Saturday, February 27, 2016

Ethics in Finance And Accounting

Business Ethics
Business ethics (also corporate ethics) is a form of applied ethics or professional ethics 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.

Finance
Fundamentally, finance is a social science discipline. The discipline borders behavioral economics, sociology, economics, accounting and management. Finance ethics is overlooked for mainly one  reason—issues in finance are often addressed as matters of law rather than ethics.
Ethics in Finance:
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.

Ø  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.
Ø  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.
Ø  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.


Five reasons why these misdeeds may happen.

1) Self-interest sometimes morphs into greed and selfishness, which is unchecked self-interest at the expense of someone else. 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.

2) Some people suffer from stunted moral development: This happens in three areas: the failure to be taught, the failure to look beyond one’s own perspective, and the lack of proper mentoring.
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.

3) Some people equate moral behavior with legal behavior: 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.

4) Professional duty can conflict with company demands:  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.

5) Individual responsibility can wither under the demands of the client. Sometimes the push to act unethically comes from the client. How many clients expect their insurance agents to falsify their applications or claims?

Some of the suggestions included:
  • incentive compensation better aligned with customers’ interests, rather than agents’ 
  • more industry trade associations supporting ethics initiatives
  • consumers need to be better informed

Ethics in Accounting:
Ø  The term accounting ethics was developed by Luca Pacioli
Ø  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.
Ø  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.  

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.  


A Project Report : A study of the functions of a hr manager in a company.

Contents
·        Introduction
·        Traditional role of HR manager
·        Strategies to Improve Human Resource Manager’s Value to the Organisation
·        New HR manager roles
·        Problem faced by HR manager
·        Conclusion


Introduction

The Human Resource Manager 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 hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. 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.
Research has shown that the human aspect of resources within an organisation contributes approximately eighty percent 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.
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.
Human resource manager roles
  • Human Resource Planning
  • Recruitment
  • Selection
  • Placement
  • Inductions
  • Transfer & Planning
  • Job Analysis
  • Performance Appraisal
  • HR Audit
  • Total Quality Management
  • Quality of Working Environment
  • Quality Cycle




Recruitment of Employees
This is one of the most fundamental roles of the HR Manager. 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.
Effective recruitment can be done through a number of ways. First of all the Company can conduct educational and psychological measurements. 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.






Recruitment methods used
Traditional
·         Campus recruitment
·         Consultancy
·         Walk in.
·         Advertisements

New Methods used
·         Asking people you know or taking on family members
If company really are on a tight budget.
·          Candidate Database
Try picking up database of recently graduated students from a nearby college.
·         Employee Referrals
One of the most successful methods of recruitment in Call Centre Industry.
·         Professional Groups
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
·         Body Shopping
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.


  
Improvement of Compensation Packages
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;
- Holiday Offers
- End of Year Bonuses
- Equities
- Awards
- Salary Increments
- Provision of Flexible Working Hours
- Straight forward Promotion Schemes and Career Developments
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.


Planning in the Organisation
The Human Resource Manager 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.
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.
The HR department is also bestowed with the responsibility of planning future organisational goal 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.


Strategies to Improve Human Resource Manager’s Value to the Organisation
Training and Internships
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.
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.
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.
An example of a company that adheres to this principle is Marks and Spencer 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.

Making Better Use of Time
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.
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.

Improving Organisational Culture
The Human Resource Department can try to improve organisational culture through a three step procedure.
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.
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.
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.
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.

Preventing and stopping harassment and discrimination
Key role in five aspects of preventing and stopping harassment and discrimination. These aspects are:
  • supporting management by developing Center policy and procedures for preventing and stopping harassment and discrimination;
  • educating staff, particularly through induction and retraining, with specialized training for line managers;
  • assisting management in establishing avenues of assistance at all duty stations for staff members who have experienced harassment or discrimination;
  • providing support and guidance to people directly involved in harassment and discrimination issues; and
  • providing guidance to committees investigating harassment and discrimination complaints.



New HR manager roles
 Business and Strategic Partner
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.
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.
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 ask for a seat at the executive table; HR people will have to prove they have the business savvy necessary to sit there.
 Employee Advocate
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.
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.
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.


Change Champion
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.
Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change.
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.
Ethical management
In the very narrow context of corporate "human resources" management, there is a contrasting pull to reflect and require workplace diversity 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 corporate culture is used to characterize such processes at the organizational level






There are a number of problems that arise as the manager goes about its activities

Problems in Recruitment
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 2004, the organisation was found to be wanting in its human resource department’s functions. The Company was recruiting a large proportion of its employees; 40% from Asian and African countries. This means that the organisation was draining medical personnel from those needy countries and using them for themselves.
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.
Problems in Remuneration
In the process of trying to motivate members of staff to perform better, the Human Resource may make deals that eventually cause problems.

Problems in Planning
Sometimes the HR Department can employ people who may not contribute towards organisational principles. A classic example is the Arthur Andersen Company that fell apart in the year 2002. 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.
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 Nancy Temple 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.



Conclusion
The role of the Human Resource Manager 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.
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.
The Human Resource Manger’s 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.


Tuesday, February 16, 2016

Industrial or Company Intership / College Project report general guidelines

INTERNSHIP /PROJECT GUIDELINES
Part I
Internship is an organization study, the instruction sheet is enclosed herewith and the report has to be made accordingly.

Part II
It is compulsory for the students to take up specific assignment or problem given by the organization during their study period.

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.

The following are the suggested steps:
a) Problem Identification
b) Synopsis preparation (Generally not exceeding two pages)
 The headlines of a synopsis could be:
i.The background
ii.The problem statement
iii.Objective of the study
iv.Hypotheses to be tested
v.Method
vi.Limitation(s)
vii.Chapter Scheme
viii. Expectation from the study

c) Formatting (Research Proposal)
-Title
-Problem
- Methodology
-Time & cost expectation ( to be approved by the industry)

d) Formatting dissertation: Executive summary (Before introduction)
    Primary Research may not be always needed

e) Hypothesis testing: experimental research (for establishing relationships)
   For survey/Description Research – Hypothesis test not required.

Report: 1 copy to college, 1 student copy and one for company if required.

General points kept in mind
− Size-50-60 pages (Indicative)-
− Hard Bound
− Font Size=12/14
− 1.5 line spacing.
− A4 Size Exe. Bond Paper.
− Font style Time/Arial.
− Foot notes- End of each chapter.
− References at the end of each chapter.
− Bibliography.
− Bar, Charts, Diagrams can be used

Hindu Law ( Notes )

Q. Discuss the sources of Hindu Law.

Hindu Law
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.

Application of Hindu Law
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.

  1. Hindu by Religion - A person who is Hindu, Jain, Bauddha, or Sikh by religion. In Shastri v Muldas SC AIR 1961, 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 Peerumal v Poonuswami AIR 1971, 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 Mohandas vs Dewaswan board AIR 1975, Kerala HC has held that a mere declaration and actions are enough for becoming a Hindu.
  2. Hindu by Birth - 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 Sapna vs State of kerala, Kerala HC,  the son of Hindu father and Christian mother was held to be a Christian.
  3. Persons who are not Muslim, Christian, Jew, or Parsee by religion.
  4. Persons who are not governed by any other religious law will be governed by Hindu Law.
Origins of Hindu Law
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.

Sources of Hindu Law
Sources of Hindu Law can be divided into two parts - Ancient and Modern.

1. Ancient Sources
Before the codification of Hindu Law, the ancient literature was the only source of the law. These sources can be divided into four categories:

A. Shruti
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.
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.

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.

B. Smruti
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).

Dharmasutras
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.
Some of the important sages whose dharmasutras are known are :  Gautama, Baudhayan, Apastamba, Harita, Vashistha, and Vishnu.
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.

Gautama - He belonged to Sam veda school and deals exclusively with legal and religious matter. He talks about inheritance, partition, and stridhan.

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.

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.

Vashistha - He was from North India and followed the Rigveda school. He recognized remarriage of virgin widows.


Dharmashastras
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

  • Aachara : This includes the theories of religious observances,
  • Vyavahar : This includes the civil law.
  • Prayaschitta : This deals with penance and expiation.
While early smrutis deal mainly with Aachara and Prayaschitta, later smrutis mainly dealt with Vyavahar. Out of may dharmashastras, three are most important.

Manusmriti
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.
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.
Manusmriti was composed in 200 BC.

There have been several commentaries on this smruti. The main ones are:  Kalluka's Manavarthmuktavali, Meghthithi's Manubhashya, and Govindraja's Manutika.

Yajnavalkya Smriti
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.
This was composed in around 0 BC.

Vijnaneshwar's commentary 'Mitakshara' on this smruti, is the most important legal treatise followed almost everywhere in India except in West Bengal and Orissa.

Narada Smriti
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.

This was composed in 200 AD.

C. Commentaries and Digest: 
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.
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.

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.

D. Customs
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:

  1. Local Customs - These are the customs that are followed in a given geographical area.  In the case of Subbane vs Nawab, 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.
  2. Family Customs - 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 Soorendranath vs Heeramonie and Bikal vs Manjura, Privy Council observed that customs followed by a family have long been recognized as Hindu law.
  3. Caste and Community Customs - 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.
  4. Guild Customs - These are the customs that are followed by traders.
Requirements for a valid custom

  1. 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.
    In the case of Rajothi vs Selliah, 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.
  2. 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. 
  3. 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.
  4. Reasonable: There must be some reasonableness and fairness in the custom. Though what is reasonable depends on the current time and social values.
  5. Not against morality: It should not be morally wrong or repugnant. For example, a custom to marry one's granddaughter has been held invalid.
    In the case of Chitty vs. Chitty 1894, 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 Gopikrishna vs. Mst Jagoo 1936 a custom that dissolves the marriage and permits a wife to remarry upon abandonment and desertion of husband was held to be not immoral.
  6. 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 Mathur vs Esa, a custom among dancing women permitting them to adopt one or more girls was held to be void because it was against public policy.
  7. 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 Prakash vs Parmeshwari, it was held that law mean statutory law.
Proof of Custom
The burden of proving a custom is on the person who alleges it. Usually, customs are proved by instances. In the case of Prakash vs Parmeshwari, it was held that one instance does not prove a custom. However, in the case of Ujagar vs Jeo, it was held that if a custom has been brought to notice of the court repeated, no further proof is required.
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.

Usage and Custom
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.

Modern Sources
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.

The following are the modern sources of Hindu law:

1. Equity, Justice, and Good conscience 
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'.
This principle has been followed by the privy council while deciding cases.

2. Precedent
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.

3. Legislation
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.
Also, most of the Hindu laws have now been codified as mentioned in the beginning.

Critical Comments
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.


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?

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.

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.

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:

Definition as per Section 4 of HMG 1956
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:

  • natural guardian
  • guardian appointed by the will of a natural guardian (testamentary guardian)
  • a guardian appointed or declared by court
  • a person empowered to act as such by the order of Court of Wards.
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.


Natural Guardian (Sec 6)

Section 6 of HMG Act 1956 defines only three natural guardians:

  • 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.
  • For an illegitimate boy or a girl, the mother, and after mother, the father.
  • For a married woman, the husband.
It further states that no person shall be entitled to be a natural guardian of a minor if

  • he ceases to be a Hindu or
  • he renounces the world completely by becoming a sanyasi.
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.

As per section 7, natural guardianship of an adopted son passes on to his adoptive father and after adoptive father, to adoptive mother.

Position of Father
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 Lalita vs. Ganga AIR 1973 Raj., a fathers right to guardianship is subordinate to the welfare of the child. In the case of Githa Hariharan vs RBI AIR 1999 SC 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.

Position of Mother
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 Sheela vs Soli, 1981 Bom HC, 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 Kumar vs Chethana AIR 2004, 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.

Position of Husband
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.

Powers of a natural guardian (Sec 8)
Section 8 of HMGA 1956 describes the powers of a natural guardian as follows:

  • 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.
  • The guardian cannot, without prior permission from the court,
    • mortgage, charge, or transfer the immovable property of the minor by way of sale, gift, exchange, or otherwise.
    • lease the immovable property for a term more than 5 years or where the lease ends one year after the minor attains majority.
  • Any sale of immovable property in violation of the above two points, is voidable at the insistence of the minor.
  • The court shall not give permission for sale of immovable property unless it is necessary or clearly in the benefit of the minor.
These powers also include the following

  • right in education
  • right to determine religion
  • right to custody
  • right to control movement
  • right to chastisement
In the case of Manik Chandra vs Ram Chandra AIR 1981 SC 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.

Custody of a minor
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.

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 Kumar vs Chethana AIR 2004, SC 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.
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 Poonam vs Krishanlal AIR 1989.
In the case of Re Madhab Chandra Saha 1997, a father was never active in the interest a minor and after a long time demanded the guardianship. His claim was rejected.
In the case of Chakki vs Ayyapan 1989, 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.

Power over minor's property
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 Hanuman Prasad vs Babooee Mukharjee 1856. 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.
In the case of Vishambhar vs Laxminarayana, 2001, SC 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.

In case, a minor repudiates an improper alienation made by the guardian, he is liable to return the consideration.

Liabilities of a guardian

  • Since the legal position of a guardian is fiduciary, he is personally liable for breach of trust.
  • he is not entitled to any compensation unless explicitly specified in a will.
  • A guardian cannot take possession of minor's properties adversely.
  • must manage the affairs prudently.
  • liable to render all accounts.
If the minor, after attaining majority, discharges the guardian or reaches a settlement of account, the guardian's liability comes to an end.

Rights of a guardian
A guardian has a right to

  • represent the minor in litigations.
  • get compensation for legal expenses from minor's property.
  • sue the minor after he attains majority to recover expenses.
  • refer matters to arbitration if it is in the best interest of the minor.
  • have exclusive possession of minor's property.
Removal of a guardian
Court has the power to remove any guardian in accordance to section 13.

  • ceases to be a Hindu.
  • becomes hermit or ascetic.
  • court can remove if it finds that it is not in the best interest of the child.
Testamentary Guardian (Sec 9)

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.
  • 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.
  • 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.
  • For an illegitimate child, the power of appointing a testamentary guardian lies only with the mother.
Powers 

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.
The rights of the guardian appointed by will cease upon the marriage of the girl.

Guardianship by Affinity
In Paras Nath vs State, Allahbad HC 1960, 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.

De Facto Guardian
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 (Ashwini Kr vs Fulkumari, Cal HC 1983), while some HC have held that both are voidable (Sriramulu' case 1949). 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.


Welfare of the minor is of paramount importance (Sec 13)

  • While appointing or declaring a guardian for a minor, the count shall take into account the welfare of the minor.
  • 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.
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.
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?

Historical Perspective
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.

Manusmriti 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.

Vashistha 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.

Sounaka 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.

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.

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.

Some important features of this act are:

  1. Adoption has been made a secular thing. There is no necessity of any religions ceremonies or other religious aspects.
  2. Both a man and a woman can adopt on their own right.
  3. Both a boy or a girl can be adopted.
  4. Orphans, out of cast children, or children in close relation, can also be adopted.
  5. Widow, widower, and bachelors can also adopt.
  6. In the case of Naidu vs Naidu AIR 1970, SC has held that the court need not look into the motives of adoption.

Requisites for Adoption
Section 6 of the HAM Act 1956 lays down the following 4 requirements

  1. The person who is adopting must have the capacity and the right to adopt.
  2. The person who is giving the child in adoption must have the capacity to give.
  3. The person who is being adopt must be eligible to be adopted.
  4. The adoption must satisfy all the rules given in this act.

Section 7 describes which Hindu Male is capable of adoption:

  1. Any Hindu male who has attained the age of majority and who is of sound mind can adopt.
  2. 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 Bhooloram vs Ramlal AIR 1989, MP HC 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.
  3. 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.
Section 8 describes which Hindu Female is capable of adoption:

  1. She must be a major and must not be mentally unsound.
  2. She is unmarried, is a widow or a divorcee. In the case of Vijayalakshamma vs B T Shankar, AIR 2001, SC has held that consent from a co-widow is not required because a widow can adopt on her own right.
  3. 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.
This is a big change from pre-act situation. Earlier, a woman had no right to adopt.

Section 9 describes who has the capacity to give a child in adoption

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. While granting permission, the court must see the welfare of the child and the wishes of the child depending on the child's age.
In the case of Dhanraj vs Suraj, 1981 SC 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.

Section 10 describes who is capable of being adopted

  1. The child must be a Hindu.
  2. The child must not have already been adopted.
  3. The child must be unmarried. However, if a custom to the contrary exists, such an adoption may take place.
  4. The child must be less than 15 yrs of age. However, if a custom to the contrary exists, such an adoption may take place.
There is no restriction on who can be adopted regarding Sapinda relationships. Even a daughter's son, or sister's son can be adopted.

Section 11 describes some other conditions for a valid adoption

  1. 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.
  2. If a female child is being adopted, the person who is adopting must not already have a daughter or son's daughter.
  3. If a male is adopting a female child, then their age difference must be greater than 21 yrs.
  4. If a female is adopting a male child, then their age difference must be greater than 21 yrs.
  5. Two persons cannot adopt the same child.
  6. 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.
In the case of Sandhya Supriya Kulkarni vs Union of India, AIR 1998, 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.

Effects of Adoption

Section 12
 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.
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.

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 Sawan Ram vs Kalawati AIR 1967, SC has held that the deceased father is sill considered the adoptive father.

Section 13 says that subject to any ante-adoption agreement, the adoptive parents do not lose their right of alienation of their property after adoption.

Section 14 describes the position of mothers in certain situations:

  1. When a male adopts with the consent of the wife, the wife becomes the adoptive mother.
  2. If a single adoptive father later marries, the wife of the adoptive father becomes the step mother.
  3. If a single adoptive mother later marries, the husband of the adoptive mother  becomes the step father.
  4. 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.
Section 15 says that a valid adoption cannot be canceled 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.

Section 16 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.

In the case of Pentakota Satyanarayana vs Pentakota Seetharatham AIR 2005 SC, 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.

Section 17 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.
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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?

Historical Perspective
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.
In Manusmriti, it has been said that wife, children, and old parents must be cared for even by doing a hundred misdeeds.

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.

Dependents based on personal obligation
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.

Section 18(1) 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.
In the case of Jayanti vs Alamelu, 1904 Madras HC held that the obligation to maintain one's wife is one's personal obligation and it exists independent of any property, personal or ancestral.

Section 20(1) 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.
In this case, a childless step-mother is also considered a parent.

Dependents based on obligation tied to property
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.

Section 21 specifies these relations of the deceased who must be supported by the person who receives the deceased property.

  1. father
  2. mother
  3. widow, so long as she does not remarry
  4. 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.
  5. 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.
  6. widowed daughter, if she is not getting enough maintenance from her husband's, children's, or father in law's estate.
  7. 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. 
  8. illegitimate son, until the age of majority
  9. illegitimate daughter, until she is married.
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.

Maintenance
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.

In the case of Ekradeshwari vs Homeshwar in 1929, 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.

How much maintenance
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).
Section 23(2) says that that while deciding the maintenance for wife, children, and aged or infirm parents, the courts will consider:

  1. the position and status of the parties.
  2. the reasonable wants of the claimants.
  3. If a claimant has a separate residence, is it really needed.
  4. the value of the estate and the income derived from it or claimant's own earning or any other source of income.
  5. the number of claimants.
Section 23(3) says that while determining the maintenance for all other dependents the courts shall consider the following points:

  1. the net value of the estate after paying all his debts.
  2. the provisions, if any, made in the will in favor of the claimants.
  3. the degree of the relationship between the two.
  4. the reasonable wants of the dependent.
  5. the past relations between the deceased and the claimants.
  6. claimant's own earnings or other sources of income.
  7. the number of dependents claiming under this act.
Discretion of Court
    In the case of Mutyala vs Mutyala 1962 AP HC held that amount of maintenance cannot be a matter of mathematical certainty.
Position and Status of parties
    In the case of  Kiran Bala vs Bankim 1967 Calcutta HC observed the living standard of the wife, and her reasonable wants in determining the maintenance amount.
Reasonable wants
    In the case of  Kiran Bala vs Bankim 1967 Calcutta HC 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.
    In the case of Krishna vs Daimati 1966 Orrisa HC held that when a minor child lives with the mother, the necessities of the child constitute reasonable demands of the mother.
Separate earning of the claimant
    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.
    In the case of Kulbhushan vs. Raj Kumari 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.
Arrears of Maintenance
    In the case of Raghunath vs Dwarkabai 1941 Bom HC held that right of maintenance is a recurring right and non-payment of maintenance prima facie constitutes proof of wrongful withholding.


Wife's right to separate residence without forfeiting the right to maintenance

Section 18(2) says that a wife can live separately and still claim maintenance from husband in the following situations.

  1. 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 Meera vs Sukumar 1994 Mad, it was held that willful neglect of the husband constitutes desertion.
  2. 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 ofRam Devi vs Raja Ram 1963 Allahbad, if the husband treats the wife with contempt, resents her presence and makes her feel unwanted, this is cruelty.
  3. If the husband is suffering from a virulent form of leprosy.
  4. If the husband has another wife living. In the case of Kalawati vs Ratan 1960 Allahbad, is has been held that it is not necessary that the second wife is living with the husband but only that she is alive.
  5. If the husband keeps a concubine or habitually resides with one. In the case of Rajathi vs Ganesan 1999 SC, it was held that keeping or living with a concubine are extreme forms of adultery.
  6. If the husband has ceased to be a Hindu by converting to another religion.
  7. For any other reasonable cause. In the case of Kesharbai vs Haribhan 1974 Mah, 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 Laxmi vs Maheshwar 1985 Orrisa, 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 Sobha vs Bhim 1975 Orrisa, mere drinking habit is not a sufficient cause for separate residence. 
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.
In the case of Dattu vs Tarabai 1985 Bombay, 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.
Concept of Marriage - Sacramental or Contractual?

Historical Perspective - Manu, ardhangini, marriage is an essential sanskara, man is incomplete without wife. Once performed, it cannot be dissolved.
Modern Perspective - Civil contract. Can be dissolved. Cannot force to live together. Equality of sexes. Can't be done without consent.
Why is it Sacramental?
Why is it Contractual?
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 Venkatacharyalu vs Rangacharyalu 1980, 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.
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.
Section 7 of HMA1955 requires that religious ceremonies are a must to complete a marriage. A marriage done without "saptapadi" is void.
In the case of Dr. A N Mukherji vs State 1969, a person could not be convicted of bigamy because he performed 3 marriages without doing necessary ceremonies.
Marriage is no more permanent since divorce is available by mutual consent.
Marriage is no more eternal since widow remarriage is permissible.
Even now bachelors are not eligible to perform several religious ceremonies. Only married couples are allowed. Thus, it still retains its sacramental property.
Marriage is no more holy because a marriage can be done without all the ceremonies such as vivah homam. Only saptapadi is required.
No-fault  divorce, as available in western countries, is not available in HMA 1955. Thus, breaking up of a marriage is very difficult.

Conclusion: It is has a unique blend of sacramental and contractual characteristics.

Essential conditions of a valid Hindu marriage. Is there a provision for punishment for violating the conditions?

Section 5

  1. Section 5 (1) Must not have a spouse alive.
    Kanwal Ram vs H. P. - Essential ceremonies are a must for committing the offence of second marriage.
    Priya vs Suresh - Mere admission by the parties is not enough. Proof of essential ceremonies is required.
  2. Section 5 (2) neither party is
    1. incapable of giving consent due to unsoundness of mind.
    2. though capable of giving consent, is unfit for marriage and procreation of children due to mental disorder.
      Alka vs Abhinash - MP HC held that "and" must be read as "or".
    3. suffers from recurrent attacks of insanity.
      Balakrishna vs Lalitha - "Incurable" is not a requirement. Only recurrent attacks, irrespective of whether curable or incurable, provided enough ground.
  3. Boy is over 21 and girl is over 18.
    Rabindra vs Sita - Marriage in contravention of this clause is, nevertheless, valid.
  4. parties are not within degrees of prohibited relationship.
  5. parties are not sapindas
Punishment
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.
Section 18(a): 15 days + 1000/- for contravention of 5(3)
Section 18(b) : 30 days + 1000/- for contravention of 5(4) and 5(5)

What is the difference between Void and Voidable marriage? What are the consequences of a Void marriage?

Void
Voidable
Defined by section 11
Defined by section 12
Grounds -
  1. Performed in contravention of 5(i), 5(iv), or 5(v)
  2. Ceremonies in section 7 not performed.
  3. In contravention of section 15 - Divorce not granted yet or time to appeal has not elapsed.
Grounds:
  1. Unable to consummate - Impotence (not same as incapacity to conceive or impregnate)
    Samar vs Snigdha - Full and complete penetration (vera copula) is an essential ingredient of ordinary intercourse though degree of satisfaction is immaterial.
    Kanthy vs Harry - Unduly large male organ amounts to physical abnormality and thus impotence.
    Laxmi vs Babulal - Absence of vagina, even though an artificial vagina was created, was held impotence.
    Jagdeesh vs Seela - 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.
    Shewanti vs. Bharua 1971 - 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.
  2. In contravention of 5(ii) - Mentally unsound. Alka vs Abhilash, Balakrishna vs Lalitha (see above)
  3. Consent obtained by force or fraud. 
Force - Rice vs Rice - threatened with pistol.
Fraud - Rama vs Mohinder 1996 - Did not tell that she had a child with cesarean.
Fraud - Purbi vs Basudev 1969 - Husband's pre-marriage boasting about high prospects in life is not fraud.
Fraud - Som Dutt vs Raj Kumar 1986 - Wife concealed her age. She was 7 yrs elder.
  1. Girl was pregnant by some other person
Mahendra vs Sushila 1965 -Girl's admission to pre-marriage pregnancy when husband had no access to her.
Marriage does not exist at all.
Marriage is fully valid until it is declared void by the court.
No consequences of marriage - right in property, conjugal rights, maintenance.
Full consequences while marriage lasts.
No decree of court is necessary. Decree can be obtained by either person.
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.
If someone calls the wife a concubine, it will not amount to defamation.
Decree is given retroactively.


Effects of a void marriage
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.
Spouses cannot claim any matrimonial reliefs.
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.
In the case of Sudarsan vs State 1988, 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.

Explain Judicial separation. What is the difference between Judicial Separation and Divorce? On what grounds can a decree of Judicial Separation be passed?
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.

Judicial Separation
Divorce
Section 10 - Marriage still exists therefore cannot do adultery etc.
Section 13 - Marriage ends. Can remarry  subject to sec 15.
Not obligatory for the petitioner to cohabit with the partner.
Cannot be undone.
Can be rescinded by petition of either party if court is satisfied.

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.

Section 13 (1) At fault Grounds

(i)
Adultery -  Voluntary intercourse with third person. Does not include rape.
Vira Reddy vs Kistamma 1969 - One single act of adultery is enough for divorce or judicial separation.
Burden of proof is on the petitioner. Earlier it had to be proved beyond doubt but now only high probability is required.
Sanjukta vs Laxmi 1981 - Circumstantial evidence is sufficient.
Cruelty
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.

Definition
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 Dastane vs Dastane 1970 Bom, it was held that cruelty could be through words, gestures, or even by mere silence.
A general explanation of cruelty can be found in the case of Russel vs Russel 1897, 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.
Earlier, the petitioner had to show that the act of the respondent caused reasonable apprehension of danger. Thus, in the case of Sayal vs Sarla 1961 Punjab, 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 GVN Kameshwara Rao vs G Jalili 2002, 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.

Intention to be cruel is not material
Earlier intention was necessary but now it is not so. In the case of Jamieson vs Jamieson 1952, House of Lords observed that unintentional acts may also amount to cruelty. InWilliams vs Williams 1963 Allahbad, 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.
Thus, in the case of Bhagwat vs Bhagwat 1976 Bom, 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.

Cruelty need not only be against the petitioner
In Bhagwat vs Bhagwat, cruelty against his step daughter was held as cruelty against wife.

The act or omission need not only be of the respondent
Since most women have to live in husband's joint family, they have to put up with their actions also. In the case of Shyam Sundar vs Santa Devi 1962, the wife was ill treated by the in-laws and husband stood their idly without caring for wife. This was held as cruelty.
However, in the case of Gopal vs Mithilesh 1979 Allahbad, 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.

Cruelty of Child
Generally, cruelty by child towards one parent does not amount to cruelty. However, in the case of Savitri vs Mulchand 1987 Delhi, 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.

Types of cruelty - Physical and Mental

Physical Cruelty
Injury to body, limb, or health, or apprehension of the same. In the case of Kaushalya vs Wisakhiram 1961 Punj, 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.

Mental Cruelty
In Bhagat vs Bhagat 1994 SC 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.

In the case of N Sreepadchanda vs Vasantha 1970 Mysore, 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.

In Saptami vs Jagdish 1970 Calcutta, false accusations of adultery were held to be mental cruelty.

Yashodabai vs Krishnamurthi 1992 - Mere domestic quarrels with mother in law is not cruelty.

Shobha vs Madhukar 1988 SC - Constant demand for dowry is cruelty.

In the case of Jyotishchandra vs Meera 1970, husband was not interested in wife, he was cold, indifferent, sexually abnormal and perverse. It was physical as well as mental cruelty.


Desertion

3 Types - Actual Desertion, Constructive Desertion, Willful neglect.

Actual Desertion - factum of desertion, animus deserdendi, Without reasonable cause, without consent, 2 yrs must have passed.

Lachman vs Meena - 1964 - 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.
Jagannath vs Krishna  - Wife became brahma kumari and refused to perform marital obligations. Held desertion.
Bipinchandra vs Prabhavati SC 1957 - 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.
Sunil Kumar vs Usha 1994 - Wife left due to unpalatable atmosphere of torture in husband's house. Held not desertion.

Constructive Desertion - If a spouse creates an environment that forces the other spouse to leave, the spouse who created such an environment is considered deserter.
Jyotishchandra vs Meera 1970 -  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.

willful Neglect - If a spouse intentionally neglects the other spouse without physically deserting, it is still desertion.
Balihar vs Dhir Das 1979 - Refusing to perform basic marital obligations such as denial of company or intercourse or denial to provide maintenance is willful neglect.

Reasonable Cause
1. If there is a ground for matrimonial relief. ( ground for void, voidable marriage or grounds for maintenance under sec 18 of HAMA).
2. If spouse is guilty of a matrimonial misconduct that is not enough for matrimonial relief but still weighty and grave.
3. If a spouse is guilty of an act, omission, or conduct due to which it is not possible to live with that spouse.
Chandra vs Saroj 1975 - Forcing a brahmin wife to eat meat.

Without Consent
Bhagwati vs Sadhu Ram 1961 - Wife was living separately under a maintenance agreement. Held not desertion.

Other Grounds

Section 13 (ii) : ceased to be a Hindu.

Section 13 (iii) unsound mind. - includes mental disorders such a incomplete development of brain or psychopathic disorder or schizophrenia
Section 13 (iv) virulent and and incurable Leprosy
Section 13 (v) communicable venereal disease
Section 13 (vi)  renounced the world
Section 13 (vii)  presumed dead - not heard of in 7 years.

Section 13 (1-A) Breakdown Theory
(i) no cohabitation for 1 yr after passing the decree of judicial separation.
(ii) no cohabitation for 1 yr after passing the decree of restitution of conjugal rights.
Effected by provisions in section 23.

Section 13(2) Additional grounds for wife
(i) Another wife of the husband is alive.
(ii) Rape, Sodomy, Bestiality.
(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.
(iv) If wife was under 15 at the time of marriage and if she repudiates the marriage before 18.

Section 13-A Alternate relief in divorce proceedings - If the judge feels that sufficient grounds do not exist for divorce, he can grant judicial separation.

Section 13-B Divorce by mutual consent