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How Do You Shift the Registered Office of Your Company to a Different State

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The article is written by Shreyak Patnaik, a third-year student studying in Symbiosis Law School, Hyderabad. This article deals with the procedure of shifting a registered office of a company from one state to another.

Introduction 

If you’re a company registered under the Companies Act, 1956 (which you should be in order to get all the legal benefits of a company under the laws of this country), then you inevitably have a registered office. Its address is in all your letterheads, your emails, and it’s responsible for receiving and acknowledging all the communication that is directed to your company. Legally speaking, it is the face of your company. Now, at the start of your business, you might have registered an office in a certain state since, at the start, the scope of business was limited, you had no problem having a registered company at the place where you are currently registered. But, the times have changed, the business has expanded, you’re a public company now. You need to change your registered office. 

There’s a very stringent procedure, set in stone, a stone by the name of the Companies Act, 1956. 

This article will basically try to simplify the legal jargon of the act and tell you essentially all the things you have to do to change the registered office of your company to another state. 

What is Required Before Approaching the Authority?

First and foremost, it will be extremely beneficial for you to have an account at the official site of the ministry of corporate affairs. Why will it be beneficial? 

This being the 21st century, you do not need to physically go to the relevant authority’s offices with all your documents. You can just upload the required documents onto the site. An advantage of that will be everything of importance will be automatically uploaded and all the extra work you might have to do will automatically be done. So for example, you don’t have to attach a copy of the acknowledgement of payment for submitting the form, the moment you upload the e-form, you will automatically be directed to the payment portal. You also don’t have to go to the registrar’s office to collect your fresh certificate of incorporation as it will be automatically uploaded to your workspace in your account.

Second, it is mandated by law that the decision to change the place of registered office outside the limits of the current state must be done with a special resolution of the company. So before starting the official process of seeking the government’s approval, your company must have convened a general meeting, accepted the resolution of shifting the registered office and must have filed the resolution with the registrar at least a month prior to approaching the Central Government.

Next, you need a list of all creditors and debenture holders of the company along with their names, address and the claims they have from the company. The list needs to be updated and has to be signed by the company secretary and no less than two directors (one of whom is a Managing Director, if you have any), stating that the list has the names of all creditors and debenture holders and the amount owed to each of them are accurate to the best of their knowledge. This ensures that anyone who wants to leave the company can raise an objection and try to reach a middle ground with the company, or be allowed to leave the company with whatever he is entitled to. 

These are just the documents you have to prepare from your side before you approach the authority, the complete list of documents required will be mentioned below in the procedure of shifting the registered office. 

Who Administers the Procedure for Shifting of the Registered Office?

The authorities involved in this entire process are the Central Government. The registrar of the state where you want to shift your office and the registrar of the state you want to shift your office from. 

Central Government/Regional Directors

Your communication with the Central Government will be through the Regional Directors, they have the delegated powers of the Central Government in these situations and the approval of the Central Government which you require is essentially their approval. There are seven regional directors in the country, the offices of all regional directors are mentioned here, remember you’d be addressing your forms to the regional director of the region your current registered office is situated at.

Registrar of Companies 

As mentioned before, you are to concern yourself with two registrars of companies, one being the registrar of the state you are leaving and one being the registrar of the state to which your office is shifting. The registrar of the state you are shifting to will issue you a fresh certificate of incorporation with the amendments to the address of your newly shifted registered company. 

The addresses of all registrars of all states are mentioned here.

Can the procedure be done without representation?

No, some kind of representation will be necessary. The importance of representation can’t be understated since it is the administrative authority with whom you’d be dealing with.

You would either need a board resolution, a vakalatnama or give the power of attorney to one agent (It essentially means they’d be representing you) and upload the relevant document in one of the forms. So might as well get yourself a lawyer who’ll understand what to do. 

But you do have the option of just going ahead with a board resolution. 

Will a private company and public company require different procedures? 

No, Private companies, Public companies and one-man companies are all governed by the provisions of the Companies Act and, therefore, all are subject to the same procedure mentioned in the Act. What might be different is the nuances of each procedure, for example, a listed public company will have much more shareholders and debenture holders to list compared to a private company. A private company with more than two members will require a lot more votes to pass the special resolution compared to a one-man company with just a single member. But all three require the Central Government’s approval and have to send notifications to both the registrars of companies involved.  

What are the Steps to Complete the Entire Shifting of the Registered Office?

Before you start anything, be sure that your office isn’t facing any pending investigation or inquiry regarding any matter before any court of law; the shifting of the registered office can be denied on the ground of any pending investigation of the company.  

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Before you start any of the processes required to initiate the process of shifting, you must first have a successful special resolution passed from your company. It is mandatory for a notice to be issued to every member either in physical or electronic form. So you must have a copy of the notice with all the statements (as required under section 102 of the Act) explaining the resolution to be a special resolution and with the relevant statements mentioning that the subject of shifting of the registered office is to be raised in the meeting along with you; you must also have a copy of the minutes of the meeting called wherein the question of shifting of the office is raised. The number of the members present and the shares owned by each member must be mentioned in the minutes. It must also be mentioned that the number of members who vote in favour of the resolution and the number of members who vote against the resolution. For a special resolution to pass, the number of voters voting for the resolution must be three times more than the number of voters voting against the resolution. Once passed, it must also be formalised by filing the resolution with the registrar of companies of the state your registered office is currently in. 

You require an MGT-14 Form to file the resolution at the registrar. This form must be filled and filed within 30 days of passing the special resolution. Along with the form you are also required to upload a copy of the altered memorandum of association and an altered article of association. This is the first step which formalises your company’s resolute to alter the location of your registered office. 

(Link for the directory containing all the relevant forms, is provided at the end of the article)

The next step after this is to:

  1. a) advertise your company’s intention to change the location of your registered office. 
  2. b) serve, through registered post, with acknowledgement due, a notice to each creditor and debenture holder regarding the intention of the company to change the location of the registered office. They must also be informed that in case of any objection, they must send their grounds of opposition along with their interest in the company to the Regional Director. They must also send a copy of it to the company. It must also be stated to them to send their objections within 21 days of publication of that notice.

The above-mentioned procedures must be completed at least 14 days before the date of hearing by the Regional Director/Central Government. But do realise, the Central Government has 60 days to dispose of your application and therefore they can conduct the hearing at any point so it’d be a good thumb rule to be done with the first two steps 15 days before you file your application.

The advertisement must be published once in English and once in the principal language of the district in which the registered office exists. The advertisement must be in the format shown here

Once you’ve done the previous steps, you must now file an application to the regional director to approve and allow your company to shift its registered office to another state. 

The application for Central Government’s approval regarding the shift is in Form no. INC-23. You would require to upload other documents along with it. Those documents are: 

  1. A copy of the memorandum and articles of association with the proposed amendments to the location of registered office. 
  2. A copy of the notice sent to the members, convening the general meeting in which the topic of change of location of the registered office was raised.
  3. A copy of the minutes of the meeting in which the resolution authorizing the alteration was passed. Details of the number of voters, voters voting for the alteration and voters voting against the alteration must be mentioned in the minutes (It must also be filled in the form). 
  4. A list of creditors and debenture holders entitled to object to the application.
  5. An affidavit verifying the list. The list must be signed by a Company Secretary (If there is any) and two directors (One of whom must be a Managing Director, if any) stating that the list of creditors and debenture holders is complete and all the amounts to which they are entitled to be accurate to the best of their knowledge.
  6. The document relating to the payment of application fee (This wouldn’t be needed if you upload your forms online since the moment you upload your e-form, the portal will automatically take you to the payment portal and will be recorded on the site).
  7. A copy of the Board Resolution, or the Power of Attorney or an Executed Vakalatnama as the case may be.

Some things to keep in mind while filing INC-23

  • If any of the objections by the creditors and debenture holder are received by the company, it shall serve a copy thereof to the Central Government. You can re-submit your form by attaching all the objection you received from it. 
  • Your MGT-14 which is the form through which you file your special resolution to the registrar will be required in this form so make sure you have filed your form at least a month prior to you filing the INC-23. 
  • The Central Government legally can take at most 60 days to come back to you with a confirmation or rejection. 
  • You must also have an affidavit signed by the directors stating that no employee will be retrenched as a result of this shift in the location of the office. This affidavit will need to be uploaded in the form too.
  • As a company, you have an identifier number, your CIN, you would need that number as its mandatory to fill it in the form. Once you fill in your CIN number, every other particular about the company can be filled from the directory itself. Just chose the pre-fill option once you type in your CIN.
  • Along with the application, you also need a signed affidavit, verifying the application as well. 
  • Whoever is digitally signing the form must be correctly designated in the form, if its a director then the DIN must be mentioned and if its a company secretary then the membership number must be mentioned.

Once you have submitted the form, you would be directed to the payment portal where you’ll pay the required fee. The Central Government will peruse your submission and wait for any objection that might be raised. If no objections are raised, the director might directly give the order of approval without holding a hearing. But in case any objections are raised, a hearing will be held where both the parties will put forth their arguments and the director will try to bring the objecting party to some sort of agreement. If the party doesn’t agree, then the claims they are entitled will be paid to them and they will be allowed to leave the company. 

Within 60 days (at the very most) the Central Government will give an order approving (if all requirements are met, and there is no pending investigation against the company) the shifting of the registered office.

Once the order is received, the company must now file a copy of the order of approval by the director in both the registrars of company, i.e the registrar of the state the office was originally situated at and the registrar of the state the registered office is shifting to. 

The form which has to be filled in that case is Form No: INC-28. The only mandatory upload in this form is a copy of the order by the Central Government, approving the shifting of the company. The form must be filed with both the registrars, one of the registrars will record you leaving and the other registrar will issue you your fresh certificate of incorporation with the amended location of the registered company.

Things to keep in mind while filing INC-28

  • Have your CIN Number ready. 
  • The one passing the order in this situation would be the Central Government (You’d need to fill that).
  • You need to file the form within 30 days of receiving the order from the Central Government (You will need to fill that in the form too.)
  • The section under which order would be passed in this case would be Section 13(7) of The Companies Act, 2013, (You will need to select the section from a drop-down box)
  • Have the SRN of your INC-23 with you (It’s not necessary per se, but to be on the safe side.)

After filing the copy of the order at both the ROCs, you must also notify the registrar of the state you are moving through about the change of your registered office. For that purpose, you must file the form INC-22. So this form acts as a notification to the registrar regarding the change of your office. 

Relevant documents for INC-22 

  • If the premise is purchased, then you need to upload a copy of the proof of address. It can be a lease, or conveyance or a rent agreement. 
  • You need to also upload a copy of the utility bills. The bills must not be older than two months. 
  • If the property is owned by an entity or person other than the company, then a proof of permission granted to the company for the usage of the land must also be uploaded. 

And that’s it! You’re done with the administrative process. Do remember to change the address in all your emails, letterheads, notices, business letters and official publications. That may not be administrative, but it sure is legally mandatory pursuant to section 12 of the Companies Act, 2013.

The Registrar of the state to whom you have shifted your office will upload your fresh certificate of incorporation on the portal itself.

There is one single official directory where you can find all the forms mentioned in the article. Click here to visit the directory. Once in the directory, just press ctrl+F and search the form (For example: to find INC-23, just search “INC-23”, in the search box which will open up) and download it. 

You need to have Adobe Acrobat 11 or later and Java version 8 or later downloaded to be able to fill in the e-forms and successfully upload them on the site.

You can get adobe here

You can get Java here 


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The post How Do You Shift the Registered Office of Your Company to a Different State appeared first on iPleaders.


Coping with Depression as a Lawyer

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 This article is written by Ramanuj Mukherjee, CEO, LawSikho.

Stress, anxiety and depression are not uncommon in a lawyer’s life. According to a survey conducted in the USA by John Hopkins University in the 1990s, lawyers are 3.6 times more prone to depression than other people. India is the country with maximum depression in the world according to recent reports. I know a few things about that.

I have been working as a lawyer since 2012 and have been fighting depression for quite some years now.  

My lived experience tells me that depression is not uncommon in the legal sector of India. When I talk about it, people around me opens up and confides in me about their troubles. After all, being a lawyer is a demanding job. The profession has its own host of factors that causes stresses and strains. 

You have to deal with clients, senior attorneys, other advocates, judges, mediators, receivers, clerks, notaries and the police. You need to interact with professional personnel from other industries such as accountants and IP specialists. All in all, it is essential for a lawyer to meet and deal with a lot of people – each with their own sets of demands and requirements. 

You have to meet their demands and take care of their interests to succeed and shine.

It is not only the stress and strain involved in your work as a lawyer, but also the ruthlessly competitive market, coupled with the economic downturn that much of the world is witnessing today, that makes the situation worse. 

You work 10-12 hours a day, six days a week. Even on Sundays you have meetings to attend. You get very little time to look after your own self – to take care of your mind and body. And yet, after all these, especially if you are a young lawyer trying to find your feet in the profession, you may end up getting a pittance in return of all your sweat, toil and burning the midnight oil. That’s the experience of the vast majority of young lawyers anyway.

There are a few who get paid well at law firms and senior’s chambers, but they have their share of different problems, like office politics or preferential treatment or inhumane work pressure.

Add a sprinkling of negotiations that go horribly wrong, client meetings that take unexpected turns, cutthroat competitors undercutting your rates, client’s who disappear without paying bills, judges who are unkind or unscrupulous, or just difficult matters in court where the chances of getting favourable orders are next to nil (remember, as a young lawyer, you often find yourself in a situation where you have very little choice to say no to a case even when defeat in the courtroom is staring at your face), and a few unreasonable clients, and the putridish of near-hopelessness is complete. All these are bound to have a toll on your mind, as it did, and still does, on mine.  

Remember, being a lawyer is such a profession where work-related stress is unavoidable. 

So, how do you deal with that? What are the ways and means through which you can keep yourself fortified? 

My own struggles with depression as a lawyer have taught me some things and I am still learning. Here, I share with you my learnings around managing stress and anxiety so as to keep depression at bay and retain productivity as a lawyer.

1. Stop Lying to Yourself 

The first thing my shrink told me was to stop lying to myself. 

This made me introspect. I asked myself the following questions:

  • What are the things that are holding me back?
  • Do I think my responses to stuff around me are reasonable?
  • Do I even like the person who I am?
  • Where do I stand in life at this point?
  • What difficulties confront me today?
  • What steps can I take to overcome the same? 

You will be surprised at how lucid the steps will seem once you answer all the previous questions with ruthless honesty.

More often than not, what stands between you and your honesty is your ego. This is not your fault. It is a sense ingrained in you through millenniums of human conditioning. Our civilization, culture and history has made us so. 

It does not take an especially narcissistic person to think ‘I am always right!’. In heart of hearts, this conflated ego works against us. It makes us blind to the immediate realities. At times it turns us into rabbits in headlights. At other times, it makes us look at the world with rose tinted glasses and think that everything is alright. 

Even in ancient India, the Abhidhamma Sutta of the Buddhists was developed as a school of psychology when these problems were felt and engaged with. 

Modern-day practitioners of mental health have developed tools that help us get out of this shell of delusions. This whole thing can be regarded as a ‘perspective building exercise’. All you need is to go deep and broad inside your conscious mind. Think. 

What if you did this?

Can you believe that one way to become truly powerful is to dismantle the person you have become?

Practice thinking about your own self in a structured manner, with an intention to discover your own bullshit. 

You need to find and neutralize the traps you have laid for yourself. 

You need to diffuse the triggers you have set up inside your head. 

The way to do that is to discover the truth by looking at things you have trained yourself to not look at. The way is to examine your pain and discomfort, stuff that you resist even thinking about.

You have to question your own assumptions and deeply held beliefs and value systems you grew up with. That is the way that may lead you to freedom and peace.

Once you have discovered and mapped out your demons, the next step is to plan out how you will take them by their horns. Remember, your own mind is one of the most wonderful teachers that you will ever have. Make good use of it.

However, it would often be prudent to find another trained person or a coach to take you through that journey.

2. Do one thing at a time

This sage advice was given to me by a highly successful technology professional who is also a writer par excellence.

This got me thinking. Yes, we can poach an egg and talk to mom on the phone at the same time. But it is impossible, as per my experience, to do legal research for one case and draft the other reply to notice at the same time. 

So, for things that require more mental energy, cognitive resources and will power, it is common sense to do one thing at a time, and to do that with unwavering focus. 

This holds especially true for lawyers, corporate personnel and other multitasking professionals. 

If there are multiple things to be done in the course of your job, then divide the day into multiple parts. 

Assign each part to each of the many specific tasks. This method is called ‘chunking’. 

Forget doing two or three things together, because writing a draft and consulting clients is different from making a sandwich and talking to a friend. The latter, unlike the former, can be done. 

Even if you are able to multi-task, please don’t. Make it a habit to ruthlessly focus at one thing at a time. Focus on your work at hand as if nothing else exists in the world. There will be fleeting thoughts in your head about other things that appear pressing. Ignore everything. Let all thoughts pass. You will do nothing else until what you have set out to do is done. 

This is the most valuable habit you can ever create, which will not only protect you from depression, but create the greatest work ethics.

This is something we tend to lose track of in entirety while struggling to find our feet as a lawyer. Every workday is loaded with n number of tasks – some tough, some easy and some intermediate. All these tasks need to be done. 

When tasks pile up, you get bogged down. When you get bogged down, even the simplest tasks start feeling difficult to accomplish. This is exactly what leads to stress, anxiety and depression – which often come hand in hand like the three witches of Macbeth.

That cannot happen when you have created a habit of not thinking of anything else while working on one thing. When you start saying no to everything else when you are doing one thing, some people may scream for your attention initially, but you will soon be able to train people to let you do one thing at a time. You will also be able to train yourself to create and follow a schedule. 

It is imperative for a lawyer who wants to avoid anxiety to maintain a planner or a diary. 

It can be done electronically or in the good old method of maintaining a diary and a calendar. 

One missed hearing, meeting or deadline can leave a serious dent on your career and your confidence. Once you have mapped and planned it all or as much of it as is feasible, you can take on one bull at a time – though it is advisable to not think of work as a bull or a necessary evil. 

Instead, look at your tasks as a series of professional commitments which you must do – one by one.    

Do not keep things in your head. Get it out on a piece of paper, or set an alarm. The less your burden your brain with, the better you will perform and the less anxiety you will face.

3. Stop being a perfectionist 

A Swedish Mathematician named Gödel had established that no algorithm can be completely foolproof. This applies to life as much as it does to mathematics. You do a thing well because you do it to the best of your ability. That’s the only simple trick for success – performing the tasks at hand to the best of one’s capacity and give yourself elbow room for error.

If you can’t forgive yourself for mistakes you make every day, stress, anxiety and depression are inevitable. However, those won’t be your only problems. If you cannot allow yourself to make mistakes, you will not move fast enough in your career, you will not grow, and you will at best be an average professional.

How come?

That is because those who are willing to make mistakes are the ones who come forward and take risk, engage in innovation and experiments, get out of their comfort zone and pick up fights where they may even lose. No loss is permanent. But the fear of making a mistake cripples us, prevents us from doing anything worthwhile and keeps us ordinary.

It also gives us tremendous anxiety.

If you are not willing to make mistakes, the guy next to you who is willing to learn by making mistakes will speed past you and you will be left wondering what was missing in you that someone remarkably less talented is doing better than you.

Imagine that I am ready to make mistakes and lose, and I take 100 chances. I may win 50% of the time. Let’s say that you are very cautious and play only 10 times and win 100% of the times. Chances are high that I will still be better off, despite losing 50 times as I have played way more times than you. 

You may not lose even once, and still be worse off. People who are afraid of losing, afraid of making mistakes, afraid of hearing a no – usually do not go very far in life, but are saddled with anxiety. 

If you are a stickler for perfection, you will fall apart each time something you do turns out to be imperfect by your definitions, standards and judgments.

This has the potential to devastate your mental peace. So, instead of being a perfectionist, strive for constant betterment. 

Law is a highly subjective discipline. There is always room for improvement. There can always be a better order from the judge or a better deal from the client. Thus, instead of striving for the unattainable perfect order or perfect deal which does not exist in real life, strive for constant improvement. 

There is only one relevant question, and it is not am I good enough. It is not what if I screw this. It is not am I better than the rest in this race. The right question is how do I increase my chances of winning this time by even a tiny bit more? What can I do to increase my odds of winning? Is there any action left that I can take to improve my chances? What would it take to get better, even by a tiny bit?

For example, after you have drafted a petition, ask yourself: “how can I make this a better draft?” or “is there anything I can do to make the client be really happy about this?” After drafting a contract, ask yourself: “have I covered all the points, or are there any loopholes left?” Ask yourself “could I still do one more thing that would help my client to achieve his objective, or add a little more value that he will appreciate?” 

Remember, you have to go one notch higher, not the best possible one that has ever been drafted by humankind. You can only take things to the next level, one at a time, and it is incredibly satisfying to do so. 

Accept that you are a work in progress. Aim for getting better by the day, but don’t beat yourself up over not being the perfect one already.

This approach will help you improve your functions within your profession and fortify your mental health against severe breakdowns.     

4. Accept that everything is not in your control  

The observable universe is 93 billion light-years in diameter. It is so big that we cannot imagine that scale. 

There are between 1078 to 1082 atoms in the known, observable universe. These are so many that our senses cannot grasp. 

In this grand scale of things, compare how you, your known surroundings – your body, your home, your law school, your courtroom, your law chamber or your office fare. Doesn’t it all seem like a tiny speck of dust?   

In this speck of dust, you are a lawyer. 

Sadly, the legal education system and the professional world of a lawyer are highly competitive spaces. They charge and drive us to take control. 

This applies to our studies. This applies to the courtroom where we wish to defeat the opposition lawyer from within the adversarial system of justice administration. This also applies to the client meet where the amount of control you exercise determines your quantum of remuneration. 

The element of control is most prominently present in the professional life of a litigating lawyer. The one who controls the pace and flow of the proceedings is usually the one who gets a favourable order from the court. 

It is no different for a law firm lawyer or in-house counsel as per my understanding. Even they have to keep a semblance of control despite things running towards utter chaos all the time. They try to build systems, control mechanisms and processes to achieve that, and even those things fall apart or fail frequently.

Notice how many times I used the word ‘control’ in the previous paragraphs? It is unavoidable to avoid this strife for control if you want to make something out of yourself as a lawyer. That is why it is absolutely necessary to learn, to know – when to let go. 

It is crucial to internalize this simple, timeless truth that there are not many things in this world that are in our control. It is no different with our work. For everything we may even manage to control at a time, there are 10 others we have no control over.

We can only influence, strive and make our moves with all we have.

Imagine a game of football. Can you control it? Can you control how every player in your team moves and reacts and behaves? Not a chance. However, you can play the game. You can respond to every situation. You have to give up your desire to control to be able to play the game. Your sphere of influence and control does exist, but it is rather tiny, and you do what you can do with it. You do not worry about everything else that is absolutely, utterly outside your control. 

You play. You do not try to control. You know that you will not win the game alone, there are other players involved. There is a referee. There are coaches, managers, climate, field conditions, linesmen and what not.  You can only strive to perform your best in the midst of all these uncertainties. 

And you will sometimes, sometimes, have your moment of glory.

And that’s how you must practice law.

The sooner you realize this, the more secure you get from mental breakdowns. A person who is a ‘control freak’ feels shattered when the reins slip away from his hands, which happens inevitably. Avoid being that person.    

5. Take a Break, smell the roses, develop a self-care routine 

Pilgrimages and healing springs have existed since millennia for a reason.

You must give your mind some breathing space. This is especially true since your profession as a lawyer takes a toll on your health on a regular basis. 

It is important to take regular vacations. Of course, especially for young lawyers, it is not always possible to take off any time they choose to. Herein comes, once again, the need for planning meticulously and thinking ahead. 

Like you plan your work, you need to plan your fun-time – a time away from work – preferably away from email, phone, messages and Whatsapp. Once you cleanse your mind and focus on things other than your work for some time – you are bound to become a better thinker and a better lawyer.

The vacation is as important to your career as is the time you spend in your work. If you do not take a break, you are highly unlikely to become a burnt-out, bitter, irritable lawyer a la uncle Scrooge.

A corollary to this is that you must not worry about going to your office on weekends and office holidays when you have to as long as you are clear about why you are doing so and how you will manage to take a break in the foreseeable future. 

Taking every weekend off is not practically feasible all the time – especially if you are a young and struggling lawyer. However, you must have a clear way to deal with that situation. You must compensate for that lack of breaks. It could be through meditation or an altered diet. It could be through therapy sessions or finding some way to take a break during work days.

However, you cannot ignore the need of a break until you crash and burn. This, unfortunately, is exactly what many young professionals do.

You also need to develop a self care routine that works for you and addresses your mental hygiene. Most people simply ignore their mental health until they have serious depression and find it impossible to keep going any more! This is avoidable with a self care routine.

This is especially true in a country like ours. Here mental health concerns are not taken seriously by many employers but what is crazy is that even employees are relatively unconcerned about their own mental health. Moreover, out here, employment rules are honoured mostly through their breach.

Self care could be in form of engaging with a therapist, career coach, journaling, meditation, yoga, hitting the gym, and other conscious efforts to ease the creases of your mind.

Nonetheless, your mind is your mind, and it is crucial for you to guard it against all odds and oddities. If you can’t take a break, that is an alarming situation and you need methods to address that anxiety and stress before it becomes unmanageable.    

6. Happiness, bliss and fulfillment don’t have to wait for money

This is often very paradoxical. We live in an age that is driven by consumerism – which, in turn, is driven by capital. 

All relationships, as your Marxist uncle would nod when you say this, have an economic basis. 

Even the happiness you feel may get determined by the caviar you nibble at while sipping on to your single malt scotch whiskey. Thereby comes this mad urge to earn more money – so that you may not merely pay your bills but also buy the materials that make you happy.

Lawyers are particularly vulnerable to this. This is because we get very little time for ourselves to enjoy after our tedious and mentally taxing professional commitments. So we think of buying the best things and earning a lot of money to lead a so called good life and make the most of whatever little time we get for ourselves. This is exactly where you need to take a step back and think. 

You may also look around and think of the people whom you think are the happiest. 

It is time to ask yourself the question: ‘are they happy because they are rich?’ 

You will be surprised by the answer that your own rational mind gives – ‘not necessarily’. 

Different people find happiness in different things – some in pursuing their passion, others in cuddling with their pets, even others in chatting with their friends, while some in holding the hands of their beloved ones – in one, more and all of these.

Yes, some people also find happiness is doing their work because they see it as passion, craft or art.

So, do not confuse between money and happiness. It is great to earn lots of money, but you do not have to wait to earn before you can be happy. 

This is a major reason that people get anxiety and depression. Chasing happiness makes any human being miserable. Especially when you put a condition to your happiness – I am only going to be happy when I buy that Ferrari! I am only going to be happy when I finally make partner. I am going to be happy when I become a senior counsel!

Please do not do that to yourself. Happiness if a place to come from, not a place to go to. You can never reach happiness by chasing it, just like you cannot catch your shadow. 

You can practice being happy no matter what else is happening, and it is a great shield against any depression.

Do not conflate money, success, achievement with happiness or fulfillment. Because when you are happy and you need nothing external to achieve that state of happiness or bliss, you are way more likely to get where you want to get.     

When you are fulfilled by looking back in gratitude at the blessings you already have in life, you become a force of nature. Remember, depression cannot coexist with gratitude.

7. Your physical health is key to your mental health 

Okay, this is something that old grannies say. But old grannies, having been wizened by ripe life, are mostly right. 

In the second century AD, Roman poet Juvenal had written this line – mens sana in corpore sano. It means ‘a healthy mind is a healthy body’. 

The need to keep oneself free from afflictions was given primacy by our ancient ancestors too. Wellbeing has been crucial to us since the dawn of history. You need to pay heed to this wisdom from the continuous collective of humankind.   

Work or other people do not impact your health. Your lack of care and attention to your own health is the real culprit. Only reason other people, or work makes a dent on your physical mental health is because you tacitly or passively allow such things to happen. 

Do you go for regular and detailed health check ups? Have you educated yourself enough about your health? For example, when did you last check your vitamin B12 or D3 levels? Do you educate yourself about supplements and interventions that can make your physical and mental health better? Do you know if you consume enough dietary fibres? What do you do to build and maintain strong immunity? Do you know your own body composition, health of bones and body fat percentage? Have you read any books on health or subscribed to any online channels that educate you about the latest information from health sciences?

If you don’t, you are not caring about your health enough, and that is almost inevitably leading to a difficult mental health situation too.

Most lawyers never bother to check or learn enough about their own health, or even measure or track the same, leading to disasters. Many of us have made mistakes and then learnt how to take care of our health. Either way, the earlier you learn, the better.

There is no having a bright, shining, cloud-free mind without having a body that is taken care of. And what else can a lawyer strive more for?

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8. Share with trusted friends 

In the USA, there is a platform for depressed lawyers to come together and share their difficulties with each other, to give and take advice. It is called the Lawyer’s Depression Project

Legal professionals and law students with diagnosed mental health conditions come together and participate in this platform. If the testimonials are something to go by, it has proved immensely beneficial to many of them.

Unfortunately, in India, we do not have any such platform. 

Nonetheless, it is crucial to build an informal structure – a safe space where you can confide – in these regards. Never feel shy to ask for help. Had Stalin, Churchill and Roosevelt not asked for each other’s help in the last century, Fascism would have ruled roost over Europe for many more years to come. 

We all need help at times. It can come from a trusted peer – a friend or a group of friends, some fellow professionals who are suffering from the same or similar problems like you do, even from a family member or your loved one. 

You need to create a safe space for yourself and your mind. 

A space where you can share your innermost thoughts, fears, anxieties and vulnerabilities without being taken advantage of can be an immensely beneficial undertaking. It can be one person, it can be a therapist or coach, it can be a support group.

Groups are better because you also get to contribute to others. If you do not have a group, take an initiative to become a mentor or coach to other people struggling with mental health, stress or anxiety. It is not always hard to tell who needs help.

Don’t you know at least one lawyer who needs that space from you? Do you not know at least one lawyer you can trust and talk to?

Such a space can help you let it all off the chest, know that you are not alone and give you the joy of helping out people similarly afflicted as you are. Maybe, start with building a Whatsapp group or weekly meet up group?  

9. Focus on the positives 

Once again, let us recall that popular idiom – ‘the darkest cloud has a silver lining’. No matter how bad things are, there is bound to be an upside. 

More often than not, there is more than one upside. 

Even when you are struggling really hard and it all seems very dark all around – something good is happening around you. There is some opportunity hidden in every obstacle. 

If nothing else, all your hardships are making you stronger – more adept as a human being to survive in this world and to thrive when your time comes. 

Do not lose hope. Do not stop working on yourself. Keep the faith in life and your abilities to navigate whatever life throws at you. 

Keep the faith in yourself that you will bounce back, like you have done every single time in the past. 

You are not alone. You have thousands of years of human history – millennia of collective lived experiences – that moulds you into who you are every single second. 

With this faith in the past, focus on the present in the pursuit of a bright future that is bound to come, sooner rather than latter. When you begin to take actions from a place of deep conviction, you shall find all the negativity fading like the darkest hours of the day fades to the sunshine of dawn.  

10Be generous on purpose 

The Good Samaritan was a happy man. 

When the Buddha went out in search of his dhamma, he realized that the meaning of life lies in annihilating dukkha that is sadness from the hearts of people and formed his Sangha to this end. 

The history of human civilization is rich with examples of such people working to make other people less miserable. There is a reason why altruism has been held in esteem as a lofty moral principle since times immemorial. 

Now suppose you are a lawyer. The absurdity of it all is affecting you like it had affected Franz Kafka so much so that it motivated him to pen the Trial. Your everyday work and life seems tedious and meaningless. 

Now suppose, by making good use of the fact that you are a lawyer, and being empathetic to the plight of other people because our own life is bogging you down bit by bit every day, you start taking up their causes. It not only gives you a great opportunity to learn your trade, through it life gives you an opportunity to feel something that is beyond happiness – to feel bliss.

Generosity is not something that only others enjoy, the generous person enjoys far more. Have you ever met a generous person who was being miserable at the same time?

If you are miserable, the surest way to pull yourself up is to find a person who is more miserable and help that person. I dare say, you will never fail to find a person who is in more misery than you are, only if you get out of your head and go looking around in real life.

Now, financial constraints might be an impediment to your taking up of cases on a pro bono basis. 

Even then, pro bono lawyering is not the only way in which you can stand beside the marginalized and the subaltern. 

Many young lawyers in this country enroll themselves with the District Legal Services Authority of their district of practice. The DLSA offices, established under the National Legal Services Authority Act, is located in or around the district, trial or sessions courts of the district where you practice. Every year, you shall get an opportunity to enroll yourself with the same. Many lawyers do a terrible job of it, but what if you poured your heart and soul into it?

What if you ran a free helpline for people in distress?

Giving with no expectation of return will never fail to protect you from depression or self-pity.

You can also fight cases at a nominal cost, or only with enough money to cover your legal expenses involved in handling such a brief. Nowadays, many organizations like the Ford Foundation gives grants to lawyers who wish to contribute to society in this manner. 

There are also organizations like the International Justice Mission and the Human Rights Law Network that employ lawyers who fight cases for one or more social causes. A simple online search in this regard can yield great results and enable you to reach a position where you can use your training as a lawyer to help the needy.

If not legal work, you can even simply do one generous deed every day. Even smiling at a person who does not expect a smile is sometimes an act of generosity. Even treating the service person with unexpected kindness is generosity. Every tried calling the cabin crew or the bus conductor as sir? They will be shocked but see their face gleaming with joy when you show them the utmost respect. 

You can be generous by even counselling a victim or with a word of encouragement.

Why? Because once you start doing so, you get a feeling that no money or affluence can buy. You feel like you are being a part of the change you dream to see in the world. This will help you tap into your empathetic self. 

This, in turn, will enable you to embrace yourself for who you are. 

This is not only a great hack for being in great mental health, but also probably the greatest thing you can do for your legal career. Everyone loves a lawyer who is ready to give more than he or she wants to take and they get disproportionate results in life.    

11. Do not severe your connections from people who care for you

When you are in depression, or on the verge of it, you are likely to want to cut off from the world, especially the people who love you and care about you. That is what happens almost always. And that is a great mistake that makes a bad situation terrible.

We may also feel too weak to support those who depend on us and disappear.

Prima facie, being there for those who count on us seems like an easy task. After all, why would one even think of turning their back on the people they care for? 

However for someone suffering from anxiety, depression and having to contend with a stiff workload, reaching out in itself can be a tedious task, leave alone the urge to stand beside your near and dear ones in their hour of need. 

Having someone to depend on you when you yourself are gasping for breath can indeed seem to be a tall order. This is how depressed people get alienated and lonely. I speak from personal experience. 

Do not let this happen to you. People who are depressed and lonely seek solace in substance abuse and often take to suicide as the ultimate solution. What such a person needs is tender loving care, words of affirmation and positive advice. 

That person is you. Stick close to people who care for you. Tell them what you are going through. Surviving alone is very difficult in this situation, but with the help and intervention of people around you, you are very unlikely to go down. 

You know who those people are. Tell them well ahead of time. Do not wait for a crisis. Do not try to fight this alone. Do not let it slide too far before you ask for help. 

Talk to the person you think you can talk to. Then talk to a few more. Do not stop until you have a gang to back you up.  

12. Get sufficient sleep and have your meals in time, find a rhythm of discipline 

Once again, we veer back to the point of discipline. Once again, from the ancient Spartans to the modern day Japanese, history – through past and present, bear testimony to how discipline makes individuals, civilizations and cultures thrive. It is discipline that makes heroes and leaders – successful professionals and entrepreneurs – out of sincere human beings.

When the human civilization was in its tumbling toddler days of prehistory our ancestors used to live in communes. Then, they began to live in clans and then as families – from the joint families of not so distant past to the nuclear families of our EMI-laden post globalization reality – the bulwark has, till date, been held together through discipline. It is a part of our core instinct.

My shrinks have been stressing on the need for discipline in life to lead a healthy, balanced one time and again. All mental health professionals advise their patients to practice discipline in life whenever they find that it is necessary to impart such advice for the sake of their patients’ wellbeing.

It is important that you eat wholesome, nutritious and balanced meals and get as much of restful sleep as your body requires. 

Sleep is often an undervalued ally. You can measure your sleeps with cheap wristwatch like gadgets these days. Getting quality sleep will change your life and help you to get over mental health issues very fast.

13. Exercise and meditation  

“It is a truth universally acknowledged” that a sedentary lifestyle makes you feel all lethargic and down, while sweating it out makes the happiness inducing hormones flow from your glands. 

The need for regular exercise has, once again, been stressed upon by all mental health personnel whom I have ever met and engaged with. The internet and self-help books are filled with this advice, as are books, journals and blog entries on exercising for wellness and wellbeing.

While there are some simple exercise regimens that you can learn online, the more advanced ones need professional guidance from gym trainers, fitness experts and meditation therapists. This holds true not only for more complex exercises including those that involve weights, but also for yogic asanas and meditations. 

You may have a tendency to think that you need some complex system to start with, but that is no reason to postpone exercising or meditation. You must find the simplest way to do both, and something you can start today.

I recommend youtube yoga videos that you can do in the bed. Just search for yoga in bed in youtube. Find 5 minutes guided meditation sessions online. Later, you can graduate to more complicated stuff. Getting started with even the easiest possible step is critical to your success.

It is true that guided meditation techniques like pranayama and vipasana has yielded positive results in removing mental blockages and negativity, and, consequently, in improving functionality and productivity of many individuals. It is not difficult to enroll yourself in such programs. 

14.   Seek professional help 

This bit is extremely important. In a country like India, a considerable amount of social stigma surrounding mental health persists despite all scientific advancements. Here, everyday issues faced by the persons suffering from mental health issues can be ignored not only by the society at large but by the immediate surroundings of the victims and even by the victims themselves.  

Even a simple action like visiting a regular physiotherapist and asking them to administer basic and progressive muscle relaxation techniques and therapies on you can go miles in improving your mental and physical faculties. It can enable you to cope better with your everyday stress and strain.   

It took me fifteen years of feeling blue that I was able, with a lot of help and encouragement from a deeply caring partner, to seek and obtain professional mental health assistance. The professions of counselors, psychologists and psychiatrists exist for a purpose. Without timely intervention, a victim can take drastic steps involving harming the self and others. Have we not all heard of somebody or other who could not take it anymore and either break down, lash out or end their life?

So take your stand today. Mental health issues have reached epidemic proportions across the world in this day and age. 

And yet, you will find many who will try to brush your issues aside. 

For example, they might chide you for some mistake done by you all ‘because you were feeling upset’, when the reality might be so that there are genuine, rational and scientific reasons behind whatever weighs and bogs you down, or cages, chains and chokes you up.

There is very little awareness even among the lawyers’ community in India about the issues that plague their profession. It is perhaps necessary to conduct a survey in India like the one conducted by the John Hopkins University of the USA in the 1990s. One can be almost sanguine that such a survey will show that the lawyers of India are extremely prone to depression, anxiety and other mental health issues. And yet, there is scant support system among the professional community of lawyers against this ailment. Not many research based literature has been generated to spread awareness on the same either. The same holds true for other stressful professions as well. 

If you are suffering from depression and other mental health problems, you need to come out and seek help. You deserve to lead a life without suffering and stigma. If you yourself are not afflicted by the same but know someone who is in need of help, you must help them in their struggle.    

15. Engage your brain in learning new skills

Just like gratitude and depression cannot co-exist, learning and development and depression cannot co-exist. A person who is improving himself cannot engage in anxiety, stress or self-pity. 

Just like physical exercise keeps depression at bay, so does exercising your brain to learn new skills.

This is a great reason why you should never stop learning, if the fact that you become a better lawyer every day by doing so is not enough reason to engage in learning and development activities every day.

You could learn a new skill like playing the piano or playing chess as well. You could learn a new language. Or you could begin to develop expertise in a new and unfamiliar area of law. 

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Revisting issues faced by Indian Aviation Companies vis-à-vis Direct Tax Regime

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This article has been written by Vijay Shekhar Jha.

Introduction

Background

Recent forecasts by the International Air Transport Association (IATA) acclaimed that India is set to become the third-largest aviation market by 2025.[1] This prediction appears totally unfounded and highly implausible when one gets alive to the shocking figures revealing the harsh reality that none of our airline companies is earning the profit. According to the latest CAPA study “the Indian aviation industry is expected to lose $1.65-1.90 billion this financial year.”[2]  This fact becomes more appalling when coupled with the fact that last year, even the market leader, the much-admired IndiGo, had declared a quarterly loss for the first time since going public in 2015.[3] All aviation companies when asked about the main culprit for their burgeoning losses, gave the unanimous reply that incoherent tax regime coupled with a tax hike of Aviation Turbine Fuel (ATF) is adding insult to their injury. On the top of it, what rubs salt in the wound is the government’s decision of levying 18% GST on our domestic MROs with no input tax credit (ITC) while conferring full custom exemption on the import of aircraft parts and testing equipment for maintenance, repair and overhauling of aircraft used for operating scheduled and non-scheduled passenger air transport services, scheduled air cargo services, and charter services. Thus, naturally, all our domestic aviation companies are getting their aircrafts’ MROs done in countries like Thailand or Sri Lanka where no service tax is levied on MRO. In this background, it is no wonder that in 2016, domestic airlines reportedly spent about $950 million on aircraft maintenance and servicing, but only 10% of the business came to Indian MRO companies.[4]

The relevance of the study

Reason for the pitching of revisiting of the provisions of Income Tax Act, 1961 from the perspective of aviation companies, can be discerned from the data undermentioned in the following tables:

Table.1 (Above shows how different airlines companies are suffering loss in.

Table 2-Tax Rates for Corporate Assessee for the A.Y. 2019-20[5]

 

Table 3- Rates of Surcharge for Corporate Assessee for the A.Y. 2019-20[6]

(*The health &education cess at the rate of 4% shall be computed on aggregate of Income-Tax and Surcharge.[7]

Thus, from the Table 1, 2 & 3 it becomes very clear that our tax scheme (including both direct & indirect tax) may have become very onerous (as income tax of 30%(on resident company) or 40%( foreign company)+ Surcharge + Education Cess +  40 % Indirect Tax[8] (owing to non –inclusion of ATF in the GST regime as Government has not notified levy of tax on ATF till date in accordance with Section 9(2) of CGST Act,2017 & Section 5(2) of IGST Act,2017) for our aviation sector esp. aviation companies  especially in the context of their persistent heavy loss; Here, we must be mindful of the fact that had it been the case of one or two companies then the  revisiting was patently not required, it is because the whole sector is languishing under the weight of loss revisiting of tax provisions has become urgent, as already mentioned, tax regime plays a paramount role in the flourishing or strangling of businesses in India and thus, if we fail to come alive to their plight in time and do not provide them with the necessary financial prop & legal relaxation (of which tax constitutes a substantial part) it would not be implausible to infer that our aviation sector might collapse and our dream of becoming world’s top aviation market will simply become a pipedream.

Chart A -Market Share of Scheduled Domestic Airlines March 2016[9]

Thus, this article will deal with following problems :

  • What are the relevant provisions in Income Tax Act, 1961 that have a direct and intimate bearing on our aviation sector?
  • Whether those provisions strike a balance between the revenue interest of Government and profit earning interest of business entities engaged in aviation sector?
  • Which expired provisions of Income Tax Act 1961 should be revived so as to provide much needed fillip to our business entities engaged in aviation sector?

 

Understanding Provisions of Income Tax Act, 1961 having a direct bearing on Indian Civil Aviation Sector

In this chapter researcher while dealing with beneficial various under mentioned provisions of the ‘act’ has made observations highlighting as to which provisions are beneficial to aviation companies and in which provisions  ambiguity persists; consequently, has made suggestions & comments to resolve those ambiguities.

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Corporate Tax

As per Income-tax Act,1961 ‘income’ of the resident company as defined u/s 2(24) of the said act shall be exigible to income tax on their worldwide income as stated u/s 5(1) of the act. And, as mentioned in section 6(3) a company is said to be a resident company either if it is an Indian Company i.e. company had got incorporated in India or the place of its effective management(POEM) is in India (explanation to section 6(3) defines POEM). But, rate of tax at which the income of the resident Airlines Company is levied in India is provided in the Finance Act presented at the outset of every financial year, which For the assessment year 2019-20 is 30%; however, this tax rate of 30% drops to 25% if turnover or gross receipt of the resident company does not exceed Rs. 250 crore in the previous year 2016-17.[10]

Income under the head “Profits and Gain of Business or Profession”

Under section 28(1) of the ‘Act’ profits and gains of the business, Airlines Companies are chargeable to tax.

  1. Profits & Gains

As stated by Lord Halsbury in the famous case of  Gresham Life Assce Soc v Styles[11]  that the word ‘Profits ’is to be understood in its natural and proper sense which no commercial man would misunderstand.[12] This above principle that “Profits should be understood in the commercial sense”  was followed by the Bombay High Court in the case of Aruna Mills Ltd. V CIT (1957)31ITR 153(Bom)[13] wherein the court said

“there may be an expenditure or there may be a  loss which may not be an admissible loss under any specific provision of the statute and yet such an expenditure or loss would have to be allowed in order to determine what are the true profits of the business, and it is the duty of everyone who has anything to do with taxing business people to understand what are the principles of commercial expediency. Unless one understands these principles it is difficult to make a proper assessment, on a business or a businessman.”[14]

Thus, if there is a direct and proximate nexus between business operation and the loss or, it is incidental to it, then loss is deductible since without the business operation and doing all that is incidental to it, no profit can be earned.[15]

  1. Section 28(1)(iv) – This sub-section of sec.28 states that

“The value of any benefit or perquisite, whether convertible in money or not , arising from business or the exercise of a profession”

Q.) So, the question that crops up in the mind is, if public banks at the behest of government waive loan advanced to some of the extremely loss stricken aviation companies  or if the Government pays to creditor banks on behalf of aviation companies, then, would that amount paid by Government  or waiver of loan be chargeable under this sub-section?

So, from above-mentioned problem following two situations arise:

Situation No.1 Government making the payment on behalf of airline companies

This situation has been clarified by the Supreme Court in the case of Sahney Steel & Press Works Ltd. v CIT[16] wherein court held,

where the payment is made by the Government which is in the nature of Subsidy given to the assessee for carrying of his trade or business, is a trading receipt.”

And, it is a matter of common understanding that trading receipts are exigible to tax. Thus, payment made by the government on behalf of loss ridden airline companies will fall in this sub-section.  

Situation No.2- Waiver of Loan

In order to fully comprehend this situation it is indispensable to have a look at following two Supreme Court cases:

CIT v. Ramaniyam Homes (P.) Ltd.[17]–  Concise facts of the case were as follows:

  • The assessee was indebted to a bank. Under a one-time settlement, the bank waived a certain amount of interest and principal amount out of total dues.
  • Assessing Officer held that amount of waiver of the principal amount of loan was to be treated as income under section 28(iv).

On the above factual Madras High Court held that

“it is not the actual receipt of money, but the receipt of a benefit or perquisite, which has a monetary value, whether such benefit or perquisite is convertible into money or not, which is what is covered by section 28(iv).

The waiver of a portion of the loan would certainly tantamount to the value of a benefit. This benefit may not arise from ‘the business’ of the assessee. But, it certainly arises from ‘business’. The absence of the prefix ‘the’ to the word ‘business’ makes a world of difference.”

But, the above opinion of the Madras High Court was negated by Supreme Court in the case CIT v. Mahindra And Mahindra Ltd.[18], wherein court held that “ benefit which is received has to be in some other form rather than in the shape of money” and since by dint of waiver of loan the assessee became in possession of extra cash free from any encumbrance at his disposal thus, the court held that very condition that the benefit as stated u/s 28(1)(iv) must not be in cash form was not fulfilled. It is in this light court denied the applicability of this subsection.

Here, it is to be noted that, since in this case the assessee did not claim deduction u/s 36(1)(iii) of the act, therefore, Supreme Court did not accept the department’s argument  that waiver of loan tantamount to “cessation of trading liability ” as mentioned in section 41(1). Had the assessee claimed deduction u/s 36(1)(iii) then, it would be very difficult to see what would have been the final outcome of the case?

Comment- Here, it is very pertinent to note that section 56 (1)(vi)  ‘Income from Other Sources’ will not apply to present cases of waiver of loan or granting of subsidy by the Government in that cl.(vi) explicitly states that this clause will levy tax to only those gifts received without consideration by individuals or a HUF. Thus, airline companies cannot be charged under this provision.

Section 28 (via) read with section 145A -dealing with conversion or treatment of inventory into a capital asset has come under the tax net.

“FMV of inventory[19] as on date on which it is converted into, or treated as, a capital asset determined in the prescribed manner[20].”

Suggestion

Though, FMV(defined u/s 2(22B)) of inventory, when converted into capital asset, has been brought under the tax net by finance act 2018 but, the deduction as to the cost of inventory has nowhere been provided between section 30 to 43D; it can be argued that this cost of inventory can be deducted u/s 37 as expenses incurred wholly and exclusively for business, still the proponents of this argument would agree if this deduction is mentioned explicitly it will certainly clear the cloud of uncertainty and accordingly will lessen the possibility of future litigation.

  1. Current Repairs- Section 31

This provision grants deduction in respect of current repairs and insurance of machinery, plant used for purpose of the business. The current repair should be such so as to restore the plant or machinery into the original form. However, such improvement which does not substantially change the identity of the plant or machinery should be allowed as a deduction under this section.[21]

Suggestion:

Section 43(3) gives out the inclusive definition of the term ‘plant’ but unlike ‘ship’ it does not explicitly include ‘aircraft’ within its fold. It may be argued that since the definition is inclusive the term ‘aircraft’ is already covered in the definition of ‘Plant’ as ‘Plant’ in ordinary sense, includes whatever apparatus which is used by a businessman for carrying on his business for want which carrying out of business is not possible[22], but for the sake of certainty, the term ‘aircraft’ just like ‘ship’ must also be included in the sub-section.

  1. Depreciation- Sec.32

The concept of depreciation is that any asset, on account of normal wear and tear, is required to be replaced at a point of time in future. Therefore, to enable a business to meet the cost of such replacement, the wear and tear is permitted to be calculated at a notional percentage of the cost/ WDV (as defined u/s 43(6)) of the assets.[23]

Section 32 (1) provides depreciation of both tangible (buildings, machinery, plant or furniture) & intangible asset, which is owned both wholly or partly and used in the previous year for the purpose of business. In case of any block of an asset, the depreciation is computed on the WDV at a prescribed rate of the block as on the last day of the previous year as mentioned in section 43(6) of the act.

Here, it would be pertinent to note that “Block of Assets” defined u/s 2(11) means a group of assets falling within a class of assets comprising both tangible and intangible assets as stated in section 2(11). Rates of depreciation for Aeroplanes & Aero engines for AY 2019-2020 are 40 %.[24]

Under section 32(2), subject to section 72(2) and 73(3) aviation companies can carry forward and set off unabsorbed depreciation.

Suggestion1:- Section 32(1)(iia) gives additional deduction of 20% of actual cost on new machinery or plant (acquired and installed after 31s March 2005) purchased by the assessee engaged in the manufacture of any article or thing but this beneficial provision has not been extended to purchase of new aircrafts. Owing to India ambition of increasing its extant aviation market it is necessary to extend the benefits of this provision to Airline companies as well.

Suggestion 2:      (Revival of Investment Allowance u/s 32A)

As predicted by IATA, India is set to become third largest aviation market of the world; to make this come true Government is pitching for creation of new airports and thus, in this backdrop, needless to say, airline companies will be purchasing more aeroplanes in pursuance of this policy of expansion. It is in this background, there is an urgent need for the revival of Section 32A which deals with Investment Allowance to be given to Airline Companies on a new purchase of Aircraft. An argument in favour of resuscitation of this provision gets more support as its sub-section (4) which enjoins the benefit receiving company to reap 75% of the benefit allowed back into the system by purchasing more new aircraft.

Suggestion 3- In the background as  mentioned above , it is also very important to revive section 32AB which deals with ‘Investment Deposit Account’ (expired in the year 1990) as it helps the Airline companies to claim deduction under sub-section (1) of this section on utilisation of money for the purchase of new aircrafts as credited in the said account. Here, it is worthwhile to note that an aviation company cannot avail the benefits of both provision viz. sec 32A and Sec 32AB as mentioned in section 32AB(10). 

Deduction u/s 35AD

This section grants investment-linked incentive by allowing 100% deduction i.r.o capital expenditure expended wholly and exclusively for the purpose of specified business. Clause (c) to Sub-section (8) of this section defines ‘specified business’ which includes developing or operating & maintaining or developing, operating and maintaining any infrastructure facility.

Furthermore, ‘infrastructure facility’ as defined in explanation to Section 35AD- (8)-(ba) also entails ‘airport’ within its fold. Thus, this section is of great significance for those companies engaged or to be engaged in the development of infrastructure of airports on PPP model including up-gradation of facilities inter alia the development of Communication, Navigation and Surveillance (CNS) facility, Air Traffic Management (ATM) systems. Here, it is worth mentioning similar provision can also be seen in Section 80IA but as per sub-section (3) of this section, assessee cannot avail benefits of both these two provisions.

Loan advanced by Parent Company to Subsidiary Company

Deduction u/s 36(1)(iii) – This clause makes an allowance in respect of interest paid on capital borrowed for the purpose of the business, profession or vocation.

Deduction u/s 37 –This clause makes an allowance (not covered under section 30 to 36) i.r.o expenditure incurred wholly and exclusively for the purpose of business.

Disallowance u/s 40A(2)–  This clause disallows expenses or expenditure where such payments are made to relatives or close associates of the assessee, and Assessing Officer is of the opinion that such expenditure is excessive or unreasonable having regard to legitimate business needs of the assessee’s business.

Q.)  Here, the problem that is contemplated to be dealt is ‘If a parent aviation company takes a loan from a bank at some interest and later advances interest-free loan to sister subsidiary aviation company, can it claim a deduction for the loan advanced to its subsidiary aviation company?’

The answer lies in the two decisions of the Supreme Court, which has been collated as under:

(i)   S.A. Builders Ltd.v. Commissioner of Income-tax (Appeals), Chandigarh[25], wherein assessee had advanced huge amounts as interest-free loans out of its cash credit account in which there was a huge debit balance to its sister concern and claimed a deduction of interest paid to the bank u/s 36(1)(iii). Supreme Court allowed deduction claimed by the assessee stating that where the scheme of advancing interest-free loan to sister concern is not a device to avoid tax and if passes muster of commercial expediency test the loan advanced must be allowed.

In so far as section 37 is concerned Court made following important observation: 

“22. In our opinion, the decisions relating to section 37 of the Act will also be applicable to section 36(1)(iii) because in section 37 also the expression used is “for the purpose of business”. It has been consistently held in decisions relating to section 37 that the expression “for the purpose of business” includes expenditure voluntarily incurred for commercial expediency, and it is immaterial if a third party also benefits thereby.”  

(ii) Hero Cycles (P.) Ltd. v. Commissioner of Income-tax (Central), Ludhiana[26], wherein court resorting to ‘commercial expediency test’ allowed deduction under this clause to the assessee who had granted loan out of assessee’s own surplus funds to its sister concern and held that

Once it is established that there is nexus between expenditure and purpose of business revenue cannot justifiably claim to put itself in arm-chair of businessman or in the position of Board of Directors and assume the role to decide how much is reasonable expenditure having regard to circumstances of the case.

It was noted that advance to the subsidiary company became imperative as business expediency in view of undertaking given to financial institutions by the assessee to effect that it would provide additional margin to the subsidiary company to meet working capital for meeting any cash losses.

Comment– Here, it is to be noted that though in this case loan was advanced to director of the sister concern yet when the court found the transaction passed muster on the touchstone of “Commercial Expediency Test”, it did not disallow the assessee’s claim. But, it is submitted this conundrum has not been fully resolved as uncertainty still hovers as to what may and what may not amount to ‘commercially expedient’ and such uncertainty in the miserable condition in which our aviation companies cannot be allowed to continue. Thus, it is suggested Parliament must explicitly exempt these inter-corporate loans in respect of aviation companies.

Section 44BBA

This is a special provision regarding the computation of profits and gains of non-residents engaged in the business of operation of aircraft and the amounts mentioned under sub-section (2)  shall be exigible to tax at the rate of 5% under the head PGBP.

This is a welcome provision as it resolves the problem of operation of aircraft by non-resident aviation companies for want of which they would have otherwise undergone the traumatic & confounding application of Section 9 of the act (as to ‘business connection’), DTAA (as to permanent establishment ‘PE’) & section 195 of the Act read with section 201 (as to ‘TDS’ in case payment made to non-resident) 

Comment- Such special provision for the resident company is not possible in the present scheme of tax, as u/s 5 of the act worldwide income of resident is charged to tax.

  1. Income Under the Head “Capital Gains”
  2. Basis of Charge(Section 45(1)

Following are the essential conditions for taxing capital gains:

  • There must be a capital asset (as defined u/s 2(14)) which is held by the assessee ;

(short term capital asset is defined u/s 2(42A) and Long term capital asset is defined u/s 2(29A))

  • The capital asset must have been transferred by the assessee during the previous year ;
  • There must be profits or gains as a result of such transfer, which will be known as capital gains;
  • Such capital gains should not be exempt under section 54,54B,54D,54EC,54F,54G,54GA or 54GB
  1. Capital Asset, when converted into stock in trade, is exigible to capital gains tax u/s 45(2)-

Where the owner of a capital asset converts it into or treats it as, stock in trade of his business, there is no transfer and no gain under the general law, for a man cannot transfer his property to himself or make gain out of himself. However, sec 2(47)(iv) deems such conversion as ‘transfer’ and section 45(2) brings this transfer to tax.[27]

  1. Transfer of beneficial interest in securities held in dematerialised form is exigible to tax u/s 45(2A): This sub-section provides that the profits and gains arising from the transfer of beneficial interest in a security, of which a depository is registered owner, shall be charged in the hands of the beneficial owner and not the registered owner.[28]
  2. Capital Gains v Business Income Whether a particular asset is a stock in trade or capital asset does not depend upon the nature of the article, but the manner in which it is held. The same item may be stock in trade in the hands of the assessee who deals in that item.[29]
  3. Section 47(xvi)

This clause exempts transfer arising in a transaction of a reverse mortgage under the scheme as notified may be notified.

Suggestion– As per the extant Reverse Mortgage Scheme, 2008 notified in 2008[30] the benefits can only be availed by senior citizens. Therefore, in context of the precarious situation in which our airline companies are mired if this scheme is extended to airlines companies with necessary changes it will help them to access liquid money from the bank (which is exempted from tax u/s 10(43) of the act) without losing ownership from the property .

  1. Section 50– Capital Gain on transfer of depreciable assets forming part of a block of assets

This section brings to tax net the profits received from the transfer of those plants and machinery on which airline companies claimed depreciation u/s 32 in the past.

  1. Section 50B– This provision levies capital gains tax on the profits generated by the transfer of the undertaking.
  2. Aviation company & reduction its share capital

Under section 2(47)(ii) of the act the term ‘transfer’ in relation to capital asset entails ‘extinguishment of any rights therein’; thus, the reduction of share capital amounts to extinguishment of rights as it causes extinguishment of right of shareholder to the dividend and right to share in the distribution of the nett assets upon liquidation.[31]

Thus, if an aviation company which is saddled with the loss, buybacks its share, the shareholders of the company receiving money therein would be exigible to capital gains tax u/s 46A of the Act. Here, it must be noted that reduction of share capital is one of the most effective ways for a company to maintain its financial health but, if the threat of tax is hovering then, the promoters or the holding company may hesitate to undergo this process esp. when undergoing is urgently needed.

Suggestion

(i)In the background of the above it is suggested that applicability of  Chapter XII-DA (S. 115QA to S.115 QC) of the act which has been inserted in the act in the year 2013 which simply put states that  the consideration paid by the company for the purchase of its own unlisted shares  which is in excess of the sum received by the company at the time of issue of  such shares will be charged be to tax  and the company will be liable to pay an additional income tax at the rate of  20%  of the distributed income paid to shareholder[32] .This provision, with the aim to encourage our loss laden companies to restructure its share capital to minimise their loss, this chapter as far as applicability on Aviation Companies is concerned should be put on hold for six or seven years or till the time our drowning airline companies start showing relatively better financial health.

(ii)As far as section 46A is concerned with the intention to help airline companies  revive  from losses Government should introduce section 10(34B) which would be on the lines of section 10(34A) which would exempt the income received by the shareholders of airline companies on account of buy-back of shares by the airlines companies(section 10(34A) exempts the income received by the shareholders on account of buy back of companies mentioned in section 115QA).

  1. Taxation of long term capital gains on transfer of listed securities-(Sec 112A)

Erstwhile, any long term capital gains arising by the transfer of equity securities was exempt from tax by dint of section 10(38) of the act but now if owing to transfer of long term capital asset any capital gain arise of the amount exceeding Rs.1 Lakh then total income as mentioned u/s112A(1) which will be exigible tax u/s 112A(2) of act. Here, it is worthwhile to note that when  total income as determined by sub-section (1) when reduced by capital gains is allowed to take benefits of deduction as mentioned under chapter VI-A of the act.

  1. Exemptions u/s 10(6BB)

With the Government pitching for the expansion of aviation industry by creating 100 or more new airports so as to make airline services accessible to every common person,  it is expected that airlines companies will have to purchase around 1000 new fleets.[33] In this backdrop it has become paramount to unravel section 10(6BB) provided as under:

Section 10(6BB)- This provision grants exemption of that income which is derived by a non-resident from an Indian Company engaged in the business of operation of aircraft on account of consideration paid by such Indian company to acquire new aircraft or new aircraft engine on lease in pursuance of agreement entered into after 31st March 2007 and as approved by Central Government (Consequently, exemption provided u/s 10(15A) was withdrawn).

Q.) Generally leasing of aircrafts have been categorised in two types (i) Dry Lease –in which the non-resident lease out only aircraft with no complimentary service facilities  (ii) Wet Lease –in which non-resident leases out its aircraft along with service facilities like insurance, crew, maintenance etc. It is in this background question has been raised that section 10(6BB) only exempts dry lease and wet lease on the basis of ‘Service PE test’ as applied by Delhi High Court in the case of Centrica India Offshore Pvt.Ltd v CIT[34] is exigible to tax.[35] This view further gets reinforced by Note 25 discussed under ‘Paragraph 4 to Article 5’of  ‘Model Tax Convention on Income and on Capital: Condensed Version 2014’[36] which is states :

“A permanent establishment could also be constituted if an enterprise maintains a fixed place of business for the delivery of spare parts to customers for machinery supplied to those customers where, in addition, it maintains or repairs such machinery, as this goes beyond the pure delivery mentioned in subparagraph a) of paragraph 4. Since these after-sale organisations perform an essential and significant part of the services of an enterprise vis-à-vis its customers, their activities are not merely auxiliary ones.”[37]

What becomes more concerning is the point that if the above question is found valid then these non-resident companies giving wet lease will have to pay corporate tax of 40% and will not be allowed to avail section 44BBA as they do not operate in the operation of aircraft.

Suggestion- Therefore, it is suggested that CBDT in the exercise of section 119 of the ‘Act ’ should issue circular clarifying this ambiguity. As resident companies are required to cut TDS u/s 195 of the Act before making payment to non resident failing which they would be penalised u/s 201 of the act. 

Set-off or carry forward and set off of the loss

Provision related to set off or carries forward and set off of loss as provided under section 70 to 74, has been summarised in the table below.

                    Table 4– Summary of set off and carry forward of losses.

  1. Minimum Alternate Tax (chapter –XII-B of the Act)

Section 115JB(1)-In case of company income tax payable shall be higher of the following two amounts:

(i) Tax on total income computed as per the normal provision of the act by charging applicable normal rates and special rates if any income included in the total income of the company is taxable at special rates.

(ii) 18.5% of book profit (book profit is to computed as per explanation 1 to S. 115JB(1) & (2))[38]

Section 115JAA- MAT credit – This provision allows tax credit in respect of tax paid on deemed income under MAT provisions against tax liability in subsequent years. Here, it must be noted that MAT credit will be allowed only in that previous year in which tax payable on the total income as per normal provisions of the Act is more than tax payable u/s 115JB.[39]

Section 115JB(3)

Once provisions of MAT are applicable, it does not allow unabsorbed depreciation or loss to be deducted from the book profit, but allows carrying forward of such unabsorbed depreciation or loss to subsequent years for claiming set off as per provisions of the Act.

Suggestion-

This section penalises the so called ‘zero tax’ companies unfairly ignoring the total fiscal burden discharged by the company and adverting only to income tax. Thus, despite being aware to the state of affairs in which our aviation sector is mired in, it would be highly unfair & immoral on the part of government to further saddled them with ponderous tax schemes like MAT; therefore, it is suggested that all airline companies should be spared from MAT till all their unabsorbed losses (including unabsorbed depreciation) are set off against future book profits.

Deduction

(i) Section 80-IA

This section provides deduction of an amount equal to 100 % of the profits and gains for ten consecutive AY from the business carried out by any enterprise or undertaking i.r.o developing or operating & maintaining or developing , operating and maintaining any infrastructure facility.

Here, it is worth noting that infrastructure facility as defined in explanation to Section 80 –IA (4)- (i)  also entails ‘airport’ within its fold. Thus, this section is of great significance for those companies engaged or to be engaged in the development of infrastructure of airports on PPP model including inter alia the development of Communication, Navigation and Surveillance (CNS) facility, Air Traffic Management (ATM) systems.

(ii)SuggestionRegarding updating of Section 80IB of the Act:

Though section 10(6BB) incentivises non-resident  in case they sell their aircrafts to resident companies on lease by exempting their income earned from these lease transactions, but it fails to provide any bounty to resident company. This lacunae can be plugged with the introduction of a new sub-section like ‘(6A)’ to section 80IB which would be on the lines of sub-section 6 to Sec. 80IB, which gives deduction of 30% of profits and gains to resident companies being the owner of a ship engaged in the business of shipping whose Gross Total Income includes any profits and gains derived from the business of such ship.

(iii) SuggestionRegarding the updation of Sec 80JJAA in favour of Airline Companies:

Presently, under section 80JJAA, an amount of 30 percent of additional wages paid to new workmen is to be allowed as a deduction for a period of three years beginning with year in which workman is employed. Thus, in the context of expansion of aviation market it is suggested that in the sub-section (1) to Section 80JJAA “profit and gains derived from business of the operation of aircraft ” should be added as soon as possible.

Payment made by airline companies to AAI

Q.) Whether payment to Airport Authority for availing services like aircraft parking, aircraft landing will fall in rent or royalty or contractual payment simpliciter?

  • If such payment is categorised as “Rent” then Companies has to make TDS of 10% u/s 194I of the act + 2% additional TDS if they have used any ‘plant’ or ‘machinery’ owned by AAI
  • If such payment is Royalty then companies are required to cut TDS of 10% on the payment u/s 194J.

Failing which they will be penalised u/s 201 of the act.

On this Issue Courts’ stance has been that :

(i) If predominant objective is providing facilities and services then it is not ‘Rent’ (rather Royalty).[40]

(ii) If predominant objective is providing land or building for use then it amounts to rent.[41]

Suggestion-In this background, it will be very heartening if CBDT in exercise of the power u/s 119 clarifies this issue by issuing relevant circular.                                                     

Provisions having a bearing on MROs

With the expansion of aviation market in India it has become imperative to increase both the number of airports and number of carriers in India. As already mentioned that airline companies in a bid to match up the rising expectation have proposed to purchase around 1000 carriers in India . With this, it becomes indispensable that we must revive our dwindling MRO industry for want of which we will lose immensely as if properly developed the MRO industry can be a game changer in the revival of aviation industry.

Table 5 – MRO Market forecast[42]

With the aim to function in a hassle free manner MRO service rendering companies want to open up their business in SEZ, therefore, it has become matter of high priority that we must pay a revisit to SEZ Act 2005 and Rules with the objective to develop these areas in a more business friendly manner.

Presently, in order to develop sector specific SEZ it is necessary to have fulfilled the area requirement of 100 hectares.[43]Moreover, from MRO perspective it will also be very critical to have land which abuts airports so that aircrafts can easily be sent for MRO purposes. In this aspect, every state has to help MRO companies in bespoke land acquisition.

Apart from the above discussed provisions some provisions under mentioned would have a direct bearing on the operation of MRO service providers in India:

a.Tax Provisions related to SEZ which MRO service providing companies may resort to:

(i) Section 10AA- Under this section all units established within a SEZ are eligible for a deduction of 100% of profits and gains derived from the export of goods, articles or from services for first five years and 50 % of profits and gains of the business for the next five years subject to creation of a SPECIAL Economic Zone reinvestment reserve Account to which this  50% of the  Profits is to be debited.

(ii) Section 54GA- This provision provides for exemption of capital gains on transfer of assets in case of shifting of industrial undertaking from urban area to any SEZ.

(iii) Section 80-IAB – This section is applicable to any person being ‘developer’ of SEZ and it provides for 100% deduction of profits and gains derived by an undertaking or an enterprise which is engaged in the development of SEZs for 10 consecutive AY.

  1. Suggestion regarding Section 80IA & 35AD:

With the aim to bolster up the industry of MRO in India, it is suggested that definition of ‘infrastructure facility’ must include “repair to aircrafts” within its fold in the lines of  ‘business of repairs to ocean going vessels’ as mentioned u/s 80-I(1) of the Act.

  1. Payment made for MRO –whether FTS or not

In the case Ishikawajma Harima Heavy Industries Ltd. V Dir of Income Tax[44],apex court had held that there must be sufficient territorial nexus between Income of non-resident and territory of India. Court had also emphasised that not only service utilised in a business must be in India but also have to be rendered in India.[45]

The explanation 2 to sub-section (2) of section 9 of the act (added in the year 2010), has done away with the requirement of business connection or rendering of services in India with regard to inclusion of FTS or Interest or Royalty in the total income of  Non-Resident; what remains a moot matter is whether payment made for MRO by resident companies to Non-Resident Companies fall within the purview of FTS or not. As if found FTS, then the Airline Companies will have to cut TDS u/s 195 before making payment to non-resident MRO provider; not doing will cause them penalty/s 201 of the Act.

Reliance on this issue can be placed on Supreme Court’s decision in CIT v. Kotak Securities Ltd[46] in which court held that if the services is bespoke and has been provided taking special requirements of the customer with the effect that customer on the basis of such service has the option to avail enduring benefit in his business then, the service provided by non -resident can be said to be “Fees for Technical Services”. Therefore, going by the observation made by the Apex Court, it can be safely inferred that MRO provided by a foreign company will fall in the purview of FTS.

Conclusion

From the above discussion, it can be safely stated all the changes as have been suggested is indispensable for the successful revival of our aviation companies for want of which we will never be able to successfully free our aviation companies from the shackles of loss. Here, it is important to submit that researcher is not advocating that tax reforms/ updation is the panacea of this gargantuan conundrum, but at the same time, it would be preposterous to dream & conclude that our aviation market will be among the world’s top flourishing market if we let this grim situation to continue. In this context, it is paramount that we must come to our senses and discern the point that this expansion of our aviation market will be nothing but a hollow ostentation until we actually reorient ourselves and work so as to make the bedrock of the aviation industry viz. airline companies & MRO service providing companies robust again. Thus, in this background, there is an urgent need of tax overhaul in favour of aviation companies in keeping with various suggestions proposed in this paper.

At the beginning of this research the researcher has proposed the following hypothesis:

  • Most of the provisions of Income Tax Act,1961 regarding aviation sector have become redundant and there is an urgent need to update tax provisions in favour of aviation companies.

Throughout the research this hypothesis has been put through extensive examination in the background of available data and literature and wherever necessary researcher has given suggestion to improve extant provisions. At the conclusion of the research, the researcher finds the above hypothesis to hold true.  

Endnotes

[1] Rhik Kundu “Aviation will grow in double digits in India for many years to come” ,www.livemint.com (March 25, 2019,11:00 AM)

[2]V. Kumara Swamy  “Why the Indian aviation industry is nosediving” , www.telegraphindia.com (March 25, 2019,11:00 AM)

[3]  Mihir Sharma, Bloomberg “ Opinion | Why Indian airlines keep struggling to take off ”, www.livemint.com,(March 25, 2019,11:00 AM)

[4] Mihir Misra, Aviation MRO companies want 18% GST scrapped , https://economictimes.indiatimes.com, (March 25, 2019,11:00 AM)

[5]  “Budget 2018-19: Tax Rates for AY 2019-20” , www.taxmann.com , (March 25, 2019,11:00 AM)

[6] [6]  “Budget 2018-19: Tax Rates for AY 2019-20” , www.taxmann.com , (March 25, 2019,11:00 AM)

[7] Ibid

[8] Soumeet Sarkar ,“Jet Fuel Under GST Will Help Airlines Only If…”, www.bloombergquint.com, (March 25, 2019,11:00 AM)

[9] “India’s airlines report combined profit of USD 122 million: CAPA India Aviation Outlook 2017/18”, http://www.travelbizmonitor.com, (March 25, 2019,11:00 AM)

[10] “Income Tax Rates for AY 2019-20 / FY 2018-19” https://taxguru.in ,(March 25, 2019,11:00 AM)

[11] 3 TC 185 (HL)

[12] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis  2014, p.676

[13] (1957)31ITR 153(Bom)

[14] Dr. Girish Ahuja, Professional Approach to Direct Taxes Law & Practice, 34th Edition, Bharat Law House 2016, p.210

[15] Commonwealth Trust(India)Ltd. v CIT 242 ITR 593 (Ker)

Dr. Girish Ahuja, Professional Approach to Direct Taxes Law & Practice, 34th Edition, Bharat Law House 2016, p. 218.

[16] (1997) 228 ITR 253(SC)

[17] [2016] 384 ITR 530 (Mad)

[18] 284 ITR 669(SC

[19] “Inventory and Related Terms” , https://cleartax.in (March 29, 2019,11:00 AM)

Shishir Sinha ,“Rules notified to determine ‘Fair Market Value’ for conversion of inventory into capital assets”, www.thehindubusinessline.com (March 29, 2019,11:00 AM)

[20] Rule 11UAB  of the Income Tax Rules,1961 provides the manner of determination of fair market value of the inventory which has been converted into the capital assets or treatment as a capital asset.

[21] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis 2014, p.715

[22] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis 2014, p.731

[23] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis 2014, p.729

[24] “Depreciation Rates for Financial Year 2019-20 & Assessment Year 2020-21” , https://www.bankbazaar.com (March 25, 2019,11:00 AM)

 

[25] 288 ITR 1 (SC)

[26] 2007 (288) ITR 1 (SC)

[27] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis 2014, p.1125

[28] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis 2014, p.1125

[29] Dr. Girish Ahuja, Professional Approach to Direct Taxes Law & Practice, 34th Edition, Bharat Law House 2016, p.442

[30] Notification No. 93/2008

[31] Kartikeya V. Sarabhai v. CIT, 228 ITR163 (SC)

[32] Arvind P Datar, Kanga & Palkivala-The Law & Practice of Income Tax, Tenth edition ,Lexis Nexis 2014, p.1890

[33]India’s aircraft orders to exceed 1,000 with Jet Airways’ imminent order; infrastructure a problem” , https://centreforaviation.com  (April 1, 2019,11:00 AM)

[34] (2014)44 taxxmann.com 300(Delhi HC)

[35] Ashish Karundia, Law & Practice relating to Permanent Establishment,2015 Edition, Taxxman Publication, p. 235

[36] OECD (2014), Model Tax Convention on Income and on Capital: Condensed Version 2014,

OECD Publishing.

http://dx.doi.org/10.1787/mtc_cond-2014-en

[37] OECD (2014), Model Tax Convention on Income and on Capital: Condensed Version 2014,

OECD Publishing.

[38] Dr. Girish Ahuja, Professional Approach to Direct Taxes Law & Practice, 34th Edition, Bharat Law House 2016, p.925

[39] Dr. Girish Ahuja, Professional Approach to Direct Taxes Law & Practice, 34th Edition, Bharat Law House 2016, p.927 para 2

[40] Asstt. CIT (TDS) v. Pushpak Logistics (P.) Ltd [2016] 66 taxmann.com 266/157 ITD 471 (Rajkot – Trib.)

[41]  Japan Airlines Co. Ltd. v. CIT (2015) 10 SCC 591.

[42]MRO Strategy for the Airline In-House”, https://slideplayer.com (April 1, 2019,11:00 AM)

[43]How to Start an SEZ?”, https://www.indiafilings.com (April 1, 2019,11:00 AM).

[44] (2007) 288ITR 408(SC)

[45] Dr. Girish Ahuja, Professional Approach to Direct Taxes Law & Practice, 34th Edition, Bharat Law House 2016, p. 65

[46] (2016) 11 SCC 424.


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CLAT: A Study Capsule on International Law to Ace your Preparation

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International Law

International law is divided into two kinds – public international law and private international law. Private international law is known as ‘conflict of laws’, and it essentially refers to which country’s law should be applicable to a particular dispute. It is usually deployed by the domestic courts of a country. Public international law concerns the structure and conduct of sovereign states and inter-governmental and international organizations.

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History of Public International Law

Although international law in the modern sense of the word has only existed since about the 16th century, many historians of international law also take ancient history into account as a source for the early development of international legal principles. In that respect, important concepts are derived from the practice between Greek city-states and the Roman law concept of ius civile (which regulated the relationship between Roman citizens mutually) and ius gentium (which regulated the relationship between Roman citizens and non-Roman people). 

Hugo Grotius’ treatise titled De Jure Belli Ac Pacis, authored in 1625, marks the beginning of the modern theory of international law. It dealt with the law of war and peace.  

Beginning with the Peace of Westphalia in 1648, where several European nations signed a peace pact, the concept of the sovereign “nation-state”, which consisted of a nation controlled by a centralized system of government gained a fillip. The existence of several nation states implied the necessity of a body of rules which would govern the conduct amongst them.

The field of study in international law combines two main branches: the law of nations (jus gentium) and international agreements and conventions (jus inter gentes), which have different theoretical foundations and should not be confused.

What are the components of International Law

The sources of international law are custom, treaty, general principles of law (this would include some of the principles recognised in the domestic law of nations, say for example, the recognition that a company has a separate legal existence, equity, good faith, etc.). Further, there is a separate set, known as subsidiary sources, which are opinions of judges in prior cases and opinions of eminent legal scholars as mentioned in their writings.

Treaties

Treaties are of two kinds – bilateral and multilateral. A bilateral treaty is one concluded between two states only and is also known as a treaty-contract. Double Taxation Agreements are generally bilateral treaties. Multilateral agreements are agreements entered into by several nations, such as the United Nations Agreement, International Covenant on Civil and Political Rights (ICCPR), International Convention of Economic, Social and Cultural Rights (ICESCR), the Refugee Convention, Convention on the International Sale of Goods (CISG) and the Agreement establishing the World Trade Organisation, etc.

In the same way as the provisions of any contract in India are to be interpreted in accordance with the Indian Contract Act, 1872, treaties are to be interpreted in accordance the Vienna Convention on the Law of Treaties (or VCLT), 1969. The Convention entered into force on 27 January 1980.The VCLT has been ratified by 110 nation-states as of October 2009.

International Telecommunications Union

While rules governing the conduct of independent nations inter-se continued to evolve, it was not until the late 1800s that a separate international organisation consisting of various nations as its members was formed. 

The International Telecommunication Union is the eldest organization in the UN family still in existence. It was founded as the International Telegraph Union in Paris on 17 May 1865 and is today the leading United Nations agency for information and communication technology issues, and the global focal point for governments and the private sector in developing networks and services.

Universal Postal Union

Prior to the establishment of the UPU, a country had to conclude a separate postal treaty with each other country that it wished to carry international mail to or from. The Universal Postal Union was created in 1874, under the name “General Postal Union“, as a result of the Treaty of Berne signed on 9 October 1874. Its most important reform was that postal authorities were required to give equal treatment to foreign and domestic mail.

Further, it was not required any more to affix the stamps of any country through which one’s letter or package would pass in transit (this would pose a tremendous problem previously); the UPU provides that stamps of member nations are accepted for the whole international route. 

Its name changed to Universal Postal Union in 1878. After the foundation of the United Nations, the UPU became a specialized agency in the UN. The organisation is headquartered in Berne, Switzerland.

United Nations

The name ‘United Nations’ was devised by the ex-United States President Franklin D. Roosevelt and was used in the “Declaration by United Nations” of January 1, 1942 during the Second World War, when the representatives of 26 countries pledged their governments to continue fighting against the Axis Powers.

The United Nations is the hope and conscience of the world, more especially of the smaller nations among the 192 members. It is an association of states which have pledged themselves to maintain international peace and security and co-operate in solving international political, economic, social, cultural and humanitarian problems towards achieving this end.

The United Nations charter, the constituting instrument of the UN was drawn up by the members of 50 countries at the United Nations Conference on International Organization, which met in San Francisco from April 25, 1945 to June 26, 1945. Those delegates deliberately on the basis of proposals worked out by the representatives of China, The Soviet Union, The United Kingdom and The United States at Dumbarton Oaks, Washington DC from August 21, 1944 to September 28, 1944. The charter was signed on June 26, 1945 by the representatives of 50 countries. 

Poland, which was not represented at the conference signed it later and became one of the original 51 Member States.

The United Nations officially came into existence on October 24, 1945, with the deposit of the requisite number of ratifications of the Charter with the US Department of State. United Nations Day is celebrated on October 24 each year. 

New Member States are admitted by the General Assembly on the recommendations the Security Council. Tuvalu was admitted in September, 2000 as the 189th Member State. East Timor was admitted as a member of the United Nations in September, 2002. Switzerland joined the world organization in the same month.

Montenegro became a United Nations member on June 28, 2006. In 1971, Communist China was admitted as the representative of all China. Red China thus became a permanent member of the security council of the United Nations. Vatican City is a permanent observer.

There are 6 official languages of the United Nations they are Arabic, Chinese, English, French, Russian and Spanish. The flag of the United Nations has an emblem of the United Nations in white centered on a light blue background. The United Nations has its headquarters at New York.

The UN , along with Kofi Annan, the then Secretary General received the Nobel Peace Prize in 2001. Kofi Annan (of Ghana) is the only United Nations Secretary General to be re-elected to the post. Kofi Annan hails from Ghana. The current Secretary-General is Ban Ki-moon of South Korea, who took office on 1 January 2007. His first term will expire on 31 December 2011, and he will be eligible for reappointment

The following are the main organs of the United Nations: General Assembly; Secretariat; Security Council; Trusteeship Council; Economic and Social Council and International Court of Justice. In number the United Nations has 6 main organs.

General Assembly

It consists of the representatives of all the Member States. Each state has one vote but it can send as many as 5 representatives. The General Assembly meets at least once a year and elects its own President and Vice President. The general assembly has its headquarters in New York.

All other bodies of the UN report to the General Assembly. It discusses and makes recommendations on any subject covered under the UN charter except those which the Security Council may be dealing. 

Security Council

It has its headquarters in New York. It consists of 15 members, each of whom has one vote. There are 5 permanent members and 10 non-permanent members elected for a 2 year term by a two-thirds majority of the general assembly. The permanent members have the power to veto any move and the retiring members are not eligible for immediate re-election.

The presidency of the Security Council is held for a one month period in rotation by the Member States in the English alphabetical order of their names. The permanent members of the UN Security Council are: China; France; Russia; USA; UK.

The non-permanent members are: Austria, Japan, Mexico, Turkey, Uganda (All until December 31, 2010), Bosnia and Herzingovina, Lebanon, Brazil, Gabon and Nigeria (until December 31, 2011). The Security Council is responsible for international peace and security. Any nations irrespective of its membership to the UN can put forward its problem in front of the council. The Security Council can suggest a peaceful solution or may use force to restore peace.

The Economic and Social Council

It has 54 members and is responsible under the general assembly for carrying out the functions of the UN with regards to international economic, social, cultural, educational, health and related matters. It has its headquarters at New York and its members are elected by two-thirds majority in the general assembly. One-third of the members are elected every year to serve for a period of three years and one-third of the members retire annually.

The following are the council’s regional economic commissions: Economic Commission of Europe (ECE, Geneva), Economic and Social Commission for Asia and the Pacific (ESCAP, Bangkok), Economic Commission for Latin America and the Caribbean (ECLAC, Santiago), Economic Commission for Africa (ECA, Addis Ababa), Economic Commission for Western Asia (ESCWA, Amman).

Trusteeship Council

The charter of the UN provides for an international trusteeship system to safeguard the interests of the inhabitants of territories that are not fully self-governing and which maybe place there under by individual trusteeship agreements.  The Trusteeship Council has its headquarters in New York.

The membership to the Trusteeship Council include the five permanent members of the Security Council plus those nations who administer Trust Territories All of the original 11 trust territories have become independent or joined independent countries. The Council is presently inactive as there are no trust territories left any more.

International Court of Justice

Also known as the World Court, it is based in the Peace Palace in The Hague, Netherlands. The ICJ was created by an international treaty, the statue of the court which forms an integral part of the UN charter. 

Number of Judges 

The ICJ is composed of fifteen judges elected for nine year terms. Judges serve for nine year terms and may be re-elected for up to two further terms.

Election Procedure: The election is done by UN General Assembly and the UN Security Council from a list of persons nominated by the national groups in the Permanent Court of Arbitration.  

Frequency of Elections: Elections take place every three years, with one-third of the judges retiring (and possibly standing for re-election) each time, in order to ensure continuity within the court. 

Current President: Hishashi Owada of Japan is the current President of the International Court of Justice.

Indians at the ICJ

3 Indians have been permanent judges of the ICJ, as follows:

  1. Benegal Rama Rau (1952-1953)
  2. Nagendra Singh (1973-1988), who was President (1985–1988) and Vice-President (1976–1979).
  3. Pathak Raghunandan Pathak (1989-1991)

Status of Precedents

The law of precedent or stare decisis, whereby a Court relies upon its own prior decisions or the decisions of a judicial body superior to itself, does not apply in the ICJ and the ICJ is not bound to follow what it laid down in its previous decisions. However, the ICJ repeatedly cites principles it has developed in its prior case law, in cases that come before it subsequently.

Jurisdiction of the Court

It gives advisory opinion on legal matters to the bodies and special agencies of the UN and considers the legal matters than are brought before them. All members of the UN charter are ipso facto parties to the Statute of the Court. All questions are decided by majority. The official languages of the court are French and English.

The Secretariat

The Secretariat is composed of the Secretary-General, who is the chief administrative officer of the organization and an international staff appointed by him under regulations established by the General Assembly. However, the Secretary General, the High Commissioner for Refugees and the Managing Director of the Fund are appointed by the General Assembly.

Dr. Asha-Rose Migiro of Tanzania took office as Deputy Secretary General on February 1, 2007 and is the third person to hold this post since it was introduced in 1997. The tenure of the secretariat is five years and is eligible for re-election after expiry of the term. It is the chief administrative office of the UN which coordinates and supervises the activities of the UN.

Trygve Lie of Norway was the First Secretary General of the UN.

The present secretary general of the UN is Ban ki Moon . He hails from South Korea and is also the only Asian to hold the post since 1975.

U.Thant was elected as the 3rd secretary general and he was the first Asian to be appointed for the post in 1961.

Permanent Court of Arbitration (PCA)

The PCA was established by the Convention for the Pacific Settlement of International Disputes, concluded at The Hague in 1899 during the first Hague Peace Conference. The Conference was convened at the initiative of Czar Nicolas II of Russia. The 1899 Convention was revised in 1907 at the second Hague Peace Conference. 110 countries are members of one or both of the founding conventions.

The PCA provides services for the resolution of disputes involving various combinations of states, state entities, intergovernmental organizations, and private parties. Its Secretary General is Christiaan M.J. Kröner.

Special Tribunals

The United Nations established special international criminal tribunals in Rwanda and Yugoslavia to prosecute those responsible for atrocities during times of war and genocide. Successful convictions of these political and military leaders are meant to bring justice to victims and to deter others from committing such crimes in the future. 

International Criminal Tribunal for the Former Yugoslavia, 1991

The Tribunal is a body of the United Nations established to prosecute serious crimes committed during the wars in the former Yugoslavia, and to try their perpetrators. The tribunal is an ad hoc court which is located in The Hague, the Netherlands. It was constitued pursuant to a Security Council Resolution.

International Criminal Tribunal for Rwanda

The International Criminal Tribunal for Rwanda (ICTR), was established in order to judge people responsible for the Rwandan genocide and other serious violations of the international law in Rwanda, or by Rwandan citizens in nearby states, between 1 January and 31 December 1994. 

In 1995 it became located in Arusha, Tanzania (from 2006, Arusha also became the location of the African Court on Human and Peoples’ Rights).  The first trial, of Jean-Paul Akayesu, began in 1997. Jean Kambanda, interim Prime Minister, pleaded guilty. 

International Criminal Court

These special tribunals gave impetus to the formation of the International Criminal Court (ICC), finally established in 2003. The International Criminal Court (ICC) brings to trial those who commit large-scale political crimes – genocide, war crimes and crimes against humanity and the crime of aggression (although it cannot currently exercise jurisdiction over the crime of aggression).

The ICC’s first trial, of Congolese militia leader Thomas Lubanga, began on 26 January 2009. On 24 November 2009 the second trial started, against Congolese militia leaders Germain Katanga and Mathieu Ngudjolo Chui.

As of October 2009, 110 countries have joined the court, including nearly all of Europe and South America, and roughly half the countries in Africa.

Three states — Israel, Sudan and the United States — have “unsigned” the Rome Statute, indicating that they no longer intend to become states parties and, as such, they have no legal obligations arising from their signature of the statute.

The current President of the Court is Sang-Hyun Song, who was elected on 11 March 2009. 

Special Court for Sierra Leone

Sierra Leone suffered through a ten-year civil war, where multiple groups have been alleged to have committed war crimes. The Revolutionary United Front (RUF), led by Foday Sankoh, used amputations and mass rape to terrorize the population and gain control of the country’s lucrative diamond mines. Charles Taylor, then president of neighboring Liberia, backed the insurgency providing arms and training to the RUF in exchange for diamonds.

The pro-government Civil Defense Force (CDF), under the leadership of Sam Hinga Norman, committed serious offenses as well. In 1999 the UN eventually brokered the Lome Peace Accord between the warring parties.

In January 2002 the UN approved the Special Court for Sierra Leone (SCSL) to try those responsible for the crimes committed during the civil war. Based in the country where the atrocities were committed and combining international and domestic law, the SCSL ushers in a new generation of international tribunals. It is believed that this would provide justice faster and at a cheaper cost than its predecessors, the Tribunals for Yugoslavia and Rwanda.

Special Tribunal for Lebanon

The court was established by an Agreement between the United Nations and Lebanon pursuant to a Security Council resolution in March 2006. The Special Tribunal for Lebanon is an international criminal tribunal for the prosecution, under Lebanese law, of criminal acts relating to the assassination of Rafik Hariri on February 14, 2005.

The tribunal marks the first time that a UN-based international criminal court tries a “terrorist” crime committed against a specific person. Antonio Cassese, a noted international criminal lawyer from Italy, was appointed the President of the tribunal on March 24, 2009.

Special Tribunals had also been constituted for Cambodia and East Timor.

Famous International Jurists and the Books authored by them 

VattelLE DROIT DE GENS OU PRINCIPES DE LA LOI NATURELLE (translated into “THE LAW OF NATIONS OR PRINCIPLES OF NATURAL LAW”)

Samuel von Pufendorf THE TWO BOOKS OF THE DUTY OF MAN AND CITIZEN ACCORDING TO NATURAL LAW

International Refugee Law: A Reader by B S Chimni 

International Law And World Order: A Critique Of Contemporary Approaches by B S Chimni

International Commodity Agreements: A Legal Study by B. S. Chimni

Legal regime of the sea-bed and the developing countries by R. P. Anand 

New states and international law by R. P. Anand 

Studies in international adjudication by R. P. Anand 

International law and the developing countries by R. P. Anand 

International Criminal Law and Human Rights – Manoj Kumar Sinha

Charter of the United Nations – Bruno Simma

International Law and the Use of Force by States – Ian Brownlie

Free Trade Agreements and Regional Trade Organisations

Under the present international system, a body of international law for facilitating trade between various nations has developed, which is known as international trade law. The World Trade Organisation, established in 1995 is a famous example of such an organisation. Such organisations also exist at the regional level. Some examples of them are:Mercosur was established among Argentina, Brazil, Paraguay and Uruguay founded in 1991 by the Treaty of Asunción. Bolivia, Chile, Colombia, Ecuador and Peru currently have associate member status. Venezuela signed a membership agreement on 17 June 2006, but before becoming a full member its entry has to be ratified by the Paraguayan parliament.

The ASEAN agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises ten countries of ASEAN. 

NAFTA – North American Free Trade Area

SAARC – South Asian Association for Regional Cooperation

Apart from regional agreements, countries may have free trade agreements with each other, subject to their compliance with WTO law. For example, India has a Free Trade Agreement with the ASEAN, and expects to enter into one with the European Union by the end of 2010.

India also has a special kind of a free trade agreement, known as a Comprehensive Economic Cooperation Agreement (which deals with free trade not only in goods, but also services and mobility of investment and capital) with Singapore, and expects to enter into one with Malaysia as well by the end of 2010. 

World Trade Organisation

The World Trade Organization (WTO) is an international governmental organization comprising of sovereign states. Its primary aim is to liberalize and regulate international trade. It provides a framework for negotiation and formalization of trade agreements and solves disputes between the member states.

The WTO agreements are ratified in the Parliaments of the member nations lay down the legal ground rules for international commerce. It was established on 1st January, 1995 under the Marrakesh Agreement with the primary aim to liberalize and regulate international trade. WTO replaced General Agreement on Trade and Tariffis (GATT) which had been formed in 1947. At present it has 153 members. India became a member of the WTO in 1995. 
 

What is GATT?

Unlike the WTO, the GATT was a treaty organization affiliated with the United Nations whose main purpose was to facilitate trading activities between different nations of the world. The organization mainly focused on freezing and reducing tariff levels on various commodities.

At the time of its creation in 1947, GATT was meant to be a part of an International Trade Organization (ITO). Since the ITO was ultimately did not come into existence, the GATT was left as an independent body. It remained in force till 1994 when it was superseded by WTO. The original GATT text is still in effect under the WTO framework, subject to the modifications of GATT 1994 
 

How was the WTO created?

The multilateral trading system originally set up under the GATT is well over 50 years old. The system further evolved through a series of multilateral trade negotiations held under GATT Eights rounds of negotiation occurred under GATT out of which the first rounds mainly dealt with tariff reductions  and the  later negotiations focused on areas like anti dumping and non-tariff measures.  The last round known as the Uruguay Round (from 1986-94) led to the formation of WTO.

By the time the negotiations were nearing their completion, 123 countries were taking part in the process. It was the largest trade negotiation in history covering diverse areas such as trade in services and intellectual property and trade reforms in agriculture and textiles. All the original article of GATT were brought up for review. 

The Uruguay round culminated with the drafting of the first draft of a final legal agreement on world trade.  This draft also known as the “Dunkel Draft” was compiled by the then GATT director-general, Arthur Dunkel in December 1991. The Dunkel Draft with minor changes became the foundation of the WTO.  

Agreements under WTO

The agreement establishing the WTO regime signed during the April 1994 ministerial meeting at Marrakesh (hence known as Marrakesh Agreement), Morocco encompasses a number of other agreements as well.  The important agreements which form part of the WTO regime are:

  • The Agreement Establishing the WTO
  • Goods and investment — the Multilateral Agreements on Trade in Goods including the GATT 1994 and the Trade Related Investment Measures
  • Services — the General Agreement on Trade in Services
  • Intellectual property — the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
  • Dispute settlement (DSU)
  • Reviews of governments’ trade policies (TPRM) 

 What is WTO Ministerial conference?

The Ministerial Conference is the topmost decision making body of WTO, which generally meets after every two years and brings together all the member nations. The Ministerial Conference can take decisions on any matter under any of the multilateral trade agreements.  

WTO Ministerial Conference of 1996 (December 9-13)-  This was the inaugural ministerial conference held in Singapore.  Disagreements emerged between different nations on a number of issues initiated by this conference and the issues came to be collectively referred to as “Singapore Issues”. The issues pertain to 

  • Transparency in government procurement
  • Trade facilitation (customs issues),
  • Trade and investment, and
  • Trade and competition.

 Second Ministerial Conference

WTO Ministerial Conference of 1998 (May 18-20)- The Second Ministerial Conference of the World Trade Organization was held in Geneva, Switzerland. 

Third Ministerial Conference 

WTO Ministerial Conference of 1999(November 30- December 3)- The Third Ministerial Conference of the World Trade Organization was held in Seattle, Washington, USA. It was intended to launch a new round of trade negotiations known as “Millennial Round”.  In this conference, the USA and the European Union attempted to strike a mutual deal on agriculture which resulted in major disagreements with the developing countries. The conference ended in failure with massive demonstrations by the protestors and their controversial management by the authorities. 

Fourth Ministerial Conference 

WTO Ministerial Conference of 2001 ( November 9-13)- The negotiations which had collapsed at Seattle were reconvened at Doha, Qatar. The Doha Development Round was launched at the conference. At this conference, the member nations approved the joining of China which became the 143rd member of WTO. 

Fifth ministerial conference

WTO Ministerial Conference of 2003 (September 10-14)- The Fifth Ministerial Conference was held in Cancun, Mexico. It was targeted to forge the agreement on the Doha round. The G 20 developing countries ( a group of 22 southern nations) led by China, India and Brazil resisted demands from the North for agreements on the “Singapore issues” and called for an end to agricultural subsidies within the EU and the US. The talks broke down without progress.

Sixth Ministerial Conference 

WTO Ministerial Conference of 2005 (December 13-18)- The Sixth Ministerial Conference was held in Hong Kong. It was very important for the progress of Doha Development Agenda and its successful completion in 2006. In this meeting, countries agreed to phase out all their agricultural export subsidies by the end of 2013, and terminate any cotton export subsidies by the end of 2006. Further concessions to developing countries included an agreement to introduce duty free, tariff free access for goods from the Least Developed Countries. Other major issues were left for further negotiation to be completed by the end of 2010. 

Seventh Ministerial Conference  

WTO Ministerial Conference of 2009 (November 30- December 3)- The Seventh Session of the WTO Ministerial Conference took place in Geneva, Switzerland. The general theme for discussion was “The WTO, the Multilateral Trading System and the Current Global Economic Environment. 

What is India’s stand in the Doha Development round? 

 The Doha Development Agenda, launched at the fourth ministerial conference in Doha, Qatar in November 2001, aimed to make globalization more inclusive and help the world’s poor, particularly by reducing barriers to trade and subsidies in farming. The initial agenda comprised both further trade liberalization and new rule-making and. It also provided for substantial assistance by developing counties.  The negotiations were highly contentious and an agreement has not yet been reached. In 2007, negotiations within the Doha broke down at the Potsdam Conference.

ON July 21, 2008 negotiations started again at  WTO’s headquarters in Geneva but stalled after nine days of negotiations over the refusal to compromise over the special safeguard mechanism, a measure designed to protect poor farmers by allowing countries to impose a special tariff on certain agricultural goods in the event of an import surge or price fall.  This came one of the main bones of contention between India and US which resulted in the breakdown of the negotiations.

There was also the issue of agricultural subsidies. Developing countries like India wanted a reduction in trade distorting agricultural subsidies given the farmers in US and U.K. Further, while Brazil has emphasized reductions in trade-distorting domestic subsidies, especially by the United States, while India has insisted on a large number of special products that would not be exposed to wider market opening Moreover, developing countries led by India claim  they have had problems with the implementation of the agreements reached in the earlier Uruguay Round because of limited capacity or lack of technical assistance.

They also claim that they have not realized certain benefits that they expected from the Round, such as increased access for their textiles and apparel in developed-country markets. They seek a clarification of language relating to their interests in existing agreements. Although a number of these implementation issues were resolved, outstanding implementation issues are found in the area of market access, investment measures, safeguards, rules of origin, and subsidies and countervailing measures, among others. 

What is a tariff barrier? 

A tariff barrier is the barrier to trade in the form of a tax levied on imported or exported goods. Tariffs are usually associated with protectionism, the economic policy of restraining trade between nations. For political reasons, tariffs are usually imposed on imported goods, although they may also be imposed on exported goods. For instance, a protective tariff is intended to artificially inflate prices of imports and protect domestic industries from foreign competition especially from competitors whose host nations allow them to operate under conditions that are illegal in the protected nation, or who subsidize their exports. Tariff barriers have been significantly reduced in the face of WYO rules which require countries to cut down on their tariffs of imported goods.  

What are non-tariff barriers?

Non-tariff barriers to trade (NTB’s) are trade barriers that restrict imports but are not in the usual form of a tariff. Some common examples of NTB’s are anti-dumping measures and countervailing duties, which, although they are called “non-tariff” barriers, have the effect of tariffs once they are enacted.

Their use has risen sharply after the WTO rules led to a very significant reduction in the use of tariff barriers. Some non-tariff trade barriers are explicitly permitted only in very limited circumstances, when they are deemed necessary to protect health, safety, or sanitation, or to protect depletable natural resources.

  • Import bans
  • General or product-specific quotas
  • Rules of Origin
  • Quality conditions imposed by the importing country on the exporting countries
  • Sanitary and phyto-sanitary conditions
  • Packaging conditions
  • Labeling conditions
  • Product standards
  • Complex regulatory environment

What are Quantitative Restrictions to trade?

Quantitative restrictions are limitations on the quantity or value of a product that may be permitted to enter a country. They are probably the most familiar of the nontariff barriers and include quotas, embargoes, restrictive licensing, and other means of limiting imports. The Uruguay Round Agreement on Agriculture requires the conversion of quantitative restrictions to bound tariffs and tariff rate quotas.  Thus, these can be considered as trading rules enacted by Member States which are capable of hindering, directly or indirectly, actually or potentially, trade between countries. 

What is the concept of bound tariff? 

Bound tariff refers to the maximum rate of tariff allowed by (WTO) to any member state for imports from another member state.  The bound tariff rate is the the most-favored-nation tariff rate resulting from negotiations under the General Agreement on Tariffs and Trade (GATT) and incorporated as an integral component of a country’s schedule of concessions or commitments to other WTO members.

If a GATT contracting party raises a tariff to a higher level than its bound rate, the country or countries adversely affected have the right under GATT to retaliate against an equivalent value of the offending country’s exports or to receive compensation, usually in the form of reduced tariffs on other products they export to the offending country. 

What is an ad valorem tariff? 

An advalorem tariff is a duty or other charges levied on an item on the basis of its value and not on the basis of its quantity, size, weight, or other factor. It is a set percentage of the value of the good that is being imported. Sometimes these are problematic, as when the international price of a good falls, so does the tariff, and domestic industries become more vulnerable to competition. Conversely, when the price of a good rises on the international market so does the tariff, but a country is often less interested in protection when the price is high. 

What is the concept of balance of payments problems?  

Balance of payments (BOP) sheet is an accounting record of all monetary transactions between a country and the rest of the world.   These transactions include payments for the country’s exports and imports of goods, services, and financial capital, as well as financial transfers  The  economic problem caused by payments for imports being greater than receipts for exports. 

What is the mechanism of WTO Dispute Settlement and Appellate Tribunal ? 

Dispute settlement mechanism of the WTO is the central pillar of the multilateral trading system, and the WTO’s unique contribution to the stability of the global economy. Without a means of settling disputes, the rules-based system would be less effective because the rules could not be enforced. The WTO’s procedure underscores the rule of law, and it makes the trading system more secure and predictable.

The system is based on clearly-defined rules, with timetables for completing a case. First rulings are made by a panel and endorsed (or rejected) by the WTO’s full membership. Appeals based on points of law are possible. Priority is given to settlement of disputes, through consultations if possible. 

Settling disputes is the responsibility of the Dispute Settlement Body (the General Council in another guise), which consists of all WTO members. The Dispute Settlement Body has the sole authority to establish “panels” of experts to consider the case, and to accept or reject the panels’ findings or the results of an appeal. It monitors the implementation of the rulings and recommendations, and has the power to authorize retaliation when a country does not comply with a ruling.

Either side can appeal a panel’s ruling. Sometimes both sides do so. Appeals have to be based on points of law such as legal interpretation. They cannot reexamine existing evidence or examine new issues. The appeal can uphold, modify or reverse the panel’s legal findings and conclusions. Normally appeals should not last more than 60 days, with an absolute maximum of 90 days.

Each appeal is heard by three members of a permanent seven-member Appellate Body set up by the Dispute Settlement Body and broadly representing the range of WTO membership. Members of the Appellate Body have four-year terms. They have to be individuals with recognized standing in the field of law and international trade, not affiliated with any government.

The Dispute Settlement Body has to accept or reject the appeals report within 30 days. The rejection is only possible by consensus. 


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How RERA is Beneficial to its Stakeholders: Home Buyers, Builders, and Government

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This article is written by  Vibha Aggarwal, pursuing a Certificate Course in Real Estate Laws from LawSikho.com. Here she discusses ” How RERA is Beneficial to its Stakeholders: Home Buyers, Builders, and Government”.

Real Estate (Regulation and Development) Act, 2016 (RERA) the landmark legislation, came into existence on 1st May 2016 in order to boost investments and to protect and safeguard the interest of homebuyers against the unfair trade malpractices of the builders.

The key objective of the Act is to bring greater transparency, accountability, financial discipline, speedy redressal of disputes and protect home buyers by creating a positive ecosystem.

It follows the principle that the buyer is the king and the builders will have to ensure compliance to avoid punishment. 

Under RERA, the Home Buyer is a King, How?

The introduction of RERA has resulted in a better-regulated system is beneficial to all the stakeholders. The rules & regulations explicitly safeguard the home buyers from prevailing malpractices in the real estate sector. The Primary objective of RERA is to protect home buyers & create an eco-system wherein they get maximum benefits from this Act

Benefits of RERA to Home Buyers 

  • Right to Information/disclosures

One of the main advantages of the RERA to the buyer is that before investing in property the buyer now has the full right to information about the builder and their projects. Post RERA, the builder is responsible for sharing all the relevant information with the buyers. This includes: plans related to layout, execution plan, stage-wise completion status, government approvals, completion status, etc. Not only the project information is available but also once the builder gets registered with RERA, the buyer can access all the information about the builder -such as previous track record of the builder, financial status, litigation if any, prospectus with all the details of the property, etc. thereby ensuring transparency.

Buyers can access the details by visiting and checking the respective state RERA’s website and can be now more confident before investing their money in any project.

Also, under the Act, citizens have the right to ask for information related to any builder/project. This provision enables every citizen to raise issues pertaining to the real estate sector.

MahaRERA received a number of applications from the citizens seeking information under the Act. 

 

1st May 2018 to 30th April 2019

Number of applications received by PIO/APIO seeking information under RTI

456

Number of applications for which information has been provided by PIO

451

Number of an application pending with PIO

5

Number of appeals filed before the First Appellate Authority against the order of PIO 

52

Number of appeals which have been disposed of by First Appellate Authority 

52

Number of appeals pending with First Appellate Authority

0

Number of applications/appeals not disposed of in the stipulated time frame

0

             Source: MahaRERA Annual Report 2018-2019

  • Standardized Carpet Area

Before RERA, there was no standard formula for the computation of the carpet area, in the absence of any defined guidelines the builders use to inflate the carpet area which further increases and shoots up the cost of the property.

Post RERA, there is a standard formula for calculation of the carpet area; therefore the builders would not be able to manipulate the same.

  • Rate of interest on default on payment

Prior to RERA, in case of the default in payment by the buyer to the builder or in case builder delays the possession, the interest rate paid by the builder to the buyer was less whereas the rate of interest paid by the buyer to the builder for default in payment was higher.

After RERA implementation, the interest rate shall be the same for any of the defaulting parties.

  • Advance Payment

Prior to RERA, homebuyers had to pay advance payment as demanded by the builder; there was no cap on it. Now the builder can’t demand more than 10% of the cost of the property as advance or application fees before entering into the agreement.

  • Reducing the risk of builders bankruptcy/insolvency

Many builders tend to have multiple projects which are being constructed and developed at the same time simultaneously. Earlier, the builders can use the funds raised from one project for any other project, leading to a lack of funds. There have been cases where the builders raised the funds from the home buyers to construct their property but used the same funds in other projects/other purposes. They later become bankrupt and were not able to complete the construction of the property for which the funds were received from the home buyer.

Since RERA implementation, now the builder has to open a project-specific bank account and deposit 70% of the amount collected from the potential buyers of that project in this account. The builder can withdraw the funds only for the specified project for which the funds were raised and shall be in proportion to the completion of the project after being certified by a civil engineer, architect and a chartered accountant in practice.

This will also ensure the timely completion and delivery of the projects, as before lack of funds was a common excuse by the builders for the delay of the projects.

  • Right of the buyer in case of false commitments/promises

In case of any disparity/difference between the commitments/promises made by the builder and the actual property, the buyer, in that case, has the option to withdraw from the project and will be entitled to a full refund of the amount paid in advance or otherwise along with the interest and claim compensation.

  • Right of the buyer in case of the defect after possession

The buyer would be entitled to rectification of defects free of cost in case of any structural defects, any defect in workmanship or in quality, service or provision, within a period of 5 years from the date of the possession. Any such defects would be rectified within a period of 30 days once the defects are detected.

If the builder fails to carry out the repairs within the stipulated time, the buyer can claim compensation for the same. 

  • Right of the buyer in case of delay of possession

If the builder fails to deliver the possession of the property on the due date, then the buyer has the following options available:

  1. To withdraw from the project, wherein the buyer shall be entitled to a full refund along with the interest from the due date of completion till the amount is refunded.
  2. To continue with the project until its completion, wherein the buyer will be entitled to compensation along with interest payable from the due date of completion of the project till the project is actually completed.
  • Right of the buyer in case of a defect in title

If any time after the possession of the property, the buyer finds that there is a defect in the title of the property then the buyer can claim compensation from the builder.

It is even “not barred by limitation” which means there is no time frame within which such claim has to be made.

  • Setting up of an Authority for grievance redressal

A common grievance that is faced by most buyers is the delay in possession or no completion of the project. Before RERA, the buyers did not have any redressal mechanism apart from the regular time consuming legal framework.

Post RERA implementation, the buyer can now approach the respective State Authority set up under RERA. If the buyer is not satisfied with the order passed by the State Authority, a complaint can also be filed or an appeal can be made with the Appellate Tribunal which will redress the case within 60 days and in case of failure to do so, it shall record the reasons of such failure or be extended with the reasons of delay.

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The Tables below provide details on complaints received by the MahaRERA Authority

Number of Cases pending with the authority at the start of the year

Number of cases received during the year by the Authority

Number of Cases disposed of by the Authority

956

4490

2945

Source: MahaRERA Annual Report 2018-2019

RERA enhances builder`s credibility, How?

The Act also has adequate provisions to safeguard the builders from the buyers who purposely delay the due payments and/or not taking possession of the property after receiving a completion certificate. Also, RERA enhances the credibility of registered builders which helps them in securing investments/finances.

Benefits of RERA to builders

Boost Buyers/Investors Confidence and Investments

Due to RERA, the buyers/investors can check the details of the builder and their projects on the respective state RERA website which will revive the faith of the buyers/investors on the builders which in turn will boost their confidence in real estate sector and increase the investments.

The establishment of a regulator will also result in the increase of foreign investments which will give a boost to the overall sector.

Example:

The MAHA RERA Authority commenced an online registration process from 1st May 2017. In total 20,560 project registrations have been granted as on 30th April 2019. Of these 4372 Project Registrations have been granted between 1st May 2018 and 30th April 2019. The distribution of the same month-wise is as follows:

Source: MahaRERA Annual Report 2018-2019

The distribution of total 20,560 projects by status of completion is as follows. Of total 20,560 projects were registered as on 30th April, 2019 and 7,579 projects were new projects.

Source: MahaRERA Annual Report 2018-2019

In Maharashtra, the Real Estate Projects are distributed as follows district wise:

Source: MahaRERA Annual Report 2018-2019

 Transparency 

With the RERA being into existence, the builders will take reasonable care in uploading the details of the projects on the respective state regulatory websites, which will increase the transparency in the marketing and execution of the projects. Because of the increased level of transparency, the investment rate will be improved in the real estate sector.

Certificate of Authenticity

Post RERA, no one can question the integrity of the builders as RERA will provide certificates only to genuine and authentic builders.

Visibility to genuine builders

Genuine builders will get visibility of work. The number of projects launched will be low post RERA implementation; however honest builders who are known for the timely delivery of the projects will gain the benefits from this situation and the unreliable builders who mislead the innocent buyers and investors will be out of the market. Genuine projects under reputed and honest builders will increase in the market creating lesser but healthy competition. This will help credible builders and dissolve unorganized builders who thrive on innocent buyers/investors.

Increased price to the builders

One of the impacts of the RERA is that with the increase of cost of compliance for the builder post RERA, the builder will get a higher price from the buyers as the builder’s compliance cost shifts to the buyer.

Lower Equity Cost

Due to a lack of trust amongst the lenders towards builders, the builders end up taking a huge amount of loans at a very high rate of interest. Once the real estate schedule is organized post RERA implementations, Private Equity Players, Banking, and Non-banking Financial Companies will not hesitate in funding projects proposed by the builders which are genuine by nature. Builders having all the requisite permits find it easy to get their projects funded through these lenders. This will, in turn, lower the equity cost and lessen debts for the builders.

Buyers accountable for a breach of agreement and delay in payments

The builder has the right to approach the regulator in case there is any dispute with the buyer. In case of any breach of the builder-buyer agreement by the buyer, the builder can hold the buyer accountable for the same.

In case of delay in payments by the buyer to the builder, the builder can claim interest and also file a complaint against the buyer for the non-payment with RERA. If the buyer creates a third-party interest without informing the builder, the builder can also take legal action against the buyer.

Reduction in Fly by Night Realtors

As per the RERA rules, builders have to invest 70% of the amount collected from the consumers in the planned project thus there will be very little scope of pre-investing in upcoming projects. This will reduce the number of Fly by Night realtors and the value of reputed builders who do their business unambiguously will increase.

Timely possession of the property

Under RERA, the buyers are liable to take possession of their property within two months of receiving the Occupancy Certificate and cannot hold the builder liable for any further delays on their part.

Robust grievance redressal system

Post RERA implementation, the disputes between the buyer and the builders can be resolved quickly within a specific time and the builder can also appeal against a RERA order received against him. 

Post RERA, with minimal government involvement and the easy organized process, makes it quite effective for the builders.

RERA Benefits for Government

The whole purpose of Government formulating a new Act is to bring the regulatory system in place. RERA is one such Act that benefits the government in various ways.

  • The Government through RERA can regulate the real estate sector through its rules & regulations thus transforming a vastly unorganized sector into the organized sector. This hugely benefits the Government in sector-specific policy formulation, an authentic database of real estate sector economy and creation of a transparent system that boosts investor’s confidence.
  • Under RERA, the Government is able to collate an authentic database of investment & revenue generation from the real estate sector. This information is very useful in formulating future policies & budgetary allocations for the economic development of the country.
  • The real estate sector is one of the biggest contributors to GDP. With the implementation of RERA, prevailing corrupt practices in the real estate sector like black money transactions, lower stamp duty payments, unknown sources of investments, etc. which results in a revenue loss for Government have been vapid out. Now the Government has a very reliable source of revenue generation.
  • Unemployment is a very serious issue faced by our country. After agriculture, it is the real estate sector that provides employment to a large population. RERA helps the Government to create a transparent system, boost investments and create a positive environment for real estate development. All this could be used for creating better & bigger employment opportunities for skilled, semi-skilled & unskilled labor force of the country.
  • Housing for all – One of the most pressing needs India is facing is providing housing to all its population. The only way to achieve the goal of housing for all is by accelerating the growth potential of the real estate sector by making a reliable & investment friendly sector. 

Conclusion

Within a very short period of its implementation, RERA has been successful in creating a common platform beneficial to the buyers and the builders. Also, the overall image of the real estate sector has undergone a positive change. One can see that the number of new project launches has decreased, now builders are focusing more on a single project and delivering it on the promised due date. Also, it has considerably eliminated the bogus/cheat builders engaged in corrupt practices as they find it very difficult to comply with the stringent regulations under RERA.

Though the Act has mostly been implemented by the state governments, there are serious dilutions by some states, which are hampering the very spirit of the Act. The Act excludes projects having fewer than 8 units; builders may exploit this provision for their benefit. 

It is a well-known fact that however good the Act is, it’s the implementation of Act which determines its success. Now the government has to ensure that people are made aware of their rights & responsibilities under the Act by organizing regular awareness campaigns and capacity building programs.

As it is said “Justice Delayed is Justice Denied”, but over the years it has been observed that “delay injustice” certainly erodes the trust of the general public in the justice delivery system. Therefore, RERA authorities have to make all possible efforts to see that each and every dispute is resolved within a specific time frame. The success of the Act would heavily depend on the time-bound justice delivery in all the disputes.


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

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Incest In India : Know everything about it

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This article is written by Barathwaz T, third semester student of School of law Christ University, Bangalore.

Incest In India

A relationship that is forbidden unanimously by most societies in the world is the incestuous form of relationship. This type of relationship is considered taboo in almost every part of the world. 

There is nothing black and white in taboo so is the law around this tabooed topic. Incest is the sexual relationship between two people of the prohibited degree of kinship by means of consanguinity, affinity or any other means.

Incest in ancient times developed as a medium to protect the royal lineage of the persons from the same kinship, to avoid the dissemination of power amongst the non-royal clans. Soon it evolved to be a prohibited form of relationship as it led to multifaceted genetic disabilities amongst the offsprings. 

But, what is the status of such a relationship? Is it illegal? Will it lead to criminal action against such persons? All such questions shall be discussed in detail in the article.

Sexuality in ancient times

Sexuality in ancient India is often characterized as multi-faceted and sometimes contradictory. The Indian subcontinent is one of the oldest places where sexuality has been discussed extensively by means of books and other sources. Nudity was accepted in many parts of Southern-India and to some extent in Northern-India as well, as depicted in Ajanta caves and some ancient sculptures.

History of the Indian subcontinent is very complex to understand because of its diversity and complex civilization structures that demand a great deed of attention to its evolutionary aspect. People from such important geography have given a great deal of importance to sexuality, which is intrinsically connected to religion. A lot of ancient text, arts, games and sculptures depict the importance that was associated with sexuality in ancient India. Kamasutra, an ancient text that delves into lovemaking, sexuality and romantic relationships is one of the oldest sex manuals that has ever been discovered, it explains in detail the positions to have sex. Ananga-Ranga is another significant sex manual that is male centred and talks about the pleasure zones and arousal points in detail.

This is not just it, the oldest text that discussed sexuality in detail was from India. The famous and ancient texts of Hinduism, Jainism and Buddhism were the earliest sources of sexuality in India, discussing in detail about the moral aspects of sexuality, family, relationship and fertility prayers. These texts also give us a hint of ancient Hindus’ involvement in polygamous and polyandrous relationship. The intention being to protect the royal lineage and the rest of the people were restricted to a monogamous relationship.

In most of the tropical regions people did not cover their upper body due to climatic reasons. The historical shreds of evidence also represent that the wealthier section of the society wore gold and other ornaments to cover their upper body and the rest of them survived with uncovered torso covering only the lower body. 

The ancient Indian art produced during the 10th and 12th century freely expressed the idea of sexuality and lovemaking. Temple sculptures capturing all sex positions mentioned in Kamasutra were part of ancient India’s sexuality, experts also say that these sculptures were part of sexual education. Education here is used very loosely as our modern understanding of education is totally different. Sheikh Nafzaw’s Perfumed Garden is a classical sex manual of the Islamic religion. In the later part of the 16th century, various poets described the process of lovemaking and sex poetically, appealing to a great deal of audience.

Such liberal ideology of the Indians started to evaporate at the advent of the colonial invasion of the sub-continent, where the western ideology of stigmatizing public depiction of sexuality started to spread. During the revolt of 1857, when the victorian rules were infiltrated into the political domain of India, Indian liberalisation towards sexuality was frowned upon, ridiculed and considered to be inferior. Paradoxically this new outlook led to the promotion of education of women and puritanical attitude towards sexuality even within the marriage.

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Incest as a crime in India

An act becomes a crime when it is expressly declared to be a crime under the legislation, not just because of an act which is immoral or socially tabooed. Incest is not a crime under any legislation as of now. There is no specific legislation or IPC provisions that expressly declares incestuous relationship to be a criminal activity but they might attract provisions of other sexual offences like sodomy, rape etc. Therefore a person cannot be held criminally liable or punishable for involving in an incestuous relationship, despite it is socially unacceptable and frowned upon.

Hence, it is not an offence if two consenting adults get involved in an incestuous relationship. They do not offend any legal provision by doing so, but might offend the sentiments of the society at large. Also, some personal laws condemn the act of incest to a certain degree.

Laws regarding incest in India

An incident in Mumbai where a 60-year old father raped both his daughters for more than nine years, shook the conscience of the whole country. The perpetrator was charged only for rape under section 376 of the IPC. A man who forced himself on his daughter for more than nine years can’t be held for incest, as Indian Penal Code does not recognize it as an offence. (See:https://bit.ly/2Wu1a9N)

The apathy of law in serious regimes like incest would infiltrate a silent message of acceptance of such act. Social workers argue that this apathy of law is a portrayal of society’s turndown and refusal to concede that incest exists. (See:https://indialawyers.wordpress.com/category/incest/)

The situation is not gaugeable, because most of the time the child’s interests are sacrificed to protect family values. Many cases go unreported. However, to an extent, the statistics are fathomable with the 2007 study on child sexual abuse conducted by the Ministry of Women and Child Development (MoWCD). The study reveals abhorrent figures of child sexual abuse, over 53 per-cent of the female children at least once become victims of child sexual abuse. Adding to the woes 50 per-cent of these victims are victimized by people whom the child could recognise. This numbers also include incest. (See:https://bit.ly/2Wu1a9N)

  • There is no legislation or provision of any statute that penalizes or recognize incest as a crime.
  • The crime of “Rape” under IPC is too specific and it does not cover other sexual abuse other than intercourse. It is not a gender-neutral provision.
  • IPC does not recognize incest as a crime. Conviction shall be given only for sodomy and rape.
  • IPC also does not recognize child sexual abuse in which most of the time the perpetrator is from the child’s acquaintance whom the child trusts. 
  • Most of the sexual offences including incest against women are covered under section 354 of the IPC “outraging the modesty of women”.
  • Section 354 of the IPC is a bailable offence making it less stringent and less serious an offence. 
  • The latest Juvenile Justice act also fails to recognize sexual abuse due to incest.
  • Section 5 of the Immoral Traffic Prevention Act 1956, punishes indulgence into child prostitution, but does not deal with sexual abuse. 

Some Statistics about Incest

The RAHI, (Recovering and Healing from Incest) is a Delhi based NGO in one of its report titled “Voices from the Silent Zone” has revealed that more than 3/4th of the women in the middle and upper-class household in India are abused by incestuous activities. The perpetrators at most of the time are the uncle, brother, domestic help or any other person with whom the women develop a fiduciary relationship. The founder of the firm also comments that “lacuna in the law regarding these tabooed abuses is a reflection of the society which is immature to own up to it, and this also sends a message that it is not serious an offence to commit.

In a study conducted by the Tata Institute of Social Science, it was revealed that one out of ten boys and one out of three girls are subject to child sexual abuse. More than 50 per-cent of this abuse occurs at home. This study was conducted in 1985, It is a nightmare to imagine the numbers that will come up had the study been done today. 

A Bangalore based NGO, Samvada, had conducted research on child sexual abuse amongst a pool of 348 girls. More than 15 per-cent of the girls were used for masturbation purposes when they were under 10years of age, of which 75 per-cent of the perpetrators were their male family members. 

Vidya Reddy founder of Tulir-CPHCSA (Centre for Prevention and Healing of Child Sexual Abuse) a Chennai based NGO says abusers are not shadowy and rugged-looking people who are pedophilic in nature but usually it is a person whom the child trusts and that person without any misgiving or reticence indulge in sexual activity with the child with whom the child shares a fiduciary relationship.

Void marriage in Hindu laws

The marriage laws in India are governed by the personnel laws of their respective religion. The Hindu Marriage Act declares certain type of marriages void-ab-initio. These void marriages are not considered valid in the eyes of the law. Section 5 of the Hindu Marriage Act specifies 6 conditions for a valid marriage violation of which may lead to the nullity of the marriage so constituted. 

Hindu Marriage Act declares incestuous marital relationship to be void under sec. 5(iv) & sec. 5(v). This shall now be discussed in detail.

Degrees of prohibited relationship

Under section 5(iv) of the Hindu Marriage Act, both the parties shall not be under the prohibitory form of relationship. If such parties get married it will not be a valid form of marriage under the Act. 

The parties are in a prohibited degree of relationship if they are;

  • Lineal ascendants or descendants to each other.                                      

Ex: If A and B are mother and son respectively.

If A and B are grandfather and granddaughter respectively.

  • Spouse of Lineal ascendants or descendants / Uterine blood relationship.

Ex: If A and B are mother-in-law and son-in-law respectively.

If A and B are step-father and step-daughter respectively.

  • Siblings and spouses of siblings.

Ex: If A and B are brother and sister respectively.

If A and B are brother-in-law and sister-in-law respectively

  • Siblings of lineal ascendants or descendants.

Ex: If A and B are brother of grandfather and granddaughter respectively.

  • Uncle & niece; Aunt & nephew.

Sanjiv Kumar Mahato vs Rekha Mahato MANU/JH/0228/2018 (See here)

In this case, the court dealt with the issue of whether the spouses are within the prohibited degree of relationship or not. The appellant, in this case, initiated an appeal in the Jharkhand High Court to annul the marriage on grounds of the prohibited degree of relationship, but the court dismissed the appeal stating that there is no proof of the same that is adduced in the court. Hence the appeal was dismissed. 

However, this section shall not have a super riding effect on the established customary practice of the community to which the spouses fall under. 

Shakuntala Devi vs Amar Nath AIR 1982 P H 221 (See here)

In this case, the petitioner filed for a petition to annul the marriage after 5 years of marriage on grounds of consent by fraud and prohibited degree of relationship. The petitioner failed to show evidence of the prohibited degree of relationship and also the parties fall under the community of Aroras who have a custom of having a liberal stance about prohibited degree between spouses.

What is the legal status of cross-cousin marriage in South India?

Many communities from south India practice consanguineous marriages. These communities, however, cannot marry within the same Gothra but they marry their 1st cousins. Another kind of practice that is very much prevalent is that marriage between uncle and niece. This is not in violation of the Hindu law because it is a customary practice amongst the community.

Sapinda Relationship

Under section 5(v) of the Hindu Marriage Act, both the parties shall not be under the sapinda form of relationship. If such parties get married it will not be a valid form of marriage under the Act.

Sapinda form of relationship is with reference to five generations from the lineal ascent of the paternal side including the fifth generation and with reference to three-generation from the lineal ascent of the maternal side including the third generation. Usually, the line being traced upwards has to consider the person involved as the first generation. 

The spouses are considered to be in a sapinda form of relationship if the spouses are lineal ascends of each other if they fall under the “sapinda limits” with reference to both the spouse or if the spouses have a common lineal ascendant who falls under the “sapinda limits” with reference to both the spouse.

Example: If the bridegroom is the progeny of any lineal descendants of five generations from the father’s side, including the fifth generation, or three generations from the mother’s side including the third generation and vice-versa. In this case, both the parties to the marriage are considered as “sapindas” and their marriage is prohibited under the Hindu Marriage Act 1955. 

However, this section shall not have a super riding effect on the established customary practice of the community to which the spouses fall under.

Arun Laxmanrao Navalkar vs Meena Arun Navalkar AIR 2006 Bom 342

In this case, both parties have appealed against the order that was passed by a single judge bench of Bombay city civil court. The husband appealed requesting the court to pass a decree of nullity on grounds of sapinda relationship. The wife had the onus of proving that there was a customary practice that rendered their sapinda relationship valid. However, the court found the evidence adduced to be insufficient and passed a decree of nullity against the marriage.

Muslim law marriage

Under the Muslim jurisprudence, there are two different denominations “Shiya” and “Sunni”. These denominations were caused due to the difference in the political ideology of the Islams. There are three types of Muslim marriage 1)Shahih 2)Fasid 3)Batil. Shahih is a valid form of marriage, Fasid is an irregular form of marriage and Batil is void marriage. Shiya law does not recognise any difference between void and irregular marriage, but Sunni school differentiates both of them. However, their jurisprudence varies on all major aspects of Muslim personal law, such as marriage, inheritance, adoption etc. For the scope of this article only the marriage laws of both denominations are included.

Shiya school on incest 

Shiya law prohibits/provides absolute incapacity on three grounds:

  • Consanguinity
  • Affinity
  • Fosterage

Consanguinity

This type of prohibition on the parties is based on the blood relationship of the parties. If the parties to the marriage descend from the same ancestry or kinship it is a consanguineous relationship.

If it is a man then he is prohibited from marrying:

  1. Mother or grandmother howsoever high.
  2. Daughter or granddaughter howsoever low.
  3. Uterine sister or consanguine sister.
  4. Niece and grandniece howsoever low.
  5. Aunt, paternal or maternal and great aunt howsoever high.

If it is a woman then he is prohibited from marrying:

  1. Father or grandfather howsoever high.
  2. Son or grandson howsoever low.
  3. Uterine brother or consanguine brother.
  4. Nephew and grandnephew howsoever low.
  5. Uncle, paternal or maternal and great uncle howsoever high.

prevalence of consanguinity in India

Types of Consanguinity across the globe

There are various types of consanguinity but the very common ones prevalent amongst the Islamic community is being pictorially represented below.

Type A is the most common type of consanguineous marriage amongst various cultures. In this type of marriage children of brothers marry and it is also considered as a right of the male to marry his uncle’s daughter.

Type B is the second most common type of consanguineous marriage amongst various cultures. In this type of marriage children of sisters marry each other.

Type C is an unpopular form of consanguineous marriage amongst various cultures. In this type of marriage children of opposite-sex siblings marry each other.

These three types are the most popular types of consanguineous marriage in India, but this is not an extensive list. There are other types of consanguineous marriage as well.


Affinity

It is a legal disability to marry a person which arises due to the occurrence of marriage. This holds good even the relationship of affinity arises out of an invalid marriage. Also, this doctrine would hold good if the man had an adulterous relationship with a woman, then the man cannot marry those relations with whom a relationship by affinity would develop had he married her.

If it is a man then he is prohibited from marrying:

  1. Wife’s mother or wife’s grandmother howsoever high.
  2. Wife’s daughter or wife’ granddaughter howsoever low.
  3. Wife of father or grandfather howsoever high.
  4. Wife of son and wife of grandson howsoever low. 

If it is a woman then he is prohibited from marrying:

  1. Husband’s father or husband’s grr howsoever and father high.
  2. Wife’s daughter or wife’ granddaughter howsoever low.
  3. Wife of father or grandfather howsoever high.
  4. Wife of son and wife of grandson howsoever low. 

Fosterage

Any women other than the biological mother from whom the person has suckled under the age of two, then the relationship becomes a relationship by fosterage. A person is prohibited from marrying his foster-mother, foster-son’s wife, foster-sister or foster-siblings. 

Sunni school on incest 

Sunni school of law has exceptions to the prohibition on fosterage. A Sunni man can contract a valid form of marriage with his:

  1. Sibling’s foster-mother.
  2. Foster sister’s mother.
  3. Foster daughter.
  4. Foster sister.

The Shiya school does not recognize these exceptions, all marriages under the prohibited degree of relationship are absolutely void without any exception.

Children born out of an incestuous relationship

Muslim marriage

Under Muslim law, a child born out of an incestuous relationship is considered to be illegitimate. This illegitimacy can arise out of any invalid form of marriage, not just incestuous relationship.

All illegitimate children born out of invalid marriage under Muslim law is entitled to maintenance and inheritance, this position has been clearly specified in various sources of Muslim law.

The settled position of law regarding maintenance is that:

Hedaya: The child has to be provided with all the necessary goods that support his life, such as food, lodging and raiment etc.

Fatwa-I-alamgir: It has been clearly stated that the illegitimate child has to be supplied with food, raiment and lodging. Though the authoritative texts explain the concept of inheritance as all the goods that support life, in common parlance it is been confined only to food. 

Often these rights of an illegitimate child are refused by the common law principle of “Nullis Filuis”.

CRPC:  Under Hedaya which cites the Quran, establishes that the father has to maintain his illegitimate child, but the Muslim law in this regard is clear that father has no such obligations. But Hanafi law demands a mother to maintain the illegitimate child. Section 125 of CRPC clarifies the clutter of such contradicting laws and settles the law regarding the maintenance of illegitimate children. It puts an obligation on the father to maintain his illegitimate child.

Nafees Ara v Asif Sadat Ali Khan: In this case under section 488 of CRPC the Supreme court observed that the maintenance of an illegitimate child has to be provided if the in-action of the father would lead to vagrancy of the child, provided the father has the means to do so.  

Sec 23 of the Indian Contract Act: 

In the case of Sukha v Ninni the point raised in the court was that, can a contract for maintenance with a Mohammedan father be enforceable.

The contentions were that such a contract is void under sec.23 of the Indian Contract Act on grounds that this will defeat the provisions of the Muslim law.

The court observed that such a contract will not violate Muslim law because the maintenance is under section 488 of CRPC and such a claim is in consonance with the public policy.

The settled position of law regarding inheritance is that:

Shiya law: The Shiya law adheres to the principle of “Fillius Nullius” strictly and does not allow the scope for any kind of maintenance under any Muslim law. In Shiya law the illegitimate child can inherit neither from his mother nor from his father.

Hanafi law: The position of Hanafi law is not so strict in this sense. The illegitimate child has to be left to the care of the mother until the age of 7. After which the child can inherit from his mother’s side, but the Father has no obligation towards the child.

Hindu Marriage

Any marriage in violation of the conditions of the marriage under Hindu law is void, and any child born out of such a relationship is considered to be illegitimate. Only certain rights of such a child is recognised, but after the Marriage laws (amendment) act 1976, which amended the section 16 of the Hindu Marriage Act rendered the status of legitimacy to all children born out of a marriage under Hindu Marriage Act irrespective of the fact that such a child is born out of a null and void marriage.

Also, section 3 of the act provides for the rights of inheritance to a child who is born out of a null and void marriage. This amendment was brought with the intention to remove the stigma that is associated with the illegitimate status granted to such children.

Jinia Keotin and Ors. v. Kumar Sitaram Manjhi and Ors

In this case, the court took up the issue regarding the ambiguity that surrounds the word “property” in sec.3 of the Amendment act. The contention was that the word “property” includes both “self-acquired” and ”ancestral” property of the parents. The Supreme Court, in this case, held that the word is restricted only to the “self-acquired property” of the parent and not the “ancestral property”.

Revanasiddappa v. Mallikarjun

In a very recent judgement, the Supreme court held that the narrow interpretation done in the Jinia Keotin and Ors. v. Kumar Sitaram Manjhi and Ors case no more hold good as a child born out of void marriage is innocent and also in the light of the societal consensus around this issue, the court concludes that the word “property ” also included all property the parents hold including the ancestral property.

The Hindu Minority and Guardianship Act, 1956 gives a preferential guardianship right to the mother of the child. The mother and father are considered as a natural guardian of an illegitimate child. In case the child is married the husband will be the natural guardian. Recently in the case of ABC v. State of Delhi (NCT), (2015) 10 SCC 1, the Supreme Court decided that an unwed single mother can be the natural guardian of the child.

Special Marriage Act and incest

Like all the personal laws and legislations regarding marriage, the Special Marriage act also prohibits marriage between relations who are:

  •  relationship by half or uterine blood as well as by full blood
  •  illegitimate blood relationship as well as legitimate
  •  relationship by adoption as well as by blood 

The act expressly declares that marriage between such relations shall be null and void. Refer schedule I on the act for further clarity and detailed list of the prohibited degree of relationship.

Conclusion

Indian legal framework does not provide for any legislation or a provision that punish or recognize incest as a crime. Other countries like the US, UK, Germany have made strict punishments and laws against incest, India still lacks such laws. In the UK the punishment for incest is 12 years, the laws regarding incest were made in 1980. The US has different term periods of imprisonment in different states with a maximum of up to 20 years in Massachusetts. It is for 5 years in Hawaii.

Some countries have even diluted the laws against incest, they see it as a form of liberalisation. Sexual activity with close relations used to be an offence in many countries, of which many countries now have taken a liberal stance. Incestuous activity which is involved with a minor is still disgusted in many such countries who have taken a liberal stance regarding incest.

The view in India regarding incest is that, incest is never consensual it is often an expression of force and dominance by the individuals. Power acts as a trigger that infiltrates incest within the family. Denial, disbelief is mostly the reaction when it comes to incest as the reputation of the family is considered in a higher pedestal than the interest of the child. It is high time India recognises incest as a crime.

References

  1. https://shodhganga.inflibnet.ac.in/bitstream/10603/132606/7/07_chapter%203.pdf
  2. https://www.advocatekhoj.com/library/lawareas/marmuslim/absolute.php?Title=Marriage%20Muslims&STitle=Absolute%20Incapacity%20or%20Prohibition
  3. https://pdfs.semanticscholar.org/f3db/08faf43477ce7c34146aa4b8db0769661efa.pdf
  4. https://read.un-ilibrary.org/population-and-demography/parental-consanguinity-and-offspring-mortality-the-search-for-possible-linkage-in-the-indian-context_cf551e6c-en#page5
  5. https://shodhganga.inflibnet.ac.in/bitstream/10603/132571/7/07_chapter%203.pdf
  6. http://jurip.org/wp-content/uploads/2016/11/Nikita-Swamy.pdf
  7. https://www.domesticshelters.org/articles/identifying-abuse/when-incest-accompanies-domestic-violence

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Statute Interpretation : Everything important you should know about

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This article is written by Karunashankar K.N. a 2nd-year law student from School of Law Christ University, Bengaluru. 

Interpretation

The word ‘Interpretation’ is derived from the Latin term ‘interpretari’ which means to explain or expound or to understand or translate. Interpretation is a process through which one arrives at the true and correct intention of the law-making body which is laid in the form of statutes. This helps in finding out the intention of the author.

Interpretation of any data generally means to analyze the available data and come out with an opinion which is certain and clear. This increases the ability of an individual to understand and explain it in his/her own way. This helps to find out the ways to understand and analyse the statute, where it leads the interpreter to the whole new meaning which is completely different from the general meaning.

It is necessary for all law students, lawyers, judges and anyone who belongs to the legal fraternity to know how to interpret the statute whenever a legislative house comes up with the new statute or an amendment because they will be dealing with these legislations on day to day basis. The main intention of analyzing is to know the new changes which are being brought due to the legislation and the impacts of that legislation in society.

Usually, the interpretation of the statute is done by the judges, it is the primary function of the judge as a judicial head. As we all know that our government is divided into three important wings which are: Legislature, Executive and Judiciary. Here legislature lays down the law and intends people to act according to the legislature and the judiciary that is judges will come up with the proper meaning of the law and puts the law into operation. This helps in maintaining checks and balances between the wings.

Need for interpretation

  1. The ambiguity of the words used in the statute: Sometimes there will be words that have more than one meaning. And it may not be clear which meaning has to be used. There could be multiple interpretations made out of it. 
  2. Change in the environment: We all know that society changes from time to time and there may be new developments happening in a society that is not taken into consideration, this lacks the predictability of the future event.
  3. Complexities of the statutes: usually statutes are complex and huge, it contains complicated words, jargon and some technical terms which are not easy to understand and this complexity may lead to confusion.
  4. When legislation doesn’t cover a specific area: Every time when legislations are out it doesn’t cover all the area it leaves some grey areas and interpretation helps in bridging the gaps between.
  5. Drafting error: The draft may be made without sufficient knowledge of the subject. It may also happen due to the lack of necessary words and correct grammar. This makes the draft unclear and creates ambiguity in the legislature.
  6. Incomplete rules: There are few implied rules and regulations and some implied powers and privileges which are not mentioned in the statute and when these are not defined properly in the statute this leads to ambiguity.

Rules of interpretation of statutes

  (Source:https://bit.ly/2Cq9kah)

Strict Interpretation

Strict interpretation means each word in the statute should be interpreted by the letter and not with respect to the spirit behind the statute. A judge has to apply the text only as it is written in the statute when there is clear meaning of the text there will be no scope for any further investigation regarding the same. Here in strict interpretation, the courts will use the literal rule of interpretation.

This method is important because judges will not make any wrong inferences from statutes and will not go out from the letter of the law and the judgment will be purely based on the text of the statute. This upholds the rule of law by giving importance to the legislature that passes the laws.

If we take the example when we are dealing with the taxation provisions we can not vary from the letter of law as it is universally applicable to all the people in the nation. It is applied as per the text in order to fix the standard in society and clear all the uncertainties which may arise in the near future.

State of Jharkhand v. Ambay Cements, 2005

In this case, it was held that the provisions of the law should be strictly constructed, it should not be let open for the court to interpret, the court cannot ignore the conditions prescribed in the provision. Wherever there is a mandatory rule it must be strictly followed, when a statute explicitly mentions the performance of a particular act in a specific way and lays down the consequences to it, that should be mandatorily followed. Cardinal rule of interpretation is that when a particular act should be done in a prescribed manner the courts cannot interpret that in any way of performance.[1]

Liberal Interpretation 

Liberal or beneficial interpretation means the interpretation of the statute should be made liberally in order to get a wider and enhanced meaning to it. Here judges have all the powers and authority to interpret the laws according to the case requirements and in this rule, there will be no compulsion to follow only the letter of the law, they can go beyond the meaning of the text and interpret. The courts will use the golden rule of interpretation or the Mischief rule of interpretation.

In this method, the judge does not restrict themselves to the literal meaning of the law but they will give all the opportunity to the lawyers to enlighten them with the different interpretations of the law. They will try looking at the law from the other perspective, by which many of the modern-day problems would be solved. As it is an exhaustive rule of interpretation it gives a wider scope of expanding the law and helps in creating a new law if required.

If we take the example of the ‘CONSUMER PROTECTION ACT’, the main aim of that act is to protect the interest of the people. All the laws are established for the public interest it cannot be looked in a narrow way by restricting it into the letter of law.

Madan Singh v. UOI, 1999

In this case, it was held that it is the duty of the court to interpret the provisions of the law, as every case will not be having the same situation, and the court should interpret especially when there are beneficial provisions related to the parties. The interpretation as to be made in the liberal sense so as to get a wider meaning and understanding of the word rather than restricting the meaning which would probably negate the whole case. And this would destroy the complete purpose of the law which is to protect the public interest. [2]

Literal Rule 

The literal rule basically looks into what the law says, not what the law means. It considers the original meaning of the word. Here judges cannot come up with the words and interpret according to the case basis. When the language used is simple and the words have only one meaning to it at that time judges will use this literal rule of interpretation.

When there are no two meanings to a word. This rule helps courts from taking sides in legislative or political issues. If any word in the statute has a special meaning to it, usually it will be mentioned in the interpretation clause, all technical words are given ordinary meaning if the statute has not specified it. Usage of the appropriate words is very important and makes a lot of difference in the meaning of the context.

Courts should never go beyond the intention of the legislators. When the words of the statute are in themselves precise and unambiguous, then there is no need of explaining that in the natural or ordinary sense.

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R v. Harriss, 1836

The defendant bit off the victim’s nose. The statute says it is offence ‘to stab cut or wound’ a person. Here the court applied the literal rule, the act of biting did not come within the meaning of stab cut or wound as these words implied an instrument had to be used. Therefore the defendant’s conviction was quashed.[3]

Fisher v. Bell, 1960

Under the ‘offensive weapons act of 1959’, it is an offence to offer certain offensive weapons for sale. Bristol shopkeeper, James Bell displayed a flick knife in his shop window. When brought to trial it was concluded that Bell could not be convicted given the literal meaning of the statute. The law of contract states that having an item in a window is not the intention of sale but is an invitation to treat. Given the literal meaning of this statute, Bell could not be convicted.

Pritipal Singh V. Union Of India

There was the criminal case was against the defendant, the charge sheet was filed as per the violations and provisions under the ‘Narcotic Drugs and Psychotropic Substance Act, 1985’ and the interpretation of words was in question. The court emphasized the literal rule of interpretation. 

It was held that there is a presumption that the words which are used in the statutes are correct and exact and it is inappropriately made.[4]

Criticism

  • Judges started giving more importance to the literal meaning of the statutory provisions without considering the wider meaning of the context.
  • This method ignores the limitations of the language.
  • Words undergo changes in their meaning as time passes.
  • Basing it on a wrong assumption that a word has only one fixed meaning.
  • Lack of clarity in the statute.
  • This leads us to prejudices and determines the meaning of the statute. 

Reasonable Construction 

Reasonable construction follows the principle of ‘Ut Res Magis Valeat Quam Pareat’ which means when the interpretation of the statute is made it should be done in a meaningful and sensible manner. If a statute is having a two interpretation where one is completely vague and absurd and other is perfectly making sense then that meaningful interpretation should be used.

A provision of law cannot be so interpreted where it is made without using common sense. Every word or expression used in an act should receive its natural and fair meaning which was made in accordance with the legislator.

Tirath Singh v. Bachittar Singh

It is only when the language of a statute, in its ordinary meaning and grammatical construction, leads to a manifest contradiction of the apparent purpose of the enactment, or to some inconvenience or absurdity, hardship of injustice, presumably not intended, a construction may be put upon it which modifies the meaning of the words and even the structure of the sentence.[5]

Kanwar Singh v. Delhi Administration, AIR 1965

Courts can depart from the dictionary meaning of a word and give it a meaning which will advance the remedy and suppress the mischief provided the Court does not have to conjecture or surmise. Construction will be adopted in accordance with the policy and object of the statute.[6]

Golden Rule

The Golden rule is also called as British rule of interpretation, it is a form of statutory interpretation which allows a judge to depart from a normal meaning of the word in order to avoid an absurd result. As we know applying the bare letter of law sometimes may lead us to confusion and gives us an absurd result, in order to overcome these kinds of results judges will give an opportunity to the lawyer to come up with the new interpretation to the law which will be more certain and accurate to the case.

This method of interpretation is also known as the compromise method between literal rule and the mischief rule. In the literal rule, judges will only use the word meaning nothing else, but sometimes this may be irrational and gives us unexpected results which will be unlikely to the legislator’s intention.

In the case of homographs, where a word can have more than one meaning, the judge can choose the meaning which is suitable at that particular case if the word only has only one meaning, but applying that would lead to a bad decision where the judge can apply that decision and arrive at a completely different meaning.

This rule is used in two main situations:

  1. When the meaning of the word is too narrow.
  2. When the word itself has ambiguity or absurdity.

For example: 

  1. Whenever you stand near the lift it will be written that ‘’Do not use lifts in case of fire.’’ if you consider it in a literal meaning you should never use the lifts, this would be an absurd result because the intention of the person who put the sign is to prevent using of lift when there is live fire burning anywhere near the lift.
  2. When a son murdered his mother and committed suicide, now the court has to decide who will inherit the property is its mother’s family or the son’s descendants. The judgment came out in favour of the mother’s family, here what we have observed here is son never had the intention of making a profit by his crime, but now this judgment will be binding on all the lower courts.

R v. Allen, 1872

The defendant was charged with an offence of bigamy under section 57 of ‘offence against person act 1861’. The statutes states “whomsoever being married shall marry any other person during the lifetime of husband and wife is guilty of an offence.”

Under the literal rule of interpretation of this section, the offence would be impossible to commit since the civil law will not recognize a second marriage as an attempt to marry in such circumstances would not be recognized as a valid marriage.

Court applied the golden rule and held that the word marriage should be interpreted as ‘to go through a marriage ceremony.’ The defendant was convicted and held guilty.[7]

Adler v George case, 1964

Under section 3 of the ‘official secrets act,1920’ it was an offence to obstruct HM Forces in the vicinity of a prohibited area. Adler was arrested for obstructing forces whilst in a prohibited area. Under The Literal Rule, Adler was not in the vicinity of the area, he was in the area and so was not infringing the terms of the act. The Golden Rule was applied to extend the meaning of ‘vicinity’ and avoid the possible absurd outcome.

Uttar Pradesh Bhoodan Yagna Samiti v. Brij Kishore

The Supreme Court held that the expression “landless person” used in Section 14 of the ‘U.P. Bhoodan Yagna Act, 1953,’ which made provision for grant of land to landless persons, was limited to “landless labourers”. Landless labour is he who is engaged in agriculture but having no agricultural land.

The Court further said that “any landless person” did not include a landless businessman residing in a city. The object of the Act was to implement the Bhoodan movement, which aimed at the distribution of land to landless labourers who were verged in agriculture. A businessman, though landless cannot claim the benefit of Act.[8]

Criticism

  • This infringes the separation of power among the wings of the government that is between judiciary and legislature.
  • Here judges can technically change the law by changing the meaning of the words in the statute.
  • This method can be used only when there is an absurdity in the statute.

Mischief Rule 

The mischief rule is a kind of statutory interpretation where it attempts to determine the intention of the legislators. It basically originated in the 16th century by the Heydon’s case in the united kingdom, the main objective of this is to find out the mischief and defect of the previous statute which was in question and how the new statute will come up with the remedy that resolves the defect. 

The main purpose of bringing the amendments in the statute is to add on additional areas or to make certain changes in the existing law and make it wider where it covers many other circumstances. Legislating a new law is to resolve the problem which was unable to resolve through the other laws which were existing before. And this also helps in finding out the answers to those questions which were not answered in the previous law. So here we can observe the retrospective effect in the process of making laws.

This rule is also called as purposive construction as there is a purpose behind making this ruling. Here court attempts to know the intention of the legislators for bringing in the change in the law. It also tries to analyze the mischief and the defect which was present in the previous law which leads to the creation of the new law.

Heydon’s Case 

This case helps us to know the 4 important points which we have to keep in mind while statute interpretation.

  1. What was the common law before the making of the act?
  2. What was the mischief or defect which the common law did not provide?
  3. What remedy the Parliament had resolved by appointing to cure the disease of the commonwealth?
  4. What is the true reason behind the remedy?[9]

Thomas v. Lord Clan Morris

Here it was stated that interpretation of any statutory enactment should not only restrict them to the interpretation of words and phrases used, but they should also look at the history of the act and the reasons behind passing such acts.

Bengal immunity co. V. State of Bihar, 1955

In this case, they have applied the mischief rule in the construction of Article 286 of the constitution of India. Article 286 was in question because before the implementation of this section every state had its own powers and privileges to make its own laws regarding taxation. But the supreme court said that article 286 is made in order to regulate the interstate taxation system and to maintain a well-organized taxation system. And make the whole of India as one economic unit.

Here Supreme Court has looked into the history of article 286 and also the reasoning behind it by considering both of it they have interpreted the statute by mischief rule.[10]

Elliot V. Grey, 1960

According to the Road Traffic Act of 1930 uninsured cars are not allowed to be driven or parked on the road. The defendant’s car was parked on the road near the public place but he was not using it.

The defendant was held guilty because the parliament has passed a bill which states that people should insure their car only then they can drive the car. 

The mischief rule was applied by the court by stating that the car being used in the road if in case the car causes an accident, insurance would be required. The reason behind this was that people should be compensated when they are injured by such incidents and danger caused to them by others.

Advantages:

  • Law commission finds mischief rule more efficient as it opposed to Literal and Golden rule.
  • It avoids unjust and absurd results in sentencing.

Disadvantages:

  • It is considered as an outdated rule as it came into the picture in the 16th century.
  • Gives excess power to the judiciary who are unelected and it is considered undemocratic.
  • This makes the law uncertain.
  • In the 16th century, the kings used to give judiciary complete power to draft laws so at that time they were well qualified about the mischief acts.

Harmonious Construction 

This rule of interpretation is adopted when there is a conflict between two or more statutes or between two provisions of the same statute. Every law has a certain purpose set, so judges should take those purposes into consideration and it should be read as a whole while interpreting. Judges should apply such provisions which are in accordance with the public interest. The laws which are applied must be consistent and shouldn’t overlap with other existing laws. The courts should avoid using such laws which bring ambiguity to the subject and makes courts inconsistent.

Sometimes it’s impossible to harmonise between two provisions of the statute at that time the decision of the judges will prevail above everything. When there is “a head-on clash” between the provisions of law the judges should bring harmony and make justice to both the parties.

Supreme Court explained harmonious rule as to when the two provisions of the same legislation are inconsistent with each other, both the provisions must be interpreted in such a way where it gives equal importance to others. Here one provision will not override on other provision, it aims at harmonizing between conflicting provisions and avoids destruction one provision.

Supreme Court has laid down five principles of rule of Harmonious Construction in the landmark case of CIT v. Hindustan Bulk Carriers:
  1. The courts should avoid such provisions which are contradicting in nature and which brings the head-on clash between each other. 
  2. The courts should interpret in such a way that brings harmony to the contradicting provisions.
  3. The provision of one section cannot defeat the other provision.
  4. When the court fails to bring harmony to both parties, it should at least interpret in such a manner where both the provisions are given effect as much as possible.
  5. Courts should keep in mind that the interpretation which reduces one provision to the dead is not harmonious, here harmonising doesn’t mean destroying.[11]

Ejusdem Generis 

Ejusdem Generis means of the same kind. Generally, the words should be given their natural meaning, unless it requires special meaning based on that context. When general words follow specific words that are distinct in nature, the general words should also be given the specific meaning to it.

The courts will interpret such general words follow specific words in a restricted way. It will be based on the facts and circumstances of the case which may change case to case. The legislative intent on principle of Ejusdem Generis is if the general words to be used in the restricted sense that means those words will be having a special meaning to it or else why would they even use specific words.

For example in an act dealing with the slaughter of animals for food for human consumption, the expressions used are “cows, goats, sheep, and other animals”.

 Whether the following animals are cover:

  1. Cats and dogs 
  2. Poultry
  3. Wild animals
  4. Horseflesh

Regina v. Edmundson, 1859

It was stated by Lord Campbell “Where there were general words following particular and specific words, the general words must be confined to things of the same kind as those specified.” by applying this it helps judges to restrict the wide ambit of the general expression.

In this case, it gave us the basic requirements which should be present in the case in order to apply ejusdem generis:

  1. The statue should contain an enumeration of specific words.
  2. The general term should follow the specific term.
  3. There should be no different intent of the legislature to the general terms.
  4. The series of the enumeration should constitute a class or category.
  5. The class or category should not be exhausted by the enumeration of specific words.

Beneficial Construction 

The general rule of the statute is that if a word used in the statute excludes certain cases in its common meaning, it should not be forced unnecessarily to include those cases. An exception to this rule is that when the main objective of the statute is not achieved by excluding those cases then the word may be interpreted on the basis of the case requires. 

This rule of interpretation will benefit individuals. Whenever there is an ambiguity or when the which would take the benefit away from the individual, so the meaning which prevails over the benefit to the individuals should be adopted. 

The courts should be generous towards the persons to whom benefits are conferred by the statute. Here it involves the judges to give the widest meaning to the statute in order to protect the interest of the parties, if you look into certain statutes the main purpose is to benefit and protect the interest of the person, for example, Industrial Disputes Act, Consumer Protection Act, Juvenile Justice Act and all labour-related laws. Provision is capable of giving two meanings where one would preserve the benefit and another.

Hindustan Level Ltd v Ashok Vishnu Kate

In this case, the court held that in a case which is related to the prevention of unfair labour practices it should be made completely in accordance with the labour point of view as they are benefitting people here and while interpreting Social Welfare Legislation also they should consider the benefitting people of the society.[12]

Noor Saba Khatoon v. Mohammad Quasium

The supreme court held that the rights of maintenance of children below two years old and the mother under Section 125 of the code of civil procedure 1973 are independent of each other and any other and subsequent legislature regarding maintenance of children below two year and mother that maybe Muslim women (Protection of rights on Divorce) Act, 1986 could not affect the same in absence of clear provision to the effect.[13]

Purposive Construction 

It is the modern version of mischief rule. It is actually more flexible compared to literal rule and golden rule which tends to concentrate more on the meaning of individual words or phrases. This looks for the purpose of the law. This rule allows judges to add or ignore any of the words in the statute while interpreting in order to protect the purpose of creating that law and give fair and equal justice to everyone. 

This rule is always compared with the mischief rule. As mischief rule looks into the gap between the old and new law and how parliament came up with the new law and what are the new remedies brought out to resolve the problems which were exiting before, whereas the purposive construction rule is broader where it not only figure out the gap between the old and new laws but it also helps judges to make an attempt to identify what parliament meant to achieve.

The days have passed by when judges used to use only strict rule where they interpret the law only based on the meaning of the words used in the statute, but now court seeks to give effect to the purposive rule where it not only consider the words of the statute according to their meaning but also according to the context. ‘Context’ here doesn’t mean only ‘linguistic context’, it takes into consideration the subject-matter, scope, purpose, and background of the act. 

Important features:

  1. Here judges do not go by the letter of the law, but they look into the intention and the spirit of the statute.
  2. Legislative intention is a fictitious concept.
  3. The legislative intention with respect to a particular statute can be an intention of the majority of the parliamentarians. 
  4. In mischief rule, the court resorts a particular act intended to remedy but purposive construction looks into the overall intention of the parliament on the statute. In this way, purposive construction is wider than the mischief rule. 

Regina V Barnet London Borough Council, Ex Parte Shah

In this case, there were five students who were immigrants came to London for the purpose of studies. They challenged the refusal to allow them grants for their education.

The court held that the House construed the expression ‘ordinarily resident’ in the 1962 and 1980 Acts. Long-standing authority on the meaning of the expression was referred to. The natural and ordinary meaning of ordinary residence had been settled by two tax cases. At least for educational purposes, ‘ordinary residence’ did not include a person whose residence in a particular place or country was unlawful.[14]

Other Rules

Expressio Unius Est Exclusio Alterius

It is a Latin phrase that says ‘Express Mention and Implied Exclusion’ that means express mention of one thing excludes all other things. Here it is considered that the items which are not on the list are not covered by the statute. When something is expressly mentioned in the statute it leads to the presumption that the things which are not specified in the statute are excluded. 

General words in a statute must receive a general construction unless the statute is specifying any special meaning to the general words. Whenever something is added in the statute it is added with the due consciousness. It is assumed that if something is not added in the statute there is a reason behind it, which is to exclude that from the particular statute. 

Contemporanea Expositio Est Optima Et Fortissima in Lege

It is one of the best and the strongest way of interpretation. As time passes by words used in the statute will undergo changes in their meaning but when it is interpreted the word should bear its original and same meaning as the statute intended when it was passed.

The meaning of the law should be interpreted in the context when the law was formulated. Old statutes must be interpreted in such a way where that defines its purpose of introducing it. And it also considers the prior usage and interest or of enforcing the act at the time when the law was enacted.

If the word is wrongly interpreted for all these years those kinds of words will not be eligible for interpretation. The words can only be interpreted by the court when the title of the property may be affected or when everyday transactions have been affected. 

Noscitur a Soclis

Noscitur a soclis is a Latin term which means associated words, the meaning of unclear words or phrases is to be determined or interpreted on the basis of its context and the words and phrases surrounding it. 

Associated words try to explain the meaning of the general words and also limit the interpretation of specific or special terms. When a word used in a statute is ambiguous or vague, the meaning of such words will be determined by looking associated words around it. These surrounded associate words will give clear and specific meaning to it.

The importance of this rule is it aims to interpret by reading the whole statute. It doesn’t emphasize one particular word but it tends to interpret the word by looking into its preceding and succeeding words. The words are understood in a cognitive sense and the intention of the legislatures can be easily understood.

Aids in Interpretation 

Interpretation is the process of finding out the true essence of the enactment, by giving natural and ordinary meaning to the words of enactment. This helps in ascertaining the true meaning of the words used in a statute. 

The main objective of the interpretation of statutes is to determine the intention of the legislature where the meanings of the words are expressly or impliedly mentioned. Courts sometimes interpret the statute In an arbitrary manner, so in order to overcome all these confusions, certain principles have evolved out of the continuous exercise by the courts. These principles are called ‘Rules of Interpretation’.

Rules of interpretation act as a tool in determining the meaning of the particular act which is mainly divided into two they are:

  1. External Aid: the external evidence derived from extraneous circumstances, such as previous legislation and decided cases, etc.
  2. Internal Ais: the internal evidence derived from the Act itself. 

Internal Aids

Judges while interpreting a statute takes many things into consideration. Determining the primary meaning of the statutory words. And where there is ambiguity in the meaning of the words in the statute. Answers to the many questions of ambiguity will be there in the statute itself. Those are called ‘Internal Aids’.

Title of the Statute

  1. Long title

Every statute starts with the long title, it gives the description of the object of that Act.

For example, the long title of the Code of Civil Procedure, 1908, is – “An Act to consolidate and amend the laws relating to the procedure of the Courts of Civil Judicature”.

The long title is used by the court to interpret certain provisions of the statute. It helps in removing the ambiguity and confusion of the act and not in giving conclusive aid in interpreting the provisions of the statute.

Manohar Lal v. State of Punjab

The long title of the Act is relied upon as a guide to decide the scope of the Act.

  1. Short Title

Usually, the short title is used for the purpose of referring and identification of any Act. it ends with the year of the passing of the Act. This is one of the important part of the statute but its role in interpretation is very minimum.

For example, Section 1 of the Code of Civil Procedure, 1908, says –“This Act may be cited as the Code of Civil Procedure, 1908. It shall come into force on the first day of January 1909.”

  1. Preamble

The main aim and objective of the act is found in the preamble of the statute. All the Acts starts with the preamble, stating the reasons behind the enactment of the act and the main objective of the act.

For example, the Preamble of the Indian Penal Code, 1860, is “Whereas it is expedient to provide a general Penal Code for India; it is enacted as follows”.

Kashi Prasad v. State

The court held that even though the preamble cannot be used to defeat the enacting clause of a statute, it can be treated as a key for the interpretation of the statute.

  1. Heading and Title of a chapter

Heading gives the key to the interpretation of the clauses under it and helps to know what the intent of the provision. Headings might be treated as the preamble to the provision.

Durga Thathera v. Narain Thathera and Anr

The court held that the headings are like a preamble which helps as a key to the mind of the legislature but does not control the substantive section of the enactment.

  1. Marginal Notes

Marginal notes are inserted at the side of the section and help to understand the effect of the section. This cannot be used for interpretation of the section.

Wilkes v. Goodwin

It was held that the side notes are not part of the Act and hence marginal notes cannot be referred.

  1. Definitional/Interpretation Clauses

Definition clause is used to define all the important terms and to avoid the necessity of frequent repetitions in describing the same subject matter to which the word or expression defined is intended to apply.

Definition clause of one particular Act is applied only on the particular Act, not on any other Acts.

  1. Illustrations

Illustrations are the examples given in the statutes for a better understanding of the section.

Mahesh Chandra Sharma v. Raj Kumari Sharma

It was held that illustrations are parts of the Section and help to elucidate the principles of the section.

  1. Proviso

Proviso provides examples of specific cases. These specific examples are given to such cases where general words require special meaning for it.

  • ‘Exception’ is intended to restrain the enacting clause to particular cases.
  • ‘Proviso’ is used to remove the special cases of the general enactment and give them special recognition.
  • ‘Saving Clause’ is used to protect the destruction of certain rights, privileges and remedies already existing.
  1. Explanations

Explanations are added to the section to explain and elaborate on the meaning of the words in the section. The purpose behind this explanation is to explain, clarify, subtract or include something by elaboration. This forms an important part while interpreting the laws.

  1. Schedules

The schedule forms an important part of the statute. This should be read along with the section. It contains minute details which adds information to the provisions of the enactment. The expressions of the schedule cannot override the meaning of the provision.

  1. Punctuation

Punctuation is one of the minor element of the statue. It should be given importance only when there is proper punctuation used and when there is no doubt about its meaning.

External Aids

When internal aids that are preamble, explanation, illustrations, etc are inadequate for the purpose of interpretation, Judges may take external aids into consideration. When the words of the Act are clear and unambiguous, the external aids are not required. 

  1. Historical Background

This includes the original idea of drafting such an Act. The reason behind enacting such laws the cases which influenced the parliamentarians to bring out such laws. It also includes the debates made during passing the laws. And the first-hand hand information collected while making the laws.

  1. Reference to Reports of Committees

The reports made by the various committees during the enactment of the legislation can be referred as it gives more clarity to the words and also helps us to understand the intention behind the act, by this, we can figure out what was the defect or mischief which was present in the previous law.

When parliament passes the enactment based on the committee report and there is any confusion or ambiguity in the terms of the statute that can be easily clarified by referring that committee reports and it helps in the interpretation of the statute very efficiently.

Rosy and another v. State of Kerala and others

The Supreme Court Considered Law Commission of India, 41st Report for interpretation of section 200 (2) of the Code of Criminal Procedure, 1898.

  1. Judicial Decisions (Precedents)

Every enactment made by the parliament is based on some or other case, so by referring to the previously giving judgments by the higher courts helps us to analyse and form laws. These judgements may be Indian judgements or foreign judgements. Foreign decisions can be taken into consideration when other countries also follow the same system of jurisprudence. But the priority should be given to the Indian judgements.

  1. Dictionary 

When the meaning of the word is not clear in the statute, the meaning of those words can be figured by looking into the dictionary. And there are certain words which have a different legal definition and common English definition, so whenever we are looking for the legal meaning of any word it is good to search that in the black dictionary.

  1. Social, Political and Economical and Scientific Developments

When the statute is being interpreted it should consider the present system in society. It should take into consideration the changes in the situations and circumstances which have occurred after the implementation of any act. And most importantly the changes in the social conditions and the scientific changes in terms of technology should be given at most importance. When court starts doing this kind of interpretation this helps the legislature to bring out the new amendments for the statute.

  1. Other materials

Courts can also refer to the books, journals, papers, articles which are published by the eminent scholars who are expert in that field.

Conclusion 

The article covers all most all the tools of interpretation, by following these interpretations one can understand and analyse the statute in a better way. This also helps legal fraternity to analyse newly enacted laws by the parliament and to find out the pros and cons of it. It is an extensive article covering most of the relevant topics, for further information you can refer bibliography.

References

  1. https://indiankanoon.org/doc/1353950/
  2. https://indiankanoon.org/doc/1301943/
  3. https://www.lawteacher.net/free-law-essays/administrative-law/critical-analysis-of-the-literal-golden-and-mischief-rule-law-essay.php
  4. https://www.lawnn.com/top-20-landmark-judgements-interpretation-statute/
  5. https://indiankanoon.org/doc/245892/
  6. https://indiankanoon.org/doc/1703356/
  7. https://www.lawteacher.net/free-law-essays/administrative-law/critical-analysis-of-the-literal-golden-and-mischief-rule-law-essay.php
  8. https://indiankanoon.org/doc/1483657/
  9. https://www.lawteacher.net/free-law-essays/administrative-law/critical-analysis-of-the-literal-golden-and-mischief-rule-law-essay.php
  10. https://indiankanoon.org/doc/1629830/

11.https://indiankanoon.org/doc/688236/

  1. https://indiankanoon.org/doc/1353651/
  2. https://indiankanoon.org/doc/1512218/
  3. https://swarb.co.uk/regina-v-barnet-london-borough-council-ex-parte-shah-hl-16-dec-1982/
  4. https://www.lawnn.com/top-20-landmark-judgements-interpretation-statute/
  5. https://www.icsi.edu/media/webmodules/Jurisprudence%20Interpretation%20and%20General%20Laws.pdf
  6. https://www.latestlaws.com/articles/all-about-interpretation-of-statutes-by-nishita-kapoor/
  7. https://www.lawctopus.com/academike/golden-rule-interpretation/

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

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

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Top 7 reasons why litigators love us

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

We said at the beginning of 2019, that this year will be the year of litigation courses. 

We were already the powerhouse for teaching corporate law courses like M&A, Company Law, Investment Laws, Technology Law, Contract Drafting and Negotiation. Most of our students and revenue came from those courses before 2019.  

However, we felt that litigation can be as big an opportunity if not much bigger. 

We had to make amazing litigation courses. And in existing courses, even if they were meant for corporate lawyers, we had to add a dimension of litigation related learning. 

The idea was simple: we have to become really good with litigation courses, similar to what we had already done for corporate law courses. 

Did we achieve that?

With barely 55 days to go for 2019 to end, it is high time to evaluate that!

So, I was going through the feedback of hundreds of litigators who have done our courses in the last 6 months. I have been calling up some of them about what they have to say.

I must say I am very happy about what I heard. I will share what they are saying, but let me tell you what are the top 7 reasons our litigator students said that they loved the LawSikho experience, and bought one after another course as they finished the first one. 

See if any of them resonate with you.

I would also like to congratulate my colleague Harsh Jain who headed the litigation courses wing and have done a great job at it so far.

So here are the things that our students highlighted regarding what they liked the most about LawSikho courses.

Bringing a modern outlook when the bar is plagued by outdated thought process

How can I become a really good litigator? Read lots of case laws every day.

Sorry, that doesn’t work anymore Mr. Senior Counsel. If you had to build a practice in the last 10 years, you would have realized that even an intern can today find as much case law as a senior counsel could remember from years of studies. The judges these days come prepared with their own case law research in the court and do not rely on what the lawyers have to say necessarily.  After all, they can entrust their law clerk to do a bit of research on case laws.

Technology has changed the game. Now even the client does case law research before coming to us! 

How can I learn litigation work? 

Be a junior-cum-file-bearer-cum-personal-assistant for a lawyer for 5-10 years and then you will know how to build a practice of your own.

No. Sorry. That’s a rather terrible and inefficient way to learn practical skills. Also, what if I want to venture into newer and more lucrative emerging practice areas? Where do I learn that?

Do not specialize too early. Do all sorts of work initially. 

Well, not the greatest idea if you want to build your independent practice soon without backing of a family member already established in the practice of law. Those with narrow specializations build profitable practices in niche areas very quickly. Their competence and brand also tend to grow faster.

There have to be better ways to survive and make a career in litigation as far as young advocates are concerned. There have to be better ways in which experienced lawyers can learn new areas of legal work, rapidly. And that is where we focussed at LawSikho.

How can young lawyers earn a reasonable amount to live in a city like Delhi and Mumbai while they work on building a personal brand before the bar and bench, as well as find their clients?

Instead of teaching a bunch of case laws and analyzing sections, as is the tradition, we focussed on teaching work for which one can get paid. The idea we follow is that in every class we better teach a skill for which a lawyer can reasonably charge at least INR10,000 to a client.

Drafting, filing, execution, strategy, how-to guides and process checklists. Do your research, frame arguments, deliver a finished product. Our focus is always on these things for our litigation courses.

We gave our learners assignments followed by comprehensive feedback, followed by live video conference based classes where lawyers argued about each other regarding what would be an even better way to do something. 

We also offer a bunch of free sessions every week on subjects like article writing, networking, publications, and resume building, online presence, branding, PR, hiring juniors, finding freelance work and whatnot. 

The impact on those who participated in these sessions for our learners has been transformative, and that is a major reason why our learners swear by us. Life-altering ideas lead to life-altering results!

Save time and make fewer avoidable mistakes

Why spend 3 years learning how to draft basic things from a senior when you can learn it in 3 months from us? Yes, that is the kind of speed you can expect when you are learning from us. 

Our curriculum is designed for speed, efficiency, and return on investment. 

And that is why we can provide a crazy one-month solid money-back guarantee. If you attend classes and do assignments for a month, and find no value in our course, we give 100% money back. If you don’t attend classes and don’t submit assignments, however, and ask for a money-back, we would plainly refuse. Please read the policy properly. You will understand from that policy itself that we are supremely confident of the value we provide.

Within a month of joining the course, you will realize that you are getting at least 10 times more than what you paid us, and would never want to take your money back. 

Sometimes, a student behaves rudely or unreasonably with our customer support. And it has happened that we felt that it would be a waste of our time to engage with such a person any further and we have offered their money back on the condition that we would never allow them to enroll for any other courses. And then those people have refused to take it back and pleaded with us to not stop their access!

And that’s because what we provide nobody else does.  Someone who has used our courses once will never want to go back.

Does that mean we are perfect? Not at all. 

There were some situations where people have complained about some aspect or the other about our courses. We have immediately taken remedial action. And that is why we have evolved fast. We are always talking to our students and trying to understand how to add value to them. We are always trying to figure out what we can do to make the students more successful. And that is what sets us apart. 

And that is why we can teach you in 1 year what you will learn from a law firm or a sympathetic senior in 3 years! That is why we get our courses right, one after another.

Start new areas of practice confidently and grow rapidly

While civil litigation and criminal litigation courses are uber-popular, we have not stopped there. We introduced courses like IBC, arbitration, NCLT litigation, real estate litigation, securities litigation, consumer litigation, real estate litigation, trademark litigation and so on.

In some areas, doing just litigation is not enough, and it must be combined with transaction and advisory. There we have created entire courses that include comprehensive litigation modules. 

That includes IPR and Media law, where you can learn what you need to learn to do patent litigation, copyright litigation, and trademark litigation independently. However, you will also learn a lot of other work like filing, registration, licensing and so on.

We have also added modules on cyber litigation in our technology law course

We have added securities litigation in our capital markets and securities law course

Our company law course now comes with significant exposure to shareholder disputes, class action, and other corporate litigation coverage. 

The contract drafting course also comes with a module on dispute resolution. We have recognized that even corporate lawyers need to understand litigation aspects for doing a stellar job, and we have made that a part of course development philosophy.

This means that you can rapidly enter a new practice area, confidently and armed with the practical knowledge that other lawyers, young or old, are sorely missing, providing your leverage that you can really benefit from.

Learn corporate law and get more work from existing clients

Have you ever considered that your existing clients, especially the businesses, can give you a lot more work than they currently do? Maybe you are working with many builders, doing a lot of conveyancing. Can then send you more work related to company law compliance? Will it make sense for you to get that work and hire a junior to do such work? Maybe you can get work related to RERA compliance or handling their investment agreements too? What about their labour and employment law issues? Can you help them to comply with sexual harassment laws?

Often all you have to do is reach out to a client and inform them about something they should do under law or will benefit from doing. 

For example: why don’t you register as an MSME, it could help it a lot easier to recover money and get you a great interest rate if buyers default. 

Why don’t we revise all your arbitration clauses in various agreements, if that can lead to a significant advantage?

Would you like us to create and implement these 15 employment policies that we think can be very relevant for your company?

Are you facing too much attrition? Maybe we can reduce it with a tweak in your employment agreements?

Our courses teach you how to do exactly those things. Many litigators are doing various corporate law courses from us with exactly this objective!

Build a stronger brand for yourself and demonstrate your knowledge to a larger audience

Why don’t you write some articles? It would help you to get noticed by other lawyers and potential clients. 

I don’t get time. 

Where will I publish if I write?

What if I write a bad one?

I don’t know what I should write on.

I don’t think I know enough yet to write articles.

Sorry, when you sign up with us, you run out of excuses. We figure it out for you. We push you and nudge you. You end up writing and publishing more articles that you ever did in your life.

For some people, it is easier to make videos for YouTube. Sure, that’s ok too.

We even help you to publish your articles on the iPleaders blog. Our editors help you to sharpen your article. If you write really well, you may win a weekly prize or two.

We also offer a lot of knowledge and classes on brand building. We have even connected our students with publishers. In our massive online groups, our students from different corners of India and even international markets have been referring work and opportunities to each other.  

We are always interested in finding new avenues to promote our students and we keep innovating towards the same.

Become part of a pan India peer network

Imagine that there is a lawyer in Delhi who has a client who needs something done in Bangalore. How does the lawyer find a reliable lawyer in Bangalore? Usually, this is done through trusted networks, of friends and colleagues. Maybe batchmates. You ask around.

Now imagine you are part of a network of thousands of lawyers from all over India, the Middle East, China, and even some other foreign countries. 

https://lawsikho.com/course/diploma-entrepreneurship-administration-business-laws

Click Above

Every time you have a question, you could post it in your group. Need some guidance? Ask your group. 

You remain a part of the group even long after you have finished your course. This is a lifetime benefit. 

Get back in touch with your intellectual side

The practice of law is brutal. It is so demanding that sometimes you do not get enough time for your family and friends.  Lawyers are overworked and stressed. Everybody knows that it is very important to keep learning new things to keep your knowledge fresh and have an edge over other lawyers but in reality, it is very hard to make time for that.

However, stopping your intellectual growth leads to a stunting of your practice as well. Even if you are successful at some level in your practice, you need to keep developing further knowledge in order to grow faster and get to the next level of success in the profession. For that, you need intellectual stimulation and an environment for continuous learning and growth. You need guidance to break through your current hurdles and sticking points.

Given that it is not really viable to go back to a law college or university all the time, what are your alternatives? This is where LawSikho provides a critical solution.  We promise to put you back in touch with your intellectual side, which you will realize as you work on unique and challenging assignments, debate with your batchmates, and learn from the experience of mentors who have achieved success in the profession.

This is why many of our students with even 10 or 20 years of experience love the LawSikho experience. 

Don’t just believe me, see what they are saying

“The practical aspects are taught in the course along with recent updates which are covered extensively. In fact, I was invited to give a guest lecture on constitutional law, wherein I had an opportunity to argue on the construction of article 21(308). That was a major interesting event in my life which could be possible as I had learned the concept here at LawSikho thoroughly. I feel LawSikho should reach to all law colleges and lawyers in India, as the theoretical approach which is taught in colleges have a lot of difference when we compare it with reality. There is a practical approach in LawSikho courses. It should go viral!!”

-Pradeep Lokhande, Senior Advocate, Bombay High Court

“The course at LawSikho provided me with immense practical knowledge of criminal law and improved my drafting skills. I am able to draft all criminal litigation documents with ease and confidence. I am satisfied with the course content and the live sessions which has an elaborate explanation of different concepts. This course will be really beneficial to lawyers and even people from other backgrounds.”

-Vaibhav Vikram Singh, Lawyer, Supreme Court of India

“I am from a lawyer’s family. We have been practicing law for a long time, but the learning which I had here is quite different. The course gives you confidence, teaches you lots of things which even practising lawyers miss while they doing their day to day work. Materials and templates are quite helpful. I have been doing all assignments as they are designed in such a way that they will be useful when we do such things practically in our career. I am really happy to take this course. It has created a difference in my work as well.”

-Mahesh Dhannawat, Advocate, Jalna District and Session Court, Ex-Vice President, Jalna District Bar Association

 

“This course at LawSikho triggers learning in two ways i.e. it pushes one to start asking the basic questions such as to why a company structure is actually needed and also to work on sound topics like the unlisted companies and its mandatory dematerialization of shares. This course allows the students to use the MCA website to get the relevant information. The course provides with practical insights like what are the clauses that are crucial and important in a shareholding agreement and many such concepts. It is only when I do weekly exercises, I carefully go through various clauses/sections of the Act and its commentaries making me aware of many aspects of Company Law which, otherwise, I would not have become aware of.”

-Amarnath Simha, Advocate, Bangalore High Court

“Every assignment solved till date has been very useful. Especially, the syndicate loan agreement and enforceability of MOU were very knowledgeable. Enforceability of MOU is useful and can be applied while executing an MOU. Everyone can benefit from this learning especially law students, law interns, fresh lawyers and practising lawyers. This course is helpful to sharpen the non-litigation skills as well.”

-Sreejit Nair, Advocate, Gujarat High Court

“The course encourages learning and ensures understanding. The assignments and the fact that the team coaxes you to work on them, push you towards excellence. It had been long since I wrote articles to be published on blogs but the compulsory assignments got me working on articles again. I like to finish all the tasks within the given timelines because it is fun and has a lot of brainstorming involved. People from all walks of life can benefit from this platform.”

-Vani Panicker, Advocate, Bangalore High Court

“When I joined this course, I was clueless about the process of M&A. But the sessions and the weekly assignments compelled me to research more on the topic. I enjoy working on the weekly assignments as the research helped me learn a lot more on various relevant topics too. The chapter on Due Diligence helped m+-e understand the key points to be kept in mind while performing tasks and how to execute a successful Merger/Acquisition. This has been very helpful for my internship as most of the tasks that were required by me revolved around the same. Any student pursuing M&A or a working professional in this area will be highly benefited from this course.”

-Vishal Kumar, Legal Executive, NK & Partners Law Offices, Delhi

“The amount of active and practical analysis of legal subjects that is encouraged by the coursework, is very impressive. The most beneficial were the articles which have advanced me into a new level of legal research. In my opinion, all kind of professional candidates can benefit from LawSikho’s learning.”

-Nishit Paul, Advocate, Madhya Pradesh High Court

“I really like the course. LawSikho puts in a lot of effort in making the classes efficient and effective. The exercises are valuable. If I miss any classes or exercises due to work pressure, I make it a point to watch recordings and solve them later.”

-Puneet Gupta, Principal, Puneet Gupta Associates

“I have always wanted to deal with commercial property matters and this course helped me in a big way. I am an impaneled lawyer of a bank. They always demand a non-encumbrance certificate after searching property from a paneled lawyer. Since, through this course, my understandings and practical implementations of legal knowledge have increased significantly, and I can successfully serve my clients.”

-Tuhin Chatterjee, Advocate, Calcutta High Court

Here are the courses you can enroll in:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post Top 7 reasons why litigators love us appeared first on iPleaders.


“Ought The Rape/Sexual Assault Law In India Be Gender-Neutral?

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This article has been written by Adv. Nikunj Kulshreshtha.

Introduction

“It is better that ten guilty persons escape then one innocent suffer”- Sir William Blackstone[i]

On this quote, rests the entire foundation of common law based criminal law. The rationale behind this principle is that the suffering of an innocent person hurts the cause of society by breaking the faith of humanity in the rule of law.

The purpose of this dissertation is to discuss whether we need gender-neutrality in the framing of laws related to rape and sexual assault in India.  The historical legal position in India as well as in the rest of the world has focused on women as victims and men as perpetrators when it comes to a rape offence. Rape of a male instead has remained a sensitive issue for a long time and the existence of a patriarchal society has hindered its recognition by society as well as the criminal justice system. This is in spite of the fact that sodomy of males by men as war crimes have been documented in world history since time immemorial.[ii]

The advent of feminism and rising female empowerment has also led to the recognition that a growing number of women have been found guilty of violating the sexual autonomy of men. Moreover, with the acceptance of homosexuality as a natural sexual orientation, there is increasing concern on converting the gendered law on rape into a gender-neutral one.[iii] There is no denying that a large number of victims of rape are women; however, crime statistics are increasingly reflecting a rise in rape crimes against men. The Bureau of Justice Statistics under the US Department of Justice revealed in its 2003 report that 9% of the total sexual assault and rape victims are men.[iv] The Ministry of Justice in the UK released a report in 2013 that in the previous year approximately 85000 women and 12000 men were raped.[v] This can be partially attributed to the change in statutory law in the US and the UK as well the growing recognition of male sexual victimisation globally. Despite such significant numbers, male rape remains unrecognised in the largest democracy of the world.

This dissertation aims to address the lacunae that exist in the current laws on rape and sexual assaults and the various issues impacting them, in the backdrop of rising recognition of sexual crimes against men. Further, the essay will dwell upon whether amending the rape law into a gender-neutral one will help the fight against sexual violence effectively. The methodology in the research would predominantly be doctrinal and theoretical where relevant scholarly literature will be engaged with, to answer the research question. Simultaneously, we will be analysing the jurisprudence and relevant judicial precedents across India, the UK and the USA for the purposes of determining the interpretation of courts.

We will begin the dissertation with an assessment of the contemporary position of rape laws in India and in the United Kingdom. The reason for selecting the UK along with India is that the UK legal position holds a lot of persuasive value in Indian courts. The Indian law on rape has been largely female centric. An exception to this is the sodomy law under section 377 of the IPC which criminalises acts against the order of nature through penetration. This section was largely used by police forces to harass sexual minorities in India since it targeted consensual acts as well.[vi] However, the provision was decriminalised to the extent of consensual acts by the Supreme Court in 2018.[vii] The legal position in the UK, on the other hand, has changed since 1994, when the Criminal Justice and Public Order Act was introduced. We will assess the reasons for the change and/or the status quo of the contemporary position. We will then critically analyse the interconnected issues surrounding male rape, such as patriarchy, male experience of sexual assault, and phallus-centric framing of laws.

When we look at patriarchy, we will determine how the socio-cultural fabric of India, while placing men as the head of the family, hinders the recognition of male rape. There exists a stereotypical notion of men that they are too strong to be subdued, whereas the likelihood of being raped centres around the idea that the victim is weak. This notion prevents the male victim from seeking legal recourse due to the likelihood of an embarrassment. For the purposes of determining the same we will engage in theoretical analysis of relevant academic literature.

Next, we will consider how bodily responses to sexual stimulation lead to presumption of consent in sexual assault cases. An engorged penis is often assumed as an indicator of consent on behalf of men, this assumption is as erroneous as the presumption of consent on behalf of women in case she has vaginal lubrication during the assault. We will examine specialised literature relating to medical science which assert that human control on physiological reactions such as responses to sexual stimulation through engorgement of penis or lubrication of vagina occur even when one does not consciously consent to the act.

We will then look at how certain civil society movements such as those of radical feminists protest against gender-neutrality in rape law.[viii] Radical Feminists such as Florence Rush, Catherine Mackinnon and Christine Boyle consider gender-neutrality as a backlash against the feminist movement and that its inclusion would result in degradation of women`s rights. This is ironical, considering that renowned feminists such as Susan Brownmiller[ix] and Rosemarie Tong have long supported the recognition of male rape.

Once we have engaged with the issues surrounding the lack of gender-neutral laws, we will move on to assessing the need for gender-neutrality in the law. This will be done firstly by analysing the principle of equality under Article 15 of the Indian Constitution which prohibits the state from discriminating between citizens on the grounds of religion, race, caste, sex, and place of birth. There are certain special provisions for women and children, but these were framed keeping in mind the socio-economic circumstances in the 1950`s.[x] In the 21st century, with the increasing empowerment of women in society, many of these relaxations may seem anachronous.  We would then try to argue why gender-neutral laws are necessary to prevent undermining of the existing women-centric laws. The lack of recognition of male rape coupled with malicious use of existing laws can potentially lead to dilution of the existing law as it happened in the case of section 489A[xi], which undermined the recognition of sexual violence itself.

We would conclude by proposing possible solutions for inclusion of all genders in the fight against sexual violence. This can be achieved by framing sexual violence statutes which account for all kinds of sexual assault rather than adhering to the traditional phallus-centric law. There is also a need to conduct gender sensitisation programmes for the entire society especially for the law enforcement machinery be it the judiciary, police officials, or legislators, which would take sustained time, money and efforts. We would finally end the dissertation by assessing the case for converting the present rape law in India into a gender-neutral one.

Contemporary Laws on Rape

India

Historically, rape as an offence has been recognised as female centric worldwide, and particularly in India. The Indian law on rape defined under section 375, speaks of only man as the perpetrator.[xii] Even sexual offences such as stalking, voyeurism, and sexual harassment refer solely to men as perpetrators. The only exception to the female centric laws, is the sodomy law under section 377 of the IPC. The section criminalised acts against the order of nature through penetration, even if it was consensual. This offence was a major hindrance in the recognition of homosexuality rights in India and was used by police forces to harass sexual minorities.[xiii] However, the provision was decriminalised to the extent of consensual acts by the Hon`ble Supreme Court in 2018.[xiv]

The laws regarding rape in India have been shaped largely by three specific incidents of rapes committed on women by men, which shocked the conscience of the common man and garnered nationwide attention. The first rape occurred in 1971, when a police constable raped a tribal girl in the police station and was later acquitted by the Supreme Court, presuming consent on the part of the victim since she did not raise any cries for help.[xv] The decision of the Indian Supreme Court was widely criticised and this resulted in the government amending the rape law and Evidence Act to presume no consent on the part of the woman if she says so once the factum of intercourse has been established.[xvi]

The second rape occurred in 1992 where a village woman, who was working as a social worker against child marriage, thwarted the plan of a few ‘upper caste’ men from her village to conduct a child marriage. Enraged by the audacity of the ‘lower caste’ woman, she was gang-raped in front of her husband by five men. This was followed by an apathetic treatment meted out to her by police officials and government doctors. To add insult to her injuries, the accused men were acquitted by the trial court citing complete disbelief in the story of the victim. The reasoning of the trial judge reeked of patriarchy and misogyny, who gave absurd reasoning such as: “A nephew wouldn’t rape a woman in front of his own uncle or that upper caste men would not rape a lower caste woman.” This decision led to widespread protests across the country and also resulted in an NGO “Vishakha” filing a PIL for preventing sexual harassment of women at the workplace.[xvii] Subsequently, the Supreme Court framed guidelines for preventing sexual harassment at workplace which were framed by the government as statutory law in 2013.[xviii]

The third rape took place in 2012, when a student of physiotherapy was brutally gang raped by six men including a juvenile, in a moving bus, and who later died from the injuries. The case garnered international attention and led to massive protests nationwide. It resulted in successful conviction of all the defendants whose death penalty was confirmed by the Hon`ble Supreme Court.[xix] The government immediately formed a three-member Committee to recommend changes in the laws relating to sexual offences committed on women, which ultimately formed part of the Criminal Law Amendment Act, 2013.[xx] The revised legislation now defined various kinds of rapes such as gang rape[xxi], and rape by person in fiduciary position.[xxii] The definition of rape was also extended to include oral and digital rape apart from the traditional penetration. Further, women are now being prosecuted for being an accomplice in a gang rape.[xxiii]

The Act provided for stricter punishments for the offences, and introduced new offences of stalking[xxiv], sexual harassment[xxv] and voyeurism[xxvi]. Certain changes were made in the Evidence Act as well. The law regarding juvenility was also amended to charge boys above the age of 16 with rape and other heinous offences, despite there not being adequate evidence of youth offenders committing such crimes in the past.[xxvii] However, the perpetrator in each of the above offences were men. Despite the committee recommending that at least certain offences like stalking, sexual harassment, and voyeurism should be made gender-neutral, the government disregarded the suggestion. Recently, in a forensic guide published for criminal investigators issued by the NICFS, the part on how to deal with sex offences is articulated by taking only female victims into account.[xxviii]

Thus, with regard to the legal position in India, it can be reasonably said that the existing law is highly skewed against recognition of any form of rape except the one than can be committed by males on females only.

United Kingdom

English Law traditionally recognised the widely established form of male-on-female rape via penetration only. The Criminal Law Revision Committee (CLRC) in the 15th Report on Sexual Offences was unanimously of the view that the definition of rape should remain as penile penetration of the vagina.[xxix] Though some members of the committee preferred expansion of the offence to favour a gender-neutral approach covering a wide range of penetrative acts, it was finally decided to keep the definition limited to non-consensual vaginal penetration by the penis.[xxx] Any form of integration between rape, indecent assault and buggery was largely opposed.[xxxi] The rationale for the same was that majority of perpetrators of rape were men and the law needed to reflect the same, however, women could be charged as accomplices.[xxxii] Moreover, public perception of the crime was also on those lines. While framing the Criminal Justice and Public Order Act, 1994, male rape was recognised only to the extent that a male could rape another male through anal penetration.[xxxiii]

Subsequently in 1999, the home office set up a review committee to update the law on sexual offences which culminated into a report known as ‘Setting the Boundaries’.[xxxiv] The report substantiated the reasons for keeping the definition of rape law restricted, and was reproduced under the new Sexual Offences Act, 2003. The reasoning for a restricted definition given was that the risk of disease transmission and pregnancy originates from penetration by penis, and the fact that majority of such crimes were being committed by men.[xxxv] However, this rationale appears weak considering the apparent lacunae pointed out by Jennifer Temkin that neither CLRC nor SOR made any attempt to determine public views through the means of referendum, survey or research.[xxxvi] Even today, females in the United Kingdom cannot be legally charged with rape of males, they can only be charged for sexual assault, assault by penetration[xxxvii] or causing sexual activity without consent[xxxviii]. The differentiation is that while rape carries a term of life imprisonment, all offences with which females can be charged can result only in a maximum sentence of 10 years.

Thus, while there have been certain developments in the UK with regard to male-on-male rape through anal penetration, female-on-male rape is not yet recognised. Laws in the jurisdictions of Canada, all states of Australia, the Republic of Ireland, Finland, Sweden and most states of the USA have framed gender-neutral rape laws. We will now analyse the various reasons for not recognising female on male rape.

Critical analysis of the issues surrounding male rape

Patriarchy

Patriarchy is a system of society where the male lineage is considered primary for succession and leading the family. Indian society is essentially a patriarchal society where men are expected to behave and perceive emotions in a preconceived manner. Deviating from this norm invites ridicule and social ostracization from other males. This, perhaps is the reason why most men even if they support gender equality, fail to follow it in the true spirit due to societal and peer pressures. Not only does this lead to issues of gender inequality, but men themselves also suffer the negative effects. One of the ways in which a patriarchal society affects men is that they are expected to be interested in sexual intercourse all the time and the concept of consent for male is presumed non-existent.

Research conducted with college students in 1988 concluded that both men and women often face a lot of unwanted coerced sexual activity.[xxxix] The study reflected on the fact that men themselves feel pressured to have sex due to society`s internalised standards regarding male behaviour. A man never refuses a woman`s advances, for fear of not being considered a “real man” or worse still, he may even be perceived as gay. Patriarchy asserts a lot of pressure on men to have sexual experiences and considers virginity a sign of failure. The most common reason for sexual coercion among men is the belief amongst the opposite sex that “Men are out for only one thing”. Zilbergeld, in his book published in 1978, determined that one of the consequences of such male stereotypes is that men often felt sex as a burden imposed upon them.[xl] Expectations of being able to achieve erection with anyone, anywhere, anytime and failure to achieve the same created a self-fulfilling prophecy that men are meant to have no sexual autonomy.

In another research consisting of two studies conducted on the prevalence and impact of non-consensual sexual interactions with women revealed that even when men acknowledged that they had been violated, the feeling of negative emotions was not too strong.[xli] This was because acknowledging their inability to stop a woman`s sexual coercion posed a threat to their self-esteem, ultimately resulting in denial or underestimation of any negative psychological impact it may have on them. In both the studies, taking undue advantage of a man`s inability to offer resistance due to intoxication was frequently reported as an aggressive strategy in comparison to non-aggressive methods such as verbal coercion. This study leads us to the conclusion that men also often feel coerced into unwanted sexual experiences. 

Patricia Novotny, in her article, points out the contradiction in the contemporary definition of gender-neutrality.[xlii] It is no longer news if women practise law, drive trucks, shave their heads or play sports; but if men start to exhibit feminine characteristics, it becomes difficult for them to be accepted by the society. Men who buy groceries are given hard stares, and contributing to domestic work brings ridicule from a man`s peers. Thus, gender-neutrality brings masculinity to everyone irrespective of the gender. This idea makes women more assertive in sexual relationships but the downside remains that men may not always be interested in sex and if they engage in it reluctantly, they may end up hurting themselves.

Further, it is argued that a lot of women also support patriarchy. This can be explained by the concept of ‘paternalistic dominance’ coined by Kamla Bhasin in her book on patriarchy.[xliii] Bhasin contends that slavery survived for centuries through the tacit cooperation of slaves themselves. The British East India company ruled India for two centuries by employing local Indians as civil servants, policemen and soldiers. Similarly, “cooperation from women in engagement for general and systemic oppression of women is achieved through various means like gender indoctrination, educational deprivation, by defining respectability and deviance according to women’s sexual activities, by restraints and outright coercion, by discrimination in access to economic resources and political power, and by awarding class privileges to conforming women.”

Thus, by playing one woman against the other, patriarchy ensures that their individual power is never threatened. It was kind of an implicit understanding where men would share power with women, under their tutelage, to exploit women and men of lower caste. In order to retain these privileges, women are constantly renegotiating their bargaining powers even at the cost of other women.[xliv] This arrangement was described quite graphically to the author by a rural woman. She said that in our society, men are like the sun with all resources such as financial, mobility and the freedom to take decisions whereas women are like satellites without any light of their own. They only shine when they are close to the sun and this induces constant competition with other women to have a bigger share of resources. Without the sun (man) the woman`s life would be barren, dark and end quickly.[xlv]

From the above researches and studies, one can deduce that patriarchy and its notions regarding male behaviour seems to be a clear roadblock in incorporating gender-neutrality in sexual offences.

Do Men Experience Sexual Assault differently?

It is generally argued by critics of gender-neutrality in rape law that men react differently to sexual assaults than women and therefore keeping male standards and reactions in events of rape would put women at a disadvantage. Radical feminists like Patricia Novotny[xlvi] and Joan McGregor[xlvii] have repeatedly asserted that introducing gender-neutrality in rape law would be detrimental to the interest of women`s rights. However, no evidence whether empirical or theoretical, regarding perceived male behaviour in such sexual assaults have been adduced by these critics. Janet Halley, a legal scholar and a self-described feminist, noted in her book that ignoring harms caused to men is a steady theme in the writings of several feminist groups, particularly radical ones.[xlviii]

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Contrary to their reasoning, numerous studies have reported that men react in the same helpless manner to such attacks as women. A study conducted in 1989 by two American researchers brought forth the idea that men reacted in a similar manner to women in cases of sexual assault.[xlix] Many characteristics of the victim, nature and reactions to the assault were similar to women victims. Most of the victims reacted with frozen helplessness and passive submission to the attacker due to being overwhelmed with fear. However, men, after the attack found it difficult to report to public authorities due to reasons like fear of being branded as weak or as liars, and politicisation of rape as solely a feminist issue.

Since the 1980s, there has been a growing number of researches in the field of unwanted sexual experiences by men. One such research indicates that women employ similar sexual coercion tactics such as seduction of unwilling partners, physical force, use of intoxicating substances, and even emotional manipulation.[l] The study concluded, by adding to the growing body of evidence, that women are no different from men in terms of the range of tactics employed to engage in coercive sexual activity. The study also indicated that prior sexual abuse did play some role in motivating both males and females into coercive sexual activities. However, one place where differentiation occurs is the motivations for employing coercive tactics. The study asserted that while men engaged in coercive tactics primarily driven by power, dominance and control, women who engaged in these were driven primarily by feelings of compulsivity and only secondly motivated by the desire for sexual dominance. The reason for male need for power, dominance and control can be explained by the concept of ‘Hegemonic Masculinity’ defined by Raewyn Connell which conditions men to behave and feel in a typical fashion.[li]

Karen Weiss, in her article on male rape and sexual assault experiences, talks about society`s constant focus on hypermasculinity, patriarchy, and ways in which men are expected to behave; this is so well established that to imagine men as victims requires a complete overhaul of our preconceived notions regarding sexual violence and gender.[lii] She pointed out that 9% of rape and sexual assault victims in 2003 were male according to the Bureau of Justice Statistics (DOJ, US). She referred to the NCVS data which revealed a similarity in the experiences of males between rapes and attempted rapes where the perpetrator felt entitled to sex and refused to budge. Despite evidence to the contrary, society finds it difficult to accept that men can be victims and moreover, victims themselves are ashamed to report such crimes for the fear of being perceived unmanly.

NCVS interviewers noted than interviewees were embarrassed and uncomfortable to describe the incidents and tried to frame the incident in a manner so as to avoid decreasing their masculinity. Subjects often gave the excuse being heavily drunk for not being able to resist the sexual assault or lied about fighting back the perpetrator violently, in order to fit the socially defined role of “masculinity”.[liii] Two primary reasons were noted for non-reporting of incidents by male victims: One is the shame associated with being unable to prevent assault by a female in clear violation of societal description of females as weak, non-threatening and not capable of causing injury and second is the behaviour of police who presume that only gay men get raped. The study concluded by reiterating the need to educate both men and women about sexual victimisation. A pervasive silence regarding male rape only exacerbates the belief that men cannot be raped.

Another study conducted in various colleges in Greece on men and women revealed that both men and women receive unwanted sexual coercion.[liv] Both conceded that it was either pointless to stop an aroused partner, or were coerced by endless arguments or by taking alcohol or drugs. However, women were more likely than men to report physical assault. This resulted in men suffering from depression due to predefined gender roles in society and these incidents made them question their masculinity.

A recent research conducted on sexual coercion experienced by 284 diverse males in schools and colleges attempted to consider diversity in ethnicities which have been largely overlooked in previous studies on male rape.[lv] The study contended that most studies about sexual violence largely take physical hurt such as penetration into account and tend to overlook other forms of violence such as coercion by unwanted seduction, blackmail, verbal coercion, or even drugs and alcohol. Research is usually focused on forcible penetration, and steers away from other types of sexual victimisation which result from social obligation or peer pressure. Participants in the study showed signs of visible psychological distress but one differentiation was noted that men`s self-esteem is not affected by sexual coercion unlike females, plausibly due to societal roles regarding male sexuality. The study also noted that cultural differences matter in reporting of sexual coercion. Asians were least likely to report events due to a high emphasis on chastity. Similarly, African men were least likely to report sexual coercion due to the hyper aggressive and masculine image portrayed by pop and R&B cultures. The effects of culture and notions of masculinity on the experiences of male sexual assault victims were further corroborated by the findings of another recent study by Charlotte Petersson and Lars Plantin.[lvi]

From the plethora of researches, studies, and articles on male sexual victimisation, it can be reasonably said that men experience sexual assault similarly to women. Hence, there is an imperative need to address sexual violence as it is, rather than through prisms of gender.

Opposition from Feminist Groups

One of the issues with the recognition of male rape is the opposition from a section of feminist groups known as radical feminists[lvii] such as Catherine Mackinnon, Patricia Novotny and Nagire Naffaire. Their opposition stems from a lot of reasons such as potential dilution of their influential base, or dilution of the importance given to women`s rights and issues.[lviii]

Florence Rush, another leading proponent of radical feminism, wrote about the ways in which men are undermining the feminist movement.[lix] Rush believes that the men`s liberation movement rose from the rib of the feminist movement with Warren Farrell being the chief architect. She contends that the reason men supported the feminist movement was to serve their own selfish interests; men suddenly realised that having an earning, independent spouse brought them more time to spend with children, release from alimony and child support and the ability to divorce women with no guilt. She further contends that Farrell had no idea of the ground realities, considering that men have always exploited women`s labour and finances whether they are working or not. She also noted that men hardly spend their leisure time with children, and rarely meet their obligations on alimony and child support.

What is mind boggling here is the extent to which Rush seems out of touch with the ground realities of the legal system of the USA, the system on which her research is based. Not only is a man liable to be imprisoned for failing to pay child support, but he can be sued even if he was an underage male.[lx] Rush then proceeds to totally disregard any suggestion that women can rape men. According to Rush, only homosexual and heterosexual men rape men because they feminize their victims, driven by heterosexual dominance and subordination. Towards the end, Rush does recognise that a very miniscule number of women sexually harass and molest men, but that does not justify converting the rape law into a gender-neutral one. One can only assume that the only reason she seems to acknowledge even a miniscule number of female perpetrators is possibly to fend off being labelled as polemic.

Catherine Mackinnon objects to gender-neutrality on the premise that it diverts the focus away from female victimisation;[lxi] however, her views are contradictory when she proposes a gender-neutral ordinance against pornography, where she states: “In this definition, the use of men, children, or transsexuals in the place of women is also pornography.”[lxii] Catherine`s views about the ill effects of gender-neutrality for female victims is supported by other scholars and critics like Christine Boyle.[lxiii] However, these objections seem to be driven by loyalty to some ideology rather than being based on scholarly literature or empirical evidence.

Another objection raised by critics of gender-neutrality is based on the argument that there are not enough male victims to justify amendment of the law.[lxiv] The inherent lacuna in that argument is that very little research has been done in the area of male sexual victimisation. This creates the classic chicken and egg problem which was pointed out by the small community of researchers in that area. Gregory and Lees remarked that there has been very little research dedicated to studying sexual assaults on men.[lxv] They referred to a survey conducted by King which concluded that the stigma attached to male rape is much greater than female rape.[lxvi] Most homosexual victims feared approaching the police due to victim shaming and heterosexual victims feared approaching authorities due to the fear of being classified as gay. Research on male rape indicates that sexual violence has got more to do with power and domination rather than sexual gratification as is commonly understood. The purpose of rape is mainly to humiliate, denigrate and crush the victim`s spirit. This understanding of rapist psychology was used in discussions while passing of the Criminal Justice and Public Order Act, 1994.

Lees also indicated that a lot of victims feared reporting to the police due to fear of homophobia or myths perpetrating in the forces regarding promiscuity of gays. Criminological and Police studies have often revealed that unless law enforcers are sensitised to handling an emotionally sensitive victim, it would push the victim into further trauma and depression. The authors noted that since 1990, police forces have been regularly trained to deal with male and female rape victims.[lxvii] The Metropolitan Police set up 26 specialists who had completed sexual offences investigative techniques course to deal with male sexual abuse. This served the twin purposes of providing a supportive atmosphere for the victims, as well as to gain the best investigation possible.

As discussed earlier, men are just as unlikely as women to resist the attack. This finding is directly in conflict with the opposition from feminists’ groups who believe that men always fight back in any sexual attack despite empirical evidence to the contrary. However, one must note that this opposition is coming from new age radical feminists who seem to be interested in playing a divide and rule gender policy to further their narrow-vested interests. Liberal feminists such as Susan Brownmiller have often supported the idea of recognition of male rape; in fact, in her eminent book on female rape ‘Against our Will’, she acknowledged the reality of male sexual victimisation-

While the penis may remain the rapist’s favourite weapon, his prime instrument of vengeance, his triumphant display of power, it is not in fact his only tool. Sticks, bottles and even fingers are often substituted for the “natural” thing. And as men may invade women through their orifices, so, too, do they invade other men. Who is to say that the sexual humiliation suffered through forced oral sex or rectal penetration is a lesser violation of the personal, private inner space, a lesser injury to mind, spirit and sense of self? All the acts of sex forced on unwilling victims deserve to be treated in concept as equally grave offenses in the eyes of the law, for the avenue of penetration is less significant than the intent to degrade. Similarly, the gravity of the offence ought not to be bound by the victim’s gender. That the law must move in this direction seems clear.”[lxviii]

Similarly, Rosemarie Tong, another feminist philosopher, questioned the negative characterisation of gender-neutrality by radical feminists. Tong contends that the hindrance in recognition of male rape lies in the assumption by radical feminists that it would lead a dilution of the importance given to female rape victims on the premise that since it affects both genders now, it is no longer a pressing concern.[lxix] Tong acknowledges the argument as a possible concern, but counters it with the argument that if the masses are educated that rape is inherently a crime of the powerful against the weak, then there will be no erroneous beliefs regarding the same. Thus, it is evident from above that the opposition to recognition of male victimisation by radical feminists seems to be based on theoretical assumptions regarding the effects of introducing gender-neutral law on sexual assault rather than on empirical or theoretical research.

Phallus Centric Framing of Laws on Rape and Sexual Assault

One of the major issues with rape laws is the obsession with the penetrative act, as traditionally, the perpetrator has been male. The Rape law in India described under Section 375 explicitly begins with the words- “A man is said to have committed rape”[lxx] the reason being that traditionally men are largely seen as perpetrators and a woman sexually coercing a man to make him penetrate her is unfathomable in a patriarchal society.

One reason that can be given for too much emphasis on male perpetrators is the fact that traditionally, women have been victimised by men in offences involving rape and sexual assault. However, it seems to have created a victimised mindset among women and they are therefore unable to imagine men as victims. Ruth Graham, in her article contended that there are several key elements in the process of recognising male rape victim.[lxxi] Some of them are- emphasis on the experience of victims, comparison of male victims with female victims, and the definition of male rape itself. The definition of male rape seems to be systemic issue because it concerns itself with assault through penetration, thus maintaining the traditional phallus centric approach.

The definition is key here for legal discourse because legal research centres on the categories and meaning of crime which is one of the reasons why male rape is seen as essentially an issue of homosexuality rather than that of sexual violence. This narrow, gender discriminatory approach has been constantly defended by various officials and law commission members. They use statistics to assert that sexual assault is normally a problem for females only.[lxxii] Thus, when men come into the picture, it is considered an anomaly which is ironical considering that sodomy of men has been occurring since ancient era as war crimes.[lxxiii] Further, in England, the same sexual assault had different sentencing for men and women, for women; the maximum punishment was 25 years whereas for men it was 10 years. Thankfully, this approach was changed by the UK Supreme Court in R v Ismail.[lxxiv]

Another reason for the focus on the phallus centric framing of law is the erroneous understanding of the notion of harm.[lxxv] The notion of harm is typically based on physical hurt whereas emotional trauma the victim goes through is not given adequate consideration.[lxxvi] When the justice system places undue emphasis on physical harm as evidence of violative harm, it becomes difficult in cases of male sexual assault unless anal penetration was done. This creates difficulties for the prosecution because it weakens their case if physical harm has not occurred, and if it has, it needs to be self-evident.

Gregory and Lees in their book[lxxvii] have referred to the research[lxxviii] of American Psychologist Kinsey who contended that erection during male rape is often considered as consent for the act. This belief is in complete contrast to the knowledge of human body which suggests that anal penetration stimulates the prostate gland, resulting in an erect penis automatically. What results from such experience is an identity crisis for males, and it is often observed that heterosexual victims have often sought gay men post such experience. The authors also noted that male rapes often involve lesser forms of sexual assault such as oral sex rather than anal penetration. This is because anal penetration is difficult without a consensual partner plus there is fear of HIV unless protection is used.

Graham, in her article, raises the point that having just the bare application of the gender-neutrality principle is insufficient to the recognition of male rape.[lxxix] There is a greater need to develop the literature on sexual assault in terms of male rape rather than rely on ambiguous definitions of sexual harm. Graham concludes by advocating greater harmony between male and female researches of sexual assault so that all kinds of victims can be accommodated in the analysis. Similar discourse on the law of rape was also advocated by Susan Estrich in her article, where she analysed how there is disharmony between various stakeholders in the criminal justice system, in the way law is drafted by legislators, interpreted by courts, applied by police officials and enforced by prosecutors.[lxxx]

Siobhan Weare has also advocated the need for change in the way in which we participate in legal discourse regarding rape.[lxxxi] The socio-legal discourse regarding rape has traditionally focused on men as perpetrators and the penis as a primary weapon of offence. Further, there is an assumption in society that it is not possible for men to get raped because a man can only get arousal when he is consenting to the sexual activity out of his free will.[lxxxii] This belief is in absolute contrast to empirical evidence which suggests that just like women can achieve vaginal lubrication and climax, men can also achieve erection and orgasm during sexual assault. It is the body’s natural response to sexual stimuli whether such stimuli are voluntary or coercive, because such responses are controlled by the subconscious brain of humans.[lxxxiii]

Weare further discussed that the effect of sexual assault on men is similar to that on women whether it was physical or mental harm. She stated that there are three standard ways in which women coerce men for sexual relations- verbal pressure, persuasion and coercion. One can conclude from her article that while there is no denying that the female gender disproportionately suffers this crime, it is still to be acknowledged that the existing gendered definition of rape reinforces the paradigm that women can only be victims and men can only be perpetrators.

Weare`s views were corroborated by a recent article by Natasha Mckeever where she vociferously argued for the legislature to move past the traditional fixture on penis as the root cause of all problems.[lxxxiv] Thus, there is a need to engage in legal discourse which moves away from the exclusive definition to an inclusive one for framing an apt law which defines sexual violence. There is also a need to engage in extensive research on how this crime affects men in order to end the fixation on framing phallus centric laws concerning sexual violence.

Presumption of Forever Consent on behalf of Men

In this section, we will assess how hyper sexualisation of male behaviour by society hinders men from reporting rape. There appears to be an inadequate understanding of sexual stimulation and its effects on the human body in the legal system, be it among legislators, police or lawyers. Erection or sexual stimulation during sexual assault is often used by defence lawyers to save offenders in cases of sexual violence. They typically try to exonerate their clients by implying consent on the basis of vaginal lubrication, penile erection, orgasms and ejaculations. However, research and medical science have proven time and again that arousal during sexual assault can occur even involuntarily as a natural body process. For example, during rape when a man forcibly enters a woman`s vagina, there is secretion of lubricating fluids in the vaginal area to prevent injury due to the friction caused by penetration to the body. This release of lubrication is not a voluntary act or necessarily consent on behalf of the woman but is an act of the autonomous nervous system similar to breathing, dilating pupils or even regulating heart rate.[lxxxv]

This was explained in an article published by two clinicians where it was reported that a majority of male rape victims do not report the crime due to feeling of confusion or guilt because they ejaculated or had an erection during the assault.[lxxxvi] Similar experiences were reported during assaults on female victims as well. The prevailing opinion on sexual stimulation seems to be driven by a lack of understanding of human body or based on anecdotal experiences rather than empirical. The research contended that orgasm is felt at a physical and mental level, sometimes individually too. So, one can experience sexual pleasure physically even when the mental state is that of inhibition.

The research also said that multiple subjects achieved sexual stimuli in unusual manners such as by the stroking of eyebrows, blowing the hair gently or even by applying pressure to the teeth. A range of activities were conducted with reference to individual sensitivity to sexual stimulation. It was found that if enough activities are conducted, it was possible to achieve sexual stimulation without active mental will. Laboratory studies indicated that in a sexual assault, the fight-or-flight response gets activated by the nervous system causing release of adrenaline in the body, resulting in excessive blood flow and lubrication in genital areas. Thus, a woman or man being sexually assaulted will not have unresponsive genitals when they are afraid. In males, a study conducted in 1982 conclusively argued that men do get erections during sexual assaults unwillingly.[lxxxvii]

What is baffling to note here is the proclivity of defence lawyers to establish consent on behalf of the victim of sexual assault on the basis of her achieving sexual arousal. This position is taken despite the fact that courts in the USA have long held that achieving orgasm during sexual assault will be irrelevant for determining consent.[lxxxviii] On the other hand, in an English case, a man-initiated divorce proceeding against his wife, claiming coercive sexual intercourse as cruelty. The judge on hearing that the man had an erection during the act determined that the act was consensual and dismissed the appeal.[lxxxix] In his widely renowned article, Siegmund Fruchs discussed that having an erection during rape does not mean consent.[xc] The complex relation between sexual desire and physical stimulation along with judicial treatment of such behaviour results in denial of justice and rehabilitation to male victims.

Fruchs begins by discussing the contemporary issue of stigma in male reporting, where preconceived notions of male sexuality prevent victims from reporting such crimes. He referred to the article of Fred Pelka which talked about a male rape victim who was mocked by the police officials for reporting the crime just because he was a male.[xci] Another case was of Gonsalves, where a father was unable to comprehend why his teenage son did not resist the attacker.[xcii] Pelka also referred to previous studies which have conclusively established that almost all male victims had an erection during sexual assault. Fruchs also discussed the fact that many perpetrators of sexual assault purposely induce the victims to climax for multiple reasons – to discredit the victim’s testimony during trial by damaging his credibility, to establish complete and absolute dominance over the victim and to reaffirm the perpetrator`s fantasy that the act was consensual.[xciii]

Fruchs also notes that the victims tend to wilfully climax to quickly end the ordeal with the perpetrator. An example of this is an Indian case, where a famous movie director allegedly performed oral sex on an American research scholar. The victim made it clear in her testimony that she resisted and dissuaded him many times but he refused to listen so she faked an orgasm to end the ordeal quickly. The director was convicted by the trial court, but the appellate court overturned the conviction contending that a feeble no by the woman could not establish a lack of consent for the perpetrator.[xciv] What one gathers from such an experience by the victim is that both men and women during a sexual assault can wilfully climax to end their ordeal faster.

From a pure biological standpoint, erection can result from a variety of emotions such as fight-or-flight, fear, anger, or excitement. However. the social conditioning of men causes them to associate penis with sexuality which results in penis being the centre piece of all sexuality for men. This is the crux of Stoltenberg`s theory of Erection Learning which explains why men get an erection while being sexually assaulted. This theory is line with the research conducted by Mezey and King mentioned previously that the need for gender-neutral definition of rape is to prevent excessive focus on sexuality of the crime and instead shift focus to the violent nature of the act itself.[xcv] Further, Fuchs referred to a catena of judgments from various states in the USA such as Tennessee[xcvi], South Dakota[xcvii], Massachusetts[xcviii] and New York[xcix] where courts have started recognising that males sustain erection during non-consensual sexual assault as well. Currently, apart from the states of New York[c], Georgia[ci] and Mississippi[cii], all other states of the USA have gender-neutral rape legislations. While these three states acknowledge the reality of male rape, gender specific rape statutes have still been upheld.

In an article by Clayton Bullock and Mace Beckson, it was asserted that physiological studies have confirmed that erections are only partially under voluntary control and can occur due to various emotional states such a fear, stress, and excitement.[ciii] From the above studies and researches, it can be said that engorgement of the penis is often misinterpreted as consent on behalf of males just like lubrication of the vagina is in the case of females. There is a need for society and courts to move past this.

Portrayal of Male Victims in Media

“Whoever controls the media, controls the mind”- Jim Morrison[civ]

There is no denying that in this day and age, the portrayal of gender roles in the media influence the social conditioning of youth in our society. Men are usually not shown as victims of sexual assault by mainstream media. Even if they are, it is portrayed as if they are responsible for their own assault. This kind of social conditioning is pervasive, especially in a country like India, where it is famously said that three things influence Indians – Cricket, Films and Weddings.

Oxfam India, in its 2017 report titled ‘The Irresistible & Oppressive Gaze’, contended the ill effects of films on the Indian youth.[cv] It reported that around 86% of the films made in India used sexist humour. Comedy is often used to reduce the seriousness of misogyny and violence against women. Among the list of things that are supposed to be comical as per Indian cinema are Voyeurism, Rape Jokes (the movie “3 Idiots”), Negative stereotypes about Women and Queer people (“Pyaar Ka Punchnama”) and explicit sexual assault (“Kambakkht Ishq”). The situation is similar for men as well where molestation of men is considered a laughing matter (“Badrinath Ki Dulhania”) and a man landing another man as a life partner is a downgrade (“Zero”). Thus, the portrayal of men in Indian movies perpetuates the stereotypical image of a patriarchal male who is hypersexualised and has no empathy.

The situation is not very different in the supposedly progressive Hollywood films as well. Movies often depict men as hyper sexual beings whose sole aim to lose their virginity or those who consider women solely as sexual conquest. Consider the following situation from the movie “Forty Days and Forty Nights”. The protagonist takes a pledge to abstain from sex during the holy month of Lent. On the last day, in order to prevent himself from breaking the pledge he chains himself to his bed and falls asleep. However, his ex-girlfriend sneaks in the house, takes advantage of his unconscious and vulnerable state and rapes him. When he wakes up, he is not shown to be traumatised or affected by it. The entire scene is played out in a comical fashion. Now the viewers need to question themselves whether the reaction to the act would have been the same if the roles were reversed. Would reversing the gender roles still be considered comical? Would it change the meaning of rape?

In the movie “Breaking the Waves”, a quadriplegic husband requests his wife to satisfy her desires by seeking other men. She seeks a man on a public bus by quietly masturbating to him without so much as a hello and then gets down and pukes. There is no depiction of what happens to the man who is assumed to have gone home singing merrily. In the movie Bruce Almighty, the theory of retributive rape is practically preached. The protagonist Jim Carrey demands an apology from a street gang leader whose gang previously assaulted him. On his refusal, Bruce uses his god powers to make a monkey come out of his anus. The scene ends with the monkey running behind the scared perpetrator and Bruce celebrating.

The situation is similar with respect to books as well. Claire Cohen, a prominent author on the subject of male rape victims, professes that male rape victims are often feminised so that the readers will be more accepting of the possibility of a female perpetrator.[cvi] She discusses the example of the book “Deadly Temptation”, which is an explicit pornographic story with shades of BDSM and assault.[cvii] She contends that the book perpetuates the myth that male rape victims are weak or are unable to defend themselves. This prevents many victims from speaking about their assaults.

Media therefore plays an enormous role in the social conditioning of our society. There is an immediate need to condition society in a manner which is inclusive of all genders along with apprising filmmakers to put an end to the stereotypical depiction of genders in films and advertisements.

Is there any need for such a change in the Law?

The Principle of Equality

The idea of treating every citizen as equal before the state and in the eyes of the law has been enshrined in the Indian Constitution since its adoption in 1950. Article 15 of the Indian Constitution states:

Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth

(1) The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them

(2) No citizen shall, on grounds only of religion, race, caste, sex, place of birth or any of them, be subject to any disability, liability, restriction or condition with regard to

(a) access to shops, public restaurants, hotels and palaces of public entertainment; or

(b) the use of wells, tanks, bathing ghats, roads and places of public resort maintained wholly or partly out of State funds or dedicated to the use of the general public,

(3) Nothing in this article shall prevent the State from making any special provision for women and children,

(4) Nothing in this article or in clause (2) of Article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.”[cviii]

The jurisprudence behind the enactment of this section was based on the caste system largely prevalent among the followers of Hinduism in India. The ‘lowest caste’ people of society, also known as ‘untouchables’ were discriminated against and socially ostracised. During the drafting of the Indian Constitution, several constituent assembly debates took place regarding Article 15. Many of the constituent assembly members suggested providing separate public access of government facilities such as schools, wells etc. to the ‘lower caste’ members.[cix] However, these suggestions were overruled by the Chairman of the Drafting Committee, Dr B.R. Ambedkar, who opined that the purpose of introducing this section is to make society all inclusive. If caste-based segregations are made, then the purpose of introducing the article itself would become redundant.

Similarly, if one analyses the socio-economic status of women in society during independence era, the enactment of special provisions for women seemed appropriate. However, in the 21st century, with the advent of feminism and women empowerment, it would be appropriate that society readjusts itself to providing equal opportunities to both genders. Seeking special favours in a situation where we talk of equal opportunities for women may not only appear inconsistent but also to an extent hypocritical. There is no denying that discrimination against women exists even now, however, an appropriate balance has to be achieved in society. Misandry is not the answer to misogyny. Undue favours to women in areas where women are equally equipped to compete will only result in more misogynistic feelings among men and push regressive attitudes further in society. Thus, there is a need to create an inclusive society which provides equal opportunities to all not only in letter but also in spirit of the Indian Constitution.

Recognition of Male Sexual Victimisation

The recognition of male sexual victimisation has been reported since the past four decades. Some researches indicate an increase in reported instances of male on male rapes in the 1970s in the USA.[cx] Cindy Struckman-Johnson conducted a research in 1988 where she studied the prevalence of forced sex on males during dates.[cxi] She opined that the underreporting of the problem stems from the myth perpetrating in society that men cannot be raped.

Johnson reported that this myth is one of the prime reasons why no data on male rape exists and the topic does not even form part of any research on sexual violence. The FBI, since 1986, started maintaining a data on people arrested for forcible rape by both men and women.[cxii] However, the definition of rape with the agency remained the same traditional male-on-female rape till 2012. Johnson carried out a survey on some college going students regarding sexual coercion during dates.[cxiii] The results indicated that a significant percentage of men stated being forced to have sex at least once in their lifetime. Further, a questionnaire following the survey revealed the standard four categorical tactics used by women to coerce men into sex during dates- Psychological pressure, psychological pressure with physical restraint or force, physical force and no consent due to intoxication. She concluded her research by advocating more research be undertaken by academicians, states and universities so that the problems of male rape can be addressed. 

Christina Faulkner in her article has advocated the need for analysis on the interaction between gender and professional authority in cases of misconduct.[cxiv] However, she notes that a vast amount of literature in this arena is focused on male perpetrators and female victims only. She cautions that overlooking any misconduct by a professional authority of the female gender cannot be accepted. Her research also analysed the perpetrators with respect to their family environment, mental health and the environment in which they function. Her findings indicate that a number of factors such as the isolated work environments in which forensic science workers function, lack of sufficient training, emotional vulnerability among female workers or an inappropriate sense of rescuing patients can result in sexual transgressions at work. One such case has actually happened where a female volunteer for prison board was convicted of misconduct for engaging in sexual relations with prisoners.[cxv] Faulkner concluded by advocating a need for free and open dialogue with employees on the matter so that these issues can be nipped in the bud.

Statistics from the Bureau of Statistics, USDOJ[cxvi] and the Ministry of Justice, UK[cxvii] do give some hope for changing times considering that more and more men are coming forward to report sexual crimes. However, in India, the situation is still in nascent stages. In India, the mindset still remains that boys cannot get raped, despite rising instances of men getting raped being reported  in the media.[cxviii] Namita Bhandare, in her column, talks about the growing need to recognise that men can be raped too.[cxix] However, the old age notions of stereotypical male behaviour among law enforcement bodies prevent adequate mental support to male rape victims even in countries such as the UK where it has been recognised over the past three decades.[cxx]

Preventing Undermining of Women Centric Law

In India, over the past decade, there has been a sudden rise in frivolous and malicious litigation with respect to allegations of sexual assault. In a shocking revelation by the Delhi Commission for Women (DCW), it was held that 53.2% of the rape cases filed between April 2013 and July 2014 in Delhi were found to be false.[cxxi] Such unscrupulous women significantly undermine the fight against sexual violence. When such a large proportion of cases are found to be false, it creates a negative social effect where even genuine victims are suspected and come under the scanner. The system then starts doubting every incidence, thereby hurting the rule of justice and creating a situation where victims even fear approaching the police due to apprehension that their experience would be disbelieved.

When the system introduces reactive measures fuelled by populism due to any heinous crime without any rational basis, the genuine victims end up suffering. An example of this situation would be the plight of dowry victims in India.  Dowry is a form of money or gifts given by the bride`s family to the groom`s family as a compensation because a girl is considered a financial burden on the groom`s family due to her being a non-earning member. This practise leads to a lot of girls from poor families being harassed and tortured for not bringing enough money during or even after marriage. This issue was first addressed by the enactment of the Dowry Prohibition Act, 1961.

However, the implementation was ineffective due to dowry being ingrained in the culture of society and no complaints were made. Further, the Dowry Prohibition Act, 1961 was the only remedy available to women in such cases until 1983. In 1983, due to the public uproar following the Mathura Gang Rape case[cxxii], the government passed the Criminal Law Amendment Act, 1983 where new sections for dowry victims were introduced such as 304B and 498A in the IPC. Sections 113A and 113B were added in the Indian Evidence Act, 1872 for presumption of dowry death for any woman dying within seven years of marriage and additional presumption for dowry death in case the woman was subjected to cruelty before dying.

The above enactments on the face of it, appear bona fide and were enacted for the protection of women. In particular, Section 498A provided sweeping powers to the police to immediately arrest the accused persons to prevent continuation of the offence.[cxxiii] However, due to lack of adequate checks and balances, this provision was largely misused by police officials and unscrupulous families into extorting money from the groom families. There is a large number of cases where innocent distant relatives, and senior citizen in-laws were maliciously arrested in order to defame and extort money from them.[cxxiv] The rampant abuse of dowry prevention provisions reached such astronomical levels that the courts were forced to take notice and they subsequently gave directions that no automatic arrests should be made in dowry harassment cases.[cxxv]

The dilution of dowry harassment law continued, with a more recent directive of the Supreme Court of India giving directions to prevent further misuse of the law.[cxxvi] The bottom line is that sustained misuse of this law over the years coupled with comatose response to such abuse by all the three pillars of democracy has resulted in denial of justice to the real victims.[cxxvii] The contemporary situation is such that no dowry related complaint is taken seriously, courts very easily provide bail and quash cases and the victim`s credibility has been damaged socially. The result is that victims continue to suffer and we are back to square one from where we originally started.

Misuse of the law against any gender needs to be stopped. Otherwise, if we allow such abuse of process of courts to continue, then it won`t be far away when the law on female rape is diluted to the point of uselessness. Our legislators need to understand that ‘Misandry is not the answer to Misogyny’. If we try to douse fire with fire, the social harmony and fabric of our society will burn down to the ground. There is a serious need to punish malicious prosecution in India; a recent law commission report recommends the same, but the legislative changes in India are slow to come by.[cxxviii] Therefore, in the fight against sexual violence all genders need to fight together as a team and avoid succumbing to divisive tendencies. Every single time when a woman files a malicious case against a man for vengeance, the credibility of every woman victim is affected. We do not live in a utopian world and we form opinions based on what we witness. Punishing woman who file malicious cases will go a long way in garnering support from men and making them more empathetic towards women issues.

In Favour of Women`s Rights

The movement for gender-neutrality is often piped as a backlash against feminism or something that would detract people from the fight for women`s rights. The narrow ideologies of radical feminists are hurting the progress and harmony of society. However, with the right kind of approach, gender-neutrality can actually be in favour of the feminist movement and women’s rights.   In the fight against sexual violence, it is necessary that both men and women unite and fight together. This is essential not only for the greater recognition of male sexual victimisation, but also to prevent undermining of laws to protect women.

“We must learn to live together as brothers or perish together as fools”- Martin Luther King Jr.[cxxix]

The above statement aptly coveys the essence of cooperation and unity, which is applicable in all spheres of life, and particularly in the movement towards gender-neutrality. The importance of synergy and collective strength cannot be overstated. Further, there is a need for men to empathise with women`s issues and vice versa, even more so in a patriarchal society. An analogy would be appropriate here.

Abraham Lincoln abolished slavery during his presidential tenure because he despised such an inhuman treatment of people. His tenacity and empathy for slaves could be traced to a famous incident. Lincoln was travelling down the Mississippi river along with his friends when he happened to notice a market of slaves where humans were being bought and sold. He famously remarked “Boys, if I ever get a chance to hit that thing[slavery], I’ll hit it hard”.[cxxx] Three decades later, he redeemed his oath. A White man then was empathetic towards the pain and suffering of the black race, and it did great benefit to them. This is not to undermine the efforts of Martin Luther King, Rosa Parks or Nelson Mandela.  However, in a society run primarily by whites at that time, Abraham`s actions had a far significant impact.

Similarly, the solution to women`s emancipation lies in the enlightenment of men to their problems and vice versa.  When women become aware of men`s issues with sexual violence, it would make them more empathetic and willing to fight alongside men in this battle. At the same time, men will be more willing to support women’s rights. This approach seems logical not only from a moral and equality perspective but from an economic perspective. The state has limited resources and by dealing with all kinds of sexual violence victims under the same umbrella we will be able to better utilise existing resources for providing speedy justice.

The words of Emma Watson`s ‘He for She’ Campaign is apt here ‘When men are liberated from the pressure of being men, women will be automatically liberated”.[cxxxi]

Possible Solutions 

Changes in Framing the Laws

One of the first things that needs to be done for recognising the reality of male sexual victimisation is a change in the framing of laws. This needs to be achieved not only for the Indian Penal Code, 1860 but also for other laws such as domestic violence and family laws. In the era where gendered behaviour is a changing norm and homosexuality has been recognised as a normal human sexual preference, we cannot be working with Victorian era definitions of crime. We cannot be working in the 21st century legal system with 20th century tools and jurisprudence. As we noted earlier, there is a need to shift away from the phallus-centric approach to framing of laws into a gender-neutral one such as ‘sex without consent’ coined by David Archard[cxxxii] or the Swedish definition of ‘enforced sexual intercourse’[cxxxiii].

There is an immediate need to engage in discourse where male sexual assault experiences have to be considered while framing the law. We cannot have gendered definition of rape law in the 21st century for two simple reasons- firstly it is not coherent with the LGBT rights campaign, and secondly its foundations are based on the Victorian jurisprudence of common law which places undue importance on hurt for establishing rape. Therefore, the legislators need to direct the law commission to conduct researches and assessment of all types of victims of sexual violence independent of gender.

Attempts to introduce gender-neutral rape law has been made since a long time. The first attempt was made by the recommendation of the Law Commission of India in 2000 which was ignored by the government at the time.[cxxxiv] In the year 2012, a new bill was introduced to amend the criminal law to make in gender-neutral.[cxxxv] During the drafting of the bill, a parliamentary report sought a response from the National Commission of Women in India which responded by raising objections that rape is a gendered crime largely affecting women and any attempt to make it gender-neutral would compromise the interests of women.[cxxxvi] Similar views were expressed by the Verma committee set up post the 2012 gang rape.[cxxxvii]

What is particularly amusing is that whenever attempts have been made by public spirited individuals to file petitions in the Supreme Court of India to direct the government to amend the rape law into a gender-neutral one, the government and the interested parties report back having no need for the law.[cxxxviii] However, it is interesting to note that no research or survey has been undertaken to substantiate this view. The government just seems to be taking a diplomatic stance to avoid displeasing powerful women voters. This assumption seems to be similar to the one used by the Criminal Law Revision Committee in the UK which ultimately recommended enacting male on male rape only because the society views rape as a gendered crime which males commit on females. Just like in the Indian situation, no research or survey substantiated this view.

In a survey carried out by the Indian Government in 2007 on child sexual abuse, it was reported that more than 50% boys reported being raped or sodomised. Similarly, in another survey carried out by Centre for Civil Society (CCS) a think-tank based in the capital city it was reported that one fifth of the men were coerced into having sex of which majority perpetrators were women.[cxxxix] Thus, there is no denying that there is an immediate need to reform the entire repertoire of statutory laws whether it is the Indian Penal Code, The Indian Evidence Act or allied family laws such as domestic violence act into a gender-neutral one.

Gender Sensitisation Training for the entire Legal Machinery

Alongside amending the definition of rape law, we need to sensitise the entire legal machinery in order to deal with the 21st century reality of the ungendered world. This is required so that victims do not feel any hesitation in reporting violations to the police officials. Police forms the first authority in the legal machinery whom victims’ approach. However, police officials’ apathy is so widely known among the general public that it dissuades victims from speaking up.

In the UK, the Stern Review was setup to examine certain issues within the criminal justice system.[cxl] One of the primary issues examined was about the response of public authorities to rape complaints and how more victims can be encouraged to report. The report contended that though the attitudes, practises of the police have changed for the better, the implementation of the same is still patchy. Stern contended that there is so much focus on the justice process that we tend to ignore the victim who suffered this violent crime. Even the medical staff dealing with victims post the horrific encounter were reported to have poor communication skills. Convictions remain low because the review process for performance of a police officer or prosecutor does not involve considering how well the victim was handled. Stern recommended that Independent Sexual Violence Advisors (ISVA) be appointed for each case whose job would be to take care of the needs of the victims along with coordinating with the police and prosecuting bodies.

One can understand why most rape victims, especially male, feel hesitant to report rape. Further researches have also corroborated the grim reality that male rape victims seeking help have been turned away from rape crisis centres considering there are no systematic provisions in place even though these centres are publicly funded by the Ministry of Justice, UK.[cxli]

In India, such apathy of police forces came to light while assessing the facts of Bhanwari Devi rape case. In this case, the police officials demanded submission of the skirt the victim was wearing, at the police station as evidence. The police did not provide any alternate clothing which forced the unfortunate victim to use her husband`s turban to cover herself up while walking back to her house. She faced even more apathy when the doctor on duty at the primary health care centre refused to examine her in the absence of a female doctor. At the city hospital she was referred to, the doctor refused to examine her without an order from the local magistrate. The vaginal swab was taken after more than 48 hours even though the Indian law requires it to be taken within 24 hours.

Considering the ignominious and apathetic behaviour of the police in such a sensitive case, one can only imagine what image exists of a police officer in the mind of any woman. Gardiner Harris, a reporter for New York Times noted in her article[cxlii] that even in cases of heinous crimes, the police is concerned with settling the matter in order to avoid bad press rather than bringing the offender to justice. Thus, one arrives at the inevitable conclusion that gender sensitisation training and handling of victims for police officials needs to be done on an urgent basis.

Similar training would be appropriate for judicial officers considering that they live a reclusive life and are susceptible to narrow views about sexuality and human behaviour. One such ugly incident happened during the Bhanwari Devi rape case in Rajasthan in 1992. The Judicial Officer of the trial court while dismissing the case made really absurd and unfortunate observations for acquitting the accused. Some of the reasons for acquittal given were – the head of a village cannot rape, men of different castes cannot participate together in gang rape, a higher caste male cannot rape a lower caste woman because of reasons of purity and Bhanwari Devi’s husband couldn’t have quietly watched his wife being gang-raped, among other such ridiculous reasons.

Such unfortunate comments by the judicial officer remind us that reclusiveness adhered to by the judicial officers can have negative consequences on their outlook of society. These officers need to be gender sensitised so that they are well-versed with the changing social realities. One may be tempted to presume that considering that the incident is pretty old, things would be different now. However, another set of unfortunate observations made by the judicial officers of an esteemed High Court brought back the haunted memories of Bhanwari Devi. In an appeal against conviction by the accused in the OP Jindal rape case, while granting bail, the judicial officers made certain unfortunate comments about the victim on the lines of victim shaming.[cxliii] Some of these observations were:

“The entire crass sequence actually is reflective of a degenerative mindset of the youth breeding denigrating relationships mired in drugs, alcohol, casual sexual escapades and a promiscuous and voyeuristic world.” and

“We are conscious of the fact that allegations of the victim regarding her being threatened into submission and blackmail lends sufficient diabolism to the offence, but a careful examination of her statement again offers an alternative conclusion of misadventure stemming from a promiscuous attitude and a voyeuristic mind.”

The words of Eminent Jurist Justice VR Krishna Iyer come to mind here when he warned in Rafiq v State of UP that ‘the strategy for a crime free society should not be draconian severity in sentencing but institutional sensitivity, processual celerity and prompt publicity among the concerned community’.[cxliv] Thus, even at the risk of sounding like a broken record, it cannot be emphasized enough that there is a need to sensitise the entire criminal justice administration so that justice can be delivered not only in letter but also in the spirit of equality under the Indian Constitution.

Conclusion

In this journey of determining the need for gender-neutrality in Rape/Sexual Assault laws, we have tried to explore various areas that have not been studied adequately by governments and academicians. We assessed several interconnected subjects and critically analysed issues surrounding male rape.

There are many presumptions regarding male rape in society which have been evaluated in this dissertation and one reaches the inevitable conclusion that the need for gender-neutrality in rape and sexual assault law in India is not only immediate but is also indispensable. Patriarchy may appear to be advantageous to men on the surface of it, but it affects them quite negatively in reality. What is particularly surprising is that the knowledge of sodomy of males as war crimes has been in the public domain since time immemorial, however, legislative thought process did not consider this problem systemic enough to seek a resolution.[cxlv]

We also saw that contrary to popular perception, men do not experience sexual assault differently than women. Patriarchy dictates that men have the strength or the instinct to fight back during sexual assault, however research proves otherwise. On the issue of opposition from radical feminists, we noted that many schools of feminism including eminent feminists like Brownmiller have acknowledged and advocated the recognition of male rape. As evident from our research, there is an urgent need to shift from the contemporary phallus-centric framing of laws which restrict the discourse on rape law. Further, we analysed how a lack of understanding on the part of defence lawyers with respect to bodily response to sexual stimuli can result in miscarriage of justice in courts. There emerges a serious need to educate the justice system as well as the general public about the reality of how sexual stimuli can be achieved without conscious consent for any sexual act.

Further, the tendency of media to create and maintain stereotypical images of genders and their respective behaviour needs to be rewired to reflect social realities. A man can have feminine qualities and a woman can have masculine qualities and media needs to advocate and showcase the same. There is no denying that media has no statutory duty for societal upliftment, but considering the systemic effect it has on the conditioning of society and masses, a moral duty cannot be denied. As far as the need for a gender-neutral law is concerned, the rationale lies not only in the constitutional dictum of Article 15, but also to prevent undermining the value of consent in sexual autonomy and bodily integrity. By including men in the fight against sexual violence in recognition of growing male sexual victimisation, the importance of consent will be reaffirmed systemically without the prejudice of gender.

The solution for the recognition of male rape lies first in framing all the existing laws in a gender-neutral language so as to affirm the idea that gender is no longer the cornerstone for determining legal wrongs. Secondly, since law is nothing but the collective will of society, the need to gender sensitise the entire justice machinery and update legal tools for investigative agencies is a sine qua non. If a society has to be inclusive in spirit, there is a need to inculcate diversity and inclusiveness not only in thought but also in action. Last but not the least, creating laws and training policemen are the maximum a government can do; the real change will come only when the collective will of the people reflect the same. To summarise this dissertation, the words of Robert F Kennedy seems appropriate:

 “Laws can embody standards, governments can enforce laws but the final task is not a task for government. It is a task for each and every one of us. Every time we turn our heads the other way when we see the law flouted when we tolerate what we know to be wrong, when we close our eyes and ears to the corrupt because we are too busy, or too frightened, when we fail to speak up and speak out we strike a blow against freedom and decency and justice.”[cxlvi]

Endnotes

[i] English Jurist William Blackstone expressed the maxim in his seminal work “Commentaries on the Laws of England (1765-1769). The ratio of 10:1 is also known as the Blackstone’s ratio in criminal law.

[ii] Sandesh Sivakumaran, ‘Sexual Violence Against Men in Armed Conflict’ (2007) 18(2) European Journal of International Law 253. 

[iii] Navtej Singh Johar v Union of India (2018) 10 SCC 1.

[iv] Karen Weiss, ‘Male Sexual Victimisation’ (2010) 12(3) Men and Masculinities 275.

[v] Ministry of Justice, Home Office and the Office for National Statistics (2013) An Overview of Sexual Offending in England and Wales: Statistics Bulletin.gov.uk. <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/214970/sexual-offending-overviewjan-2013.pdf> (accessed 28 June 2019).

[vi] People`s Union for Civil Liberties, ‘Human rights violations against sexuality minorities in India’<https://web.archive.org/web/20090725200649/http://www.altlawforum.org/PUBLICATIONS/PUCL%20REport%201> accessed 23rd July 2019.

[vii] Ibid 3.

[viii] Radical Feminisim is a School of thought within Feminism which calls for radical change in society by removing all male supremacy from all societal contexts. They contend that patriarchal society created by men is the root cause of all problems for women as opposed to legal systems or class conflicts advocated by liberal and social feminists respectively.

[ix] Susan Brownmiller, ‘Against Our Will: Men, Women & Rape’ (Ballantine Books 1975).

[x] Article 15(3) of the Indian Constitution.

[xi] Section 498A of the Indian Penal Code, 1860.

[xii] Section 375 of the Indian Penal Code, 1860.

[xiii] Ibid 6.

[xiv] Ibid 3.

[xv] Tukaram Ganpat v State of Maharashtra (1979) 2 SCC 143.

[xvi] Section 114A of the Indian Evidence Act, 1872.

[xvii] Vishakha v State of Rajasthan (1997) 6 SCC 241.

[xviii] Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

[xix] Mukesh and Anr. v State of NCT of Delhi (2017) 6 SCC 1.

[xx] JS Verma Committee on Amendments of Criminal Law. <https://www.prsindia.org/uploads/media/Justice%20verma%20committee/js%20verma%20committe%20report.pdf> accessed 11th July 2019.

[xxi] Section 376D of the Indian Penal Code, 1860.

[xxii] Section 376B of the Indian Penal Code, 1860.

[xxiii]<https://www.indiatoday.in/india/story/woman-rapes-woman-first-case-of-same-sex-assault-after-section-377-verdict-1448534-2019-02-05> accessed 23rd July 2019.

[xxiv] Section 354D of the Indian Penal Code, 1860.

[xxv] Section 354A of the Indian Penal Code, 1860.

[xxvi] Section 354C of the Indian Penal Code, 1860.

[xxvii] Salil Bali v Union of India (2013) 7 SCC 705; Ipsita Chakravarty, ‘Changing juvenile law won’t help victims of heinous crimes: legal expert Mrinal Satish’ <https://scroll.in/article/777620/changing-juvenile-law-wont-help-victims-of-heinous-crimes-legal-expert-mrinal-satish> accessed 20th July 2019.

[xxviii] A Forensic Guide for Criminal Investigators, Page 58-66 <http://nicfs.gov.in/?p=15475> accessed 23rd July 2019.

[xxix] Home Office, 15th Report: Sexual Offences (Cmnd 9213) (1984).

[xxx] CLRC Para 45.

[xxxi] Jennifer Temkin, ‘Rape and the Legal Process’ (2005, 2nd Edition, Oxford University Press).

[xxxii] Home Office, Setting the Boundaries (2000), Volume I, Para 2.8.5.

[xxxiii] Section 143 of the Criminal Justice and Public Order Act, 1994.

[xxxiv] Home Office, Setting the Boundaries (2000) <https://webarchive.nationalarchives.gov.uk/+/http://www.homeoffice.gov.uk/documents/vol1main.pdf?view=Binary> accessed 31st July 2019.

[xxxv] Home Office, Setting the Boundaries (2000), Volume I, Para 2.8.4.

[xxxvi] Jennifer Temkin, ‘Literature Review of Research into Rape and Sexual Assault in Home Office, Setting the Boundaries (2000) Volume II, 83.

[xxxvii] Section 2 of the Sexual Offences Act, 2003.

[xxxviii] Section 4 of the Sexual Offences Act, 2003.

[xxxix] Charlene Muehlenhard and Stephen Cook, ‘Men’s Self-Reports of Unwanted Sexual Activity’ (1988) 24 Journal of Sex Research 52.

[xl] Bernie Zilbergeld, Male Sexuality: A Guide to Sexual Fulfillment (Little Brown & Co 1978).

[xli] Barbara Krahe, Renate Scheinberger-Olwig and Steffen Bieneck, ‘Men’s Reports of Non-consensual Sexual Interactions with Women: Prevalence and Impact’ (2003) 32(2) Archives of Sexual Behaviour 165.

[xlii] Patricia Novotny, ‘Rape Victims in the (Gender) Neutral Zone: The Assimilation of Resistance?’ (2002) 1(3) Seattle Journal for Social Justice 62.

[xliii] Kamla Bhasin, ‘What is Patriarchy?’ (Kali for Women 1993).

[xliv] Ibid 43.

[xlv] Ibid 43.

[xlvi] Ibid 42 at 744.

[xlvii] Joan McGregor, ‘Is it Rape: on acquaintance rape and taking women’s consent seriously’ (Routledge 2005).

[xlviii] Janet Halley, ‘Split Decisions: How and Why to Take a Break from Feminism’ (Princeton University Press 2006).

[xlix] Gillian Mezey and Michael King, ‘The effects of sexual assault on men’ (1989) 19 Physiological Medicine 205.

[l] Elizabeth Murphy, Danielle A. Harris, Raymond Knight and Michael A. Milburn, ‘Sexual Coercion in Men and Women: Similar Behaviors, Different Predictors’ (2009) 38 Archives of Sexual Behaviour 974.

[li] RW Connell and James Messerschmidt, ‘Hegemonic Masculinity’ (2005) 19(6) Gender & Society 829.

[lii] Ibid 4.

[liii] Ibid 4.

[liv] Mary Larimer, Amy Lydum, Britt Anderson and Aaron Turner, “Male and Female Recipients of unwanted sexual contact” (1999) 40 Sex Roles 295.

[lv] Bryana H. French, Jasmine D. Tilghman, and Dominique A. Malebranche, “Sexual Coercion Context and Psychosocial Correlates Among Diverse Males” (2015) 16 Psychology of Men & Masculinity 42.

[lvi] Charlotte Petersson and Lars Plantin, ‘Breaking with Norms of Masculinity: Men Making Sense of their experience of sexual assault’ [2019] Clinical Social Work Journal 1.

[lvii] Ibid 8.

[lviii] Catherine Mackinnon, ‘Liberalism and the Death of Feminism’ in Dorchen Leidholdt and Janice G. Raymond (eds), The Sexual Liberals and the Attack on Feminism (Pergamon Press 1990), 166.

[lix] Florence Rush, ‘Many Faces of Backlash’ in Dorchen Leidholdt and Janice G. Raymond (eds), The Sexual Liberals and the Attack on Feminism (Pergamon Press 1990), 3.

[lx] Hermesmann v Seyer 847 P.2d 1273 (Kan. 1993).

[lxi] Ibid 58.

[lxii] Catherine Mackinnon, ‘Only Words’ (Harvard University Press 1996).

[lxiii] Christine Boyle, ‘Sexual Assault and the Feminist Judge’ (1985) 1 Canadian Journal of Women and the Law 93.

[lxiv] Ibid 6 at 743.

[lxv] Jeanne Gregory and Sue Lees, ‘Policing sexual assault’ (Routledge 1999).

[lxvi] Ibid 49.

[lxvii] Ibid 29.

[lxviii] Ibid 9.

[lxix] Rosemarie Tong, ‘Women, Sex and the Law’ (Rowman & Littlefield Publishers 1989).

[lxx] Section 375, Indian Penal Code, 1860.

[lxxi] Ruth Graham, ‘Male Rape and the careful construction of the male victim’ (2006) 15(2) Social & Legal Studies 187.

[lxxii] Ibid 5.

[lxxiii] Ibid 2.

[lxxiv] [2005] All ER 216.

[lxxv] Ibid 71, 200.

[lxxvi] Similar issues were raised by the Stern Review in 2010.

[lxxvii] Ibid 65.

[lxxviii] Alfred Kinsey, ‘Sexual Behavior in Human Male’ (Indiana University Press 1948).

[lxxix] Ibid 71, 195.

[lxxx] Susan Estrich, ‘Rape’ (1986) 95 Yale LJ 1087.

[lxxxi] Siobhan Weare, ‘Oh you’re a guy, how could you be raped by a woman, that makes no sense’ (2018) 14 International Journal of Law in Context 110.

[lxxxii] Philip Rumney and Morgan Taylor, ‘Recognizing the Male Victim: Gender-neutrality and the Law of Rape: Part Two’ (1997) 26 Anglo-American Law Review 330.

[lxxxiii] Philip Sarrel and William Masters, ‘Sexual Molestation of Men by Women’, (1982) 11(2) Archives of Sexual Behavior 117.

[lxxxiv] Natasha Mckeever, ‘Can a Woman Rape a Man and Why does it matter?’ [2018] Criminal Law and Philosophy 1.

[lxxxv] Jenny Morber, ‘What Science says about arousal during rape’ (2013) <https://www.popsci.com/science/article/2013-05/science-arousal-during-rape/> accessed 30 June 2019.

[lxxxvi] Roy Levin and Willy Burlo, ‘Sexual arousal and orgasm in subjects who experience forced or non-consensual sexual stimulation’ (2004) 11 Journal of Clinical Forensic Science 82.

[lxxxvii] Ibid 83.

[lxxxviii] Curtis v State, 223 S.E.2d 721.

[lxxxix] Willan v Willan [1960] 1 WLR 624.

[xc] Siegmund Fruchs, ‘Male Sexual Assault-Issues of Arousal and Consent’ (2004) 51 Cleveland State Law Review 93.

[xci] Fred Pelka, ‘Raped: A Male Survivor Breaks His Silence, in Rape and Society: Readings on the Problem of Sexual Assault’ 250 (Patricia Searles & Ronald J. Berger eds., 1995 Westview Press).

[xcii] Commonwealth v Gonsalves 499 N.E.2d 1229 (Mass. App. Ct. 1986).

[xciii] Steve Pokin, ‘Rape: When the Victim’s a Man; It’s happened in homes, on city streets, in

bars and parks’ (1995) The Press-Enterprise D01.

[xciv] Mahmood Farooqui v State (Govt. of Delhi) 2017 SCC Online Del 6378.

[xcv] Ibid 49.

[xcvi] State v Tizard, 897 S.W.2d 732 (1994).

[xcvii] State v Karlen, 589 N.W.2d 594 (1999).

[xcviii] Com. v Tatro, 42 Mass.App.Ct. 918 (1997)

[xcix] People v Liberta, 64 N.Y.2d 152 (1984).

[c] Ibid 99.

[ci] Lamar v State, 254 S.E.2d 353 (Ga. 1979).

[cii] Harper v State, 463 So. 2d 1036, 1038-39 (Miss. 1985).

[ciii] Clayton Bullock and Mace Beckson, ‘Male Victims of Sexual Assault’ (2011) 39 The Journal of the American Academy of Psychiatry and the Law 197.

[civ]<https://www.brainyquote.com/quotes/jim_morrison_167304> accessed 20th July 2019. Jim Morisson is an American singer, songwriter and poet.

[cv]<https://www.oxfamindia.org/sites/all/themes/oxfamindia/images/Impact%20of%20films%20on%20VAWG_Research_clean%20version.pdf> accessed 4th July 2019.

[cvi] Claire Cohen, ‘Male Rape is a Feminist Issue: Feminism, Governmentality and Male Rape’ (Palgrave Macmillan 2014).

[cvii] Ny`Chel Dior, ‘Deadly Temptation’ (True Glory Publications 2014). 

[cviii] Article 15 of the Constitution of India.

[cix] Samaraditya Pal, ‘India`s Constitution: Origins and Evolution’ (Volume 1, 1st Edition, Lexis Nexis 2014).

[cx] Kaufman, A., Divasto, P., Jackson, R., Voorhees, D., & Christy, J. ‘Male rape victims: Non-institutionalized assault’ (1980) American Journal of Psychiatry 137.

[cxi] Cindy Struckman-Johnson, ‘Forced Sex on Dates: It happens to men, too’ (1988) 24 The Journal of Sex Research 234.

[cxii] Crime in United States: Uniform Crime Reports, US Department of Justice 1986.

[cxiii] Ibid 111.

[cxiv] Christina Faulkner, ‘Sexual Boundary Violations committed by female forensic workers’ (2011) 39 The Journal of American Academy of Psychiatry and the Law 154.

[cxv] Regina v Belton [2011] QB 934.

[cxvi] Ibid 4.

[cxvii] Ibid 5.

[cxviii] Rituparna Chatterjee, ‘The mindset is that boys are not raped’: India ends silence on male sex abuse’ <https://www.theguardian.com/global-development/2018/may/23/indian-study-male-sexual-abuse-film-maker-insia-dariwala> accessed 17th July 2019.

[cxix] Namita Bhandare, ‘It’s time we recognised that men can get raped too’ <https://www.hindustantimes.com/columns/it-s-time-we-recognised-that-men-can-get-raped-too/story-tlIiUihV1T0gMHbqHfGaIM.html> accessed 17th July 2019.

[cxx] Aliraza Javaid, ‘The Unknown Victims: Hegemonic Masculinity, Masculinities, and Male Sexual Victimisation’ (2017) 22 (1) Sociological Research Online 1.

[cxxi]<https://www.indiatoday.in/india/north/story/false-rape-cases-in-delhi-delhi-commission-of-women-233222-2014-12-29> accessed 9th July 2019.

[cxxii] Ibid 15.

[cxxiii] Section 498A is cognizable offence and police has power to arrest accused persons without an arrest warrant under section 41A of the Code of Criminal Procedure, 1973 in cognizable offences.

[cxxiv] Mohammad Miyan v. State of UP (2018) SCC OnLine SC 1976; Mangesh Bhoir v. Leena Bhoir (2015) SCC OnLine Bom 6258.

[cxxv] Arnesh Kumar v. State of Bihar (2014) 8 SCC 273.

[cxxvi] Social Action Forum for Manav Adhikar v. Union of India (2018) 10 SCC 443.

[cxxvii] Andrew Marszal, ‘Indian bride burnt alive by husband’s family because her skin was too dark’ <https://www.telegraph.co.uk/news/2016/06/09/indian-bride-burnt-alive-by-husbands-family-because-her-skin-was/> accessed 10th July 2019.

[cxxviii] Law Commission of India, ‘Wrongful Prosecution’ (Report no. 277, August 2018).

[cxxix] Martin Luther King Jr. in a speech at St Louis, 22 March 1964, in St Louis Post-Dispatch 23 March 1964.

[cxxx]<http://www.authorama.com/life-of-abraham-lincoln-7.html> accessed 8th July 2019.

[cxxxi]<https://www.heforshe.org/en> accessed 8th July 2019.

[cxxxii] David Archard, ‘The Wrong of Rape’ (2007) 57 The Philosophical Quarterly 374.

[cxxxiii] Section 1, Chapter 6 of the Swedish Penal Code, 1962.

[cxxxiv] <https://www.legal-tools.org/doc/1c639d/pdf/> accessed 19th July 2019.

[cxxxv]<https://www.prsindia.org/sites/default/files/bill_files/Criminal_Law_%28A%29_bill%2C_2012.pdf> accessed 19th July 2019.

[cxxxvi]<http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on%20Home%20Affairs/167.pdf> accessed 19th July 2019.

[cxxxvii]<https://www.prsindia.org/uploads/media/Justice%20verma%20committee/js%20verma%20committe%20report.pdf> accessed 19th July 2019.

[cxxxviii]<https://www.livelaw.in/sc-dismisses-plea-to-make-rape-law-section-375ipc-gender-neutral/> accessed 19th July 2019.

[cxxxix]<https://ccs.in/indias-law-should-recognise-men-can-be-raped-too> accessed 19th July 2019.

[cxl] Baroness Vivien Stern CBE, Government Equalities Office UK <https://webarchive.nationalarchives.gov.uk/20110608162919/http://www.equalities.gov.uk/pdf/Stern_Review_acc_FINAL.pdf> accessed 20th July 2019.

[cxli] Catherine Pitfield, ‘Male Survivors of Sexual Assault: To tell or not to tell?’, <https://repository.uel.ac.uk/download/7114928707ffdc81db2b052b20765be5b5c8eae24c2bca074e79f9a60966ce67/3605459/2013_DClinPsych_Pitfield.pdf> accessed 25th July 2019.

[cxlii] Gardiner Harris, ‘For Rape victims, police are often part of the problem’ NYTimes (New Delhi, 22nd January 2013) <https://www.nytimes.com/2013/01/23/world/asia/for-rape-victims-in-india-police-are-often-part-of-the-problem.html>accessed 9th January 2019.

[cxliii] Cr.M.No. 23962 of 2017 in Cr.A.No. S-2396-SB of 2017, High Court of Punjab and Haryana at Chandigarh.

[cxliv] (1980) 4 SCC 262.

[cxlv] Ibid 2.

[cxlvi] <https://www.bartleby.com/73/1746.html> accessed 24th July 2019.


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post “Ought The Rape/Sexual Assault Law In India Be Gender-Neutral? appeared first on iPleaders.

Walking amongst giants: what is it to work in legal and compliance departments of large listed companies?

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This article is written by Komal Shah, Content Head, LawSikho.

“So when are you ringing the bell?”

Even after so many years of being asked this question, I still remember it vividly. I was just looking at the person who asked the question as if to say “Huh?” and the person sitting next to me was giggling. 

Of course, at that time, I didn’t know that ‘ringing the bell’ referred to the traditional gong being hit by the Chairman of a company signifying the start of trading in the shares of a company at a listing ceremony. 

My company was in the middle of IPO processes. I remember that the team here was so young, charged up, dynamic and vibrant that if you got in the middle of this team, you would begin to get charged up from all the energy in the air (somewhat similar to what the LawSikho team feels like now).

They had chosen a day that signified the greatest fall in the markets as the right day to list – not because it wasn’t likely to happen again, but because they firmly believed they could turn history upside down. And over the years, they have indeed done that.  

IPOs are exciting. You can literally feel an adrenaline rush during the IPO days while an issue is being subscribed and oversubscribed. 

For legal and company secretarial professionals who get to work on an initial public offering, this isn’t something they are likely to get to be involved in for multiple number of times. 

At the same time, it is also daunting for someone who hasn’t been through the process and doesn’t know what it entails. So many processes would be ongoing at the same time that unless you have been groomed properly, you can completely lose the plot. 

There are some terms you will totally not get, unless you have been in this zone. For instance, if you’re a newbie, you wouldn’t get what a ‘roadshow’ is supposed to achieve, in relation to a public issue. I’ll leave that for you to google.

You can learn some real life lessons while going through major corporate transactions like IPOs and takeovers. These will grill you and shape you. 

I want to share some learnings with you here.

God is in complete execution

During the IPO, one of the intermediaries was supposed to be sent copies of an agreement. I got these hand delivered. To my suprise, after some time, they ended up simply denying having received the agreement. 

I had clearly asked the peon delivering the agreement to get an acknowledgement of receipt on a photocopy and he had done that. I now had that acknowledged photocopy in my custody so I simply stated that I had an acknowledgement of receipt. Unsurprisingly, there were no further calls in this regard from that intermediary. 

If I hadn’t done this, they would’ve ended up putting me in the wrong place in front of my management while actually, it was they who could not trace the agreement. 

https://lawsikho.com/course/diploma-companies-act-corporate-governance

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As a lawyer, expect such situations all the time. Keeping records of every imaginable and unimaginable thing is part of your profile. Those who manage to produce records out of thin air at the critical moment often win more arguments than the most quick thinking lawyers.

In another adventure, I was managing communications to the employees during a takeover and proposed delisting. 

It was such a detailed exercise that I had to put in 100% focus on the figures and everything else, since the employees, in this case, were spread throughout the world. 

These communications had to be sent to the employees before a certain deadline date. 

I had not only sat through completing all of these letters, but also gotten into arranging these appropriately on a large table in a big conference room and placing these into appropriate envelopes. 

Till a certain point, I was also there right up to the point that the administrator was stamping those envelopes. I was a bit relieved that now these were done and dusted, so I left. And here is where I missed the bus. Some of the envelopes ended up being posted without being stamped. Obviously these were returned. 

You ought not to leave the ground until it is complete. It’s not done till it’s done. 

Be conscious not only of what you speak, but also where you speak

I almost ended up being caught in the clutches of insider trading once.

 In my capacity as the company secretary, I would have access to a significant amount of unpublished price sensitive information. One day, I was walking through the aisle in the large open plan sitting area of the company and one of the department heads (classified as an insider) walked up to me. He just wanted to know whether the trading window was open or closed in the event he wanted to sell his shares. 

I told him that the window was open. 

Unfortunately, this conversation happened close to the desks of a couple of people, who came up to me and said “Anything wrong? Should we sell?” 

I clarified that I cannot make a statement like that. All I had informed the department head was that the window was open. But imagine what disaster it would have been if these guys decided in their heads that the shares need to be sold and had spread that news throughout. 

Lesson learnt: these kinds of conversations are not to be had in the aisles.

Insider trading is probably the most litigated of the SEBI regulations before the Securities Appellate Tribunal (SAT). 

We have therefore, curated the Executive Certificate Course on Securities Laws, Capital Markets, Insider Trading and SEBI Litigation to include not only the full explanation and range of instances which might be considered insider trading, but also covered how you can deal with insider trading matters during litigation.

Getting hit by a bus – step up and own your learning

I know this heading looks completely out of place. But this is exactly the statement one of my managers used – to groom me into taking on and knowing the entire inside out of the work. His frequent question was “What if I get hit by a bus tomorrow?” 

How was I going to handle things if my boss disappeared suddenly?

His question turned out to be a life saver for me when I had to unexpectedly handle a takeover on my own on account of his hospitalisation. 

I was prepared. So much so that at the end of the transaction, I received a call of appreciation from the CFO himself. 

In a nutshell, be forthcoming, step up and take on learning everything there is to be learnt, about the company and its business. It can be a blessing during the taxing transaction times. 

What this would also mean is that if you have a listed or to be listed employer or client, brace yourself with the knowledge of all laws that can impact your employer or client. 

You would never know where which piece of knowledge can come in handy and save your life. For this reason, we have included the full gamut of SEBI regulations that you would come into contact with in your travails with a listed entity in the  Executive Certificate Course on Securities Laws, Capital Markets, Insider Trading and SEBI Litigation.

Always have systems. In the legal and compliance domain, you alone are never enough.

The rapidity with which we forget things is amazing. Unless you have a complete system in place for ensuring compliance for a listed entity, I can tell you that there will be some ball that will be dropped somewhere either in the run up to getting listed or thereafter. 

You need to have in place a constant practice of building, implementing and improvising systems as need be, when you are dealing with a regulated entity. Having systems not only increases efficiency, but also saves you to a good extent from missing out on things. Not only that, if you are able to demonstrate to a regulator that you have appropriate systems in place, there are chances for you to convince them that the error was a one time miss, and that you are rectifying the systems appropriately. This can work great in reducing penalties.

This is precisely why we include a discussion on systems throughout our  Executive Certificate Course on Securities Laws, Capital Markets, Insider Trading and SEBI Litigation. The course talks about systems you need to have in place in relation to publicity during an IPO, systems required to be developed while transitioning from an unlisted to a listed company status, systems you need to have in place if you are an intermediary and systems you need to improvise if you land up receiving a Show Cause Notice (SCN) from SEBI.

Here are the courses you can enroll in:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post Walking amongst giants: what is it to work in legal and compliance departments of large listed companies? appeared first on iPleaders.

What are our in-house counsel users saying about Master Access Library?

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

The most enthusiastic adopters of our Master Access Library have been in-house counsels. 

Even before we had formally launched it, the first subscription was bought by Hasnain Alvi, a legal counsel at the IB Group, who had done several courses from us already by that point, having supported the crowdfunding initiative which helped us to launch LawSikho in the first place. 

It made sense, therefore, that several legal departments have reached out to us regarding Master Access. They requested us to create a brochure that they can share with decision-makers within their organizations. 

While creating that, we called up some of our in-house counsel Master Access members and asked them for their feedback on how they have used Master Access or benefitted from it so far. 

What they told us is very exciting for us, and I thought I should share it with you all!

They shared some areas of improvement with us too, and we are already working on them.

If you are part of a corporate in-house legal team and you are interested in Master Access Library, we can help you to pitch your management for access to this resource. 

We have made a beautiful corporate brochure for that! Just let us know. We would back you up with any help you need.

Those who are otherwise interested, please visit the page and join the waiting list! We would let you know when we reopen the program for individual memberships. 

https://lawsikho.com/course/diploma-entrepreneurship-administration-business-laws

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Testimonials from our in-house counsel users 

Master Access Library is a great concept for people like me who frequently need information from different branches of law, both for procedure and rules. I look after legal cases where the span of disputes is very wide – from contracts to sexual harassment, one never knows what will be the next case. The Master Access platform has given me a single place to solve many tricky situations as the courses are practical rather than just theory. The group discussion amongst peers and the community feeling among professionals ensure I find solutions that I could never find in a book.

-Rajesh Ghose, Assistant Director (Personnel and Administration), GSI, Government of India

As an in-house counsel, I am expected to oversee a broad range of legal tasks for a company, which requires subject-matter knowledge of multiple laws. I cannot specialize in contract negotiation or trademarks or M&A alone. I need to oversee these functions, as well as a lot of other tasks. I need to facilitate business outcomes through my legal skills, so cross-functional legal knowledge and innovative thinking is necessary. For this purpose, I find access to a library of courses very useful. I can access practical knowledge and skills on my fingertips. The elaborate calendar of weekly live classes enables me to join sessions of my interest and relevance at work. Access to the team for clarification of doubts and mentorship is also very valuable. 

-Shilpi Goyal, In-house Counsel, German MNC (name of employer withdrawn on request)

 

I have been using Master Access Library since April 2019. It has helped me a great deal with insolvency and arbitration matters. It serves as a primary destination for both research and learning as far as I am concerned. It enabled me to appear before NCLT. I have found references to the most useful case laws quickly from the library you provided. I have also benefitted from all the templates you have added based on my specific request.

-Hasnain Alvi, Legal Consultant at IB Group

It is a very useful resource database for in-house counsels like me, because it provides me with a large database of practical legal solutions, templates and how-to guides at my fingertips. The price is very reasonable as well given the depth and breadth of content. Additionally, one can attend live classes in areas of interest and build up specific expertise as per requirements and challenges at work. It is not a research tool alone, but a great source of learning and development, as I can consult specialized subject matter experts for quick guidance when I need to.

-Priyanka Raj, Assistant Manager Legal, Oyo 

I liked the fact that concepts were explained in very simple language. There were times when I thought I was familiar with something because I learned about it in law school and yet I found it difficult when it came to applying the same to my work. So knowing that I can look up a topic with just a few clicks and being sure that I will find the answer I need was really helpful. I attended some online classes and found very useful. Teachers were from the industry with experience in doing practical work.

-Anmol Gupta, Legal Consultant, Continental Coffee

Here are the courses you can enroll in:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post What are our in-house counsel users saying about Master Access Library? appeared first on iPleaders.

I already got a PPO. What can I do now to ensure that I crush it when I join my job as a new lawyer?

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

Recently I got a mail from a regular LawSikho subscriber. Here is the gist of what he had to say.

I already got a job in a top tier law firm after doing 5 corp law internships in top law firms. I am now in my last semester in 5th year. I never really got time to enjoy my college life, but now that I have finally got a job, I want to spend the rest of my days in college enjoying myself. I was thinking of taking your course earlier, but I think I can give it a skip now.

When I read it, it reminded me of my 5th year in college. I got multiple job offers on the 1st day back in college in 5th year, which was our Day 0. I made my choice, and then I felt like I have arrived somewhere in life.

I was going to start the job next year in July. I had around 15 months left. The goal of getting a job in a top law firm was achieved and then I had 15 months to go before I had to join. What was I going to do?

Most of my friends threw themselves into partying and chilling full time. I did some of that too. But I decided to give most of my time to building a business – which was iPleaders. That was the year we launched BarHacker. That was the year we hustled hard and found clients for our legal risk management business. That was the year when we pitched it to NUJS management that they should launch an online course for entrepreneurs. That was the year we launched the iPleaders blog. That was the year when we registered an LLP and a bunch of domain names. 

We rented an apartment nearby, called it our office and got some juniors to work with us. We built WordPress blogs. We learned SEO and web design. We networked a lot. We tried hard and mostly failed. We kept trying.

Then we eventually joined our law firm jobs, but we knew that after a year we would probably get back to what we left behind. The year of trials and tribulations was a very important year – the year we put our basics in place. We built the floor of the house we will eventually live in. 

However, when I look back now, I think I made a great mistake. I never took the time to prepare for the job I was going to join. 

Just because you got a job does not mean you are ready to crush it at work. I didn’t even know what work was in store for me. I didn’t learn how to do that work. I didn’t even read the regulations and statutes I would have to deal with.

So when I joined the job, I was in for a rude shock. My work was often rejected by my seniors. I would have to go back and redo the whole thing again and again. I would have to spend ungodly hours in the office. 

I made the mistake of thinking that it was the employer’s responsibility to teach me the work. I also thought I was a very smart person and I would be naturally ahead of others at work. 

https://lawsikho.com/course/diploma-entrepreneurship-administration-business-laws

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It turned out to be very wrong.

Within 3-4 months, I was stressed, my spirit was crushed. I was spending time till 3 am every day in the office. My health suffered. At some point, I was hospitalized for 11 days. I began to drink too much and smoked a lot. 

At work, I was struggling. I didn’t like the work. One reason was that I did not find it intellectually stimulating, but then to get the better work I had to earn the trust of the seniors, and at that, I mostly failed. I was scolded every now and then, and I was miserable. I was not used to being scolded. I was used to being the champion, the overachiever, and I lost that.

I was very unhappy for most of that year. 

Now I look back and know exactly what I did wrong. I did not prepare. I took it for granted that I will do well in that job.

So I requested the 5th year law student who already got a PPO and planned on chilling for the rest of the months to call me. I wanted to share with him my story.

When he called me, I asked him how he was preparing for the work he would be doing as an associate. He thought that the internships must have prepared him for that work.

Naive mistake, I had thought so too. So I described to him the kind of works he would have to do and the skills he needed. I asked him if he already knew how to do that work. 

Of course, not. Who teaches an intern all that?

But they will teach an associate, right?

Sure, but answer one question. 

How long do those associates you intern with spend in the office? Do you see them working late nights in the office frequently? Do you think they do it for fun? Do they not want to spend any time they save with their spouse, children, parents or friends? Do they not want to go home early?

If they have to spend time teaching you to do something, will they really like it? Will not they do just the bare minimum? Will, they not expect you to do everything in your power to prepare yourself and save their time?

Ok, consider this. How much of your annual package is a bonus? 5 lakhs? 

Now some associates will just get 1.5 lakhs. Some may get even 4 lakhs or 5 lakhs. 

Who gets more? Of course the ones your seniors will highly appreciate and recommend for a higher bonus. Right?

So if spending the next 6 months preparing yourself for your job will ensure that next year bonus time you will get a 4 lakh cheque when the rest is getting 2, will it be worth your time?

It is not just about money.

What is the price of your dignity, that nobody is upset with you or that your seniors don’t have to criticize you for failing to meet a deadline or expectations?

What is the price of hitting the ground running when you join, and surprising your seniors with high performance and earn praise for doing a fantastic job?

The price is preparation. And we have prepared hundreds of our students exactly in that way for the last few years. 

What effect do you think my conversation had on the student? Did he enroll in a course from LawSikho that will train him for the job he is going to join?

What do you think? Respond to this and tell me. 

I look forward to hearing from you. If you got a PPO, congratulations. But are you preparing for the next step of your life? Or are you too busy celebrating to think of preparation for a very important stage of your life?

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post I already got a PPO. What can I do now to ensure that I crush it when I join my job as a new lawyer? appeared first on iPleaders.

The easiest formula for success as a lawyer in a law firm

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

I was talking to the managing partner of one of the top law firms yesterday. They have over 200 lawyers according to LinkedIn, across 4 offices. I was interviewing him for my book on 30 law firms that were started by lawyers under the age of 30 and made its mark. 

I will not name him today, wait for the book.

I asked him what has been his strategy to attract top talent. 

Internship programs, he said. They prefer when they can hire lawyers at the entry-level from their internship program. Long term interns preferred.

They do go to campus recruitment increasingly, but results are not comparable. Campus recruits leave sooner. They go for LLM. Some of them want to move to litigation soon. Some just can’t survive the grind of a law firm life.

For partnership also, they prefer homemade partners over lateral partner hires. They do take in lateral partners, of course, but homemade partners are always preferred. If an associate came up the rank and is ready to take the role of a partner, and grow the practice, that is preferred.

There is the catch. The associate now has to grow the practice. 

Most associates falter there. Even most partners in top law firms are not that great at getting business. They are good at getting the work done, keeping the client happy, but building a new practice area? That is increasingly rare.

And that is where the value is if you want to excel and be in demand at a law firm. That is also where the value is because if you can get clients, you can also go and start your own law firm. Or at least a small niche, boutique practice.

You see, if you want to succeed, you need to learn to do what most others find hard to do (and I am not saying that just because we are in the training business).

Most law firm associates want to make partner on the fast track but never bring in a single client to the firm, although that is the best way to make partner in the fast track. They tend to point fingers at other lawyers and say ‘hey but she made partner without having her own clients, why do I have to bring my own? If I just hang on for another 3 years I think they will have to make me a partner.’

Most law firm associates do not even try to land their own clients. Why? It is not their job to do so! Or is it? Is there a problem with exceeding your brief to benefit your employer? Will you also not ask your employer to do more for you if you delivered more value?

Because it is unfamiliar. Because it is new and they are not in the habit. Because it will take time, effort and there are risks involved.

People are scared because it requires them to take risk, invest in an uncertain future and be generous upfront. They want a contract before they do the work. They want assured returns before doing so much work. How pathetic. 

What if you take the other approach? What if you deliver value first and take all the risk on yourself?

Is it possible that it would make a far more valuable asset to a law firm?

It is no different when you were a law student, after all. 

Some law students go to top law schools, work hard, get the jobs they want. Others crib about how some law students get things easy because of help from uncles. 

Government law college students complain that students of private law colleges are preferred. Students of private law colleges complain that students of NLUs are preferred. Students of most NLUs are very angry with the administration, blaming them from next to no recruitment in the campus. Few NLUs that have good recruitment, are also cribbing about some other things, and even going on protests. People with low ranks crib that people with high ranks are getting better treatment.

https://lawsikho.com/course/diploma-companies-act-corporate-governance

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There are ways in which any of them can succeed, and those who accept things as they are and then step out to find ways, find that there are ways. 

Long term internships for instance. 

Yes, it is very hard to do long term internships. But it is better if you can. It increases your chance of landing a coveted law firm job by leaps and bounds.

Sure, maybe it is not possible to do a long term internship because your college does not allow. Fine, can you go and intern at night with a lawyer? Most lawyers are working till midnight almost every day, many will happily take an intern who puts in late-night hours assisting them. 

When others go home from college, can you show up at the chamber of a lawyer to work for free, month after month, so you can learn the work before you graduate?

Alright if that was also not possible for some reason, but there must be something you can do? 

If you are not doing anything at all, if you are saying you are getting no time after college to do anything else at all, then you are lying to yourself. You are kidding yourself.

Most people will not do that tough work. So those few who do that, they benefit disproportionately. You would notice if you cared to look around. These people are exceptions. But they are also the most successful. Their examples can be reproduced in your life. 

The norm is to wait and crib about the lack of opportunities, but the norm does not pay. It does not make you a partner faster, it does not ensure you get a stellar job irrespective of your grades, it does not ensure that you get a scholarship at a top university.

It is the same with our courses. Only a couple of hundred people sign up for our courses every month. Because the rest doesn’t want to pay or are too lazy to take on so much course work or find it too hard to commit. 

Sorry guys, how are you going to go to the next level when you work at a law firm, even if you get that job? Or how will you grow as an independent lawyer? If you will not invest time, money and effort with the intent of going to the next level and take some calculated risk, is it going to happen?

Can you be successful, at least better than average, without putting in above-average investments?

Look at how you are investing your time, money and efforts. Is it below average? Is it just about average? How do you expect to get above average results?

What could be above average investment from your side? What could be that investment others are not making yet?

If you are scared to invest before you have the assurance of return, how will you do that extra investment?

Will you be able to hire juniors so you can grow faster? Will you invest in technology or in hiring a good secretary? Will you spend money on delighting your clients or on networking? How about continuous learning and development, which is critical for getting into emerging and lucrative areas? 

Here is how we do it. We tell our students that we can refund their money if they don’t like our course after using it for 30 days. The risk is on us, as long as they do all the assignments, and attend all the classes. Here is the refund policy.

We didn’t have to do it. Nobody in our business does it. No competitor can dare to match this. They would go out of business if they did.

This policy helps our students to trust us. We work with lawyers, they can take us to the court over this if we don’t respect this after putting out a promise like this openly! Knowing that, they feel comfortable to try our courses. And they sign up for course after course. They even pay above 1 lakh for our master access library

Could you do something like this in your area of work?

If you are an intern, start delivering value as if you are already an associate. Learn to do what an associate with 2 years experience is expected to do. Then you will be treated like a superstar and get the job hands down while other interns will be shocked by how much the firm values you. This is what we train our law student learners for.

If you are a lawyer, then start delivering what a partner may be expected to deliver. That should be your aim. You must train yourself outside your job hours to achieve that. You better network like you are a partner and the pressure of getting work for the firm is on your broad shoulders. 

You better write books, or curate events, or create communities or organize industry conferences, whatever it may take to build a brand!

You may have to deliver the level of work and take the level of responsibility a partner will take for delivering results to the client. That mindset makes all the difference.

And then see how your firm begins to treat you. See if you do not find yourself on the fast track to partnership, or on the fast track to starting your own firm. 

People who are comfortable with what is already present in their life, do not hustle, do not push through. People who are scared to invest do not grow. Or grow at a snail’s pace.

It is hard to wake up in the morning to run 10 kms when you are sleeping in silk pajamas. Or when you have told yourself that it is too hard for you to try.

The kind of people who may wake up in the morning to run 10 km, also make partners fast or build their own law firms. And they also do not hesitate to spend 30K and a few hours per week learning how to build a brand or how to get new clients. We have a course for that.

If you want extraordinary results as a lawyer, put the risk on us, and try out some amazing opportunities you can invest in:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post The easiest formula for success as a lawyer in a law firm appeared first on iPleaders.

Can I get a good law firm job despite horrendous grades?

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

This is a very frequently asked question. And the answer is yes. 

Your grades are relevant at best when you are applying for your first job. If you are being asked the same in your 2nd and 3rd job, then you must be doing something terribly wrong. If it is relevant even after that, you must be living on another planet, not this one.

And of course, such questions would be asked by either a law student or a greenhorn lawyer with very little understanding of how the profession works.

I do not remember my grades. Neither do most other successful lawyers you will meet. Many of them had flunked a year or a few papers back in college. There are sitting judges in High Courts who have told me how they bumbled through college. There are partners in big law firms who were at the bottom of their batches. 

As you begin your practice, clients, and therefore employers, judge you by the work you have been doing and the results you have been producing for your clients.  

It can be an additional bragging point if you went to Harvard, Cambridge or a top NLU, or if you were a gold medalist in your batch, just like you would be proud of having a handsome husband or a pretty wife, but no more relevant to your work and clients. 

Even if you were a topper in your class, and you fail to deliver work in a law firm or fail to fit into the culture, they will discard you like a dirty napkin. Good grades will not do you any good after a year of joining a law firm or chamber practice or in-house legal team.

Damn, so am I wasting my time and energy putting too much emphasis and premium on my grades in college?

Yes, sir. Yes, madam. Please note that if you ever applied for a scholarship to study at a famous international law college, your grades may come in handy. It may kind of help when you are applying for the first job. Although, even for those purposes grade alone is not conclusive. After that at least, it’s all about your performance as a lawyer. Employers will test you, give you trial tasks, they will ask around about the quality of your work, and they will find out how good or bad you have been. Even if you manage to fool them and get the job, you cannot expect to last more than a few months if not less. You are going to be found out if you don’t have to skills.

Please, therefore, put learning skills that lawyers actually use in their work, rather than chasing grades. It never works out well unless you learn the skills.

People with horrendous grades will surpass you, and this routinely happens all the time in the profession, based on their skills and track record, unless you focus on learning valuable skills. Fix your priority accordingly.  

So how do I get a good first job if I am not having good grades? What is I have horrendous grades?

Worry not. 

Again, focus on learning skills. Then focus on demonstrating those skills in internship, ideally long term internships. 

Repeatedly, we have taken in law students with horrendous grades, trained them in skills, helped them to polish their profiles otherwise, and then got them assessment internships that led to jobs. Our entire Dream Job Bootcamp runs on that philosophy and has been very successful.

https://lawsikho.com/course/diploma-intellectual-property-media-entertainment-laws

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But you really don’t have to do our course to just get a job. Let me share some success stories this time, of people other than our students. If you want success stories of our students, I keep sharing that every now and then anyway!

Here are some case studies for you. 

Yazad Udwadia

Yazad did his BBA LLB from JGLS. He got a PPO from Wadia Ghandy based on his internship. In his own words, if Wadia came to recruit from his college, he won’t make the shortlist. How did he get an internship and then the PPO?

The secret lies in some internships he did with a mentor who was a family friend. He got important advice from him early on about how to impress law firm lawyers and learned litigation related drafting. When he went for his Wadia internship, he ensured that associates and the partner knew what work he did in previous internships. 

This led to his being given more work than the usual proofreading and printing out documents! He was asked to try his hand at drafting written statements, reply to notices, amendment applications, and even simply preparing list of dates. And he presumes he must have done those things somewhat well, because then he was trusted with more work. 

And this led to his bagging a PPO. 

I keep saying that learning practical skills is critical. You don’t necessarily need to learn it from a course offered by us, a good alternative is to learn from a mentor who is ready to invest the time in you to teach important skills. 

Subhro Sengupta

Subhro went to HNLU and flunked all his papers in his first year. Despite the year loss, when he reached 5th year, he was bang in the middle of the batch as per CGPA. However, that does not assure a campus placement.

Subhro managed to get an internship at AZB using his exceptional networking skills. A junior connected him with a relative who worked at AZB, and he bagged an internship there. Later he got an interview call, thanks to more networking with an AZB associate, from Vishnu Jerome, a former AZB partner who had then set up Jerome Merchant + Partners. He cracked the interview where he was asked strategic questions. 

Now he has left law and got into strategy consulting.

Subhro does not think it was his practical skills that helped, but he spoke well and had won moots. His strategic inputs were good during the interview, which led to his selection. He also got a job offer next year from Trilegal and then IndusLaw fairly easily. 

Even if you do not have practical knowledge when you are graduating, if you have the right connections and good relationships, that could come to your rescue. However, you need to have some redeeming qualities that help you to make the cut. 

What are you doing to stand out?

I highly recommend acquiring practical legal knowledge and actual legal work that associates do in a law firm. That is the best way to ensure you do not miss getting the dream jobs you want.

Here are some courses which can help you to achieve your dream legal career, whether you are a law student or a young lawyer struggling to start the career journey of your dreams:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

The post Can I get a good law firm job despite horrendous grades? appeared first on iPleaders.

What do patent agents do and how can you become a patent agent in India?

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This article is written by Aishwarya S M, pursuing a Diploma in Intellectual Property, Media and Entertainment Laws from LawSikho.com. Here she discusses “What do patent agents do and how can you become a patent agent in India?”

Meaning of the term Patent Agent

Patent agent as defined under Section 2(n) of the India Patent Act, 1970 is a person who is registered under the patent act as a patent agent. The definition under the act defines as to who is a patent agent. In order to understand the meaning of the term ‘Patent agent’ in simple terms, it can be defined as “a person who files the patent application” The process involved in the preparation of a patent application is taken care of by the patent agent. That is, he helps in the preparation of the documents, including drafting, filing and prosecution of an application before the controller on behalf of any person who wishes to obtain a patent.

To carry out the said procedure, such a Patent agent should be registered to practice by submitting an application under Form 22 as specified under the Patent Rules, 2003[1] before the Indian Patent Office.  Thereafter, upon acceptance of the application, the details of the registered patent agents are added into the patent register maintained by the Controller. The register shall include in it, all the information that is, the name, address, and other relevant particulars related to the person registering himself as a patent agent in accordance with the Patent Rules.

Chapter XXI of the Indian Patent Act, 1970 (the ‘’Act’’) along with Chapter of the Indian Patent Rules, 2003(the ‘’Rules’’) speaks about Patent Agents. 

Qualification required for being a patent agent

For a person to qualify to get his name registered in the Patent register he shall meet the criteria specified under Section 126 of the act. As per which, the qualifications required to be a patent agent are as follows:

  1. He should be a citizen of India;
  2. Should have completed 21 years of age;
  3. He should have completed a degree in either Science, Engineering or Technology from any university established under law for the time being in force in the territory of India or should possess such other equivalent qualifications as specified by the Central Government; In this regard, final year students can also apply as long as they can produce their degree certificate with all the marks card within 2 months from the date of announcement of patent agent examination results.
  4. He should have either passed the qualifying examination prescribed for the purpose or should have functioned either as an examiner or discharged the functions of the Controller under section 73 or both, for a total period not less than 10 years provided that, at time of making the application for registration he has ceased to hold any such capacity;
  5. He should have paid the prescribed fees.

Prior to the 2005 amendment to the act, along with holding a degree specified in one of the field mentioned under clause (c), the person should also have had a degree in law. This requirement was removed through the 2005 amendment.

Procedure for registering as a Patent Agent

Rule 109, 110, and 111 of the Rules provides the procedure to become a patent agent. In this regard, a person intending to register as a patent agent shall comply with the following procedure:

1. Application for examination

A person shall make a request to the Controller and pay the requisite fee as provided in the First Schedule[2], as per which if the person intends to apply online then he shall pay an amount of Rupees 3,200 and in case of the offline mode of application payment of Rs. 3500 is prescribed. After making the payment, the details of the said payment shall be provided to the Controller, in order to appear for the required qualifying examination.

In this regard the request is made in the form of a letter addressed to the Controller and is submitted at nearest patent office along with other required documents such as age proof, citizenship proof, Character Certificate along with Self-attested copy of proof of degree as per section 126(1)(c) are to be provided. All the details in relation to the same is provided under www.ipindia.nic.in. The fees for the examination shall be paid only after the announcement of the examination on the website of the Office of Controller General of Patents, Ministry of commerce and industry[3] and within the period specified in the announcement. There is no restriction regarding the number of times one can apply for the examination, therefore, one can apply for examination as many times as he wishes.

2. Particulars of examination

Only a person meeting the qualification provided under Section 126[4] of the Act shall apply for the patent examination. The applicant should select the center of his convenience to write the exam. The examination is usually conducted in 5 cities that is, Mumbai, Delhi, Nagpur, Chennai and Kolkata. The Indian patent examination is conducted once every year. The examination shall consist of:

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  1. A written test considered as the qualifying exam, which shall be conducted by the office of the Controller. It comprises of Paper I and Paper II for 100 marks each. The Paper I will have both Objective and Descriptive type questions. The marks division in relation to the same varies each year. The first paper is based on the Patent Act and Rules while the second paper is more practical in nature relating to the drafting, interpretation of patent specifications and other descriptive questions. A candidate is required to score a minimum of 50 marks in each paper to pass the examination. Therefore, to qualify, the person should be thorough with the acts, rules, practice and procedures of patenting. The time period granted to complete the paper and format of the question paper varies every year.
  2. A viva voce is conducted for 50 marks. The questions that are generally asked is based on the knowledge about the field. For a person to qualify as a patent agent he should secure an overall 60% aggregate of the total marks. That is out of the total 250 marks he/she should in order to qualify to secure an aggregate of 150 marks or more. The amendment in relation to the scores requires to be qualified were made after 2012, Delhi High court decision in the case of, Anvitha Singh v. Union of India[5] wherein the rule prescribing a minimum 50 per cent marks in the viva-voce part of the patent agent examination was struck down thereby giving less weight to it.

The result of the examination is usually announced after two months after conducting the examination. The results are announced on the ministry website of Office of Controller General of Patents. The samples of the previous year question papers in relation to the patent examination is made available on the website mentioned above. The notification related to the exam is usually provided 2 months prior to the date of the exam on their website.

3. Registration

The person shall first submit a Form 22 application provided under the rules. He shall also furnish with it any other information as required by the controller. After a person has cleared the exam and furnished any other necessary and relevant details required by the controller such as age proof, citizenship proof, character certificate in original by gazette officer along with self-attested copy of proof of degree, admit card signed by the candidate along with invigilator’s signature, passport size photograph along with specimen signature. He shall then in accordance with Rule 111, pay the fees as specified under the First Schedule and submit the receipt of the same to the controller. The controller shall upon verifying the same, enter the candidate’s name in the register of Patent agents and issue a certificate of registration as a patent agent to the candidate. The certificate so issued is valid only within India that is, it is recognized only by the Indian Patent office and by Patent Cooperation Treaty.

Register of Patent Agents

The register of Patent agents shall be maintained by the Controller in accordance with Section 125 of the Act read with Rule 108 of the Rules. The particulars to be contained in the register include:

  1. Name
  2. Nationality
  3. Address of the principal place of business and the addresses of branch offices
  4. Qualification and the date of registration of every patent agent
  5. Details of their renewal of registration and any other particulars which the Controller deems fit and is required are to be included. The fee has to be paid at the end of every financial year to continue with the registration. The date for fee for continuation is generally considered from the date of registration as a patent agent. A notification is issued on the official website every year providing details about the mode of payment of the fees prescribed and other details including the helpline number to approach in case of problems with regard to payment of fees or any such other procedural issues. That is the registration is renewed every year after the first registration. However, at the time of first registration the person can pay the fee for continuation of registration for next 1 year at the time of registration.
  6. Specimen signatures and photographs of the persons registered as patent agents

Further, the copy of the Register of patent agents is to be maintained in every branch office. Also, such details can be maintained by the Controller in computer floppies, diskettes or any other electronic form subject to such safeguards as may be prescribed in this regard. That is, it shall be, accessed only by the person who is duly authorized by the Controller and no entry or alteration of any entry or rectification of any entry in the said register shall be made by any person who is not so authorized by the Controller.

Role of Patent Agent

Every patent agent whose name is entered in the register is entitled to the following rights as per Section 127 read with Section 129 of the act:

  1. To practice before the controller;
    – applying for or obtaining patents in India or elsewhere;
    – preparing specifications or other documents for the purposes of the Act or of the patent law of any other country;
    – giving advice other than of a scientific or technical nature as to the validity of patents or their infringement.
  2. To prepare all documents, transact all business and discharge any other function as prescribed under the provisions of the act, in relation to, any proceeding before the Controller.

There are two main restrictions imposed under Section 129 of the act, on a patent agent. They are:

  1. He shall not without registering himself as a patent agent, that is unless he and all his partners are so registered as patent agents, cannot either alone or in partnership with any other patent agent or person practice, describe or hold himself as a patent agent or permit himself to be described so or held out.
  2. Also, no company or other body corporate shall practice, describe itself or hold itself out as patent agents or permit itself to be so described or held out

Further, as per Rule 123, if any person contravenes the provisions of section 129, he shall be punishable with fine which may extend to one lakh rupees in the case of a first offence and five lakh rupees in the case of a second or subsequent offence.

Disqualification of Registration as Patent Agent

Rule 114 of the Rules provides the grounds for disqualification for registration as a patent agent, which are as follows:

  1. If he is declared by a competent court to be of unsound mind
  2. If he is an undischarged insolvent
  3. In case of a discharged Insolvent, he has failed to obtain from the court a certificate to the effect that his insolvency was caused by misfortune and not due to any misconduct on his part
  4. If he is convicted by any court whether within or outside India to undergo a term of imprisonment unless,
  5. He is pardoned for the offence committed
  6. On an application made by him, the Central Government has, by order in this behalf, removed the disability;
  7. If being a legal practitioner he is found guilty of professional misconduct; or
  8. If being a chartered accountant, he has been guilty of negligence or misconduct. In all such cases, he shall be disqualified from being registered.

This article is an attempt to provide a brief idea as to how can one become a patent agent in India. For any other further details, individuals can contact the concerned patent office on their respective helpline numbers provided on the official website.

Endnotes

[1] Section 109, Application for registration of patent agents, Patent Rules, 2003

[2] Sl. No. 32, First Schedule

[3] http://www.ipindia.nic.in/

[4] Section 126: Qualifications for registration as patent agents, Patent Act, 1970 < http://www.ipindia.nic.in/writereaddata/Portal/IPOAct/1_31_1_patent-act-1970-11march2015.pdf>

[5] WP (C) No.4376/2011


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

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How will an MBA think about starting a law practice or turning it profitable?

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

I think that I am very lucky that I learned to be an entrepreneur early on. I look at law practice from the point of view of an entrepreneur. MBAs are not all that different.

How do you think an MBA will plan a legal practice or a law firm?

I have that experience. When I was starting ClikLawyer, I thought of it as a startup and not a law practice, though in hindsight I realize that it was just a super-specialized, hyper-systematic law practice, if I set aside the semantics and legal structure. Technically, it was not a law practice, due to regulatory compulsions.

It is a pity that most lawyers do not think like that while setting up their law practice or building a law firm.

My friend, an MBA INSEAD, who had worked with companies like P&G and Amazon, and built and sold an edtech startup for significant money, helped me to conceptualize what we were going to do and how it was going to happen.

We wrote down all the high margin high volume legal work targeted at common people on a whiteboard. We ended up with 15-20 of those before we stopped.

Then came the question, which 3 we are going to choose and focus on for now? We forbade ourselves from doing anything else. 

Then we experimented and researched. Which types of cases could be wrapped up first at a low cost at our end? Which types of matters are likely to require protracted litigation (contrary to what most lawyers prefer, we wanted to avoid them)? Which cases would give us easy and quick wins? Who were the clients? How did they come to know that they had a problem? Who did they go to when they had a problem? What were traditional lawyers doing? What was the deficiency in existing services? Were clients dissatisfied? How did they make a decision on what service to buy? 

Basically, we did a market study. We figured out what were the most profitable matters and we figured out how to find them in bulk. 

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We found out the communities where our clients could be found in large numbers. We built a relationship with other professionals who can refer work to us.

For example, we wanted to work on a certain kind of non-payment to vendors where goods were already delivered. Who would know of such situations? CAs and accountants of course. They can see books of their clients. We went and set up referral relationships with accountants in our network first, then even others. 

We figured a few industry associations where there are many members who have these problems too. We began to tap them one by one, organizing educational sessions for them, distributing brochures, infiltrating those networks.

But before anything we could offer that truly worked, we had to understand the target group at a very deep level. And this is what most lawyers never do!

What they want is something like this – I have set up a practice and hung my shingle. Now clients will find me and come to me. 

Good that if such an approach works for you. 

I have heard that this used to kinda work 10 years back. 

However, if you are a young lawyer trying to build a practice in 2019 (or afterward), I doubt that could work very well.

What if you thought like a startup entrepreneur or an MBA rather than a lawyer about building a law practice?

Then you will not obsess about your skills, your experience, your fame, your reputation at the bar etc., as most lawyers have to. Sure, those things are pretty important, but those are not things that you start with. Those have to come later.

If you think like an MBA, you will start with a problem. If you think like a startup entrepreneur, you will start by looking for an under-serviced segment, or a gap in the market.

There are lawyers out there for big industries who help them with compliance. They have in-house counsels and law firms to lean on. What about SMEs? What about SMEs in manufacturing? Who is helping them with compliance? How are they doing it? How much do they charge? Could you do it better? Could you make it more hassle-free? Could you make it more transparent?

If you are in family law, you may think of adoption. It is a complex process. Maybe you figured that there are no good lawyers working on that in Jaipur or Lucknow. What if you specialized in it? What if you did a stellar job and delivered a hassle-free experience to adoptive parents, who are otherwise made to run pillar from post?

When you are starting a business, what is the first thing you do?

You find a problem to solve. That is the first step.

You may solve it with a product or a service, but there has to be a problem in the first place. The problem must be serious enough that people are ready to pay something to solve it.

You cannot afford to assume that there is a problem. You need to actually enquire and experiment and figure out whether there is enough demand for what you want to sell. Do clients think that the problem is severe enough that they will be willing to pay tens of thousands of rupees or even lakhs?

Important to figure out first, isn’t it?

However, what do lawyers do?

They are like hey, I want to study competition law and become a competition lawyer. Or a criminal lawyer. I want to practice family law.

Great, now what?

Once they get a degree, diploma etc, or quit a job to start a practice, they try to find work in the area of their choice. Or worse, just say that I can do any given work. Just give it to me!

If there is a demand for a certain skill at the moment, and the lawyers with that skill are looking for a job, they have a high chance of getting that job. It is the dynamics of demand and supply. Not all lawyers though. 

A lot of times I see people going abroad and doing specializations in fancy-sounding subjects and coming back to find that there is no demand for it in the market. Public international law and world trade law are good examples of the same. The market for these skills is so minuscule that you have a higher chance to find a teaching job rather than an actual legal position where you can put your specialization to some use.

However, still, the job market is a bit easier to figure out. Either there are jobs, or not. 

Starting a law practice is more complicated. You have to spend more time and effort in understanding the market. 

However, lawyers just hope that they can emulate what their seniors have been doing and be as successful.

Can I follow the footsteps of Narayan Murthy and build Infosys today? I doubt. It was a product of market forces at a specific time and situation. Global realities have shifted since then. So have technological underpinnings of what enabled Infosys to become a giant. 

However, it is still possible to build giant global technology companies out of India, as has been done by Zoho and Freshworks. They responded to a different market need with a different kind of products and services.

Lawyers really need to learn this lesson from businesses. The legal profession has not remained as simple as it used to be. Long back, you could just open a chamber of a doctor or a lawyer just like you could open up a grocery store in any neighborhood and prayed that enough people showed up. It often worked.

Those days are gone.

We are in the age of intelligent businesses, where your positioning in the market, your business model, and competitive advantage as a service provider really matters.

It is no different for a CA, CS, doctor or management consultant. They are also waking up to the new reality. Lawyers need to realize the shift in the winds too. 

We better be problem solvers, if we are going to thrive in this new economy.

Do you know a lawyer who focuses on solving problems of a specific nature? How do they do it? Tell me more about it. I will give you more examples in the next mail.

All our courses are built to enable you to solve specific kinds of problems, and that is why you hear lawyers who do our courses rave about them. We have done the hard work ahead of you and figured out what are the problems in the market for which clients are ready to pay. Then we teach you how to do that work efficiently. 

You would probably learn more once you hit the market. Tell us more when you do. We will help you to do that work as well. We keep adding and upgrading our courses, and you get access for the next 3 years, even to all the updates!

That’s the magic of lawsikho courses. Take one and try it out and soon you will be wanting to do all of them because it’s profitable to do so. We are so confident that we backup our courses by a crazy refund policy, where you can fully use our course for a month and then get your entire money back!

Also, here is a course that can help you to build a profitable law practice.

Here are other courses we are taking enrollment into currently:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

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Lok Adalats in India: Apertures to Speedy Justice

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This article has been written by Moksh Ranawat.

Introduction

The concept of Lok Adalats stands as a unique contribution of the Indian legal system to world legal jurisprudence. It is an informal system of justice dispensation which has largely succeeded in providing a supplementary forum to litigants for determination and settlement of disputes[1]. Originating from Gandhian principles by Mahatma Gandhi, it has become a major helping hand to courts and is prescribed in Section 89 of the Code of Civil Procedure, 1908 as well[2].

The advent of Legal Services Authority Act, 1987 further gives a statutory status to these Lok Adalats, promoting the constitutional mandate of Article 39-A of the Constitution of India, which directs the state to organize Lok Adalats to secure that the operation of the legal system promotes justice on a basis of equal opportunity[3]. These Lok Adalats provide three-fold benefits involving speedy resolution of disputes coupled with reduced costs of litigation and avoiding further appeals, thereby making them the perfect instrument to resolve the heightened burdened on judiciary for disposing cases[4]. In 2018 alone, about 47 lakh cases were disposed of in National Lok Adalats, which included about 21 lakh pending cases and 26 lakh pre-litigation cases[5]. Therefore, their efficacy has been a linchpin in reducing excessive litigation[6].

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Keeping in mind their contribution to Indian jurisprudence, the author shall discuss the concept of Lok Adalats in the country, their functioning, advantages, places for improvement and their role as functionaries towards access to justice for the poor and downtrodden.

The functioning of Lok Adalats

Level of Organization

Lok Adalats are better known as the people’s courts, therefore they need to be available to people on every level of governance[7]. The Legal Services Authority Act, 1987 (Hereafter “the Act”) prescribes for several levels wherein Lok Adalats can be organized, ranging from the lowest courts to the apex court which can take cognizance and organize Lok Adalats for effective and speedy justice[8]. The persons residing over these Adalats include serving or retired judicial officials as well as other persons as prescribed by the authority conducting the Lok Adalats in the given area[9].

Jurisdiction

The jurisdiction of these Lok Adalats is parallel to the courts organizing them, therefore it extends to any case or matter which is being heard by that court under its original jurisdiction[10]. Matters with respect to offences not compoundable under law are an exception to this jurisdiction. They cannot be adjudicated in Lok Adalats[11]. These courts may also take cognizance of cases as per provisions of the Act for disputes agreed by the parties to be resolved under them or if one of the parties makes an application to the courts for referring the case to Lok Adalats for settlement and the court is prima facie[12] satisfied that there are chances of settlement[13].

Resolution and Award

 After admission of disputes, the Lok Adalats proceed to hear the case and dispose of the matter by reaching a settlement or compromise in an expeditious manner[14]. The manner of resolution in Lok Adalats is more towards compromise and less towards conclusive determination[15]. In any case, if the parties are unable to reach a compromise and the Lok Adalat deems that matter needs more determination, it can refer the matter back to the courts for adjudication[16].

Eventually once the court is satisfied, it passes an award with respect to the dispute is final and binding on the parties[17]. The award is enforceable as a decree of the civil court and no appeal lies from this award[18]. Therefore, this provision ensures that the award is conclusive and the matter is put to rest once and for all.

Advantages of Lok Adalats

The reason behind the efficiency of Lok Adalats is based on several advantages which it holds over normal courts of law. These factors are responsible for its quick disposal of several disputes. They are:

Procedural Flexibility

There exist considerable procedural flexibility as major procedural laws such as the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1882 are not strictly enforced[19]. The parties can interact directly through their counsels which is not possible in a regular court of law. This dynamic nature of Lok Adalats allows them to conciliate both party interests and pass awards which are acceptable to both parties[20].

No Court Fees

There is no court fee payable when a matter is filed in a Lok Adalat[21]. If a matter pending in the court of law is referred to the Lok Adalat and is settled subsequently, the court fee originally paid in the court on the complaints/petition is also refunded back to the parties[22].

Final and Binding Award

Under Section 21 of the Act, the award passed by the Lok Adalats stand final and binding. As no appeal lies to this conclusive determination, the cases are put to rest on first instance[23].

Maintenance of Cordial Relationships

The main thrust of Lok Adalats is on compromise between parties. While conducting the proceedings, a Lok Adalat acts as a conciliator and not as an arbitrator. Its role is to persuade the parties to reach a solution and help in reconciling their contesting differences[24]. This encourages consensual arrangements. Therefore, disputes are not only settled but also the cordial relations between parties can be retained. Hence, it is a very healthy way of dispute resolution[25].

Areas for Improvement within Lok Adalats

Some areas of improvement whereby the functioning of Lok Adalats can be improved are as follows:

Enforceability lies with Civil Court

The awards passed by the Lok Adalats are deemed equivalent to decrees of the civil court[26]. Although, the enforcement of these decrees cannot be carried out by the Lok Adalats. This function rests with the civil courts, therefore the parties need to apply for enforcement to execute the award. It is the author’s recommendation that this power to enforce needs to be provided to the Lok Adalats itself to ensure that the decisions passed are executed to their finality.

Lack of Criminal Jurisdiction

The jurisdiction of Lok Adalats with respect to criminal disputes is limited to offences which are compoundable under law[27]. This removes crimes such as that of petty theft other small crimes from the purview of Lok Adalats. Hence, this should be reviewed to bring petty crimes within the purview of Lok Adalats.

Lok Adalat and Access to Justice: A Symphonic Interplay

What is “Access to Justice”?

The term “access to justice” can be understood as “the right to ensure that every person is able to invoke the legal processes for legal redress irrespective of social or economic capacity” and “that every person should receive a just and fair treatment within the legal system”[28]. Basically, the right of every person to access judicial forums for putting forth their case can be termed as a chance to access justice.

Here, there lies an important point of difference between “access” to justice, and access to “justice”; wherein the former refers to whether a chance of redressal was provided to the aggrieved party whereas the latter refers to whether justice was served. Both these aspects have been analyzed in this article.

Role of Lok Adalats in providing “access” to justice

Since their inception in 1982, Lok Adalats have been the instrumentalities for the poor to have “access” to justice in our country, which is troubled with more than 3.3 crore cases (2018 figures) pending for adjudication till date[29]. The functioning of these Lok Adalats have been responsible for the disposal of more than 50 lakh cases in 2017 itself[30], thereby being a major modality for reduction of judicial workload. The average number of cases resolved by Lok Adalats stand at 4000 cases a day, therefore their existence is undoubtedly vital for solving the judicial backlog which exists in recent times[31].

A major feature of Lok Adalats to determine disputes without charging any fees has also been a strong incentive for the poor to approach the Lok Adalats for finality of their disputes. In contrast to filing an application as an indigent person under Order 33 of the Code of Civil Procedure, 1908, this alternative dispute resolution mechanism stands as a much friendlier means for the poor to access legal redressal mechanisms. Hence, Lok Adalats can be said to have passed the test for providing “access” to justice to the poor.

Role of Lok Adalats in providing access to “justice”

The sheer right to get access to a legal redressal mechanism, cannot in the author’s view, be deemed sufficient justice. The financial status of parties to the dispute, their situations, fair procedure during trial and influence on the legal process also need to be considered to understand whether a proper chance to access “justice” was provided to them[32].

Many times, parties settle in Lok Adalats as they cannot afford the expenses of continuing with litigation. There is compromise out of necessity rather than will. This can be related due to the issues in our legal system and therefore it is difficult to deem this as a fair chance. Hence, it is rather difficult to say that the Lok Adalats have passed the test for providing access to “justice” to the poor.

Conclusion

Lok Adalats have become an integral part of the Indian legal system and have become the apertures for access to justice for the poor and downtrodden. The have bridged the gap to legal aid, but still have certain areas of improvement which could increase their efficiency even more. While they are acting well to bridge the gap of “access” to justice, there needs to be a review of their effectivity in providing aggrieved parties true access to “justice”. With finality, one can conclude that there is more than meets the eye which can be done to make Lok Adalats a better redressal system towards rising litigation.

Endnotes

[1] Dr. Pratiksha Baxi, Access to Justice and Rule-of-[Good] Law: The Cunning of Judicial Reform in India, pp. 1- 37, Insitute of Human Development Report, New Delhi, (3:09 AM, 5 June, 2019), https://www.researchgate.net/profile/Pratiksha_Baxi/publication/228914213_Access_to_Justice_and_Rule-of_Good_Law_The_Cunning_of_Judicial_Reform_in_India/links/0deec5373d1e208a71000000/Access-to-Justice-and-Rule-of-Good-Law-The-Cunning-of-Judicial-Reform-in-India.pdf.

[2] Ibid.

[3] Iftikhar Hussain Bhat, Access to Justice: A Critical Analysis of Alternate Dispute Resolution Mechanisms in India, pp. 46-53, 2 International Journal of Humanities and Social Science Invention Vol. 5, ( 7:45 AM, June 5, 2019), http://www.ijhssi.org/papers/v2(5)/version-5/G254653.pdf.

[4] Sarah Leah Whitson, Neither Fish, Nor Flesh, Nor Good Red Herring Lok Adalats: An Experiment in Informal Dispute Resolution in India, 15 Hastings Int’l & Comp. L. Rev p. 391 (1991-1992), ( 5:52 PM, 3 June, 2019), https://heinonline.org/HOL/LandingPage?handle=hein.journals/hasint15&div=22&id=&page=&t=1559721994.

[5] Live Laws News Network, Over 10 Lakh Cases Settled in National Lok Adalat, Live Law, (10:32 AM, 13th March, 2019), https://www.livelaw.in/news-updates/over-10-lakh-cases-settled-in-national-lok-adalat-143539

[6] Supra 3.

[7] Oyshee Gupta, Suhaas Arora, Lok Adalats, ACADEMIKE, (12:22 PM, June 4, 2019), https://www.lawctopus.com/academike/lok-adalats/.

[8] Section 19(1), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[9] Section 19(2), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[10] Section 19(5), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[11] Section 19(5), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[12]  “Prima facie” here refers to “a first instance look of the matter in dispute.”

[13] Section 20, The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[14] Marc Galanter, JK. Krishnan, Debased Informalism: Lok Adalats and Legal Rights in Modern India, Beyond Common Knowledge: Empirical Approaches to the Rule of Law, (2003) pp. 96-141; State of Punjab vs. Jalour Singh, 2008 (2) SCC 660.

[15] Ibid.

[16] Ibid.

[17] Section 21(2), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[18] Section 21(1), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[19] Supra at 3.

[20] B.P. Moideen Sevamandir and another Vs. A.M. Kutty Hassan, (2009) 2 SCC 198.

[21] Supra at 4.

[22] Government of India, Lok Adalat, National Legal Services Authority, (3:25 PM, June 4, 2019), https://nalsa.gov.in/lok-adalat

[23] Section 21(2), The Legal Services Authorities Act, 1987 (Act No. 39 of 1987)

[24] Archana Agarwal, Lok Adalats and Judicial Reform in India, 1 Strengthening Governance through Access to Justice, pp. 38-52

[25] Ibid.

[26] Supra at 18.

[27] Section 19(5) expressly bars the Lok Adalats from entertaining offences which are non-compoundable in nature.

[28] S. Murlidhar, Law, Poverty and Legal Aid: Access to Criminal Justice., Lexis Nexis Butterworths, pp. 52- 107.

[29] Jayesh R., 3.3 crore cases pending in Indian courts, pendency figure at its highest: CJI Dipak Misra, Business Today, (8:47 PM, June 5, 2019), https://www.businesstoday.in/current/economy-politics/3-3-crore-cases-pending-indian-courts-pendency-figure-highest-cji-dipak-misra/story/279664.html.

[30]Times News Network, More than 50 lakh cases disposed on an average by National Lok Adalats, Times of India, (9:11 PM, June 2, 2019), https://timesofindia.indiatimes.com/india/more-than-50-lakh-cases-disposed-on-an-average-by-national-lok-adalats/articleshow/62921030.cms.

[31] Rashmita Das, Lok Adalat Solves 4000 Cases in A Day: Take Your Case for Speedy Solution, MyAdvo Blog, (11:45 PM, June 3, 2019), https://www.myadvo.in/legal-news/lok-adalat-solves-4000-cases-in-a-day-take-your-case-for-speedy-solution/.

[32] Supra at 3.


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

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Two approaches to success

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This article is written by Ramanuj Mukherjee, CEO, LawSikho.

It was November, 2017. Just about 2 years back.

I was at the peak of my obesity. I weighed a solid 107 Kgs. It is not like I didn’t know what was happening to me. I had body pain almost every day. I drank too much and smoked a lot. I was on the verge of a depression. I didn’t feel the greatest.

This was while I was fighting hard to keep LawSikho afloat during a few very troublesome period. I decided to give that all my energy and life force. LawSikho must not only survive, but thrive. I am glad to say we have come much further than what I could foresee back then. 

But the result was that I totally ignored my health and paid the price.

In November 2017, when the situation had become unbearable, I turned to my coach for advice. What was going on? She asked. 

I wanted to work out every day, and despite wanting to do so, in reality, I was not doing it. I would plan to do it, but in the end, when the time came, I found some excuse or the other to not do it. How was I going to change that?

She asked me “when was a time in your life when you were very regular with working out?”

That was when I was preparing for a national level karate championship. I pushed myself hard, working 2-3 hours per day, because I wanted to win.

So you like martial arts. Why don’t you find a martial arts teacher again and join the class? Sign up for another tournament?

If you try to do things that you do not enjoy doing, there is little chance of you succeeding. You are trying to do push-ups and squats at home, but what sparks joy in you is martial arts. Figure out a way to pursue martial arts again, and find a cause that will inspire you!

I got the theory, but I had a small problem. I was living in a small village in Goa. The closest martial arts teacher was 1-hour drive away, and I was not going to drive 2 hours given my schedule and priority.

Also, I did not like the idea that I could not do what I had to do and that I had to work around my moods and feelings. Is it possible to always accommodate our feelings? Is there no way to rise above my moods and feelings, which change every now and then anyway?

Surely, one way to be successful is to understand what sparks joy in us, and follow that. 

But that’s not the only thing. What sparks joy in me the most is working for LawSikho, and I am not ready to sacrifice that for anything else. 

Brushing my teeth in the morning does not spark joy in me. I still do it. Charging my phone does not spark joy in me, I still do it. Growing my social media presence does not spark joy in me, but I still do it, because it is important and necessary. 

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Taking care of health has to fall in the same category.

So I found another way. 

I brush my teeth in the morning because it is a habit. My parents ran after me when I was a kid and ensured I did it every day before I ate anything. I ended up developing the habit of brushing every day, which I continue till date. I am guessing most of you have developed the same habit.

What if I could develop a habit of working out every day after waking up?

I never manage to go to a gym regularly, because of time issues. Mastering the energy to go to a gym is a huge deal for me, I want to save all that willpower and mental energy for my work.

What if I didn’t have to go anywhere? What if I could work out in my bedroom itself? Will that increase the chance of me working out?

I got a 16 kg kettlebell that I placed right next to my bed. 

I also got a pull up bar that I got fixed right in my bedroom. 

Then I got Manish, my assistant to help me with my workouts every day. When I lived in Goa, I found myself a yoga teacher who came home every morning to make me work out. 

It is hard to avoid morning workouts now. 

The result is that now I weigh around 87 kg, which is lower than what I weighed at the time of my graduation at the age of 22, a good 10 years back! And I have a better physique and fitness than I ever had before, within a few months building this habit.

It is not perfect, and I look forward to improving my fitness. But I have built a habit. 

Now if I do not work out, I do not like it. I can feel the difference in my body. If I do not work out even for a day, I feel the urge to do it on the next. 

In fact, if I did not work out on a particular day for some reason, I have a remedy for that. Before going to sleep, I must do 75 kettlebell swings non-stop, or 50 pushups non-stop. That gets my heart pounding, muscles aching and tired. It’s not the best I can do, but it’s a habit.

And even if I don’t feel like it, the situation is such, that I may end up doing it anyway. My work out rarely depends on my moods and feelings of the day. Exactly what I wanted to achieve.

There are things that spark joy in you. There are things you love doing. There are things out there that feel so natural that you do not have to push yourself to do them. For me, writing is one of those things. For me, going out there and doing the work I have to do for LawSikho is like that. I need no push for that. I cannot sleep well or focus on anything else if I do not do these things.

What are such things for you? You must pursue those and spend a lot of time doing those things.

And then there are things that do not spark joy, but you must do them anyway if you want to be successful.

If you are a lawyer or a law student, for you studying law, or learning practical skills maybe something like that. You do not do it, because it does not spark joy. 

No problem, but if you are clear that doing these things is essential to your success, you need to find a way to do these things regularly. How is that going to happen?

You must build new habits.

There are two parts to building a new habit. One is that it must become very easy to do that action repeatedly. For example, if you had to go to a shop every day to get toothbrushes and toothpaste before you could brush, it would be damn hard to keep up that habit. 

The fact that a toothbrush and toothpaste tube is conveniently available in the bathroom near your hand is a major factor in you being able to maintain that habit. 

If you want to build a habit of regular learning and development, which would make you a superior lawyer compared to your peers, or develop a better network than most other lawyers, then you need to identify a repeatable action that you can take very easily every day. 

For instance, whenever I travel in public transport, it is reading time for me. I open my kindle and begin reading the business books I have already bought and downloaded into my phone. This helps me to keep up with my reading habits which are essential for my learning and development as an entrepreneur.

Whenever I am going to sleep, I play sleep meditation tracks from youtube, that reprogram my mind for positivity and will power, even as I am soundly asleep. 

Such habits go a long way when it comes to doing things that I otherwise do not find time for. But one reason it becomes possible is that I have made it super easy to do so. I have a headphone that is always kept on my bed, in a specific place, and never moved from there. If I had to look for a headphone every time I was going to sleep, it may become difficult to build a habit of listening to sleep meditation and affirmation tracks. 

If I did not have my kindle books on my phone and relied on hard copy books alone, I may not be able to build a habit of reading while traveling!

If you want to build a habit of learning practical skills regularly, despite a busy schedule, I recommend a similar practice. 

This is why we make all our material, videos and exercises available on your smartphone, through native iOS and Android apps. So you can turn your unproductive time of the day into something very productive, effortlessly. 

This is why we provide you access to your course on the computer, apart from smartphone apps, despite providing you with hard copy material for study material as well. This is why it works so well that you can attend our classes from a smartphone or computer from wherever you are, instead of having to travel to a specific location to attend a class.

When you do not have to go anywhere to learn new skills, no need to travel or wait for a teacher to come, but you can access everything online from wherever you are, you have a much higher chance of succeeding at building a habit for learning or attending a class.

And that is why we try to make LawSikho a habit-forming product. 

I will tell you a secret. The name of the private limited company that owns LawSikho is Addictive Learning Technology Private Limited. You can look it up on the MCA21 portal. Guess why?

Our vision is to make learning legal skills addictive.

Let’s admit it, for many of us, reading law is a very boring thing to do. And that prevents a whole lot of lawyers from learning what they need to learn to succeed in the profession. What if we could make it not so boring? What if we could make learning the law addictive?

That is the simple idea our entire LawSikho courses are based around. 

Come and experience the difference. After all, you can use it for a month risk-free. Here is the refund policy. Try out a course that catches your attention:

DIPLOMA

Diploma in Entrepreneurship Administration and Business Laws

Diploma in Companies Act, Corporate Governance and SEBI Regulations

Diploma in Intellectual Property, Media and Entertainment Laws

Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution

Diploma in Cyber Law, Fintech Regulations and Technology Contracts

EXECUTIVE CERTIFICATE COURSES

Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations

Certificate Course in Capital Markets, Securities Laws, Insider Trading and SEBI Litigation

Certificate Course in Advanced Corporate Taxation

Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting

Certificate Course in National Company Law Tribunal (NCLT) Litigation

Certificate Course in Prevention of Sexual Harassment at the Workplace

Certificate Course in Arbitration: Strategy, Procedure and Drafting

Certificate Course in Trademark Licensing, Prosecution and Litigation

Certificate Course in Labour, Employment and Industrial Laws for HR Managers


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

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What entrepreneurs must learn about law

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This article has been written by Garvit Singh, Pursuing LLM from Sharda University.

Introduction

Some entrepreneurs may have all the luck but most are just good business people. having success in business is not just about doing things but it also about obeying certain business laws. Every entrepreneur are well versed with all the main laws that surround in the entrepreneurial venture 

But before becoming an entrepreneur you have knowledge about various business laws.

Entrepreneurs need to know the basics of accounting and marketing, they also need to understand the basics of business laws to avoid the potential failure that follows costly litigation.

What are the basic laws every entrepreneur should know?

Want to start a business? Good! But before starting a business you must have the knowledge of all main laws that surround your entrepreneurial venture. At the counterbalance of any business venture, entrepreneurs must need financial advice which is very important for business growth. Taking advice and balancing the business venture are two very crucial foundational aspects of any enterprise. At the offset of any business venture, aside from financial advice,

Hiring a legal advisor and financial adviser may be a great idea, but it may not be a practical option for those who run small or new enterprises because taking advice from professionals might be a bit costly.

However, every entrepreneur must have knowledge of legal issues, real estate, taxes, intellectual property etc. 

These are the following laws that every entrepreneur must know:

Real estate law  

Every entrepreneur must be aware of this legal aspect because to validate the purchase of any real estate every entrepreneur must get a warranty deed or quitclaim deed. The deed which transfers the property from the old owner to the new owner in a legal way is called the quitclaim deed. 

The warranty deed is that which makes the entrepreneurs free and removes the load from them. 

There are many laws who divide the considerations. So entrepreneurs must aware them also. When it comes to property-related transaction and construction then there are different regions within them like residential and commercial zones and these have their own requirement 

These requirements are important because it avoids future legal problems for entrepreneurs.

Intellectual property laws 

Basically, it refers to those ideas that are governed by ownership and these ideas cannot be borrowed, copied or used without the consent of the owner or creator. Violating the rights of intellectual property is considered a punishable offense by law.

The patent, trademark, and copyright usually protect intellectual property. Copyrights laws are those laws who protects intellectual property from being copied unlawfully.

Books, articles or other important pieces of information which are published are usually copyrighted and protect the owner and author over the intellectual property.

Software, electronic goods, machinery etc all are protected by patents. Trademarks are another important of intellectual property. Generally, trademarks are only extended within the scope of a single business field and it also protects the interest and brand identity.

Tax laws 

Every entrepreneur’s primary financial concerns would be regarding their tax payment and rebate. If any accidental misfortune arises on tax payment then it leads the entrepreneur to severe penalization. Therefore it is very important to get advice on tax payment and get familiarized with the low taxes. Also, take help from professional law consultants to ensure that claims and payments are all made in a proper way which gives satisfaction to the entrepreneurs and law also. 

Insurance laws 

Usually, Insurance is very beneficial to the enterprises but it often is mistaken to be financial liabilities. Entrepreneurs must go with the number of insurance categories to save their business. There are many insurance policies in which firms invest like property insurance to protect the office, equipment etc.

Health insurance for worker and employe, worker compensation insurance in the event that if an employee is injured during the job then he/she get compensation under this, and business interruption insurance. 

Employment law 

It is important for entrepreneurs to have knowledge of the fair labor standards act which regulates federal minimum wage, child labor bans, overtimes rules, and recordkeeping requirements. Entrepreneurs must read and comply with the current regulations. 

Federal equal employment opportunity laws 

This act prohibits discrimination based on color, religion, race, sex or national origin. It also includes the laws on equal pay for men and women both and protects people with disabilities. 

Family and medical leave act

If an employee or a family member of an employee dealing with the medical condition, then this act gives some rules which must by an employer. 

When time off to compensation comes then entrepreneurs should read this guide and understand how this affects your business. 

Knowledge of the various business laws and insurance policies is very important and could be highly beneficial for entrepreneurs. 

A good and confident entrepreneur is who comes with a great knowledge of business laws and build a strong legal foundation. 

Knowledge of laws makes the business easier and entrepreneur run their business with peace of mind without facing the legal problems. 

Federal labor standard Act (FLSA) 

FLSA sets the federal minimum wage. It also classifies whether the employe would free or not from over time. 

Usually, it is compulsory for all employees to do overtime unless a legal exemption applies. 

Entrepreneurs should not need to pay overtime to their employees if they are earning a guaranteed salary and also if they are getting such requirements administrative, executive or professional etc.

Health care laws 

There are several federal agencies like internal revenue services, department of health and human services and department of labor. These types of agencies see that laws regulating health care and health coverage are provided to employers or not, including the Affordable Care Act (ACA).

Advertising laws 

Most entrepreneurs want to do advertising on the internet or in a print, but there are specific rules and guidelines which protect the consumers and businesses and gives help to maintain the credibility of advertising media.

Laws work to prevent deceive and unfair practices in advertising. There is a one governing body name as Federal trade commission (FTC) it aims is to enforce the laws and enacts the rules. 

The entrepreneur also uses the customer testimonials but it has regulations that every entrepreneur must know, for example, testimonial must reflect the typical customer’s experience and entrepreneurs must have to explain their results also. 

Privacy laws 

Every entrepreneur duty is to maintain customer privacy. Employers and consumers do not want their private information will leak. So it is important to take care of privacy.

Entrepreneurs should communicate clearly with their employees and consumers on how they are using their data. This including everything from storing and sharing email addresses to protecting their payment information.

For example:

Suppose you are accepting credit cards at your business then you have to ensure that you are PCI-DSS. If any complaint against you or your businesses then you must prove that you have a secure environment in which every information is safe. 

                                                  OR

If you are using a consumer credit report in business to evaluate customers or credit scores for a job application, insurance and leases then you are coming under responsibilities of the Fair credit reporting Act. 

The entrepreneur must ensure that he is aligning the reporting and disposing of information with those reports in the same way that aligns with the law.    

Finance laws 

Finance laws are those laws that govern how companies spend their money and expand their businesses. For a business entrepreneur should follow finance laws.

Bankruptcy also falls under the finance law. 

If the unbearable debts are coming into business the entrepreneur can file for closing the business or plan to reemerge the business but the entrepreneur mentions the file chapter and structure of the business. 

The entrepreneur must have to show how much debt, assets are remaining in the business. 

Why is it beneficial for entrepreneurs to know the law?

There are so many entrepreneurs out there, they struggled day in and day out to set up their dream organization. 

They give their best shots and did not leave any unturned stone in their work. 

Every entrepreneur hired the best available people to do jobs that are suitable for them. 

Things are turned under entrepreneur but their so many roadblocks which hit them so hard.

Here, roadblock means a “legal roadblocks” 

To fight with the roadblocks every entrepreneur must have to hire a business lawyer not to become a law-abiding but because if they do not comply with the whole legal framework, then they would be in some serious trouble.

But hiring a legal lawyer or legal service is quite costly. So the solution is every entrepreneur should equip themselves with some basic legal knowledge  

Here are a few reasons as to why a law is beneficial for every entrepreneur

  • To reduces cost- Equipping oneself with the legal knowledge would drastically help in reducing legal cost because businesses are drives profit and losses.

Thus, if there is any little hole in businesses that trickling down your investing money.

In order to stabilize the growth of business then there are many laws that help entrepreneurs to a problem.

  • Law gives life to your business- To admit or not, but the law provides a valid recognition to business. How Much as good as your startup but if a law does not recognize your startup then entrepreneur would be in great trouble if he/she cannot morally claim.

Basically, a law is a great tool for every entrepreneur in this area of competition.

  • Law as an effective business strategy- Entrepreneurs are the captain of a startup. And, if the captain ignores problems then the startup will start sinking.

For example, A mighty corporation runs into crores of rupees and losses just because of small legal decisions and on the other by one right decision corporation also earned a lot of profit in crores.

Like Motorola vs apple case 

  • To better strategize- lawyers have very good knowledge in structuring an equity split or they also know how to draft the joint venture agreement. But the question is would a lawyer know how much that structuring would personally affect the finance of entrepreneurs?

Lawyers are experts but they are the only expert on those subjects which are related to laws only. Lawyers cannot stand in between the client and entrepreneurs and cannot assess the situation. 

Lawyers only give advice to entrepreneurs once they are done with and it is up to the entrepreneur to decide what is best for him and for his startup in a strategic way.

How does the law affect businesses?

The government can change the rules and regulations in businesses from time to time. So it is very important to know about government policies and rules. Therefore, if you want to go on top then you are up to date with your government laws. 

Those who are new in the business industry, then all that is new for them. As a starter or a beginner, you must have to visit various websites relating to business law. Read the business attorney’s intelligence or business law articles and grasp the basic knowledge of business law from them and it would be a great start for you. 

To achieve a successful legal business you have to read expert guidelines. In most cases, the regulations are imposed by the governments on businesses which are mainly classified into four categories: Taxes, relation with employe, international trade and bureaucratic. 

If the government changes any business law then it means you have to change the operating way of your business.

Policies who affects the businesses directly is Tax policies because taxation is based on the amount of money earned by all businesses. 

For eg- if any increase in corporation taxes and which focuses on the profit of businesses then it will make a similar effect to increasing e in cost.VAT (value added tax) is also a tax policy that will affect the bottom line. 

In most governments value added tax (VAT) is a cost that is on the consumer and not on the business owner. 

It is mandatory for employers to follow government rules and regulations regarding business law. Business law affects the relationships between both employer and employee or vice-versa.

Business laws are imposed in regards to international trade tariffs when it comes to international trade. These rules and regulations are so strict on those products which are going in and out internationally. Rules and regulations of international trade are also enforced guidelines on the parties that should take part in international trade.

Basically, the government imposed various business rules and regulations to make sure that all the businesses are run in a proper way with codes of ethics and with safety.

However, it is important to understand the different business laws of state, country, locality but yes, it is quite not possible to know all the rules and regulations that apply to your business line. So it is important for you to get someone who or make contact with who knows better than you and represent you. For this, a business lawyer is a perfect option and a business lawyer is a right a person to direct you toward your success and profit without breaking the laws. 

How does the founders understanding law which provides a sustainable competitive advantage to startups?

Nowadays, the environment of business is very competitive. In today’s era, it is easier to start a business in a cheaper way, particularly with technology.

Many businesses are conducted online and internationally to win customers in foreign markets. 

Online retailing is one of the biggest examples of business and all activities are increasing competition which makes it difficult to stand out from the crowd. 

Sustainable competitive advantages avoid this and also differentiates the entrepreneurs and their competitors.

sustainable competitive advantages are the key to business success. it is that kind of force in which business makes a great focus on more selling, higher customers, better profit margin and retention of staff then competitors. 

In a basic level there are three types of sustainable competitive advantages:

Value advantage 

Focus advantage 

Cost advantages

Those businesses which are small in nature usually don’t have market shares and buying powers and there competing for the price is not big enough to handle all customers in a market.  

therefore, founder s must have to understand the basic law and if wanted to compete successfully in the small business then every founder must have to develop a sustainable competitive advantage that provides superior value to a specific niche.

These are the five-step to develop a sustainable competitive advantage.

Founder really has to understand the customer need according to that he/she has to establish proposition value which grabs their attention. 

Understanding the market and its segments are very important. Founder looks for those recess which isn’t well serviced by competitors and profitably targeted.

Every founder must develop the business model in that way which gives supports to them and delivers the proposition value.

The founder must have to do really hard work and found out the key things that support and deliver the proposition value. 

Sustainable competitive advantage gives so many benefits. Once the founder has this advantage then he/she can get so many ways to use it.

Using sustainable competitive advantages in sales and marketing is very important because it makes easier for a customer to understand why they part with their money and give them founder rather than competitors.

They generally know that the whole business is focused on making the sustainable competitive advantage more protective and capitalized. 

If the founder founds that new business opportunity doesn’t support their sustainable competitive advantage then, the founder should raise the question of whether to pursue the opportunity or not. 

Using the sustainable competitive advantages in an effective and for long term way then it can support a higher return on invested capital in the business, even in the strong competition. 

Sustainable Competitive advantages build the value in the business which adds the premium to the sales price.

It is important for every entrepreneur or founder to own this advantage in his business.  

How startup founders can stay on the right side of the law.

When we are a kid, we get so excited about new toys but when toys get damage or old then we realized that we missed a few steps and t suddenly became infinitely less fun.

The same thing happens with a startup founder when he rejects legal standards.

If laws are implemented correctly then it will help to protect your business or to those people also who build your business.

Every founder should make legal decisions before building a startup throughout its lifespan.

Laws solve legal issues and it can help every founder to avoid pitfalls down.

These are the some best practices if every founder wants to stay on the right side of the law.

Do a founder prenuptial 

Sometime, being a startup founder, you will be going to meet new people in the business. 

And it is very difficult to know everyone motive and ideas in the business market. 

The founder prenuptial means- where every founder must have to agree on the terms of their ownership, vesting and their stock. Founders also have to agree upon companies needs.

This means that founders must analyze what percentage of their stock will vest or either their termination was with or without cause.

It is true that team members are the most important part of startup so it is a duty of every founder to protect the teammates from unseen compliances which can arise from an insignificant equity agreement or an undeveloped vesting plan.   

To start a good business it is important for every founder to decide how each team member will add value and shares will vest. 

Most of the time founder thinks that issuing shares without vesting help him but in reality, it blows the business badly. The founder must negotiate with others and make a proper vesting schedule. 

Brand carefully

As a founder, you have to use some common sense to build brand value. The founder must have sure about his business name and he/she should also make sure that it hasn’t been targeted by any competitors and should not hold any connotation to something that already exists in the market. 

“If founder carefully choose a brand identity then it makes harder to change the trade dress” 

While choosing the name of the brand, the founder must have to sure that it is a name he/she loves. It also makes sure that it tells the story and doesn’t sound too much like something else that is already out there.

Making the right choice.

Different businesses will have different legal needs. Founders first duty is to look into the specific-legislation of industries and their regulation which affects the businesses most.

There are so many general issues considered by many startup companies.

When founder establishing their business then so many questions are arises in front of the founder and the most confusing question is to choose a CORPORATION or LLC business. 

LLC has so many attractive benefits, it absorbs the losses in starting but for the long term, it will actually work against the founder. “The main reason for this, is that venture capitalists are prohibited from investing in LLCs.

https://lawsikho.com/course/diploma-m-a-institutional-finance-investment-laws

So to overcome from this founder has to convert the LLCs into a corporation at the time of the venture capital investment. 

There are two types of a corporation in the business one is C corporation and other is S corporation. 

here, C corporation means that the business will exist as a taxable entity that pays all the taxes of the business.

And, S corporation is based on selection which gives similar tax benefits to an LLC. 

Considering the intellectual property

When the founder building their business, then he/she should make sure that they are not violating any intellectual property right or non-competing agreement.

It is important for every founder that he/she must pay close attention to who can claim the ownership of the IP when they are developing software or spinning out from another project.   

Once the founder laid down its IP then it means founder seed ownership of it which further owned by the company. 

“Founder must sure that if any ideas or IP is conveyed into the company then it is sure that it goes from individual to the entity”

There is another possible way to protect the business, especially when the foundering business is web-based. It means that the founder must pay particular attention to the business privacy policy. 

Every founder must think about their product, their space, and about their company also. By thinking accurately makes contact with the public in the market.

 Choosing a startup lawyer

Decisions to hire a lawyer are often contested because many of the entrepreneurs are self-starters. The founder must understand that Law is not something that should be taken lightly. A good startup lawyer is who resolves the difficulties and will free founders from things like gaining traction and customer retention.

Generally, most founders do mistake they hire friends or another person but in actuality, founders must have to hire a good startup lawyer for their business because startup lawyers should primarily focus on early-stage corporate and venture law.

It is not a good idea to hire a friend or someone that investors recommend because it creates conflicts in both of these situations.

What are the types of insurance every entrepreneur needs for business?

One of the biggest mistakes is made by entrepreneurs is they are failing to buy adequate insurances for their businesses. Entrepreneurs mind are so busy to himself against those disasters which do not actually exist.

So here, we take a closer look at some types of business insurances that are very important for entrepreneurs.

There are seven fundamental basic insurances that help entrepreneurs in their businesses.

Workmen’s compensation insurance

In Workmen compensation insurance has been added to a business insurance policy when their first employee is hired. This insurance covers disability, medical treatment and death benefits when an employee is injured or dies as a result of his work with that business. 

Home-based businesses  

Many entrepreneurs start their small businesses from their own homes. Sadly, but homeowners policies don’t cover home-based businesses in the way of commercial property insurance does. If any entrepreneur operating their business out of home then he must ask their insurer for additional insurance to cover their equipment and inventory if any problem arises.  

Professional liability insurance

Professional liability insurance covers a business against the negligence claims which harms the results and make an effect on performance. Each industry has its own concern which will be addressed in a customized policy written for business. Professional liability is also called errors and omissions insurance (E&O insurance)

Professional liability insurance is important for any business because it deals with high risk and related activities like in construction there should be appropriate levels of insurance. 

It is also required in any job or business also. So entrepreneur must speak to their commercial insurance professional to make sure that he also have the levels and different kind of business insurance. 

Product liability insurance 

If the product is manufactured for sale on the general market, then product liability insurance is compulsory.  

It is also important when business measures their product and make sure that their product is safe and can find name by itself named in a lawsuit due to damages caused by one of its products. Basically, product liability worked as tailored in such cases.

Vehicle insurance 

Every entrepreneur must ensure their vehicle if that vehicle is used for the business purpose to protect the businesses against any liability. Businesses should ensure against third party injury, but if complete insurance is done then it will cover that vehicle in an accident, as well. Entrepreneurs must also ensure their own cars if their employees are using for business because their own personal insurance will cover them in the event of an accident.  

Business interruption insurance 

If the business’s operations are interrupted by disaster or dreadful event then business will suffer and income will also be lost due to staffs inability to work in the office, the business interruption insurance should be applicable by entrepreneurs in the company which require a physical location to do business.

Business interruption insurance renews the business and recovers the lost income which is lost during the events. 

Entrepreneur those major financial losses which occur due to disaster or lawsuit events. The entrepreneur must ensure and found out what type of insurance is advised and good for their business and put those plans in place as soon as possible.  

What are the legal issues in entrepreneurship?

You have to be pro when it comes to starting a business, but what about when it comes to working through the legal issues you must consider as an entrepreneur when launching your start-up?

The business world feels very complicated quickly when you add all the laws which apply – liability, trademarks, finances etc.

Most entrepreneurs forget quickly about the legal aspects and get caught up in the midst. 

So you have no chance to avoid the negative reaction of avoidable mistakes.

So these are the following common legal issues every entrepreneur should be aware of :

Non-disclosure agreements. 

In this entrepreneurs should not talk about anything to anyone about the secrets. Revealing secrets to everyone is not a priority or even a concern.

Especially to those who come from outside of your business and who might become involved with your business in any way.  

Those persons who interact with you either are from the business side or even if they are not your clients. Every entrepreneur must sign a nondisclosure agreement with them to ensure that they won’t run and share their ideas with you in competition. 

Vesting 

Finding the perfect co-founder is quite difficult for every entrepreneur

Whom do you trust? Who’s good for your business and lead your business in the right direction?

Every entrepreneur must build the chemistry with others and it is important for him to make a similar work ethic and timelines for investment.

An entrepreneur should not get all shares at once. Vesting is a good option because if the chemistry is not built among employes then he should have time to vesting the equity. This the good and fair solution to deal with the problem.

Future of the business 

Sometimes people leave this world too soon. If an investor or employee of the company dies or fold there hand for investing then it is very important for every entrepreneur to invest in a will kit to ensure the assets of the business.

In these entrepreneurs should protect their shares and become designated.

Trademarks 

Choosing a business name was difficult.

But the entrepreneur must have to be creative if he is not then someone else will. 

An entrepreneur should choose a business name very precisely. 

Every entrepreneur should have a killer search to ensure that his business name would be a different name and did not match with another company’s trademark.

Intellectual property 

Every entrepreneur starts their business from small. It is hard to imagine but he could face so many issues. Sometimes people ignore their intellectual property assets also but entrepreneurs must have to keep patient. 

It is worth the investment of both time and money to get a trademark, patents, trade secret legally registered and copyrights. 

It will be a lifesaver for every entrepreneur during the time of issues.

Compliance

Corporate compliance laws affect companies in various industries. There are several business laws that apply specifically to entrepreneurs business. So every entrepreneur should mention the entity of his business or state of his business or any other determining factors.

An entrepreneur should do some research and take the help of an attorney to ensure to know what type of document should be generated and maintained by his business to remain compliant. 

Business structure 

There are so many business structures.

Like: s corporation, sole proprietorship, partnerships, and a limited liability company.

Every structure has a different meaning which offers a variety of benefits. An entrepreneur has the right to remain his business privately funded, or make the plan on taking on investors or fix the growth of his company in the future. 

What are the most important legal practices startup entrepreneurs should always implement?

These are the following legal practices that every startup entrepreneurs should always implement:

Entrepreneurs should maintain a ring note with “Corporate minutes” because when entrepreneurs have a meeting with board members, investors, etc then writing important items in notes makes the business easier and further which fundamentally changed the assets of the business like a new hire, loans, purchase.

If nothing happened in that month then entrepreneurs should simply write “nothing important happened in this month” in the ring notes.

Every entrepreneur should maintain the income and expenses record along with the corresponding hard copy because if there is the use of a software package like QuickBooks or service bills which are performed by entrepreneurs should be kept in a file drawer. Maintaining the records of purchasing and selling in the business is good for entrepreneurs.

Every entrepreneur must have to pay for all the due taxes on time. Remember, it is better to file a return because if the return is not the penalties are so exponentially high and later on file could not be filed in any case.

HR records must be accurate and up to date on all employees.

Email should not be controversial because emails are admissible in the court if anything wrong in an email then it could be used against the entrepreneur 

Trusting is an important part of the business but trusting too much is also a danger for business. So every entrepreneur gets everything in writing. For eg- if relative loan money, then writing up in a promissory note is effective. 

 Treat your customers and employees well and do it with integrity. Enter into every transaction and everything does with the idea in mind. Suppose, if entrepreneurs were sitting on a witness stand and plaintiff attorneys were cross-examining to him then entrepreneurs could defend himself in good conscience. Entrepreneurs should walk away if he/she sees something shady.

Entrepreneurs should not allow anyone to sign checks unless his business gets big enough. Entrepreneurs should create a system of checks and balances whereby only he can approve checks to be written.

What are the legal issues while starting-up in India?

Start-up actually means taking risks. And it is true but, when it’s come to legal issues then you have to concern with your entrepreneurial ventures because precaution is always better than cure.

In India most entrepreneurs have great ideas, family, friends support them and have a good amount of capital investment which all goes for a toss by ignoring the legal issues. Most entrepreneurs avoided this because they seemed to make a plan is boring or they were not aware of certain laws.

Here, I am giving you one example of a SuKam company. The SuKam entrepreneur who landed up in jail for a very simple reason, the reason is that he did not know that he had to pay excise duties.

Non-implementation of laws and bribing and slow inefficient judicial system are all issues which are very difficult to handle in India.

Starting and growing your business in India is a tough challenge because in India our regulatory and legal system is so complex, especially when even written agreements are not followed by the parties 

Big and more established companies like Tata, Birla, Reliance etc are spending a huge amount of cash to sort out their legal problems and issues with the judicial system and regulatory bodies. 

You have to customize your legal documents or employing a lawyer for your company but it is not possible until unless you are not generating a handsome amount of revenue.

Tips on legal matter that can stabilize and exponential growth to your business 

Agreements between company founders

If there is more than one founder in the company then you have to decide the ownership matters in the very beginning. 

If there is a demise or accidental departure of one founder then you have to discuss the further course of action.

 You can also enter into an (LLP) limited liability partnership to save yourself from the negligence or co-founder’s misconduct and even from heavy tax bills. 

If you are entering into incorporate business, then there are many online services who give legal pieces of advice which will serve you better and will be more cost-effective than chartered accountants and lawyers.

IP ownership

You will have to go through a lot of legal documentation to obtain the licenses in India like licenses of employment or labor registration 

You must track the license condition to save yourself from lawsuits and from heavy fines.

Before entering into any business investment you have to very care full on license issues because it is necessary to take care of the licenses.

Tax deals

If you are starting a small business or with a low key business then you not have to pay any amount on taxes.

If you having a  plan to expanding your business or you already have a big startup venture then tax officers will ask you to pay the taxes otherwise not. 

You must clear all taxes deals before reaching to the radar of the tax officers otherwise big lawsuits and accusations of criminal offenses are against your account.    

Equity grants

If your company has more than one founder then the amount of shares of the company is most important. So you have to need focus and attention on those shares at the starting of your business venture.

Conclusion

So, It is important for every entrepreneur, business owner, manager or other professional to have some basic knowledge or understanding of some laws which help them to make better decisions. Just as there are various laws that apply to people, there is a huge body of law that applies to business. Business needs these laws for the same reason that people do; to define unacceptable behavior, to provide certainty and stability, to protect the public, and to provide a mechanism for business. 


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Law of Conversion : Meaning and concept

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This article is written by Komal Kumari, a 4th-year student of B.A. LL.B. in Lloyd Law College, Greater Noida. The article focuses on the various aspects of Law of Conversion under the law of torts and the various other aspects related to the same.

“An individual is liable to be sued for conversion if he treats goods of another as if they were his when they are not.”

A conversion is any act of wilful interference, without any lawful justification, in a manner which is inconsistent with the right of another, whereby that other is deprived of the use and possession of the chattel. The expression ‘wilful interference’ is used for describing the element of intention referring to the intentional commission of the act resulting in conversion. If a person deals with a chattel in a manner which is of such a nature that is necessarily inconsistent with the rights of the plaintiff, such dealings will be considered as intentional and will amount to conversion even if he did not know of the right held by the plaintiff and honestly believed that he was entitled to do so. For example, an auctioneer is held liable for conversion even if he honestly believed that the goods which are being auctioned belongs to the seller and not to the plaintiff. Conversion can be committed in various ways but the main link in every act that constitutes conversion is that it consists of dealings with goods by assertion of rights which is either inconsistent with the rights of another or unjustifiable denial of the rights of another in them.

The tort of conversion is applicable only to chattels and does not extend to cover the appropriation of chooses in action.

Conversion by Taking

If any individual without the proper authority takes possession of another man’s goods with the sole intention of asserting dominion over them is guilty of conversion. The reason being that the act will be inconsistent in regards to the general right of dominion which the owner of the chattel, who is entitled to the use of it at all times and in all places, has in it. An act that is constituted by taking the goods but without any intention of exercising permanent or temporary dominion can be termed as trespass but not as conversion.

If there is a wrongful taking, even though such an act was done under a mistaken but honest supposition of being lawfully entitled, or with the intention of benefiting the true owner it does not make any difference.

Refusal to deliver property taken from agent

The decision in the case of M’Combie v. Davies, (1805) 6 East 538 : 8 RR 534, explains how conversion can be committed by refusing to deliver the property taken from agent. In this case, the property of another person was taken through an assignment from agent, having no authority to dispose of the property, and the person who took it refused to deliver it back to the principal even after notice and demand by him. This was held as an act that amounted to conversion.

Principal ratifying purchase of chattel by agent 

The decision in the case of Hilbery v. Hatton, (1864) 2 H & C 822, explains the point that whether a principal ratifying purchase of chattel by agent can be held as conversion. In this case it was held that the purchase of a chattel done by an agent which the vendor had no right to sell, is ratified by the principal then he is guilty of conversion even though at the time of the ratification he had no idea about the sale being unlawful.

Pledge taking property pledged 

If a pledgee, who only has the power to sell for default, takes over, as if upon a sale to himself, the property pledged, without the authority of the pledger (or without notifying him), but credits its value in his account, he will be held liable for conversion.

Taking the goods without any right 

Taking the goods on which a person has no rights can be termed as conversion. For instance, if an individual lopped branches of the fruit trees overhanging his land and consumed the fruit, then he can be held liable to the owner for its value as he would be held guilty of conversion as he had the right to lop the branches but it did not allow with it the right to pick and consume the fruit.

Conversion by Parting with Goods

If any individual who is entrusted with the goods of another, put them into the hands of a third person contrary to orders, it will be termed as a conversion. The wrongful act is done when he aims at giving the third person rights over the property itself and not merely the possession. Any individual who without lawful justification deprives a person of his goods by delivering them to someone else so as to change the possession is guilty of conversion. The individual giving the goods and the person receiving it will be held liable as joint tortfeasors. If an individual borrows another’s horse for riding, and afterwards leaves him at an inn, this act will be termed as a conversion, as though the owner may have the horse back but he does have to pay for its keeping. Similarly, if an individual has hired a piano and later on sends it to an auctioneer for selling, the hirer of a piano is guilty of conversion; and so is the auctioneer who refuses to deliver it up until and unless the expense incurred be paid first. 

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Conversion by Sale

An individual who even though innocently obtains the possession of certain goods and disposes of them, whether be for his own benefit or for that matter for anyone else, will be guilty of conversion if these goods were of another person who has fraudulently been deprived of them. The auctioneer is liable to the true owner when he gets possession of the articles sent to be sold by him, for the purposes of sale, and in result he sells them. Lord Denning explained this concept as, when the sale of goods are done through the involvement of an auctioneer, then he is liable in conversion to the owner if the goods are sold as a result of a provisional bid or under the hammer, where the seller was having no title of those particular goods. Although an attempted disposition, for example, a mere bargain and sale without the transfer of possession, i..e., delivery will not be held as a conversion. Thus, when the auctioneer returns the good in good faith without notice of title of the plaintiff, back to the person from where he received them without selling them, he is not liable for conversion.

If the goods are upgraded from raw materials into the final product – For instance, the green tea leaves are converted into black tea, the decision in the case of Carritt Moran & Co. v. Manmatha, (1941) ILR 1 Cal 285, explains the point. In this case it was held that even if the tea leaves are dried, shrunk and blackened it remains the same tea which was plucked or on the shrubs as green leaves. Accordingly, if a person trespassing into a tea-garden just by plucking and changing the green leaves into black tea does not acquire any right in respect thereof. As a result of such a case where the auctioneer who sells the black tea on behalf of the trespasser and pays the price to him will be held liable to the real owner in damages for conversion. The measure of such damages, where the trespasses were deliberate and criminal would be the actual price at which the manufactured tea would have been sold without any of the deductions for the expenses which were incurred in relation to its manufacture.

Sale of motor car – The decision in the case of R.H. Willis & Son v. British Car Auctions, (1978) 2 All ER 392, explains the point. In this case, the plaintiffs were motor dealers who sold a car to the defendant after receiving about half of the amount on the hire- purchase terms that he was not to sell the car before he paid the balance of the price. The defendant became bankrupt, and the car as well as the purchaser were not traceable, resulting in the plaintiffs filing a suit for conversion. The plaintiff recovered damages in the form of the balance price from defendant. 

In the case of Munro v. Willmott, (1949) 1 KB 295, where the defendant allowed the plaintiff to leave her motor-car without any payment in the yard of his hotel (of which he was licensee and tenant), this storage was intended to be for a short duration of time, but the car remained there for several years. Resulting in it becoming an obstacle and in the conversion of the yard into a garage. After several unsuccessful efforts to contact or communicate with the plaintiff, the defendant spent a specific amount in repairs and renovation of the car for making it saleable as the car was in poor condition, and had suffered from long exposure in the open air. Afterwards, it was sold at auction. For this the plaintiff sued the defendant i.e., damages for conversion and detinue of the car. The court held that the plaintiff was entitled to damages based on the value of the car on the day of judgement in the action; but the defendant was entitled to credit for what he had spent to render the car saleable, since the value of the car on the day of judgement included the amount spent by the defendant, the property of the defendant in the shape of work done and materials supplied for the car.

Conversion of the goods by an agent selling it to a third party who acquires it in good faith. – In the case of Jerome v. Bentley & Co., (1952) 2 All ER 114, the plaintiff who is the owner of a diamond ring, entrusted it to C (the agent) who undertook to try to sell it on his behalf. The plaintiff was to receive the price specified by him and if there was any surplus it was to be received by C with the condition that the ring has to be returned to the plaintiff if not sold within seven days. C sold the ring after the seven days had elapsed, representing himself as the owner of the ring, and sold it to the defendants, for a price which was one-third of the price mentioned by the plaintiff, who bought it in good faith and re-sold it. C was subsequently convicted of the larceny of the ring as a bailee. In an action for damages for wrongful conversion of the ring by the plaintiff against the defendants, it was held that, at the time of the sale to the defendants, C was not an agent of the plaintiff to deal with the ring and was not in the position of a person who might be presumed as an agent having authority to sell it, and that, by the sale he converted the ring to his own use; and, therefore, he did not pass any property in it to the defendants, who were thus liable to the plaintiff.

Conversion by Keeping

When an individual has the possession of another’s chattel, and still refuses to deliver it, this act violates the right of general dominion of the plaintiff over it, and the use of it at all times, and in all places, which he is entitled to make of it, this act of assertion of rights are contradicting with the plaintiff’s rights and consequently results into an act of conversion.

Demand and Refusal 

If certain goods of a person are in the possession of another, then he should send someone with proper authority to demand for them and receive them; and in result of this, if the individual holding the possession refuses to deliver them then this will be held as an evidence of conversion. A demand and refusal in itself does not constitute a conversion, but they are and can be taken as an evidence of a prior conversion.

A qualified (reasonable and justified) refusal is not considered as conclusive evidence of conversion, but an unqualified refusal is always considered as conclusive evidence of a conversion. 

Illustrations 

  1. A refusal by a railway servant who is doubtful regarding the consignor’s title to the goods which are to be delivered will be termed as qualified refusal and therefore is not a conversion. 
  2. A refusal by a railway clerk to deliver a consignment at a place to which it is not booked, does not amount to conversion. 
  3. Although, if the defendant refuses to deliver up the goods except on a certain condition which he has no right to impose, that would result into absolute refusal. 
  4. Refusal by an advocate to give up the deeds except on condition, which he had no right to impose, that his charges in respect of business done for his own client should be paid, would be evidence of conversion.

Right of finder 

In regards to the finders, the law is that the finder of chattel who did not trespass and is not a trespasser acquires a right to keep it, against all but the true owner, if the chattel had been abandoned or lost and if he took it into his care and control. But this right is subject to the superior right of an occupier of a building to retain chattels attached to that building and also to retain chattels on or in it, if he exercises his exclusive control or an intention to exercise exclusive control over the building and the things which were on or in it. 

The decision in the case of Waverley BC v. Fletcher, (1995) 4 All ER 756, explains this point, as the same rule applies to goods/articles found in or attached to land which was restated in this case as follows:

  1. When any object is found in or attached to a land, as between the finder of the article and the lawful possessor of the land, the lawful possessor of the land has the better title. 
  2. When any object is found unattached on land, then in between the finder and the lawful possessor, the lawful possessor of the land will have a better title only if he exercises his exclusive control over the land as to indicate an intention to control the land and anything that might be found on it.” 

In the present case, the defendant by the use of a metal detector discovered the presence of an object below the surface and after digging upto some nine inches he found a valuable medieval gold brooch. Although in the suit by the plaintiff (the local authority), owning the public park, it was held that by applying the above principle, the local authority do have the superior right to have the brooch as against the finder.

In the case of Armory v. Delamirie, (1721), the plaintiff was a chimney sweeper who found a very valuable jewel and had taken it to a jeweller to ascertain its value. The jeweller took advantage of the boy’s simplicity, told him it was worthless and offered him three pence for it, which the boy clearly declined and demanded for the jewel to be returned back. The jeweller refused to do so; causing the boy in successfully suing him for it, and for the purpose of calculating damages the court decided to consider the jewel to be of the highest value.

In the case of Hannah v. Peel, (1945) KB 509, the defendant was the owner of a house which he had never himself occupied. While the house was requisitioned, the plaintiff, a soldier, found a brooch on the top of a window frame, the owner of which was unknown. There was no evidence that the defendant had any knowledge of the existence of the brooch before it was found by the plaintiff; the plaintiff handed the brooch to the police to ascertain its owner, but the police in turn delivered it to the defendant who claimed it as being on premises of which he was the owner. It was decided by the court that the plaintiff, as finder, was entitled to the possession of the brooch as against all others except its owner.

In the case of Parker v. British Airways Board, (1982) 1 All ER 834, the plaintiff who was a passenger found a bracelet in the executive lounge at London Airport. He handed the bracelet to an employee of the Airlines with a particular direction that the bracelet be returned to him if it was not claimed by its owner. The Airlines sold the bracelet and kept the proceeds instead of returning it back to the plaintiff when not claimed by the owner. The plaintiff sued for conversion and was awarded as damages the value of the bracelet. The plaintiff being the finder was held entitled to the bracelet against everyone except the owner. Even though the Airlines being the occupier of the premises, neither showed the intention of exercising control over the lost chattel in their lounge nor did they expressed the intention that the permission granted to the public to enter the premises was on the terms that the commonly applied maxim ‘finders keepers’ would not be applicable.

Indian cases 

In Indian context, the case of Kishorymohan Roy v. Rajanarain Sen, (1862), explains the point. In this case two notes were stolen from A, which B (not a bona fide holder for valuable consideration) gave to C in payment of certain goods. B had to bring D, a person known to C, as C had refused to deal with B as he was unknown to him. Hence, the purchase was made by him in turn. It was held that B was liable to A as the part performed by B in the transaction, amounted to a “conversion of the notes for his own use” resulting in him being liable for the same. 

In the case of Debendronath Mullick v. Odit Churn Mullick, (1878), the refusal to deliver the idol by A, through which the person demanding it was prevented from worshipping or performing the rites on the specified date was held as a valid ground for the aggrieved party to sue for damages.

In the case of Haryana Cotton Mills Co. Ltd v. B.B & C.I. Ry. Co., (1927), it was held that the refusal or neglect by the railway company in delivering the goods even after the demand was held to be liable in conversion. 

Conversion by Destruction

Destruction of a chattel belonging to another is an act of conversion, as it does have the effect of depriving the owner of it altogether. If the object has been destroyed, for example by burning it, that would be in a way depriving the plaintiff of his property even if the defendant has not taken or considered of taking the goods for his own use. If an act is done without the authority of the owner, i.e., replacing wine with water is a conversion of the whole liquor and so is the spinning of cotton into yarn or grinding corn into flour.

Conversion by Denial of Right

If the defendant has never been in physical possession of the goods but his act amounted to an absolute denial and repudiation of the plaintiff’s right on them, then it will be termed as conversion. The applicability of this view was doubted and it has been overruled by Section 11(3) of the Torts (Interference with Goods) Act, 1977 which provides that denial of title is not by itself conversion.

If there has been an interference with a chattel in a certain manner that is inconsistent with the right of the owner along with the denial of title to the owner results in conversion. 

Unlawful use of the goods of another in such a manner that the goods might be rendered liable to forfeiture by the authorities would also amount to conversion. Defendant’s ignorance of the unauthorised character of his act cannot always be relied upon as a defence.

For instance if the payee of a crossed cheque especially endorsed it to the plaintiffs and posted it to them. A stranger, having obtained possession of the cheque in transmission, obliterated the endorsement to the plaintiffs’, and having substituted a special endorsement to the plaintiffs, and having substituted a special endorsement to himself, presented it at the defendants’ bank, and requested them to collect it for him. They did so and handed the proceeds over to him. Then the defendants were liable to the plaintiffs in an action for conversion for the amount of the cheque.

Distinction between Trespass and Conversion

  1. Trespass is basically a wrong done to the actual possessor and therefore cannot be committed by a person in possession. On the other hand, conversion is a wrong to the person entitled to immediate possession. The actual possessor is frequently, but not always the person entitled to immediate possession, and sometimes a person entitled to immediate possession is allowed to sue in trespass so that the conversion may, but does not necessarily, include trespass.
  2. Trespass is without intending to exercise an adverse possession, damaging or meddling with the chattel of another. A conversion is referred to a breach made adversely in the continuity of the owner’s domination over his goods though the goods may not be hurt.
  3. The gist of the action in trespass is the force and direct injury inflicted; in conversion, it is the deprivation of the goods or their use.

For instance, if a person snatches my gold ring with a view to steal it, the act amounts to both trespass and conversion. But if a person borrows my ring for his use but later on sells it he will be held liable for conversion only.

Action for Conversion

(i) Who can sue?

The plaintiff, during the time of conversion, should either have the right of immediate possession or the right of property in the thing, coupled with possession thereof. Any possession, even if temporary, is sufficient against a wrongdoer, e.g. that of a carrier. As already mentioned that a finder of goods is in a position to sue in conversion except the real owner. Actual possession or an immediate legal right to possession is required and necessary as it enables a person to sue. A claim for conversion of goods is not maintainable by a person who had merely an equitable interest in them against another who had acquired legal title to the goods as a bona fide purchaser for value without notice of the prior equitable claim. 

A thief or a receiver of stolen property – This point was explained through the case of Costello v. Chief Constable, that a thief or a receiver of stolen property in possession has a possessory title which is good against all the world except the true owner and so he can sue every other person for conversion.

(ii) Defences

The justification or defences to an action for conversion are:

  1. Lien, either general or particular – Demand and refusal are not considered as evidence of conversion, if the party has a lien upon the chattel.
  2. Right of stoppage in transit – This defence arises out of contract which is related to the sale of goods.
  3. Denial of plaintiff’s right of property (jus terii) – Where the plaintiff sues relying on his right only, or denial of possession. Where the plaintiff was in possession of the goods at the time of the conversion, the defendant cannot set up a plea of jus tertii (i.e. that a third party has superior title). Against a wrongdoer possession is a good title. But when the plaintiff was not in possession but had only the right to possess, the plea of jus terii can be set up by the defendant.
  4. Distress – If the goods are taken under distress or under execution.
  5. Sale in market overt – As per the English law, sale of goods in market overt gives a good title to the purchaser. The purchaser cannot be sued for conversion if he parts with the goods or refuses to give them up on demand; although the seller can be sued if he has no title. This doctrine is not applicable in India but such cases are governed by sec. 27-30 of the Indian Sale of Goods Act.

(iii) Damages

In general, the measure of the damage is calculated through the value of goods at the time of conversion, where no particular damage has been sustained, and the goods have not been tendered and received back after the action. This refers to the market value of goods during the time of the conversion. 

As and when the defendant unlawfully sold shares which belonged to the plaintiff and later on replaced them by an equal number of shares purchased at a lower price, it will be held that the measure of damages was the value of shares on the date of the conversion, i.e., sale price less the value of replacement shares. If the defendant does not produce the goods, then the presumption will be that it is of the highest value of any goods of that kind. But if the goods that have been returned, have fallen in price, the difference in the price at the time of the return, will have to be provided as damages.

Illustrations 

  1. If there is an action against a shipowner for non-delivery of goods, the measure of damages will be the value of the goods at the date of non-delivery.
  2. If the damages which have been awarded to the owner of land is in respect of digging the earth for making bricks out of it, the plaintiff will be awarded the whole amount which includes the cost of manuring and levelling the land, and also the next value of the bricks into which the earth has been converted and not simply the value of the site affected.

Conclusion

Conversion can be referred to as the forgotten tort because as a matter of fact, every year there are several cases of conversion reported, but either they are too similar to the case of trespass or are mostly concerned with the ownership of the particular disputed property but the tort in itself is not the issue.


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

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