rs 450 per unit.</span><span class="apple-converted-space"> </span><br />
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<span class="apple-style-span">Fifty-two per cent consumers prefer buying college bags from multi-brand outlets.</span><span class="apple-converted-space"> </span><br />
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<span class="apple-style-span">Thirty-eight per cent consumers prefer shopping at popular shopping markets/ streets, when they want to purchase college bags.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="mso-no-proof: yes;"><shape id="Picture_x0020_1" o:spid="_x0000_i1030" style="height: 192pt; mso-wrap-style: square; visibility: visible; width: 240pt;" type="#_x0000_t75"><imagedata o:title="model4" src="file:///C:\DOCUME~1\shalu\LOCALS~1\Temp\msohtmlclip1\01\clip_image003.gif"></imagedata></shape></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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</div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 22pt; line-height: 115%;"><span style="font-family: Calibri;">College bag customers::::::::::::::::</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Youth </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Kids </span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt -30pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;"><i><span style="color: #ff941d; font-family: Algerian; font-size: 18pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">school and college bags</span></i></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">These days there are bags for all categories of people, based on profession, age, purpose, etc. The number of companies making bags has increased immensely. Each of these companies produces bags of different models, shapes and colors. You can easily find the type of bag you need by going through different models of bags in a local bag store.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">Similarly, there are bags for the school going community also. Bag companies are aware of the fact that school goers mainly wish for bags that serve three main functions - fun, fashion, and function. There are some factors to consider when choosing a school bag.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><br />
</div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">a) Size of the bag:</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">School goers need to take a lot of stuff with them. So the school bags must have enough space to take in all the stuff that is to be taken to school.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">b) Strength:</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">As stated above, the school goers take a lot of stuff to school. Hence, the material with which the school bags are made should be of good quality. The bag should be able to take excess loads and not transfer all the weight to your arms.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">c) Regularly load carried:</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">The size of the bag must be decided in proportion to the daily load of books being carried. The bag should not be too big or too small. If you carry a heavy load of books and buy a small bag, it will most probably overflow everyday and look awkward. On the other hand, if you carry fewer booksand buy a big bag, it will look sagging in this case.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">You must be able to assess how to bag would look with all your books before buying it.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">d) Matching color:</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">The color of your bag should be such that it matches with most of the dresses you wear regularly. Simple and flamboyant color bags should go with the same type of dresses.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">e) Quality of the bag:</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">It is advisable to buy a bag of good quality even if it is a little costlier. This is due to the fact that good quality bags have better strength and durability. Hence, they will not come apart even if the weight exceeds a certain value.</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">f) Quality or color:</span></div><div class="MsoNormal" style="line-height: 16.5pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #707070; font-family: "Book Antiqua", "serif"; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";">When it comes to the point where you have to choose one among quality and color, pick quality. Then you can choose some common colors which can go with any dress.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><a href="http://7lecateslogan.hostaim.com/school-and-college-bags.php"><span style="font-family: Calibri;">http://7lecateslogan.hostaim.com/school-and-college-bags.php</span></a></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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</div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;"><b><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";">Discount Pricing </span></b><span style="color: black; font-family: "Monotype Corsiva"; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";">- can be seasonal</span><span style="color: black; font-family: "Monotype Corsiva"; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";">- can be based on volume or amount bought</span><span style="color: black; font-family: "Monotype Corsiva"; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";">- can be used to attract a form of payment eg, CA$H</span><span style="color: black; font-family: "Monotype Corsiva"; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><br />
</span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";">Prof. Allen says</span><span style="color: black; font-family: "Monotype Corsiva"; font-size: 13.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 10pt; mso-fareast-font-family: "Times New Roman";">"Discount and allowance pricing has the effect of reducing prices to reward customer responses such as paying early or promoting the product. A recent pricing issue is that of everyday low pricing, where the retailer charges a constant, lower price at all times, with no temporary price discounts. Wal-Mart has led the trend toward everyday low pricing."</span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Marketing strategy:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Making a brand image by distinctive logo and the advertising slogan…..”carry your thought “.promotion of the bags sponsorship agreements with celebrity , professional teams and college achievers.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Maintaining proper marketing mix.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Advertising:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Usage of print advertising .focusing more on promotion by educating customers about carrying the bags in right posture eg: nike.also focusing on brand advertising.the brand can also enter poster advertising .</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">PRICING:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Pricing shall be done to capture lower segment of market as well as upper segment.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Since the main objective is to capture large share of market .so for lower segment the price of bag will be 300 -600 rs and for upper it shall be 550-1200rs .</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">The price is kept so to recover ROI</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Maintain cash flow </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">To capture large market share</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">To maximize profits.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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</div><h3 style="margin: 0in 0in 0.1in;"><i><span style="color: #ff00b1; font-family: "Georgia", "serif"; font-size: 15.5pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Helvetica;">Tote Bags</span></i></h3><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4y6bF1e-XjtQri08fGwFpQ7MIcJHlver4uCkAU6UdxdSCOiq_trjTj2_EZUjq8y7V7qP_rilh-yVT0GJMrqGqbFK68bD0aVReMUO-PvByUvOzlgyOLjaBNSXkwWQB7X9ve8NFZsd7kEA/s1600/1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="131" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4y6bF1e-XjtQri08fGwFpQ7MIcJHlver4uCkAU6UdxdSCOiq_trjTj2_EZUjq8y7V7qP_rilh-yVT0GJMrqGqbFK68bD0aVReMUO-PvByUvOzlgyOLjaBNSXkwWQB7X9ve8NFZsd7kEA/s320/1.JPG" t8="true" width="320" /></a></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="mso-spacerun: yes;"><span style="font-family: Calibri;"> </span></span><span style="mso-no-proof: yes;"><shape id="Picture_x0020_3" o:spid="_x0000_i1029" style="height: 136.5pt; mso-wrap-style: square; visibility: visible; width: 337.5pt;" type="#_x0000_t75"><span style="font-family: Calibri;"> <imagedata o:title="tote-bags-1" src="file:///C:\DOCUME~1\shalu\LOCALS~1\Temp\msohtmlclip1\01\clip_image004.jpg"></imagedata></span></shape></span></div><div style="line-height: 18pt; margin: 0in 0in 0.25in; text-align: justify;"><span style="color: black; font-family: "inherit", "serif"; font-size: 10pt; mso-bidi-font-family: Helvetica;">Tote bags are probably the most popular type of school bag among college girls, because they’re both cute and functional.</span></div><div style="line-height: 18pt; margin: 0in 0in 0.25in; text-align: justify;"><span style="color: black; font-family: "inherit", "serif"; font-size: 10pt; mso-bidi-font-family: Helvetica;">While tote bags are undeniably popular and adorable, they aren’t the right choice for everyone. I’m talking in particular about those who ride their bikes to class or lead active lifestyles.</span></div><h3 style="margin: 0in 0in 0.1in;"><i><span style="color: #ff00b1; font-family: "Georgia", "serif"; font-size: 15.5pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Helvetica;">Backpacks</span></i></h3><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUEs4NS0n8dt0OZAt_rOl_5JOrNI7oHHIfvMG5XSxzjSr3WbEKn4UgSZ_YsYuxI9LIHkio4zLvEtVRPrH0pxRc6E_IlaTwL2ltfVNAGTPHsmhUDfAuIVcjMRPKEep-2sWBvIFWxaGWY3M/s1600/1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUEs4NS0n8dt0OZAt_rOl_5JOrNI7oHHIfvMG5XSxzjSr3WbEKn4UgSZ_YsYuxI9LIHkio4zLvEtVRPrH0pxRc6E_IlaTwL2ltfVNAGTPHsmhUDfAuIVcjMRPKEep-2sWBvIFWxaGWY3M/s1600/1.JPG" t8="true" /></a></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="mso-no-proof: yes;"><shape id="Picture_x0020_6" o:spid="_x0000_i1028" style="height: 86.25pt; mso-wrap-style: square; visibility: visible; width: 86.25pt;" type="#_x0000_t75"><imagedata o:title="College-Bag (1)" src="file:///C:\DOCUME~1\shalu\LOCALS~1\Temp\msohtmlclip1\01\clip_image005.jpg"><span style="font-family: Calibri;"></span></imagedata></shape><shape id="Picture_x0020_4" o:spid="_x0000_i1026" style="height: 115.5pt; mso-wrap-style: square; visibility: visible; width: 86.25pt;" type="#_x0000_t75"><imagedata o:title="College-Bags" src="file:///C:\DOCUME~1\shalu\LOCALS~1\Temp\msohtmlclip1\01\clip_image008.jpg"><span style="font-family: Calibri;"></span></imagedata></shape></span></div><div style="line-height: 18pt; margin: 0in 0in 0.25in; text-align: justify;"><span style="color: black; font-family: "inherit", "serif"; font-size: 10pt; mso-bidi-font-family: Helvetica;">A backpack is probably the first thing that comes to mind when you think of carrying books, pens, and papers around for school.</span></div><div style="line-height: 18pt; margin: 0in 0in 0.25in; text-align: justify;"><span style="color: black; font-family: "inherit", "serif"; font-size: 10pt; mso-bidi-font-family: Helvetica;">I’m sure it was probably your high school staple, and for good reason – backpacks are a really easy way to carry everything you need with you all day. At the same time, once you get to college, it might be time for something a little more sophisticated.</span></div><h3 style="margin: 0in 0in 0.1in;"><i><span style="color: #ff00b1; font-family: "Georgia", "serif"; font-size: 15.5pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Helvetica;">Messenger / Shoulder Bags</span></i></h3><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGjU6HEmmQJX_Bmh1maDasHPCyk2JM4pFvAc6YI-wC4e_-avayy6LLfy3l20ai8NfzTg1z6eo7m7Yz0WJk-jduh2Xc3PN8exxRwZmlwocr0y3lTmfhhltekjliEWNOP27L8iThatw_HbU/s1600/1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGjU6HEmmQJX_Bmh1maDasHPCyk2JM4pFvAc6YI-wC4e_-avayy6LLfy3l20ai8NfzTg1z6eo7m7Yz0WJk-jduh2Xc3PN8exxRwZmlwocr0y3lTmfhhltekjliEWNOP27L8iThatw_HbU/s1600/1.JPG" t8="true" /></a></div><div align="center" class="photoright" style="line-height: 18pt; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-family: "inherit", "serif"; font-size: 7pt; mso-bidi-font-family: Helvetica;"><span style="mso-spacerun: yes;"> </span><span style="mso-no-proof: yes;"><shape alt="Lacoste Messenger Bag" id="Picture_x0020_8" o:spid="_x0000_i1025" style="height: 84.75pt; mso-wrap-style: square; visibility: visible; width: 113.25pt;" type="#_x0000_t75"><imagedata o:title="Lacoste Messenger Bag" src="file:///C:\DOCUME~1\shalu\LOCALS~1\Temp\msohtmlclip1\01\clip_image009.jpg"></imagedata></shape></span></span></div><div align="center" class="photoright" style="line-height: 18pt; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-family: "inherit", "serif"; font-size: 10pt; mso-bidi-font-family: Helvetica;">Messenger bags and shoulder bags are a decent compromise between a backpack and a tote bag.</span><span style="color: black; font-family: "inherit", "serif"; font-size: 7pt; mso-bidi-font-family: Helvetica;"></span></div><div style="line-height: 18pt; margin: 0in 0in 0.25in; text-align: justify;"><span style="color: black; font-family: "inherit", "serif"; font-size: 10pt; mso-bidi-font-family: Helvetica;">If you’re undecided between the two, and looking for some function with a bit of style, a messenger bag might be the perfect college bag for you!</span></div><div style="line-height: 18pt; margin: 0in 0in 0.25in; text-align: justify;"><br />
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</div></div>Unknownnoreply@blogger.com9tag:blogger.com,1999:blog-2237598532527783659.post-8159935975495420462011-03-18T08:46:00.000-07:002011-03-18T08:46:13.849-07:00current affairs questions 5<div dir="ltr" style="text-align: left;" trbidi="on"><br />
ET -5<br />
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1) With which country does India plans to have a joint venture in solar photo-voltaic cells? Russia<br />
2) The nanotechnology initiative of the Russian Government with the Department of Science and Technology? RUSNANO<br />
3) Cabinet rank Coal minister of India? SriPrakash Jaiswal<br />
4) Which firm partnered with SA India to foray into the alternate and renewable energy market in the country? Satarem AG of Switzerland<br />
5) Wind power system launched by Saterem India? Windsat<br />
6) 3 IPO‟s to hit the market this week which plans to raise around 270 crores? Acropetal,Sudar,Fineotex<br />
7) Who can authorize the Government to collect funds by way of taxes, duties and borrowings? Parliament<br />
8) The inputs of a budget: The Planning Commission, The Comptroller and Auditor General, Administrative Ministries and Other Stakeholders<br />
9) What are the two parts of the budget speech? Part A deals with general economic survey and policy statements, Part B contains Taxation proposals<br />
10) Who has the responsibility for framing the Budget? The finance ministry<br />
11) What is the responsibility of the department of Economic affairs? Non-tax revenue<br />
12) What is a „Guillotine‟? The Speaker puts all the outstanding demands to the vote of the House. This device is ‘guillotine’.<br />
13) The bill which gives authority to the Government to incur expenditure from and out of the Consolidated Fund of India? The Appropriation Bill<br />
14) World‟s fastest growing major economy in 2011? China<br />
15) Currency of China? Yuan<br />
16) Cadbury‟s revenue growth for year 2010-27%<br />
17) Kraft foods took over Cadbury - $19.7billion deal<br />
18) BRIC is the term used for which four major emerging economies- Brazil, Russia, India& China<br />
19) Commerce and Industry minister- Anand Sharma<br />
20) SAIL chairman-CS Verma<br />
21) South Korea seeks govt support for Posco‟s Joint venture with- SAIL<br />
22) The only Indian company which has retained international certification by the American Society of Mechanical Engineers – L&T<br />
23) L&T hopes to supply nuclear equipment to- EDF (Electricite de France SA) - largest nuclear power operator.<br />
24) Civil Aviation minister- Vayalar Ravi<br />
25) Ranbaxy‟s 2010 PAT- Rs 1,497- crore<br />
26) Rolls- Royee has been selling 2 models named- Phantom&Ghost and now entering the electric car segment „102EX‟<br />
27) Nokia Partners with Reliance Communications to provide Ovi store<br />
28) Which operating system platform is Nokia planning to install in its upcoming smart-phones- Microsoft windows 7<br />
29) BP CEO-Robert Dudley<br />
30) RIL willing for partnership with- BP<br />
31) What is the growth food subsidy bill is expecting? 27% to rs74231 cr<br />
32) What could be the reason for the trip of mega power plan? Limited availability of coal<br />
33) What is Railways planning to do to cut cost? Use alloys in wagons<br />
34) What is the expected rise in inflation in d year 2011? 11%<br />
35) What will be the growth in the Indian economy in this yr? 8.5-9%<br />
36) Who is the minister for state of finance? S S Palanimanickam<br />
37) What is the full form of GST? Goods and service tax<br />
38) What does FRA stands for? Fiscal Responsibility Tax<br />
39) Who is the finance minister of Kerala? Thomas Isaac<br />
40) Who is the finance minister of Bihar? Sushil Modi<br />
41) What is the income tax arrears on April 1, 2010? Rs 248927 cr<br />
42) What is the expected capacity of power generation plants? 1500MW<br />
43) At what price is BHP buying shale gas reserves from Chesapeake? $4.75 billion<br />
44) Who is the chief executive officer of wall mart? Mike Duke<br />
45) What is the percentage of shares govt. Owns in scooter India? 95%<br />
46) What is the expected percentage of growth rate for the state Karnataka for the 2010-2011 fiscal? 8.2%<br />
47) What is FSDC? Financial Stability and Development Council<br />
48) At present how many units of airwaves in 700MHz band does India possess for commercial services? 108units<br />
49) Who is the CIO of Ericsson India? Tamal Chakravorty<br />
50) The organized coffee retailing segment in India is estimated at around Rs.600 crore<br />
51) What is FIPB? Foreign Investment Promotion Band<br />
52) Dunkin‟s Donuts is in talks to enter India through which franchisee? Jubilant Food Works<br />
53) Muscat based Kitara Capital has invested about Rs. 78 crore for a minority stake in TVS automobile solutions<br />
54) The world‟s largest truck company Daimler launched which brand for India? Bharat Benz<br />
55) Which Pharma company got notice from US drug regulator? Aurobindo Pharma<br />
56) Which Tech firm won multimedia IT contract from Vodafone? Tech Mahindra<br />
57) Which Chinese manufacturer of automobiles started making vehicles with Hindustan motors? Shandong Shifeng<br />
58) What is FCCB? Foreign currency convertible bonds<br />
59) Who controls Hero group which is to be separated from Hero Honda Company? Munjal family<br />
60) Which committee was set up to investigate policies of successive governments from 1998 to 2009 in allocation and pricing of telecom licenses? 30 member Joint Parliamentary Committees<br />
61) What is the cause for skidding of sensex point which is likely to fan inflation & interest rates? Surging oil prices<br />
62) By what % Essar group has cut loop telecom stake? 1.5%<br />
63) Private equity firm Bain capital will buy stake in which company? Hero Investment pvt ltd.<br />
64) In the union budget 2011, the govt is thinking to allow FDI in which sector? multi brand retail<br />
65) By what % automobiles majors are likely to raise prices? 3%<br />
66) What is the sector where Karnataka govt will incur max expenditure for the financial year 2011-12? agriculture & irrigation (17857 crore)<br />
67) Which committee has been appointed to investigate policies of govt. in relation to allocation & pricing of telecom licenses? joint parliamentary committee(30 members)<br />
68) Recently HUL Brews is planning to enter into which sector after us giants‟ starbucks & dunkins have finalized deal? Bru world café outlet<br />
69) Which delhi based company is in talk with which p.e firms to raise 500 crore for ongoing construction activities in n.india? Ansal(real estate company)<br />
70) With which company pfizer has agreed to re-enter the global insulin market? Biocon<br />
71) Who is the director of tata sons who was grilled recently by cbi with respect to telecom sector? R.K Krishna kumar<br />
72) By what amount cocoberry co. has raised fund making the rise of investment in food industry? $2 million<br />
73) Who have been appointed as brand ambassador by hul to push its bru brand? Shahid kapoor & Priyanka chopra<br />
74) Which place of karnataka was banned for mining after “illegal mining” issue came into picture? Bellary<br />
75) What % of excise duty is expected to increase in liquor prices in karnataka which was announced in union budget? 10%<br />
76) What is the current account deficit (CAD) of Q2 of FY11? It has touched 4.1% of GDP<br />
77) By what price did world food price index rise in Jan 2011? 28%<br />
78) What is the earnings of General motors in the year 2010? $4.7 billion<br />
79) What is seed money? Seed money is capital which is provided at the start of a project or initiative to help it get off the ground. As the name implies, the money is the seed which is supposed to help the project grow.<br />
80) Which is the world‟s third largest supplier of personal computers? Dell<br />
81) What does CRISIL stand for? Credit Rating and Information Services of India Ltd - India's leading Ratings, Research, Risk and Policy Advisory Company based in Mumbai<br />
82) What amount of subsidy is provided by government on diesel, kerosene and LPG cylinder? Diesel – Rs 10.74 per litre, Kerosene – Rs 21.60 per litre, LPG – Rs 356.07 per cylinder<br />
83) How many board level posts are vacant in central public sector enterprises (CPSEs)? 71 posts<br />
84) What is SCOPE ? It stands for standing conference on public enterprises which is the apex body of public enterprises in India.<br />
85) How much does the private Airlines (Kingfisher, jet airways, jetlite, spicejet, indigo) owe to the Airport Authority of India (AAI)? Rs 352 crore<br />
86) Who is the Civil Aviation minister of India? Mr .Vayalar Ravi<br />
87) What could be the reason for a new recession in future? Soaring oil prices<br />
88) How much has the price of crude oil per barrel increased to? $117 a barrel.<br />
89) Who is the new chairman of financial planning standards board (FPSB) ? Dhirendra Swarup<br />
90) What is the food inflation during the week ended feb 12? 11.49%<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-80907221895424763752011-03-09T09:13:00.000-08:002011-03-09T09:13:05.329-08:00NOTES: Describe the concept of FREE ADS and its importance as a medium of communication<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div style="text-align: justify;"><span lang="EN-IN">The concept of Free Online Advertising is relatively straightforward. Personal and business promotional campaigns are mainly free but sometime advertiser can charge us for promotion of our business. This concept has become so popular that various websites are offering it today. We can opt for both online and offline advertising. We can post classified commercials for renting out one room in our house to selling that old dressing table you no longer use! We can also post commercials for anything & everything - buy or sell cars, bikes, houses, pets, clothes, TVs, refrigerators and all. We can even post a commercial for free if you are just looking for a friend!</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN">They are useful for people in different ways:</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN">Free advertising for private advertisers.</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN">Wider choice.</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN">Right place for target customers.</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN">Ease of placing advertisements.</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN">Beneficial for business advertisers.</span></div><div style="margin-left: .5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span lang="EN-IN"><br />
</span></div><div style="text-align: justify;"><span lang="EN-IN"><span style="mso-spacerun: yes;"> </span>It is surprising to know the number of advertisement websites available on the internet today! If we want to find out how popular it has become, just type "Free Ads" in a Google search box. </span></div><div style="text-align: justify;"><span lang="EN-IN"><br />
</span></div><div style="text-align: justify;"><span lang="EN" style="color: black; mso-ansi-language: EN; mso-bidi-font-weight: bold;">Advertising</span><span lang="EN" style="color: black; mso-ansi-language: EN;"> is a form of <a href="http://en.wikipedia.org/wiki/Communication" title="Communication"><span style="color: black; text-decoration: none; text-underline: none;">communication</span></a> intended to <a href="http://en.wikipedia.org/wiki/Persuade" title="Persuade"><span style="color: black; text-decoration: none; text-underline: none;">persuade</span></a> its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular <a href="http://en.wikipedia.org/wiki/Brand" title="Brand"><span style="color: black; text-decoration: none; text-underline: none;">brand</span></a>. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. <o:p></o:p></span></div><div style="text-align: justify;"><span lang="EN" style="color: black; mso-ansi-language: EN;"><br />
</span></div><div style="text-align: justify;"><span lang="EN" style="color: black; mso-ansi-language: EN;">Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the <a href="http://en.wikipedia.org/wiki/Brand" title="Brand"><span style="color: black; text-decoration: none; text-underline: none;">brand</span></a> in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, hoardings, radio, outdoor or direct mail. Advertising may be placed by an <a href="http://en.wikipedia.org/wiki/Advertising_agency" title="Advertising agency"><span style="color: black; text-decoration: none; text-underline: none;">advertising agency</span></a> on behalf of a company or other organization.<o:p></o:p></span></div><div style="text-align: justify;"><span lang="EN" style="color: black; mso-ansi-language: EN;">Organizations that spend money on advertising promoting items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a <a href="http://en.wikipedia.org/wiki/Public_service_announcement" title="Public service announcement"><span style="color: black; text-decoration: none; text-underline: none;">public service announcement</span></a>.<o:p></o:p></span></div><div style="text-align: justify;"><span lang="EN" style="color: black; mso-ansi-language: EN;"><br />
</span></div><span lang="EN" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">FREE ADS have become a major mass media because of its ability to reach larger audiences for less money. Technology advances has also made it possible to control the message on digital signage with much precision, enabling the messages to be relevant to the target audience at any given time and location which in turn, gets more response from the advertising.</span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-77433727088252291362011-03-08T03:50:00.000-08:002011-03-08T03:51:52.651-08:00CASE ANALYSIS :RFID Implementation at ABHISHEK INDUSTRIES<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div class="MsoNormal"><u><span style="font-family: 'Arial Black', sans-serif; font-size: 12pt; line-height: 115%;">CASE SUMMARY<o:p></o:p></span></u></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l4 level1 lfo1; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">1.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The case talks about implementation of RFID in the Ludhiana based Abhishek Industries. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l4 level1 lfo1; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">2.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The use of RFID technology, in conjunction with ERP, has helped the company drive greater efficiencies.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><o:p><br />
</o:p></span></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><o:p></o:p></span><u><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">PROBLEMS</span></u></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 51.75pt; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">1.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">There was problem of tracking semi finished goods<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 51.75pt; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">2.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Manual tracking of the doffs was a cumbersome task and also threw various challenges like locating the right doff.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 51.75pt; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">3.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Another problem was sequencing of doffs in first in first out manner which led to wastage of time.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 51.75pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><u><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">RFID to the Rescue<o:p></o:p></span></u></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto; mso-list: l6 level1 lfo3; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">1.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The company outlined on the RFID solution from Avaana to automate the tracking of doffs.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto; mso-list: l6 level1 lfo3; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">2.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The RFID tags were placed on each of the doffs, while RFID readers were placed in strategic locations in the greige stock area.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto; mso-list: l6 level1 lfo3; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">3.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">This helped the store managers know the stock levels location of the physical stocks and whether there are any non-moving stocks.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto; mso-list: l6 level1 lfo3; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">4.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">It also sends an alarm signal when unauthorized doffs are moved.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto; mso-list: l6 level1 lfo3; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">5.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The company has integrated its RFID system with its SAP R/3 ERP system<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto; mso-list: l6 level1 lfo3; text-indent: -.25in;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">6.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The company invested around 25 lakh on the RFID implementation<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 47.25pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The company even intends to extend the usage of this technology in other areas like finished goods warehouse, cotton warehouse for raw material tracking of certain critical moveable assets, and manpower access control and attendance. The pilot project of tracking employee attendance recording through RFID has already been taking.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: 'Arial Black', sans-serif; font-size: 14pt; line-height: 115%;">CONCEPT<o:p></o:p></span></u></b></div><div class="MsoListParagraphCxSpFirst" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo4; tab-stops: list .5in; text-indent: -.25in;"><span style="font-family: Wingdings; font-size: 12pt; line-height: 115%;">n<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><b><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Radio Frequency Identification (RFID)</span></b><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l1 level2 lfo4; tab-stops: list 1.0in; text-indent: -.25in;"><span style="font-family: Wingdings; font-size: 12pt; line-height: 115%;">ü<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l1 level2 lfo4; tab-stops: list 1.0in; text-indent: -.25in;"><span style="font-family: Wingdings; font-size: 12pt; line-height: 115%;">ü<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Another live example :</span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Turkish based company Tetas Textiles is a provider of equipment and supplies for the textiles industry, has expanded its use of radio frequency identification to include an employee-tracking system linked to an information system used to manage its fleet of cars. The data collected by the car information system—such as a vehicle's fuel consumption and whereabouts—can be combined with personnel information culled via RFID, along with data regarding goods collected via bar code. Together, this information enables managers to have a real-time overview of the status of particular products being delivered by individual employees. </span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; tab-stops: .5in; text-indent: .75in;"><a href="http://www.rfidjournal.com/imagecatalogue/imageview/6791/?RefererURL=/article/print/7226"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%; text-decoration: none;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"> <v:stroke joinstyle="miter"> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0"> <v:f eqn="sum @0 1 0"> <v:f eqn="sum 0 0 @1"> <v:f eqn="prod @2 1 2"> <v:f eqn="prod @3 21600 pixelWidth"> <v:f eqn="prod @3 21600 pixelHeight"> <v:f eqn="sum @0 0 1"> <v:f eqn="prod @6 1 2"> <v:f eqn="prod @7 21600 pixelWidth"> <v:f eqn="sum @8 21600 0"> <v:f eqn="prod @7 21600 pixelHeight"> <v:f eqn="sum @10 21600 0"> </v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:formulas> <v:path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"> <o:lock aspectratio="t" v:ext="edit"> </o:lock></v:path></v:stroke></v:shapetype><v:shape alt="http://www.rfidjournal.com/ezimagecatalogue/catalogue/phpxCYf4s.jpg" id="Picture_x0020_2" o:button="t" o:spid="_x0000_i1025" style="height: 192.75pt; visibility: visible; width: 375pt;" type="#_x0000_t75"> <v:fill o:detectmouseclick="t"> <v:imagedata o:title="phpxCYf4s" src="file:///C:\DOCUME~1\shalu\LOCALS~1\Temp\msohtmlclip1\01\clip_image001.jpg"> </v:imagedata></v:fill></v:shape></span></a><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><br />
</span><i><span style="line-height: 115%;"><span style="font-size: 7.5pt;"> </span><b>At its warehouses, Tetas installed RFID interrogator antennas under its forklifts, in order to read location tags embedded in the floors.<o:p></o:p></b></span></i></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; tab-stops: .5in;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">SAP has been investing in RFID technology over the past six years, working with its customers to find out how RFID can best meet their needs.SAP RFID combines the virtual world of transactions, business rules, and processes with the physical world of products and people. It automates the execution of processes by providing sophisticated mechanisms that distribute data to various applications. Based on the SAP NetWeaver™ platform, SAP RFID is designed to handle the massive amount of additional data accumulate from scanning RFID tags. It minimizes the replication of data across systems and processes by:<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">1. Focusing on business-related events rather than all data captured in the RFID infrastructure<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">2. Basing decision-support applications on aggregated, rather than granular data as much as possible.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"> SAP’s approach to RFID lets you take advantage of several SAP technologies. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 58.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"> <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 14pt; line-height: 115%;">CASE STUDY QUESTIONS <o:p></o:p></span></b></div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto; text-align: center;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; mso-list: l3 level1 lfo5; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">1.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"> What are the key challenges that the Abhishek Industries faced while implementing RFID technology?<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Ans. The implementation of RFID at Abhishek industries was not without its set of challenges as the implementation partners had to work around the interference with metals. There was specific casing done for each tag depending on which material it was going to be placed on.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; mso-list: l3 level1 lfo5; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">2.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Implementing RFID was Abhishek industries own decision or was it a part of global strategy?<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Ans. The Abhishek industries is one of the leading textiles exporters, exporting to over 40 countries and supplying to the biggest brands in the retail market so quality control was must.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"> Thus implementation of RFID was a part of global strategy as well. The application of IT developed by global companies depend on their global business/ IT strategies and their expertise and experience in IT. Their IT application however depends on a variety of <b style="mso-bidi-font-weight: normal;">Global Drivers</b>.<o:p></o:p></span></div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; text-align: center;"><br />
</div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; text-align: center;"><u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Business Drivers of Global IT<o:p></o:p></span></u></div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 4.5pt; mso-add-space: auto; text-align: center;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 42.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; text-indent: -.25in;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">1.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Global customers</span></u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">: Abhishek industries had trade relations with 40 countries. Global IT can help provide fast, convenient services.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 42.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; text-indent: -.25in;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">2.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Global products</span></u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">: Products are the same throughout the world or are assembled by subsidiaries throughout the world. Global IT can help manage worldwide marketing and quality control.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 42.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; text-indent: -.25in;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">3.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Global operations</span></u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">: Parts of a production or assembly process are assigned to subsidiaries based on changing economic or other conditions. Only global IT can support such geographic flexibility.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 42.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; text-indent: -.25in;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">4.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Global resources</span></u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">: The use and cost of common equipment, facilities, and people are shared by subsidiaries of a global company. Global IT can keep track of such geographic flexibility.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 42.0pt; mso-add-space: auto; mso-list: l2 level1 lfo6; text-indent: -.25in;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">5.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Global collaboration</span></u><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">: The knowledge and expertise of colleagues in a global company can be quickly accessed, shared, and organized to support individual or group efforts. Only global IT can support such enterprise collaboration.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 9.0pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">3.<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">What are the key benefits that the company achieved by implementing RFID?<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Ans. The key benefits of RFID implementation were that it helped the company save time earlier lost in trying to locate which doff is lying where.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto;"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Another key benefit was improvement in the operational efficiencies as the loader is now able to pick up the correct doff for the specific order. All this eventually helped in improving quality.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle"><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">SAP’s approach to RFID provides with both short-term and long-term benefits. From a technology standpoint, it:<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Provides an out-of-the-box solution that enables the company to comply with the RFID requirements of Wal-Mart and other major channel partners<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Can be quickly implemented and integrated<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Can easily incorporate new business processes<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Gives the company centralized administration capabilities for distributed auto-ID infrastructures and auto-ID hardware<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Minimizes RFID data replication through the clear separation of data updates – that is, it separates the information that is integrated into operations and decisions from the information that is used in tracking, tracing, and triggering events as well as from the information used to monitor detailed history on a local basis <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Supports controlled changes and continuous ramp-up in a production environment <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Supports information exchange with business partner.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">From a business perspective, SAP RFID technology can help increase stock accuracy, reduce administrative effort, reduce inventory levels, and improve planning. When used to support warehouse processes.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Increases operational flexibility and efficiency<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Hands-free warehouse execution and the automation of outbound processes accelerate warehouse processes – an acceleration that translates into reduced fulfillment of lead times and workloads.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Increase business visibility and insights<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">RFID-enabled processing greatly enhances visibility into stock levels and reveals the status of the logistics and execution processes used by your partners in the supply chain network, enhancing both planning and execution.<o:p></o:p></span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l5 level2 lfo7; text-indent: -.25in;"><span style="color: black; font-family: 'Courier New'; font-size: 12pt; line-height: 115%;">o<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="color: black; font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">Provides timely, instantly communicated and verified goods-issued stock data RFID-enabled processing helps ensure that the pallets and cases issued by a warehouse conform to outbound fulfillment requirements by verifying actual reads versus expected reads –in the warehouse, as activities are taking place. Exceptions and errors can be spotted in real time, allowing warehouse staff to make corrections prior to shipment.<o:p></o:p></span></div><div class="MsoNormal"><br />
</div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-38618047913159034602011-03-07T10:52:00.001-08:002011-03-07T11:03:56.401-08:00CASE : HOW DID HCL TURN AROUND WELL??Axon is in line with the HCL’s M&A strategy, rationale for this deal. The company has identified 8 (eight) focus areas and this has been done with the help of a big consulting firm Enterprise application services was one of the such areas which was identified. So Axon was identified as a potential transformational opportunity way back in January to March 2008 period and they engaged in discussions with them since July 08. If you look at the cultural fit of this company, Axon is a performance oriented, highly employee centric culture, which matches with HCL’s philosophy of employee first. In terms of financial, it has a very strong and consistent financial performance. Their revenues they have grown in the last five years at 35% CAGR. They have an operating margin of above 18%, which is similar to the operating margin of HCL. This margin is commendable in spite of fact it is a consulting company with onshore operations. In terms of services it is complementing HCL’s application management and infrastructure management capability. Whereas Axon’s focus is on SAP, Business consulting, and implementation services, which is like 88% of their revenue whereas 12% of their revenues come from application management. When you look at the customers, most of the customers they have are not our customers. So they are strong in the UK Public Sectors and then they have clients<br />
in the other defensive sectors like utilities, oil & gas, chemicals, etc. and so forth. <br />
<br />
In terms of delivery, there is a limited overlap with the potential to grow the combined<br />
business.<br />
<br />
A transaction here is the offer to acquire the entire issued and to be issued share capital of Axon. They have offered 650 pence in cash for each Axon share, which includes an interim dividend of 2.25 pence. It values the company at 441 million pounds. These considerations they will be paying using a combination of our cash in hand, HCL has about $ 570 million in hand. It generates close to $100 million every quarter. They are going to use $41 million of their existing resources and they will be using loan of 400 million pounds to fund this acquisition. They anticipate that this transaction will close in the first calendar quarter of 2009 and the combined company; combined HCL and Axon will have a profit if this transaction goes through who will be their revenues of $2.3 billion. They will have these had revenues occupied 3 billion for FY 07-08 and this is on July to June basis.<br />
<br />
HCL in the beginning focused on organic growth. They focused on cleaning up of our systems and processes so that they could bring about scale and focused on our employee policy so that they could integrate multiple cultures, multiple countries and get ready for the inorganic. Twelve months ago, they had announced the facts our intention of going inorganic and there are two business lines of HCL which could do with some change because one was the enterprise application services, another was BPO services. They looked at multiple companies across the world and Axon is amongst the few large-scale pure play SAP Company and that is what attracted us to Axon. <br />
<br />
<b>The first reason</b> is that it is part of the 8 selected focus areas which they believe will drive HCL to higher growth part. <br />
<br />
<b>The second</b> is that Axon services have a large blueprinting consulting services and implementation services and only 12% of their revenue comes from operations. At HCL service pack, more than 50% of our services come from operation services. When these two services are together possibility is a significant amount of operation services being rendered to Axon customer. So theoretical maths is going to be the fact that Axon could be a company which would be above 60% current service line and their operation services of 12% could potentially go to about 30-40% and that is an upside which is available with Axon customers. And that is because of the strength of application and infrastructure management of HCL.<br />
<br />
One of the reasons they have not done well was the fact that our consulting<br />
and blue printing services was not world class. They have already demonstrated cross sale and up sale as a big strength of HCL and generate significant revenue out of their large customers and they have some significantly large customers and therefore there<br />
is an upside of revenues which will originate from HCL customers given the capability and services which Axon brings to the table. So complementary services is the second reason which is very important for HCL.<br />
<br />
<b>The third reason</b> is that the enterprise application is a fast growth area across the board. However, enterprise application only constitutes 11% of its revenue for HCL whereas it constitutes about 24%-44% for other colleagues of ours in the industry. Therefore, it was important for us to scale up our enterprise application services so<br />
that it can become optimum scale and they could become quite significant in this market. With these mergers of two practices which is Axon Practice and HCL Practice, they would be an enterprise application services would be closer to 30% of a revenue stream which is a right size model for us to move forward which is where you see the engineering services and the ADM services. <br />
<br />
<b>The fourth reason</b> is that it is very interesting that the complementary verticals between our two organizations are an interesting overlap. They are largely in defensive sectors because our ERP is not very aggressive financial services their exposure to financial services is minimal and the defensive structures especially public sector government utility is of significant attractiveness to HCL because they are not present in large volumes. They have a few customers and not very large and there are a lot of mergers and acquisition play going on in that segment and showing up significant opportunities of selling SAP services and this will open new vertical opportunities for HCL, so it is not only just about horizontal enterprise application services but also our ability to open new verticals. <br />
<br />
<b>The fifth reason</b> this is important for us is that they have the global service partner relationship with SAP. Therefore, they were 16th vendor to become one and the third in India and therefore our relationship with SAP management is quite strong and it is a global relationship. <br />
<br />
<b>The sixth point</b> is that the SAP implementation across the world is driven by return on investment and the return on investment is decision is based on the business savings and they believe that the SAP spending although it is discretionary would remain predominantly because the custom application discretionary spending will migrate that amount of business towards more SAP implementation services.<br />
It is interestingly noting that the SAP is dominating in Europe because their major market and the high growth market is Asia. Asia is HCL’s strong SAP market and Axon has Europe as its strong market.<br />
<br />
<b>The 7th reason</b> is, a very large percentage of Axon revenue comes from few customers their top 10 account for a very large revenue and the reason at HCL they like it is because if such large revenues could come from a single customer, they understand how to make single customer’s multiple services. They did that with CISCO which was an engineering services company only. They did that Deutsches Bank which was ADM only; they did that with British Telecom which was BPO only so all their single services customers now on multi service customers and because of this strategic relationship and the in-depth SAP implementation work that Axon is doing with it customers and a very strong operation services articulation by HCL which is run the business, they believe they see a significant revenue opportunity from Axon customers. Now these are the 7 reasons why this is a strategic fit for HCL and that justified the premium which they would like to pay to try and merge this with our practice. However, acquisition is easy to do, difficult to make it successful, therefore 7 reasons which they weren’t through extensively debating within HCL and looking at the risk of integration and coming up with <b>7 reasons:</b><br />
<br />
<b>The first</b> is that the extensive interaction with the management team and this is an exceptionally good management team and exceptionally bright and very proud people. They are extremely proud of what they have done. It is seen a high performance team and entrepreneurial cultural team a significant amount of pride in their brand and what they have achieved and an employee centricity in their culture and they see an identical HCL culture in Axon and therefore they believe that ability to integrate these two cultures would be easy because they are identical to the way they think and conduct our business, they do not suffocate people but they give them the air to be able, what they want and they drive our business manager based on the price and vision they have of the future. <br />
<br />
<b>The second reason</b> they believe to succeed is this is not a first acquisition. They have 5 successful acquisitions which they have already implemented over the last few years and all of them have been successful not only in our ability to integrate the management team, who did not leave us or the senior managers who did not leave us but also converting these acquisitions into significant growth drivers. So when they take Alliance or Computech or Mass or Deutsche Bank or British Telecom all of them have been successful. What is interesting to know two of the largest which is Deutsche Bank and British Telecom are European acquisitions so they do understand European culture and they do understand how to integrate European companies within the HCL fold and the rest are American cultures, which also they understand and Axon is a big board.<br />
<br />
<b>The third reason</b> HCL strategy and this is important to understand as to why would HCL small EAS practice be able to absorb a large SAP practice of Axon, HCL has always treated acquisition as a way of filling the gaps it had rather than a way of increasing the finer scale of what it already has. Historically, they have not acquired for scale or size. They have acquired for gaps and using those management teams, domain consultants or leadership they have been able to drive growth using their leadership. So BFSI actually did not exist as a strong vertical for HCL before they joined hands with Deutsche Bank in that venture so the BFSI vertical actually got created thanks to the Deutsche Bank acquisition. The telecom vertical in HCL got created thanks to British Telecom acquisition. They did not have a telecom vertical of any significance before BT came in. Same is true they were not even present in the government vertical outside India before they acquired Mass and that resulted into our getting into a government business. Those were verticals, so BFSI, telecom, and government have three successful verticals they created thanks to acquisition. Similarly, high end services Alliance was acquired in about 2004 and that resulted into HCL getting into SOA services. SOA services, they didn’t even one person on SOA services and the new articulation of enterprise transformation services you saw when similarly, when they acquired Computech that is the start of our oracle practice. So whether you take the oracle practice, SOAs or the vertical practice, these are examples of how HCL has used acquisition to scale up. So all of you who are worried about the facts that can a subscale service acquire Axon, five examples that you have to use that they have successfully done it, therefore it gives us a confidence that they would be able to do it again. <br />
<b>The fourth reason</b> why I believe they would be successful is because over the last three years or all over the multiple years, they have done large transformational deals. In these transformation deals what happens is you have to have very robust employee processes, integration processes, knowledge transfer processes, (day 1 in-the-box, move-over-to HCL itself cultural kind of processes. <br />
<br />
<b>The 1st proof</b> point that these processes have been evaluated by all global major sourcing consultants and customers it has won significant certificate of credibility from them.<br />
<br />
<b>The second proof</b> point is that they have you know absorbed over 2000 employees worldwide these transformation transactions and have executed not only won these transactions but have executed them will which implies that our ability to absorb these people, integrate them with an HCL, at the same time give them the breathing space which they need to succeed has been exceptionally good.<br />
<br />
<b>The third reason</b> that gives confidence of our ability to integrate, absorb, and execute our vision because acquisition is not a goal, what they do in acquisition is really what they are driving towards.<br />
<br />
<b>The fourth reason</b> why they are confident is they have 6000 people in US and UK out of which they are equally split within US and UK and our ability to integrate 1300 new family members within HCL is not going to be difficult because they have the ability to do it, they have the structure to do it, they have the HR people to do it. They have done actually more complexities like the computer associate deal which they did was in excess of about 12-14 countries across the world where they integrated all the people into HCL on day 1 and then executed it on a worldwide basis.<br />
<br />
<b>The fifth reason</b> that their ability of integrating people with high-end skills and absorbing them and not keeping them in isolation but using them to drive new revenues of HCL has been good. So when they acquired Deutsche Bank, they came in with significant high domain skills, those consultants who were based out of Frankfort, London, New York, and Singapore got financial services domain consultants and to be able to bring them in and use them to drive and create a new financial services, revenue stream for HCL was a challenge, which they think they did very well. Similarly Alliance was a consulting company on high-end consulting on SOA with bill rates in excess of $300 an hour. Their ability to absorb them, bring them in, not only to integrate them and not lose any of them our attrition rates in actually Alliance is less than 4% but use them to drive transformation for the rest of the services so when you saw the articulation of enterprise services transformation, it is the SOA layer which is driving change in the rest of the HCL business. So not only they have absorbed them well but they have also made them part of our growth engine. <br />
<br />
<b>And the last point</b> their vision. The integration of the two teams is because the common vision of being the top 5 SAP vendor services provider in the world is a compelling vision for both of us to collaborate and make that vision happen. <br />
That is the reason of DB, BT Alliance, Computech, and HCL Mass and they have successfully proven that business model so therefore when you look at this please look at its impact on HCL those on the revaluation of the stocks and also on underlying business performance. <br />
<br />
The real battle will start in 2010 onwards and they have demonstrated to you that they have grown organically better with having very little in hand, with 2008 they have a lot in hand and with these acquisitions which they are driving our aim is to look at 2010 and beyond and that is the way you should see these strategic acquisitions and therefore whether it is accretive or dilutive. It is accretive but whether it is accretive or dilutive are less important compared to<br />
the strategic fit it brings into place.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-80770084655847480792011-03-07T10:47:00.001-08:002011-03-07T11:06:45.444-08:00SHOULD INDIA BE CAPITALIST OR SOCIALISTWhen India got its freedom in 1947, it had a choice between two different economy models. One was capitalism styled along USA and some Western European nations, and the other was socialism styled along Soviet Union and Eastern European nations. What should have Nehru and the founders of India done? What model should they have embraced?<br />
Imagine you are Mr. Nehru in 1947 and please study the two models given below and choose one of them for India. <br />
<br />
<b>Model X:<br />
</b><br />
# These countries, which embraced X, had their economy stagnant during the periods between 1914 and 1939. <br />
# The industrial production fell by about ONE-THIRD between 1929 and 1931. <br />
# During 1929 and 1938 their share of world’s manufactured goods decreased.<br />
# The unemployment was between 10% and 18% during 1920s. And during Great Depression it was between 22% and 44%.<br />
# The inflation rate was explosive sometimes reaching levels where one person’s life savings would only fetch a 'drink in a café'. <br />
<br />
<b>Model Y:</b><br />
<br />
# These countries, which embraced Y, had a robust economy during the pervious 30 years. <br />
# In these countries the industrial production TRIPLED from 1929 to 1940. <br />
# Their share of worlds manufactured goods almost QUADRUPLED. <br />
# There was virtually NO unemployment. <br />
# There was virtually NO inflation even during the Great Depression.<br />
# These countries completely escaped Great Depression of 1930s.<br />
--<br />
<br />
If you chose Model Y, you are not very different from Mr. Nehru. <br />
Yes, Model Y was socialism while Model X was capitalism. While it is so easy for anyone to suggest that the Soviet Union’s model is a bad example in retrospect, and that of USA is a good example in 2007, it was not such an easy conclusion in 1947. The years before 1947 saw two world wars and the Great Depression where unemployment rates skyrocketed. Leaning towards too much of capitalism meant giving ground to radical elements of the Left. Social policies and welfare system was openly embraced by many Western European nations. Social democrats, with moderate social policies, were able to thwart attempts from radical Left to take over in these countries. Unemployment remained the main problem, and if it were not combated, it would mean communists would take over. <br />
India, with most of its people below the poverty line, needed a strong welfare system, where the state intervened to help the poor to avail the opportunities. It was clear that Soviet Union set very good examples for doing that while most Western Nations failed. <br />
During 1930-35, Soviet Union had a robust economy. Many of its achievements ‘impressed foreign observers of all ideologies’. These Western nations saw ‘the breakdown of their own economic system’. Learning from Soviet Union became important and quite necessary. Countries like Belgium and Norway adopted plans similar to that of Soviet Union’s Five Year Plans. Hitler, a strong anti-communist, introduced his own ‘Four Year Plan’ along the lines of Soviet Union to virtually eliminate unemployment.<br />
These days, it has become a fashion to criticize and ridicule Nehru for his socialistic economy model. However, most of the Indian leaders of 1947 were of the same bent, not Nehru alone. Most Indians leaders of 1947 welcomed and hailed Soviet style economy and touted it as the only solution to India’s problems. Capitalism, which imposed a completely unreliable and topsy-turvy economy onto its people, was considered the least agreeable solution. If you were an adult during 1947, there was a good chance that you too would have been agreeing to the soviet style socialistic economy.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-68002252042805001292011-03-05T19:39:00.000-08:002011-03-05T19:39:38.430-08:00current affairs questions 4ET Questions<br />
<br />
1. What is the penalty that a company has to pay for insider trading?<br />
25 Cr or 3 times the amount of profit<br />
2. What is the turnover of Godrej Consumer Products in 2009-10?<br />
1267.88 Cr<br />
3. 50% of Indian outsourcing sector is made up of __________ .<br />
Banking and financial sector<br />
4. ONGC owns _____% of Cairn‟s Rajasthan block.<br />
30<br />
5. Cairn – Vedanta deal was announced for $ ____ billion .<br />
9.6<br />
6. HNG is planning to increase the production from 600 tonne per day to _____ tonne per day.<br />
1600<br />
7. Bajaj Auto is going to manufacture ___________ scooters in next 2-3 years , and earn an EBITA of 15-20%.<br />
Gearless<br />
8. Cement price in India may remain stable owing to _________.<br />
Over-supply<br />
9. ACC and Ambuja Cement have exactly _____% of India‟s total cement installed capacity<br />
20%<br />
10. KE International, an infrastructure company , roped in a German company as a technical partner for it‟s foray into the water treatment business. Name the German company.<br />
Bioworks AG.<br />
11. Hyosung is coming back to India partnering with which Indian company?<br />
Garware Motors,Pune.<br />
12. Which healthcare company is investing 1000 Cr INR to set up a medical institution in Greater Noida?<br />
Max Healthcare<br />
13. __________ , India‟s largest power producer , is planning to set up coal and gas based power projects in Nigeria.<br />
NTPC<br />
14. Microsoft is signing a deal with _______ to put it‟s Windows software on the latter‟s phones.<br />
Nokia<br />
15. TCS and CTS, the two IT giants of India, gets 40% of their revenues from _________ sector.<br />
Banking<br />
16. Reliance Infra Q3 net up how much percentage? 10.16% to Rs 405.25 cr<br />
17. Reliance Communications Q3 net down by how much? 57 percent beats forecast<br />
18. Berger Paints India, has appointed new chief executive officer after June 30 when present CEO Subir Bose retires? Abhijit Roy , senior vice-resident, sales and marketing 19. Berger Paints India, has appointed new chief financial officer of the company? Srijit Dasgupta, senior vice-president, finance and accounts.<br />
20. Mahindra Satyam Q3 net up? Two-fold to Rs 58.9 cr<br />
21. What is new product DRDO planning to introduce? DRDO is now ready to take on the oldest human enemy- mosquitoes-- that are vectors of diseases like malaria, and dengue with a new insect repellent cream.<br />
22. FDI in December in India? FDI in Dec up 30.6 to $ 2b<br />
23. % change in FDI from aprl- decmber? FDI aprl-dec dips by 23%<br />
24. Currently NIIT Ltd had tied up with which company? Software trainer NIIT Ltd said on Monday it has tied up with U.S.-based Zend Technologies to provide training for hypertext preprocessor (PHP), a computer language used in creating web pages<br />
25. Tata, Lockheed with which company to make aerostructures in India? Tata, Lockheed Martin in JV to make aerostructures in India<br />
26. Why recently A.k. Vishwanath came into limelight? An Indian inventor, A.K. Vishwanath, has claimed that he has made a flying car with the help of India's first small car, Maruti.<br />
27. What amount Max healthcare planning to invest to set up an educational institute? Rs. 1000cr<br />
28. How much aid UK has decided to give India? The UK will continue to provide India over 1 billion pounds until 2015 despite political pressure to reduce aid to the booming Asian giant.<br />
29. What is the amount of deal BHEL got for setting power project in Yemen? State-owned BHEL said it has bagged an USD 436 million (approximately Rs 2,000 crore) contract for setting up a gas-based power project in Yemen.<br />
30. What is the deal between L&T and GSECL? Engineering major Larsen & Toubro on Monday said it has received a Rs 1,100 crore order from Gujarat State Electricity Corporation (GSECL) for setting up a 375-MW gas-based power plant at Dhuvaran, near Baroda.<br />
31. Who has been appointed to head Wipro‟s healthcare unit? – Ms. Sangita Singh<br />
32. Which company is set to launch the world‟s first 3D smart phone, the „Optimus 3D‟? – LG<br />
33. Which group is the maker of battery operated small car „Reva‟? – Maini group<br />
34. Which company has bagged an aerospace deal to make parts of airbus A380 and A320? – Maini Group<br />
35. Who is the new CFO of Tulip Telecom? – Rahul Ahuja<br />
36. Which IIT has planned to set up its campus in New York? – IIT Bombay<br />
37. Who is the MD of Radico khaitan(liquor maker)? – Abhishek khaitan<br />
38. HUL will launch its first fruit based drink under which brand? – Under kissan brand.<br />
39. IndusInd Bank has tied up with which automobile company for vehicle finance? - Mahindra Automotive<br />
40. What‟s Unitech? – A Delhi based real estate firm<br />
41. Who is the single largest shareholder in NCDEX? - Jaypee capital services.<br />
42. Who is the CEO of Apollo Hospitals?- Prathap C Reddy<br />
43. Which Indian company is in talks with Italian Construction company “Pessina Construzioni” to develop four real estate projects costing $2 billion? – Hinduja Group.<br />
44. CEO of L$T? - AM Naik.<br />
45. Where is the Aero Show-2011 being held? – Bangalore<br />
46. The State owned Coal India is likely to be conferred with what status? “ Maharatna”<br />
47. What is FRBM? Fiscal Responsibility and Budget Management<br />
48. Which car manufacturing company took away the “Car of the Year” award in ZigWheels Awards 2010? Ford Figo<br />
49. Which bike manufacturing company took away the “Bike of the Year” award in ZigWheels Awards 2010? Yamaha SZ-X<br />
50. Who is the CEO of Subex ? S Yezhuvath<br />
51. Who is the CEO and MD of Hindustan Unilever Ltd? Nitin Paranjape<br />
52. What does ISMA stand for? Indian Sugar Mills Association<br />
53. Who is the President of BMW India? Andreas Schaff<br />
54. Who won the Bike Maker of the Year award in Zigwheels Awards 2010? Hero Honda<br />
55. Which car was adjudged the Entry level Minicar of the year? Maruti Suzuki Wagon –R<br />
56. Who hosted the Zigwheels awards 2010? Apollo Tyres<br />
57. Who is the Executive Director of Moser Baer? Ratul Puri<br />
58. Which is the IT Company making its internal processes more flexible for employees to stem attrition and attract talent? Infosys<br />
59. Where was the AIMA World Marketing Congress held? New Delhi<br />
60. Which company won the coveted AIMA-RK Swamy high Performance Brand Award 2010? Life Insurance Corporation of India<br />
61. „TagueTec India‟ is a maker of ______ tools used by automobile companies? CARBIDE<br />
62. TagueTec India is a part of _____? ISCAR<br />
63. Iscar is an Israil conglomerate owned by _____? WARREN BUFFETT<br />
64. _____ was the chairman of India‟s security market regulator Sebi who recently stepped down on 17th Feb 2011? CB BHAVE<br />
65. ______ is the Tata Group-Owned mineral water brand? MOUNT EVEREST<br />
66. _____ is the body which deals with trademark related issues? Intellectual Property Appellate Board(IPAB)<br />
67. _____ is the CEO who commented “Nokia made „Wrong Choice‟ with Microsoft”? Eric Schmidt (Google’s CEO)<br />
68. _____ is the plant to supply cans for Pepsi, Coke? Hindalco Plant<br />
69. Hindalco paid $____bn to acquire Novelis? $6 billion<br />
70. _____ is the country which hosts Twitter website? CHINA<br />
71. ____ is the Party which recently joined Congress leaded by a famous celebrity? Praja Rajyam Party(PRP)<br />
72. ____ is the youngest president of Germany‟s central bank in its 53-year history? Jens Weidmann (The Chief Economic advisor to Chancellor Angela Merkel)<br />
73. ____ is the managing director of TagueTec India? L Krishnan<br />
74. _____ is the Global Chief Executive of Rolls Royce Motor Cars? Torsten Muller Otvos<br />
75. _____ is the word which was used as a trademark by Tata Group‟s Mount Everest and lead to a dispute with Bisleri? HIMALAYAN<br />
76. Which bollywood director raised 1crore for his movie I AM from crowd funding? Onir<br />
77. Which Asset management company planning to raise $500-750 million to expand its operations in social media likes twitter and groupon? JPMORGAN<br />
78. Which country replaced Japan as no.2 economy? China<br />
79. What is the GDP of Chinese economy this year? $ 5.88 trillion<br />
80. Reasons for downfall of Japanese economy? Ageing population, government incentives on environment friendly cars etc.<br />
81. Committee for direct subsidy transfer to beneficiaries to avoid wastage, corruption was headed by? Nilekani<br />
82. Who is chairman for Unique Identification Authority of India? Nilekani<br />
83. Which Indian company bagged $436 million power project in Yemen? BHEL<br />
84. Being a company head that designed steel mill, innovated on another and backed an alternative technology in its nascence? Jindal<br />
85. What is EPFO? Employee provident fund organization.<br />
86. What is CBT? Central Board of Trustees.<br />
87. New Boeing airplane 747-8 can carry how many passengers at a time? 467 passengers<br />
88. What is the general relation between crude oil prices and rupee value? inversely proportional(increase in crude oil will result in increase in rupee value)<br />
89. What is the budget of USA? $3.7 trillion.<br />
90. SBI made tie up with which government body to access to rural people and provide banking services? Postal department.<br />
91. What is the name of the firm that Mahindra and Mahindra has taken over recently? ssangyong motors<br />
92. What is the total count of GSM subscribers in India as on Jan 2011? 556.6 million<br />
93. What is the full form of COAI? cellular operators association of India<br />
94. Which Hyderabad based biotech company is planning to sell its power assets worth about Rs1000cr? Nuziveedu Seeds<br />
95. Where are the two power projects been developed by Nuziveedu Seeds? Tamil Nadu and Orissa<br />
96. How much FDI is allowed in power sector in India? 100%<br />
97. Name two strategic partners for Indian power projects? Hong Kong based CLP and American AES Corp<br />
98. Full form of TDR? Transferable Development Rights<br />
99. Full form of FSI? Floor Space Index<br />
100. What is the current market share of Air India? 17.1%<br />
101. Which is the 4th largest independent tower company in India? GTL Infrastructure<br />
102. Name two telecom tower companies planning to launch initial public offers? Viom and Indus Towers<br />
103. Name the CEO of Paras Pharmaceuticals? S Raghunandan<br />
104. Name the CEO of Reckitt Benckiser? Bart Becht<br />
105. Full form of ASBA? Application Supported By Blocked Amount<br />
106. Tata steel proposed the issuance of share of how many crores? $500 crores<br />
107. Which is the country‟s largest power company? Tata Power<br />
108. Which is country‟s largest automobile company? Tata Motors<br />
109. Sicom sells ___ stake in Ashtvinayak? 10%<br />
110. Rising food prices has pushed__ into poverty in developing country? 44m<br />
111. ____is the India‟s second largest telecom operator? Reliance telecom<br />
112. Goldman Sachs is about t shut its ___Trading desk? Global Marco Proprietary<br />
113. Who is the world biggest miner? BHP Billiton<br />
114. BHP Billiton is planning to pour ___into expansion over next 5 years? $ 80 Bn<br />
115. Sanofi- Aventis is to buy ____for $ 20.1 Bn? Genzyme<br />
116. India –Japan Comprehensive market opening pact signed to double trade to __ by 2014? $25 bn<br />
117. ___is the chairman of UTI AMC (Asset Management Company)? U K Sinha<br />
118. SBI Mutual Funds launched ____? Capital Protection Fund<br />
119. Sebi Plans to cut ____for Market Entities? Red Tape<br />
120. India is planning to raise wheat output to ___by 2020? 90 MTUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-35642404089583287912011-03-05T02:53:00.000-08:002011-03-05T02:53:25.524-08:00CASE ANALYSIS OF CISCO SYSTEMS: TELEPRESENCE AND THE FUTURE OF COLLABORATION<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 115%;">SUMMARY<o:p></o:p></span></b></div><div align="center" class="MsoNormal" style="text-align: center;"><br />
</div><div align="center" class="MsoNormal" style="text-align: center;"><span class="Apple-style-span" style="font-family: 'Times New Roman', serif;"><span class="Apple-style-span" style="font-size: 21px; line-height: 24px;"><b><br />
</b></span></span></div><div class="MsoListParagraphCxSpFirst" style="margin-left: .25in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN"><a href="http://www.cisco.com/en/US/netsol/ns669/networking_solutions_solution_segment_home.html"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN; text-decoration: none; text-underline: none;">Cisco's TelePresence</span></a></span><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"> system is based on the creation of special meeting rooms that are equipped with high resolution plasma monitors displaying all the attendees that participate to the meeting.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><span style="mso-spacerun: yes;"> </span>Additionally, an integrated</span><span lang="EN-IN"><a href="http://en.wikipedia.org/wiki/Voip"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN; text-decoration: none; text-underline: none;">VoIP</span></a></span><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"> phone line guarantees high quality audio communication.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The technology that stands behind </span><span lang="EN-IN"><a href="http://www.cisco.com/en/US/netsol/ns669/networking_solutions_solution_segment_home.html"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN; text-decoration: none; text-underline: none;">Cisco's TelePresence</span></a></span><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"> system is seamless and Cisco states that it requires minimum training of the end users.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">They simply have to access a calendar system, set up a meeting room in one click and the system will automatically send an invitation to the </span><span lang="EN-IN"><a href="http://en.wikipedia.org/wiki/Voip"><span style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN; text-decoration: none; text-underline: none;">VoIP</span></a></span><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"> phone available in the telepresence locations.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Craig Huegens, director of architecture of networks, data services and unified communication services came with this unique idea as he doesn’t wanted to be far from his family.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Cisco 1.0 was all about getting connected by selling truckloads of routersand switches.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Cisco 2.0 was centered on business process change using all the hardware.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Cisco 3.0 employs even more hardware and software to transform business models.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Web 2.0 technology kept Huegens in touch with his team.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Jacoby has a single-screen telepresence unit to roll out the immersive conferencing technology.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Jacony and her team have undertaken to create an online communication centre for excellence where new collaboration tools from wikis to vlogs to telepresence.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Cisco faces competition from HP which introduced Halo telepresence system.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><br />
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</div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><o:p> </o:p></span><span class="Apple-style-span" style="font-family: 'Times New Roman', serif; font-size: 16px; line-height: 18px;"> </span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><br />
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</div><div align="center" class="MsoListParagraphCxSpMiddle" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">CONCEPT EXPLANATION<o:p></o:p></span></b></div><div align="center" class="MsoListParagraphCxSpMiddle" style="text-align: center;"><br />
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</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Telepresence technology allows people to feel as if they are present in a different place or time. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Common uses of telepresence technology include webinars, webcasts and telemeetings. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Telepresence is a type of video conferencing giving the sensation that all participants are actually in the same room. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Telepresence deliver real-time, face-to-face interactions between people using advanced audio and video collaboration technologies. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Telepresence video is so clear that facial expressions are discerned during important decision-making negotiations. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">These technologies have made it possible for people to conduct business, take classes and communicate with friends all over the world from the comfort of their own homes and offices. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The benefits of telepresence to your company's overall business efficiency as well as its Green IT strategy are tremendous. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; text-align: justify;"><br />
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</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Benefits of Telepresence: <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><br />
*<span style="mso-spacerun: yes;"> </span>Reduced travel costs for meeting participants.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">* Better collaborative teaming, allowing members to set up separate teleconferences for specific ideas, thus reducing the overall time of the general conference.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">* Allows for faster globalization of your company by removing location limits.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">* Better quality of life for employees who don't have to travel as much away from their family and friends.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">* Ability to record and playback the telemeeting event for record-keeping and clarification.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">* Provides for business continuity by utilizing telepresense to integrate redundancy and global collaboration.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">* Reduces your company's overall carbon footprint by limiting fuel use, and utilizing business space in a more effective way.</span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><br />
</span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><br />
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</span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"></span></div><div align="center" class="MsoListParagraphCxSpFirst" style="margin-left: 1.0in; mso-add-space: auto; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">QUESTIONS AND ANSWERS<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Business benefits of the collaboration technologies:-<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Reduced travel costs for meeting participants.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Better collaborative teaming, allowing members to set up separate teleconferences for specific ideas, thus reducing the overall time of the general conference.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Allows for faster globalization of your company by removing location limits.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Better quality of life for employees who don't have to travel as much away from their family and friends.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Ability to record and playback the telemeeting event for record-keeping and clarification.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Provides for business continuity by utilizing telepresense to integrate redundancy and global collaboration.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Reduces your company's overall carbon footprint by limiting fuel use, and utilizing business space in a more effective way.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 0in; mso-add-space: auto; text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">These go beyond saving corporate travel in the following ways:-<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l4 level1 lfo3; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Cisco uses e-mail and internet Relay chat which is a primoral form of instant messaging.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l4 level1 lfo3; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Usage of video blogs or vblogs.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l4 level1 lfo3; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Create online communication centre for excellence.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l4 level1 lfo3; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Introducing i-zone wiki, a companywide forum for new business ideas launched not by IT but by Emerging Technologies Group.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpLast" style="margin-left: .25in; mso-add-space: auto; mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Michelle Damrow of Polycom notes Cisco is betting on a proprietory standard for its TelePresence product, while competitors are going with interoperability.<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: .25in; text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Yes, I agree with Cisco’s strategy because of the following reasons:-<o:p></o:p></span></div><div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l5 level1 lfo4; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Standard-based communication will win eventually.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l5 level1 lfo4; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">This is the right way to face the competitors like HP which introduced Halo Presence.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l5 level1 lfo4; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">It will be easy to merge high-end telepresence system.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l5 level1 lfo4; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">This will push enough the brand power into the market.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";"> </span></span></span></b><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">I-zone wiki, a companywide forum for new business ideas launched not by IT but by the Emerging Technologies Group, headed by Marthin DeBeer.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto; text-align: justify;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">This case has been discussed in the case because of the following reasons:-<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Wiki has produced 600 ideas for potential one-billion-dollar-per-annum-size ventures.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">This led to the next phase of internet.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">This has led to the focus on collaboration and recognization of company’s hierarchy.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">There was a shift in the usual products sales and marketing, and other financial groups towards a more horizontal less command-and-control.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-indent: -14.7pt;"><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">Yes, these technologies foster creativity, provide an opportunity to communicate already existing ideas, or both in the following ways:-<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The focus on collaboration and recognization of company’s hierarchy was made in the market.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo5; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">There was a shift in the usual products sales and marketing, and other financial groups towards a more horizontal less command-and-control.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 60.0pt; mso-add-space: auto; mso-list: l0 level1 lfo6; text-align: justify; text-indent: -24.55pt;"><!--[if !supportLists]--><span lang="EN-IN" style="color: black; font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; mso-fareast-language: EN-IN;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN-IN" style="color: black; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">New ideas were tested and refined to create an online-communication centre for excellence.<o:p></o:p></span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 60.0pt; mso-add-space: auto; text-align: justify;"><br />
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</div>Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-2237598532527783659.post-8759208781212765512011-03-05T02:23:00.001-08:002011-03-05T02:23:46.364-08:00current affairs questions 3<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<br />
1) Name the executive chairman of Mindtree who resigned recently? Ashok Soota<br />
2) When is the deadline for checking pesky calls? - March 1<br />
3) Owner of Sun TV Network? Kalanithi Maran<br />
4) Movie that fetched 179 Crore to Sun TV Network accounting for nearly 30% of the company’s revenues? Robot<br />
5) Which company offers $1,000 Esops to India staff i.e. around 7-8 Shares to be Offered for Employees WhoDon’t Quit Before 2015? IBM<br />
6) Which company will acquire the US carbon black Columbian chemicals company for $875 million? ADITYA BIRLA GROUP<br />
7) Which South Korean company got clearance from environmental ministry recently to set up a plant in Orissa? Posco (steel maker)<br />
8) Which company gave six bonuses in a year which work out to be between 200% and 700% of basic salary? LG<br />
9) What is the abbreviation of EPFO? employee provident fun option<br />
10) The income tax department has issued notice to which company? Cadbury India and its overseas parent Kraft Foods.<br />
11) Name the two CEO’s who recently resigned from Wipro? Suresh Vaswani & Girish Pananjpe.<br />
12) Which mobile operating system dethroned Nokia’s Symbian? Google’s Android.<br />
13) Airlines that took decision to buy 111 aircrafts by spending 50000 cr? Air India<br />
14) The social networking company that plans to raise $175 million in an initial public offering? Linkedin<br />
15) Name of recently appointed COO of CITIGROUP? John Havens<br />
16) US based Columbian chemical, a carbon black company is about to be acquired by Aditya Birla group for? 800 million dollars<br />
17) The market share of global carbon black of Columbian chemicals is about? 9%<br />
18) Which home grown consumer durables like soaps, detergents and personal care products, is about to delist its share on stock exchanges? Nirma<br />
19) The public share holding of Nirma is ____ whose prices are at s.260? 2.17 crores<br />
20) The top 20% or about 45 million households of India accounts for almost ___ of the total income and ____ of consumption respectively? 52% and 39%<br />
21) The bottom 40% or 90 million households accounts for ___ of income and ___ of consumption respectively? 14% and 22%<br />
22) The food inflation had no way of coming beneath the estimated ___ for Jan 2011? 16-18%<br />
23) The Prime Minister’s ____is likely to up revise its inflation forecast of 7% for the end of the fiscal? Economic Advisory Council<br />
24) The Income tax exemption limit of ____ is about to be extended to Rs.2, 00,000 as a measure to help inflation hit homes? Rs1, 60,000<br />
25) RBI has stopped giving ___to companies for few amendments for proper monitoring of the Banks? Banking licenses<br />
26) The CAG questions the rationale behind the purchase of 111 aircrafts by? Air India<br />
27) The total fall of the Nifty over the Jan 2011 is ___ as a result of uncontrolled inflation? about 10%<br />
28) Foreign Indirect Investors have purchased stocks and bonds in Jan2011 for about? Rs.79420crore<br />
29) The Investments from FIIs are often called___, because they can be pulled out any time out of the country’s market? ‘hot money’<br />
30) As BSE’s PSU index has fallen over 7%, there is a lingering doubt on ___of ONGC? FPO<br />
31) IBM has decided to offer $1000 Esops to its Indian staff.....Why? To check attrition and celebrate its hundred years of existence.<br />
32) Consumer durables Major LG Electronics has decided to give out ---- bonuses in a year. Six<br />
33) Who is the acting chairman of ONGC as of 1-2-11? AK Hazarika<br />
34) POSCO stands for? Pohang Iron and Steel Company<br />
35) When was IndusInd Bank established? 1994<br />
36) What is the current repo rate as of 1-2-11? 6.5%<br />
37) What is the current reverse repo rate as of 1-2-11? 5.5%<br />
38) Finmin to pay ---- oil subsidy in Dec qtr? $1.74 bn<br />
39) Who is the MD of Share Microfin? Udaia Kumar<br />
40) What is a Bullion Market? A bullion market is a place where precious metals such as gold, silver, platinum and palladium can be bought and sold.<br />
41) What all metals come under Indian Bullion Market? Gold and Silver.<br />
42) Which is the regulating body for commodities trading? FMC (Forwards Market Commission).<br />
43) Which is India’s no.1 Commodity Exchange Market? MCX(Multi Commodity Exchange)<br />
44) Who is the current chairman of SEBI? CB Bhave<br />
45) ADB to provide $---- assistance to India for the period 2011-2013? $7.4 billion<br />
46) ADB stands for-----? Asian Development Bank.<br />
47) Who is the current Minister for Corporate Affairs as of 1-2-11? Murli Deora<br />
48) Who is the head of Planning Commission in India? Dr. Manmohan Singh.<br />
49) Which is the mobile OS from Samsung Electronics? Bada<br />
50) Which mobile OS has the largest global mobile phone market share? Nokia<br />
51) Nokia Corp. is from which country? Finland<br />
52) POSCO is from which company? South Korea<br />
53) Who is the chairman of IBM? Sam Palmisano<br />
54) Aegis bags $---- deal from Saudi Telecom for customer care operations? $2bn<br />
55) India, Indonesia signs ---- trade pacts worth $15.1 bn? 18<br />
56) Lavasa is the project of which infra giant? HCC (Hindustan Construction Co.)<br />
57) Who is the chairman of SBI? OP Bhatt<br />
58) SBI has decided to rise ------ through Bonds? 10000 crore<br />
59) Who is the MD of HDFC bank? Aditya Puri<br />
60) HDFC stands for? Housing Development Finance Corporation.<br />
61) Name the COO of Infosys technologies: SD Shibulal<br />
62) How many basis points have been increased by HDFC for home loan? 25 bps<br />
63) Who is the current finance minister of India? Pranab Mukherjee<br />
64) Wal-Mart has entered into a joint venture with which company to enter India: Bharti Enterprises<br />
65) Name the person appointed by FMCG firm Nivea as its MD: Rakshit Hargave<br />
66) Who has been roped by Sony as its brand ambassador: Mahendra Singh Dhoni<br />
67) Sony has joined hands with which Indian company to offer DTH connection on purchase of its Bravia HD: Airtel<br />
68) Name the MD of Unibic India: Nikhil Sen<br />
69) Which famous cereal brand has planned to enter into the snack business: Kellogg India<br />
70) Name the upcoming product of Unibic: Chyawanprash cookie<br />
71) Name the BPO of Essar group: Aegis<br />
72) What is the name of the joint venture company between Bharti group, Idea group and Vodafone Essar: Indus Towers<br />
73) Indus towers is a joint venture between which company: Bharti group, Idea group and Vodafone Essar<br />
74) Name the PE firm founded by Aditya Parekh: Fearing Capital<br />
75) Name the chairman of Godrej group: Adi Godrej<br />
76) How much is the contract amount between Aegis and Saudi telecom to manage their entire customer care operations to over 28 million STC customers in Saudi Arabia: $2 bn<br />
77) N.S.S.O Represents: National Sample Survey Organisation<br />
78) Who is the Chairman of CBEC (Central Board of Excise & Customs)? Sumit Dutt Majumdar<br />
79) The first multi-asset exchange in Middle East and North Africa? Bahrain Financial Exchange<br />
80) Who is the largest realty player in India? DLF<br />
81) The most valuable listed pharma company in India? Sun Pharma<br />
82) Which Pharma company was integrated with Sun Pharma in Sep 2010? Taro Pharma<br />
83) FMC represents? Forward Markets Commission<br />
84) Who is the chairman of FMC? B C Khatua<br />
85) Which is the Delhi based brokerage who is the anchor investor in NCDEX? Jaypee Capital<br />
86) Who is the chairman of Tobacco Board? Kamalavardhana Rao<br />
87) NFPDB represents? National Fish Processing Development Board<br />
88) Who is the Union Minister of micro, small and medium enterprises? Virabhadra Singh<br />
89) Which is Japan’s No:1 global brand? Toyota<br />
90) Who is the President of Egypt? Hosni Mubarak<br />
91) Expand NCDEX? National Commodity and Derivatives Exchange<br />
92) Director of TATA Sons? Dr.J.J.Irani<br />
93) The biggest among the 17 Euro Nations GERMANY<br />
94) Instruments issued by banks to raise short term funds is called Certificate of Deposits(CD)<br />
95) Which bank entered into an agreement with the Indian Army for extending modern banking products to the personnel in uniform? ICICI<br />
96) How much stake does the Japan based Honda group had in Hero Honda? 26%<br />
97) Name the India’s largest power generating company. NTPC<br />
98) Horlicks is the Indian subsidiary of which british healthfood major? Glaxo Smith Kline (GSK)<br />
99) MD of GSK? Zubair Ahmed<br />
100) What is the expected growth rate of Indian during the current financial year by finance ministry? 8.5%<br />
101) Expand CSO. Central Statistical Organization<br />
102) Name of the Commerce and Industry Minister. Anand Sharma<br />
103) A type of mutual fund which is qualified for tax exemption under section 80C. Equity Linked Saving Schemes(ELSS)<br />
104) Lock in period for ELSS. 3Years<br />
105) CFO of Edleweiss. S.Ranganathan<br />
106) Expand PRP. Performance Related Payment<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-5084372495675751822011-03-04T04:02:00.001-08:002011-03-05T02:22:21.424-08:00swot analysis of nestle<div dir="ltr" style="text-align: left;" trbidi="on"><span class="Apple-style-span" style="color: #7c7c7c; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 15px; line-height: 20px;"></span><br />
<h1 style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; position: relative;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><span class="Apple-style-span" style="color: #7c7c7c; font-size: xx-small; font-weight: normal; line-height: 20px;"><h1 style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; position: relative;"><span class="Apple-style-span" style="font-weight: normal;">By </span><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; color: #00681c;">ISHA KANDELWAL</span></h1></span></span></h1><h1 style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; position: relative;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">SWOT Analysis Nestle</span></h1><h2 style="color: #a3a3a3; font: normal normal bold 13px/normal Arial, Tahoma, Helvetica, FreeSans, sans-serif; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; position: relative; text-transform: uppercase;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">STRENGTHS</span></h2><ul style="line-height: 1.4; list-style-image: initial; list-style-position: initial; list-style-type: disc; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; padding-bottom: 0px; padding-left: 2.5em; padding-right: 2.5em; padding-top: 0px;"><li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: initial; border-top-style: none; border-top-width: initial; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Global food producer, located in over 100 countries. Consistently one of the world's largest producers of food products, with sales in the USA in 2008 of $10 billion; sales and earnings in 2008 were better than expected, even in a downturned economy. Global sales in 2008 topped $101 billion.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Repeatedly ranked as the world's largest <span class="IL_AD" id="IL_AD6" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">bottled water company</span>and have set up facilities to operate water resources in a responsible manner.</span></li>
</ul><ul style="line-height: 1.4; list-style-image: initial; list-style-position: initial; list-style-type: disc; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; padding-bottom: 0px; padding-left: 2.5em; padding-right: 2.5em; padding-top: 0px;"><li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: initial; border-top-style: none; border-top-width: initial; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">In 2008, Nestlé was named one of "America's Most Admired Food Companies" in Fortune magazine for the twelfth consecutive year.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Nestlé provides quality brands and products and line extensions that are well-known, top-selling brands including:</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Lean Cuisine, <span class="IL_AD" id="IL_AD5" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">Yoplait</span>, Maggi, Dryer's/Edy's, Haagen-Dazs, Stouffer's, Boost, Dibs, Hot Pockets.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Chocolate and Candy: Kit Kat, Toll House, Butterfinger, Baby Ruth, Crunch Bar, the Willy Wonka Candy line.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Pet Products: Purina, Alpo, Cat Chow, Fancy Feast, Friskies, Tidy Cat.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Drinks: Carnation, Perrier, Nesquik, S. Pellegrino, Nescafe, CoffeeMate, Taster's Choice, Juicy Juice.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">General Mills: subsidiary which makes Betty Crocker, Bisquick, Hamburger Helper, Pillsbury, Old El Paso, cereals, fruit snacks, frozen pizza, canned soups, frozen vegetables, ready-made frozen meals.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Gerber: baby formula, prepared baby foods, baby cereals, water, juice, yogurt, foods for infants, toddlers and preschoolers.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Professional brands sold to restaurants, colleges, hotels, and food professionals including <span class="IL_AD" id="IL_AD4" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">Jenny Craig</span> meals, Impact liquid meals for trauma patients, liquid meals for diabetics, and OptiFast <span class="IL_AD" id="IL_AD1" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">weight loss products</span>.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Successful due in part to their unquestionable ability to keep major brands consistently in the forefront of consumer's minds (and in their shopping carts) by renovating existing product lines, keeping major brands from slipping into saturation/decline and having superior access to distribution channels.</span></li>
</ul><h2 style="color: #a3a3a3; font: normal normal bold 13px/normal Arial, Tahoma, Helvetica, FreeSans, sans-serif; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; position: relative; text-transform: uppercase;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">WEAKNESSES</span></h2><ul style="line-height: 1.4; list-style-image: initial; list-style-position: initial; list-style-type: disc; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; padding-bottom: 0px; padding-left: 2.5em; padding-right: 2.5em; padding-top: 0px;"><li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: initial; border-top-style: none; border-top-width: initial; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Their LC-1 division was not as successful as they thought it would be in France. In the late 1980s, Dannon entered the market with a health-based yogurt, and become the top selling brand of yogurt; Nestlé's 1994 launch was behind the product life cycle curve in an already mature market and could not compete against a strong, established brand.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Growth in their organic food sales division was flat in 2008, even though the industry grew 8.9%.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Since 2004 the breakfast cereal industry has been under fire from the FDA and the American <span class="IL_AD" id="IL_AD7" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">Medical</span> Association, both of which say that false claims of "heart healthy" and "lower cholesterol" need to be removed from packaging and advertising. They have also been forced to reduce the amount of sugar in their products, as parent's advocates groups claimed they were contributing to the diabetes epidemic among American children.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">General Mills is an experienced, established brand and are the market leader in the USA, however, they have been lacking in innovation, have not cashed in on the booming <span class="IL_AD" id="IL_AD8" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">health food</span>craze and have been behind in creating new, niche products, especially in their yogurt division, where Yoplait is the only brand making a profit.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">In 2008, although their products did not carry the recalled pistachios, several of their ice cream brands, Dryer's, Edy's and Haagen-Dazs, were still plagued with bad PR and loss of sales.</span></li>
</ul><h2 style="color: #a3a3a3; font: normal normal bold 13px/normal Arial, Tahoma, Helvetica, FreeSans, sans-serif; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; position: relative; text-transform: uppercase;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">OPPORTUNITIES</span></h2><ul style="line-height: 1.4; list-style-image: initial; list-style-position: initial; list-style-type: disc; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; padding-bottom: 0px; padding-left: 2.5em; padding-right: 2.5em; padding-top: 0px;"><li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: initial; border-top-style: none; border-top-width: initial; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">In today's health conscious <span class="IL_AD" id="IL_AD10" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">societies</span>, they can introduce more health-based products, and because they are a market leader, they would likely be more successful.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Provide allergen free food items, such as gluten free and peanut free.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">They launched a new premium line of higher cacao content chocolates dubbed Nestlé Treasures Gold, in order to cash in on the "recession economy" in which consumers cut back on luxury goods, but regularly indulge in candy and chocolate. Americans want luxury chocolates, and high-end chocolate is immune to the recession (so far), because it is an inexpensive indulgence.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Opened Nestlé Café's in major cities to <span class="IL_AD" id="IL_AD12" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">feature</span> Nestlé products.</span></li>
</ul><h2 style="color: #a3a3a3; font: normal normal bold 13px/normal Arial, Tahoma, Helvetica, FreeSans, sans-serif; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; position: relative; text-transform: uppercase;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">THREATS</span></h2><ul style="line-height: 1.4; list-style-image: initial; list-style-position: initial; list-style-type: disc; margin-bottom: 0.5em; margin-left: 0px; margin-right: 0px; margin-top: 0.5em; padding-bottom: 0px; padding-left: 2.5em; padding-right: 2.5em; padding-top: 0px;"><li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: initial; border-top-style: none; border-top-width: initial; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Any contamination of the food supply, especially e-coli. Their Toll House brand cookie dough was recalled in March of 2009 because of e-coli. Outbreaks were linked to 28 states and the product had to be recalled globally. Nestlé has yet to find out how this happened, and is still investigating.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">They were affected by the pet food recall in 2007, in which 95 different brands of <span class="IL_AD" id="IL_AD2" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">dog and cat food</span> were recalled due to contamination with rat poison. Also in 2007, FDA learned that certain pet foods were sickening and killing cats and dogs. FDA found contaminants in vegetable proteins imported into the United States from China and used as ingredients in pet food.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">Raw chocolate ingredient <span class="IL_AD" id="IL_AD11" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">prices</span> are soaring; dairy costs alone rose 50% in 2008, this cuts heavily into their profit margins and often gets passed on to consumers, by shrinking the packaging in a way that is almost unnoticeable-therefore the consumer is paying the same prices for less product.</span></li>
<li style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-color: rgba(128, 128, 128, 0.496094); border-top-style: none; border-top-width: 1px; border-width: initial; margin-bottom: 0.25em; margin-left: 15px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-indent: 0px;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif; font-size: medium;">They have major competitors, like Hershey's, Cadbury-Schweppes (owned by Pepsi), Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, <span class="IL_AD" id="IL_AD3" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat repeat !important; border-bottom-color: rgb(0, 0, 255) !important; border-bottom-style: dotted !important; border-bottom-width: 1px !important; color: blue; cursor: pointer !important; display: inline !important; float: none !important; font-family: Times, 'Times New Roman', serif; font-size: 18px !important; font-style: normal !important; font-weight: normal !important; padding-bottom: 1px !important; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px !important; position: static;">Kraft Foods</span>, Dannon, Del-Monte, Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi).</span></li>
</ul></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-55048371111347414442011-03-04T03:59:00.001-08:002011-03-04T03:59:23.161-08:00current affairs questions 2<div dir="ltr" style="text-align: left;" trbidi="on"><br />
Week-2 Questions<br />
1. Who is the CEO of Wipro? T K Kurien<br />
2. Who has signed as the new brand ambassador of beverage maker coca-cola? Sachin Tendulkar<br />
3. Expand FSLRC Financial Sector Legislative Reforms Commission<br />
4. Bajaj auto signed MOU with _________ to finance their three wheelers? Indian Bank<br />
5. Who is the Reserve Bank Governor? Duvvuri Subbarao<br />
6. What does RBS stands for? Royal Bank of Scotland<br />
7. Who is the civil aviation minister? Praful Patel<br />
8. Who is the Managing Director of Mahindra & Mahindra? Anand Mahindra<br />
9. ________&__________ bag top honours at ET ZigWheels awards? Ford Figo & Yamaha SZ-X<br />
10. What is the percapita consumption of biscuits in India? 2%<br />
11. What does NMDC stands for? National Mineral Development Corporation<br />
12. What does ICC stands for? International Cricket Council<br />
13. 6th international conference on steel and steel making raw materials was held at?<br />
Taj Palace Hotel, New Delhi<br />
14. Who is the largest telecom operator in India? Bharti Airtel<br />
15. How much is the expected ecoomic growth rate? 8.75%<br />
16. Which is India’s third largest IT exporter? Wipro<br />
17. Total amount that foreign inverters poured into Indian Stocks in 2010? $ 29 billion (1.3 lakh crore)<br />
18. Indian Sensex is valued at a price-to-earnings ratio of ----- times estimated earnings? 8 times<br />
19. RBI is planning to increase the repo and reverse rate by how many basis point? 50 basis point<br />
20. Which Indian company is going to acquire a Swiss Pharma company SynphaBase AG ? Jupiter biosciences<br />
21. India pharma company Jupiter biosciences is going to acquire which swiss company? SynphaBase AG<br />
22. The total amount at which India pharma company Jupiter biosciences is going to acquire Swiss Pharma company SynphaBase AG? $ 10 million<br />
23. Which is the first private firm to manufacture small civil aircraft for the domestic aviation market? Mahindra Aerospace<br />
24. In which place India and Bangladesh opened a new land port to boost bilateral trade? West Bengal<br />
25. Coal India is planning to open new seven underground mines in which place? Jharkhand<br />
26. Coal India is planning to increase the capacity to how many tonnes per annum? 12 million tonnes<br />
27. Which are the two financial regulators who are looking to the matter of swiss bank issue? RBI & SEBI<br />
28. PSU banks to raise headcount by how many percentages? 10%<br />
29. In an attempt to improve liquidity, RBI has brought approximately how many crore since Nov 2010? 67000 crore<br />
30. What is the salary awarded to Citi groups chief executive,Vikram Pandit? $1.75 million<br />
31. Which company Philips bought in south India and at what amount?<br />
South Indian home appliances brand PREETHI for over Rs.350 crores.<br />
32. Who is the global President of Glaxo SmithKline (GSK) consumer health care? John Clarke<br />
33. What is the compensation amount the Andhra Pradesh Government is planning to make it mandatory for Micro Finance companies to pay the families of the borrowers who commit suicide because of debt burden? Rs 5 Lakhs<br />
34. The Karnataka State high level committee has approved the proposal of world’s leading noodle manufacturer to set up new manufacturing facility with an investment of Rs. 160 crores. Name the manufacturer….. Indo Nissin (a subsidiary of Nissin Foods)<br />
35. Who is the present CEO of iGate? Phaneesh Murthy<br />
36. iGate has appointed _______and________ to advice on the integration process with the Patni computers for its merger process? Delloite and Mercer<br />
37. Name the family who own the Hero Group? Munjan Family<br />
38. What is the royalty percentage of Net Sales that Hero Honda will continue to pay to Honda for supplying automotive technology and developing new products in future? 2.3-3%<br />
39. Which India’s largest mobile service provider has launched 3G network services for Karnataka and southern circles recently? Bharti Airtel (on 24th Jan 2011)<br />
40. Name the ERP product used by farmers across Karnataka, Maharashtra and Gujarat? FarmERP<br />
41. Who is the MD of Sonata Software? B Ramaswamy<br />
42. What is the MF asset value maintained by Glodman Sachs Globally? $677 billion<br />
43. Who is the chairman of Wipro? Azim Premji<br />
44. What is the average unemployment rate in US @ 2010? 9.3%<br />
45. After how many years, US companies’ employment outlook improved? 12 years.<br />
46. Which project StanChart’s financial market has taken, to ensure the primary school is well equipped and students have uniform, Text Books and a bus service facility? Burjwadi project.<br />
47. Who is the CEO of IDEA cellular? Sanjeev Aga.<br />
48. What is the % profit of IDEA Cellular, increased in Q3 over Q2? 43%<br />
49. What is the new initiative taken by IIMB for fostering greater entrepreneurial growth across the country? Next Big Idea.<br />
50. In what price, Novartis buys cancer diagnosis specialist? $ 470 million.<br />
51. Who is the CEO of ICICI Bank? Chanda Kochhar.<br />
52. What is the net profit increment of Indian Bank in Q3? 11%<br />
53. What is the increase in sales of Toyota globally in the year 2010, over the previous year? 12%<br />
54. Which two people have just developed a 7-key customised wireless keyboard for the visually challenged? Mohit Khanna and Anurag Mishra<br />
55. Which company has bagged the contract,along with Mahindra Satyam,to collect biometrics of the Indian population for the government’s UID project Aadhaar? Safran Groups subsidiary Morpho<br />
56. Who is the president and chief financial officer RANBAXY Laboratories? Umesh Sethi<br />
57. Chairman of Housing Development Corporation? Deepak parekh<br />
58. The online shopping industry in India stands at around what figure and at what rate is it growing at according to industry? 1500 Crore & 35% Growth<br />
59. THE Telecom Regulatory Authority of India (Trai) has moved the Supreme Court seeking its nod to notify the proposed tariff fixing a cap of how much in non-Conditional Access System (non-CAS) areas in the country? Rs. 250/month<br />
60. Who is Bharti Airtels India and South Asia head? Sanjay Kapoor<br />
61. Global steel giant ArcelorMittal has hived off its stainless and speciality steels business into which new company? Aperam<br />
62. Vedanta Resources, is controlled by which London-based billionaire? Anil Agarwal<br />
63. Who is Cairn Energy’s Chairman? BillGammell<br />
64. Bharti Airtel,the country's largest mobile phone company by both customers and revenues had formed a 49:51 joint venture with which bank to offer mobile-banking and other financial services? State Bank Of India<br />
65. Vodafone Essar Ltd,majority owned by UK's Vodafone entered into a JV with which bank to offer mobile-banking and other financial services? ICICI<br />
66. What does ETP stand for? Exchange-traded products<br />
67. Who are the corporate debt lenders for Vishal retail? State Bank of India,HDFC Bank,ING Vysya,UCO and Bank of India<br />
68. Who are the non-corporate debt lenders for Vishal retail? LIC Mutual Fund,Deutsche and Barclays<br />
69. Which airline offers free companion ticket to selected destinations? Air India<br />
70. Which car brand holds the tag line “sheer driving pleasure”? BMW<br />
71. Which luxury car brand’s new model bears the “punch line of JOY UP CONSUMPTION DOWN”? BMW 520d<br />
72. The Lokpal bill is drafted to tackle the scourge of corruption. This has some exceptions. What is that? The lokpal bill cannot investigate any case against the prime minister in the arena of external affairs and defence.<br />
73. Who is the founder of Hotmail? Sabeer Bhatia<br />
74. Who is the chief investing officer of Birla sun life insurance? Vikram kotak<br />
75. Recently RIM’s blackberry refused to reveal the information flowing through whose emails? corporate emails<br />
76. Who is the vice president od RIM? Robert crow<br />
77. Who is the second largest automaker in the US? Ford motors<br />
78. Who is the CEO of ford motors? Alan mulally<br />
79. Who is the CEO and MD of TCS? Chandrasekharan. N<br />
80. Which luxury automaker is planning to enter into small car segment for India? Mercedes<br />
81. Why CIPLA may not get as much as PIRAMAL? Cipla’s plants are older, and its practices are less attuned to international standards compared with Piramal. Also, Abbott may have been willing to pay more for Piramal as it had reasonable free cash and is only expecting returns from its India acquisition over 10 years.<br />
82. What is non-compete fee? Paid by acquirer to ensure former promoter does not compete in same business for a specified period. Buyer can pay a seller non-compete fee of up to 25% of open offer price. Anything over 25% has to be included in open offer price.<br />
83. Where might L&T sell its stake? in INfotech subsidiary<br />
84. When was Cipla’s chemical and pharmaceutical laboratory established? 1935<br />
85. What was the market share of Kingfisher Airlines in the month of December? 18.6%<br />
86. Why would the prices of steel products likely to go up in February? Due to the raw material push and also because demand is reviving in various markets.<br />
87. What joint sponsors Sony India, Hero Honda & Vodafone are each expected to pay ESPN STAR SPORTS during the cricket World cup 2011? Rs 55 crore<br />
88. What was the reason that the consumer product maker Marico posted an 8% decline in net profit during the third quarter ended? hike in raw material prices<br />
89. What is the expectation of centre on the estimate of the Telecom gear by 2015? That sector will worth Rs 3, 50,000 Cr by 2015.<br />
90. What was the announcement made by Bennett, Coleman & Co on 27th of Jan’11 ie. Thursday? India’s largest media conglomerate, Bennett, Coleman & Co. Ltd. (BCCL), the publishers of The Times of India and The Economics Times, on Thursday announced the formation of a joint venture with Yogesh Radhakhrishnan, a venturan professional in the Indian cable & satellite industry<br />
91. Which country in Asia released 6000 genetically modified mosquitoes into forest aimed at curbing dengue fever recently? MALAYSIA<br />
92. Which major US IT company is looking to invest in houses & entering real estate sector in Australia? GOOGLE<br />
93. Which japan automobile company recalled 1.7million vehicles over the fuel pump glitch problem? TOYOTA<br />
94. Which bill creates a watchdog to investigate corruption cases against arms of government?<br />
LOKPAL BILL<br />
95. In which year LOKPAL bill is introduced? 1968.<br />
96. Who is the current labour minister of India? MALLIKARJUN KHARGE<br />
97. What is the full form GBS? GROSS BUDGETARY SUPPORT<br />
98. What are central or annual plans? Central or annual plans are essentially the 5 year plans broken down into five annual instalments.<br />
99. What is GBS? The amount sanctioned by the finance ministry to the central plan<br />
100. What is the % of amount increased by finance ministry for central plan in budget support? 12%<br />
101. What does NCPRI stands for? National Campaign for People’s Right to Information<br />
102. What is the India’s biggest Ponzi scheme fraud in 2010? CITY LIMOUZINES in MUMBAI<br />
103. Name the person who is arrested amid allegations of major investment fraud within Citibank worth 400 crores? Shivraj puri<br />
104. Who is the European central bank president? JEAN CLAUDE TRICHET<br />
105. Who is the CEO of HP? LEO APETHEKAR<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-65190559673695589632011-03-04T03:58:00.000-08:002011-03-04T03:58:29.477-08:00current affairs questions<div dir="ltr" style="text-align: left;" trbidi="on"><br />
1. What is the approximate yearly operating budget of Wikipedia? $20 million<br />
2. Which company produces the Blackberry product line? RIM(Research In Motion)<br />
3. What is the full form of IRDA? Insurance Regulatory And Development Authority<br />
4. IOC(Indian Oil Corporation) recently bagged a project in a competitive bidding to set up a 5.5mw solar project. Which place is it set up ? Barmer ,Rajasthan<br />
5. What is the amount of loan(In Rs.) that was being provided by public sector banks to the 2G spectrum licencees? Rs.10000 Cr.<br />
6. What is the amount( In Rs.) that the govt. of India is set to invest in the shipping sector by 2020 to increase the capacity of ports? Rs.5 lakh Cr.<br />
7. Which country is considered as the world’s most corrupt major economy? Russia<br />
8. Which steel company is set to sell shares worth $800 million (57 million new shares) by end of Jan 2011 ? Tata Steel<br />
9. Which is India’s top engineering and construction firm? Larsen and Toubro<br />
10. What is India’s rank in Corruption Perception Index in 2010(In 2006 it was 70)? 87<br />
11. What is the worth( in billions) of the Cairn-Vedanta deal in which Anil Agarwal has proposed to buy out majority stakes of Cairn Plc’s in Cairn India? $9.6 billion<br />
12. What is India’s rank in the the “world’s riskiest locations for business to invest in”? 26<br />
13. Who is the current minister for petroleum and natural gas in India? Murli Deora<br />
14. What is the % stake that the govt. of India owns in ONGC? 74%<br />
15. What is the full form of POIF? Post Office Life Insurance Fund<br />
16. 60% stake in Hungry Zone is acquired by which company?<br />
a. Ans: Just Eat<br />
17. How much money has been raised by PNC infra through PE route?<br />
a. Ans: Rs 150 Cr<br />
18. What is acronym of NAFED?<br />
a. Ans: National Agricultural Co Operative Marketing Federation<br />
19. What is NCCF?<br />
a. Ans: National Co Operative Consumers Federation of India Limited<br />
20. Who is the CEO of Infosys?<br />
a. Ans: S Gopalkrishnan<br />
21. Who is the Director of “The Edrington Group”?<br />
a. Ans: Paramjit Singh<br />
22. What percentage of total equity is owned by IL & FS Group in Mehtas Property?<br />
a. Ans: 80%<br />
23. Who is the Director of Deloitte?<br />
a. Ans: Nidhi Goel<br />
24. With which company Starbucks is planning to enter India?<br />
a. Ans: Tata Group<br />
25. Which Coffee giant is planning to enter India?<br />
a. Ans: Starbucks<br />
26. Which two companies hold 20% stake in PVR pictures?<br />
a. Ans: ICICI venture and JP Morgan Mauritius holding<br />
27. Rhiti sports inks joint venture with which company?<br />
a. Ans: Endemol<br />
28. In the 5th edition of vibrant Gujarat what is the proposed investment?<br />
a. Ans: Rs 20.83 lakh<br />
29. Just eat, an international online take away ordering service is of which country?<br />
a. Ans: UK<br />
30. What is the acronym of DproP?<br />
a. Ans: Defense Production Policy<br />
31. The two companies owned by Anil Ambani, which are penalised by SEBI? : Reliance Natural Resources and Reliance Infrastructures<br />
32. The environment ministry has ordered for demolition of Adarsh Housing co. Society building in South Mumbai for the failure in? : obtaining coastal regulation zone tolerance<br />
33. The banks that were conferred with SKOCH Award 2011? Indian bank, BOB and Central Bank<br />
34. The board that is in-charge of Sabarimala pilgrimage? : Travancore Devaswom Board, TDB<br />
35. India’s first two largest consumer products companies? : HUL and Godrej<br />
36. GE, General Electric’s first research facility outside US was set up in which city? : Bangalore<br />
37. The Arab world’s second largest telecom company by market value, that entered Indian market in 2008? : ETISALAT<br />
38. CCEA stands for? : Cabinet Committee on Economic Affairs<br />
39. The World’s largest semiconductor maker? Intel<br />
40. The rival of Intel, AMD stands for? Advanced Micro Devices<br />
41. International mid-scale hospitality chain that plans to setup more than 60 hotels in India over next three years? Choice Hotels<br />
42. The % of commission to be paid by customers to the bank under rules for mobile banking? 2%<br />
43. The two low-cost airlines operating in India are? IndiGo and SpiceJet<br />
44. Bajaj’s low cost car to be marketed by Renault_Nissan alliance? Bajaj ULC, Ultra Low-Cost Car<br />
45. Biggest mobile game Angry Bird was designed by? Rovio Mobile Co.<br />
46. Name the regulatory body of Indian Capital market.<br />
a. Ans. SEBI<br />
47. At present, FDI allowed in India, in “Single brand retail” is<br />
a. Ans. 51 percent<br />
48. At present, FDI allowed in India, in “wholesale cash-and-carry” is<br />
a. Ans. 100 percent<br />
49. Which country recently joined Euro zone as its 17th member?<br />
a. Ans. Estonia<br />
50. One basis point is defined as<br />
a. Ans. 1/100th of the percentage point.<br />
51. Gurgaon based low-cost airline ‘Indigo’ has ordered _______ airbus A320 from EADS<br />
a. Ans. 180<br />
52. Government has asked all “retirement funds” to compulsorily trade in<br />
a. Ans. Debt instrument on exchange.<br />
53. Mobile number portability starts on<br />
a. Ans. 20th January, 2011<br />
54. Asia’s biggest wholesale fruit and vegetable market<br />
a. Ans. Azadpur(in Delhi)<br />
55. Basel accord refers to<br />
a. Ans. Banking supervision accords.<br />
56. “Focus: Lac” is a program initiated to boost trade and investment between<br />
a. Ans. India and Peru.<br />
57. ‘Company of the year’ award in Economic times corporate excellence award in 2010 goes to<br />
a. Ans. L&T<br />
58. In newly proposed Direct tax code, the highest rate of individual income yax has been put at___<br />
a. Ans. 30 percent.<br />
59. Maximum investment limit for retail investor in any public issue as per the rule of SEBI<br />
a. Ans. 1 Lakh<br />
60. Which Indian private company is the biggest employer?<br />
a. Ans. TCS.<br />
61. In which country was the first computer virus written?<br />
a. Ans: Pakistan<br />
62. We all know that now we can change our operator without changing our number.What are the 3 things that we will lose if we switch?<br />
a. Ans: balance on pre paid cards,will have to change handsets in cdma-to-gsm shift or vice-versa and next number change cannot be done before 90 days.<br />
63. A huge number of people died in Sabarimala stampede.Where is Sabarimala located?<br />
a. Ans: kerala<br />
64. SBI’s 3 day home loan event in Bangalore started on 21st January.what is this event known as?<br />
a. Ans: SBI Utsav<br />
65. Who leads the National Advisory Council(NAC) ? Ans: Sonia Gandhi<br />
66. Diamond jewellery giant De Beers Group launched a high-end brand of diamonds.What is it known as?<br />
a. Ans: Forevermark<br />
67. Tata Global Beverages will launch its non-carbonated cold drinks in Andhra Pradesh this summer.Name it.<br />
a. Ans: Tion.<br />
68. Who is the chairman of Indian Oil corp?<br />
a. Ans: B M Bansal<br />
69. Who is the secretary general of Opec?<br />
a. Ans: Abdalla Salem El-Badri<br />
70. What does ONGC stand for?<br />
a. Ans: Oil and Natural Gas Corp’s<br />
71. Who is the president of china?<br />
a. Ans: Hu Jintao.<br />
72. China authorised its companies to buy how many airplanes from Boeing?<br />
a. Ans: 200<br />
73. How much is Prestige going to invest in kitchenware?<br />
a. Ans: Rs.250 crore<br />
74. Coke drops prices selectively in which place?<br />
a. Ans: Delhi,UP<br />
75. Who is the Head(Private Brands) of Future Group?<br />
a. Ans: Devendra Chawla.<br />
76. What is ALM?<br />
77. Asset Liability Management.(ALM) as the term suggests it is about managing and balancing the risks arising out of a bank’s assets- loans and liabilities- depositis.<br />
78. Who is the governor of RBI? (Duvvuri Subbarao)<br />
79. What is an FPO? (follow-on public offer)<br />
80. KOTAK Realty Funds Group, the real estate private equity arm of Kotak Mahindra group, has picked up an undisclosed stake in a Bangalore based luxury developer. Name the developer? (Total Environment Building Systems)<br />
81. Who is the CEO of Apple Inc.? (Steve Jobs)<br />
82. Who is the COO of Apple Inc.? (Tim Cook)<br />
83. What is SEC? (Securities Exchange Commission)<br />
84. How much is crude oil per barrel? As per 3rd week of Jan’11. (USD 92)<br />
85. What is FMC? (Forward Markets Commission)<br />
86. Expand FICCI? (Federation of Indian Chambers of Commerce and Industry)<br />
87. Expand ADB? (ASIAN Development Bank)<br />
88. Who is the Indian Union Minister of Petroleum and Natural Gas? (Murli Deora)<br />
89. Expand CAG? (Comptroller and Auditor General of India)<br />
90. Which IT firm is set to recruit 25000 employees in 2011? (Cognizant)<br />
91. Which company will invest in an iGate holding company which may later be used as an intermediate vehicle to facilitate a merger between iGate and Patni? (Apax Partners)<br />
92. Which company was asked to pay a tax of Rs 400 Cr on onshore work?<br />
a. Ans: Infosys<br />
93. Who is the chairman of HDFC Bank?<br />
a. Ans: Deepak Parekh<br />
94. Who owns the highest number of shares in TATA Group of Companies?<br />
a. Ans: Shapoorji Pallonji<br />
95. L&T is divided into how many group of companies?<br />
a. Ans: 9<br />
96. Indigo has placed an order with airbus. How big is the deal?<br />
a. Ans: $15 Billion<br />
97. UID project is called ________?<br />
a. Ans: Adhaar<br />
98. Amitabh Bachan parted with which company?<br />
a. Ans: IIFA<br />
99. Which is the largest IT company in India?<br />
a. Ans: TCS<br />
100. At what price per share is iGate acquiring Patni computers?<br />
a. Ans: Rs 503.5<br />
101. Who is backing up iGate to acquire Patni Systems?<br />
a. Ans: Apax<br />
102. Who is the Chairman of Vedanta Group?<br />
a. Ans: Anil Agarwal<br />
103. Who is the chairman of HUL?<br />
a. Ans: Ashok Ganguly<br />
104. Who is the CFO of Infosys?<br />
a. Ans: V Balakrishnan<br />
105. Asian Development Bank has lent $90 million to which power Sector?<br />
a. Ans: Assam Power Sector<br />
106. World Bank arm International Finance Corporation (IFC) has pledged $3oo million for the development of renewable energy to which country?<br />
a. Ans: India<br />
107. What is Tutor Vista known for?<br />
a. Ans-Tutor Vista is a Bangalore based online education firm.<br />
108. Who has acquired large shares in Tutor Vista? And what is the percentage of those share?<br />
a. Ans-The company is a UK based company, and the name of the company is Pearson. It has acquired 76% in it.<br />
109. Which is the venture capital firm that had initially founded Tutor Vista?<br />
a. Ans-It is sequoia Capital India that had invested over $ 10 million in the firm.<br />
110. Name the capital market’s regulator?<br />
a. Ans-C.B. Bhave<br />
111. Which is the year Muhammad Yunus received Noble Prize? And for what?<br />
a. Ans-2006, it is for micro finance.<br />
112. What are the allegations faced by Anil Verma in Britain?<br />
a. Ans-Anil Verma is the minister (economic) at the high commission in London since August 17, 2009 and is the third senior- most diplomat in Britain after the high commissioner and the deputy high commissioner. Verma, the ex- personal secretary to former foreign minister Pranab Mukherjee, was quizzed last month by the Scotland Yard for allegedly assaulting his wife.<br />
113. Briefly explain why the position of P J Thomas as the CVC of India is unjustified?<br />
a. Ans-Chief vigilance commissioner P J Thomas faces the awkward prospect of facing trial in a corruption case, with the Supreme Court on Tuesday clearing the way for the start of proceedings against him for he is an accused in the palmolein import case that involved corruption and brought a loss to the exchequer.<br />
114. The tragedy in Sabarimala?<br />
a. Ans-Hundreds of thousands of people had gathered at the hilltop shrine of Sabarimala Friday evening to mark the end of a two-month religious festival. But the night ended in tragedy when a bus carrying pilgrims lost control, crushing some people and leading to panic and a stampede that killed 102 people. Indeed, it seems the bus crashed in an area that was completely dark. In 2009, 52 pilgrims "were killed in an almost identical stampede."<br />
115. What is the kind of alliance that Coca Cola is trying to build with the music channel MTV?<br />
a. Ans-Beverage maker coca cola India is in talks with music channel MTV to launch its music property Coke Studio in India. Coke studio is a music property that brings together different artistes on the same platform and is popular mainly in Pakistan.<br />
116. Explain the concept of Indigo catches up with Kingfisher to become joint second?<br />
a. Ans-Just a month after beating Air India (Domestic) to reach the number three slot, fast-growing low cost carrier Indigo moved up the ladder to occupy joint second position along with Kingfisher among domestic carriers in December. From a market share of 16.2 per cent in September, it jumped to 18.6 per cent in December, while the market share of the other three top carriers - Jet Airways, Kingfisher and AI - declined<br />
117. Ex plain the concept of Pearson acquiring majority of India's Tutor Vista ?<br />
a. Ans- Pearson acquired a majority stake in an Indian education company in a $127 million (£79 million) deal. The education giant has increased its shareholding in Bangalore-based<br />
b. Tutor Vista to 76%. Pearson said the acquisition supported its goal of building "significant education companies in selected fast-growing markets.<br />
118. What is the Vodafone objects to essar reverse listing of holding company?<br />
a. Ans-Vodafone has objected to Essar's plans to merge the holding firm ETHPL, having 11 per cent stake in Vodafone-Essar, with India Securities Limited, a listed firm of Essar Group, saying this could distort the valuation of the joint venture.<br />
119. What is Bajaj’s rural drive ?<br />
Ans-Bajaj Auto is going at full throttle to challenge market leader Hero Honda in rural and semi-urban markets that account for more than half of two-wheelers<br />
Sold in the country. The country’s second largest two-wheeler maker has appointed 135 dealers in small towns and mini metros, where it had only 25 dealers, and will offer special finance scheme for rural customers even if they have no bank account.<br />
120. What is Lavasa controversy?<br />
Ans-Environment minister Jairam Ramesh, in a hurry to revive environmental regulations in the country, is learning quickly that the Lavasa project is a difficult beast to handle. Two days after his ministry issued a show cause notice to the developers of the hill city, terming all construction work unauthorised, Sharad Pawar, the powerful NCP chief, came out in support of the project on Tuesday. On its part, Lavasa Corporation launched a full-throated campaign against Ramesh by issuing a strongly-worded statement and also filing a writ petition seeking a stay on the notice<br />
121. Briefly explain the reshuffling of the cabinet post Raja’s 2G scam?<br />
Ans-Two vacancies which were caused by the exit of former telecom minister A Raja and Shashi Tharoor is likely to be filled with kapil Sibal, who was given additional charge of the Telecom Ministry after Raja’s resignation, taking it up fully and relinquish the HRD Ministry which may go to Law Minister Veerappa Moily. Major portfolios like Finance, Home, Defence and External Affairs may not be disturbed in the proposed exercise which is mainly aimed at filling up the vacancies.<br />
122. What is the new version of symbian operating system?<br />
a. Symbian^3<br />
123. The world’s biggest manufacturer of electronic components<br />
a. Foxconn, China<br />
124. MGNREGA stands for<br />
a. Mahatma Gandhi National Rural Employment Guarantee Act<br />
125. What is MGNREGA Act?<br />
a. A work is entitled to Rs 100 per day for minimum of 100 days per year.<br />
126. What is Hedge Fund?<br />
a. A hedge fund is a lightly regulated investment fund that is typically open to a limited range of investors who pay a performance fee to the fund's investment manager.<br />
127. What is CACA ratio?<br />
a. The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits.<br />
128. What is office yoga software?<br />
a. This application provides quick and easy ways calm down stress during our day at office desk with office yoga exercises.<br />
129. Cricket T20 fever software<br />
a. With this game we can play in a variety of modes including tournaments, ODIs,T20 matches and the exciting powerplay style match.<br />
130. The company that shows highest growth rate after recession<br />
a. TCS<br />
131. Chief executive of city group<br />
a. Vikram Pandit<br />
132. SUUTI stands for<br />
a. Specified Undertaking of the Unit Trust of India<br />
133. LIC chairman<br />
a. T.S Vijayan<br />
134. CMD of Union Bank Of India<br />
M.V Nair<br />
135. Highest number of suicides in india due to Micro Finance Institutions(MFI) is<br />
Puducherry -47.2 per lakh of population.<br />
136. 15. Who is the chairman of CBDT(Central Board of Direct Tax)?<br />
Sudheer Chandra<br />
137. All profit MFI regulated by RBI should be clubbed under a new category called NBFC-MFI.<br />
138. There is a Margin cap of 10% for loan portfolios above Rs.100 crore.<br />
139. There is a Margin cap of 12% for loan portfolios below Rs.100 crore.<br />
140. Central bank allows banks to classify restructured loans as standard assets even if they are not secured.<br />
141. HCL reported a profit of Rs. 399.70 crore and clocked revenues of Rs.3888.4 crore during the quarter ending December 2010.<br />
142. NASDAQ- listed iGate purchased the Indian IT firm Patni computers, its net income surged to 51.8 million US Dollar.<br />
143. For Bajaj auto the net quarter profits for December 2010 jumps to Rs.667 crore and sales grew 28%.<br />
144. Hindustan zinc Dec quarter net profit rose to Rs.1290 crore And revenue surged 17% to Rs.2601 crore.<br />
145. $250 billion iGate bid for $700 million Patni computers which has 15000 employees.<br />
146. Bank loans to MFI should continue to be treated as priority sector loans but with a higher capital adequacy ratio of 15%.<br />
147. The global revenues of the IT major Accenture is $24 billlion.<br />
148. Bajaj auto holds a 27% share in the 2 wheeler marketwhereas Hero Honda holds a 54% share in the 2 wheeler market.<br />
149. Bank loans to MFI is estimated around Rs.21000crore by the MFI sector.<br />
150. Currently for Bajaj auto the exports account for 29% of their revenues.<br />
151. During the Dec quarter the HZL metal cost without royalty increased 5% to Rs.35500 per tone due to higher raw material cost.<br />
152. Who is the governor of RBI?<br />
a. Ans : D Subbarao<br />
153. Who is the deputy governor of RBI?<br />
a. Ans: KC Chakrabarty<br />
154. When is the RBI going to announce its monetary policy?<br />
a. Ans: 25th Jan<br />
155. India is planning to set its Income-Tax office in which country?<br />
a. Ans: UAE<br />
156. Which Indian bank has entered into an agreement with automobile manufacturer Bajaj Auto to finance three-wheelers,offering the prospective borrower about 85%<br />
a. Ans: Indian Bank<br />
157. Who is the chairman of the Prime Ministers’s Economic Advisory Council?<br />
a. Ans: C Rangarajan<br />
158. HCL Infosystems sells ISP arm to which company?<br />
a. Ans: Tikona Digital.<br />
159. The largest manufacturer of carbon black according to the Standards and Poors report. CABOT<br />
160. The minister of water resources and minority affairs. Salman Khursheed<br />
161. The largest company by market capitalization in India. RIL<br />
162. Which Indian company partnered with Vodafone for its Indian operations. ESSAR TELECOM with 11% stake<br />
163. Expand FIPB – FOREIGN INVESTMENT PROMOTION BOARD<br />
a. OMSS – OPEN MARKET SALES SCHEME<br />
164. CEO of CITIGROUP- VIKRAM PANDIT<br />
165. IDFC Mutual , Peerless, Axis MF , Reliance MF and UTI Mutual Fund are planning asset allocation funds which focus on various life goals. What are they called. GOAL SERIES FUNDS<br />
166. Examples of goal series funds. CHILDRENS FUND , MARRIAGE FUNDS.<br />
167. BIOCON has entered into a liscencing deal granting which Pharma company the marketing right to its biosimilar insulin products. PFIZER<br />
168. The inter regulatory mechanism recently created to analyse the stability of financial architecture. FSDC- FINANCIAL STABILITY AND DEVELOPMENT COUNCIL<br />
169. The RBI created which committee to determine solutions for problems faced by the microfinance institution. MALEGAM<br />
170. The CEO OF WIPRO – T.K KURIEN<br />
171. The estimated amount of black money drained from the country. 20 lakh crore rupees<br />
172. The recently concluded VIBRANT GUJARAT SUMMIT attained investment commitments to the tune of - 20.83 lakh crore rupees<br />
173. ICICI AND AXIS BANK , 2 private sector majors have signed up for a service tool called the “ HUNTER”. WHAT IS IT FOR . To weed out fraudulent loan applications.<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-31771525055264947402011-03-03T12:18:00.000-08:002011-03-03T12:18:18.524-08:00PRODUCTIVITY MEASUREMENT<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span lang="EN-IN" style="font-family: "Times New Roman","serif"; font-size: 10.0pt;">Introduction<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span lang="EN-IN" style="font-family: "Times New Roman","serif"; font-size: 10.0pt;">A productivity measure commonly is understood as a ratio of outputs produced to resources consumed. However, the observer has many different choices with respect to the scope and nature of both the outputs and resources considered. For example, outputs might be measured in terms of delivered product or functionality, while resources might be measured in terms of effort or monetary cost. Productivity numbers may be used in many different ways, e.g., for project estimation and process evaluation. An effective productivity measure enables the establishment of a baseline against which performance improvement can be measured. It helps an organization make better decisions about investments in processes, methods, tools, and outsourcing. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9ymyeqrKAVwgqbsfkdlSEixSfRBdlXhuYgbq0HbJNAeh54_cTt2XXOrQFgzuXmLMTtKyeLGm0ovR-1UJZssl1my82IjpZaVltM9L8i1bBGw1v9aTnM-C36N2DtmUEwPJ3QXurDoB-t2g/s1600/1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="237" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9ymyeqrKAVwgqbsfkdlSEixSfRBdlXhuYgbq0HbJNAeh54_cTt2XXOrQFgzuXmLMTtKyeLGm0ovR-1UJZssl1my82IjpZaVltM9L8i1bBGw1v9aTnM-C36N2DtmUEwPJ3QXurDoB-t2g/s320/1.JPG" width="320" /></a></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span lang="EN-IN" style="font-family: "Times New Roman","serif"; font-size: 10.0pt;">In addition to the wide range of possible inputs and outputs to be measured, the interpretation of the resulting productivity measures may be affected by other factors such as requirements changes and quality at delivery. Much of the debate about productivity measurement has focused narrowly on a simplistic choice between function points and lines of code as size measures, ignoring other options as well as many other equally important factors. Despite the complexity of the software engineering environment, some people believe that a single productivity measure can be defined that will work in all circumstances and satisfy all measurement users’ needs.<o:p></o:p></span></div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2237598532527783659.post-38600756807642871322011-03-03T11:36:00.000-08:002011-03-03T11:36:32.494-08:00CASE ANALYSIS OF EXXON MOBIL<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">BUSINESS GOVERNMENT AND SOCIETY<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">BGS field is very important for managers to succeed in meeting its objectives a business must be responsive to both its economic and its non economic environment. Recognizing that a company operates not only within markets but within a society is critical. A basic agreement or social contract exists between the business institution and society. Managers must respect and adhere to society’s expectations. This contract defines the broad duties that business must perform to retain society’s support, but these duties are often ambiguous.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">BUSINESS:</span></b><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";"> A broad term encompassing a range of actions and institutions and the main purpose of business is to satisfy human needs by product and services.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">GOVERNMENT:</span></b><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";"> Structures and processes in society that authoritatively make and carry out policies and rules.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">SOCIETY:</span></b><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";"> A network of human relations that includes three interacting elements: ideas, institutions and material things.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span><span style="mso-no-proof: yes;"><!--[if gte vml 1]><v:shapetype
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o:title="exxon_mobil"/> </v:shape><![endif]--><!--[if !vml]--><!--[endif]--></span><span style="mso-spacerun: yes;"> </span></span></b><span style="background: black; border: none black 1.0pt; color: black; font-family: "Times New Roman","serif"; font-size: 0pt; layout-grid-mode: line; line-height: 150%; mso-border-alt: none black 0in; mso-fareast-font-family: "Times New Roman"; mso-font-width: 0%; padding: 0in;"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";"><o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";">CASE SUMMARY<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";">The case is about the ExonMobil Corporation which descended from the Standard Oil Trust of<span style="mso-spacerun: yes;"> </span>New Jersey. It was founded by John D. Rockfeller and its main business is discovering, producing and selling oil and natural gas. It once had 90% share of the American oil market. But in 1890 the Congress passed the Sherman Antitrust Act to outlaw its monopoly. 1911 the trust is broken into 39 separate companies<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";">John D. Rockefeller (Standard Oil) was a brilliant strategist and organizer who crushed competitors, emphasized cost control, efficiency, centralized organization, and suppression of competitors Although Rockefeller’s influence is buried in the passage of time, ExxonMobil’s actions remain consistent with his nature.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>It was in 1972 that the Standard Oil Trust changed its name to Exxon, and in 1999 merged with Mobil, to form ExxonMobil.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";">Thus ExonMobil still remains a force to reckon with but its power is largely limited by economic and political forces. It now controls only 5.6% of oil production and holds less than 1% of petroleum reserves, far less than it did in the 1950s. It has complex relationship with powerful governments.<span style="mso-spacerun: yes;"> </span>ExxonMobil’s large size attracts the watchful eye of environmental, civil rights, labor, and consumer groups. Thus, it engages in corporate citizenship by funding a variety of programs to benefit education, communities, health, nature, and the arts.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";">Its story rightly illustrates the importance of interactions between one large corporation, government and society.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
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</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">THE QUESTIONABLE ACTION:<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">1989 – Intoxicated captain of the Exxon Valdez spilled 11 million gallons of oil into Alaskan waters.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">1997 – Lee Raymond rejected the scientific case for global warming and refused to have the company look into renewable energy sources.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">1999 – Exxon merged with Mobil and revoked Mobil’s policy of domestic partner benefits.<o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">2001 – ExxonMobil turned a deaf ear to the complaints of villagers in Aceh, Indonesia who suffered violence at the hands of the company guards.<o:p></o:p></span></div><div class="MsoListParagraphCxSpLast" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Lucida Calligraphy"; font-size: 16.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">ANALYSIS AND SUGGESTION:<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">As a business entity, we can see that ExxonMobil main motive was to be profitable. Cost control, capital productivity and strict financial controls are emphasized in operations. Profit is an overriding goal, and projects must meet strict criteria for return on investment and the business is competitive. To maintain profitability the company pursues new reserve whenever they are located, taking political risks and abiding unrest and corruption. In Chad, Angola, Nigeria and Equatorial Guinea, it paid dictators for access to oil.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">The company shows both ethical and unethical practices like it funds worldwide programs to benefit education, communities, health, nature and</span><span style="font-family: "Lucida Calligraphy"; mso-bidi-font-family: "Times New Roman";"> </span><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">the arts. It also has a save tiger campaign and it sponsors free poetry reading in Singapore, but it is unethical in many way like Intoxicated captain of the Exxon Valdez spilled 11 million gallons of oil into Alaskan waters, which is spoiling the nature and Lee Raymond rejected the scientific case for global warming and refused to have the company look into renewable energy sources. ExxonMobil turned a deaf ear to complaints of villagers in Aceh, Indonesia who suffered violence at the hands of the company guards. So the business is not doing any good to the society and at the same time polluting the environment, its only own profit and nothing else.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-left: .25in; text-align: justify;"><span style="font-family: "Lucida Calligraphy"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman";">Therefore ExxonMobil should have basic duties and responsibilities that must retain public support, should understand the society and not hurt the environment. It must be reflected in laws and regulation.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div></div>Unknownnoreply@blogger.com0