About Credgenics:

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Headquartered in Delhi, Credgenics is an end-to-end SaaS platform for debt resolution, collections, and recovery. We are a 2-year-old fin-tech startup led by 3 co-founders including IIT Delhi alumni, backed by top-tier VCs including Accel Partners and Titan Capital (and multiple HNI investors) and we have raised 3.3 million USD in our latest round of ‘Pre-Series A’ funding. We have grown to a 70-member team during the last few months with operational profitability having 32 NBFCs and 6 banking clients and clocking over USD 2 million ARR presently.About the internship.

Selected intern’s day-to-day responsibilities include:

1. Drafting letters, legal documents, agreements, contracts, and other commercial documents as required
2. Conducting legal research
3. Ensuring the legal documents are processed timely for review and auditing.

Skill(s) required

  • MS-Excel
  • English Proficiency (Spoken), Proficiency (Written)

Who can apply:

Only those candidates can apply who:

1. are available for full time (in-office) internship

2. can start the internship between 21st May’21 and 25th Jun’21

3. are available for duration of 6 months

4. have relevant skills and interests

Note: Women wanting to start/restart their career can also apply.

Perks:

  • Certificate
  • Letter of recommendation

Number of openings:

5

START DATE:

Immediately

DURATION:

6 Months

STIPEND:

10000 /month

How to apply?

https://internshala.com/internship/detail/law-legal-internship-in-delhi-at-credgenics1621586184

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Vanshika Arora is a first-year B.A.LLB student at Army Institute of Law, Mohali. This article is a birds-eye view of the validity of e-contracts under Indian law the umpteen challenges faced in an e-contract transaction. 

INTRODUCTION

At the outset, through the advancement of technology, especially the internet, business transactions have taken a big leap and become trans-continental. More specifically, this trans-continental trade largely takes place through the electronic mode and is hence called ‘e-commerce’ (electronic commerce). 

The Indian Contract Act, 1872 was curated as a statute to deal with traditional contracts, namely, contracts over a piece of paper, requiring signatures of parties, and all prerequisites mentioned in the act. However, it is not viable to hope for age-old legislation to supply answers to every evolving mode of business, trade, and contracts. Therefore, The Information Technology Act, 2000 attempts to answer questions of validity and lay down processes for the contracts entered into through the online mode.

What are E-Contracts? 

An E-contract is a kind of contract formed by negotiation between two or more individuals through the use of electronic means, such as e-mail, the interaction of an individual with an electronic agent, such as a computer program, or interaction of at least two electronic agents that are programmed to recognize the existence of a contract. The UNCITRAL (United Nations  Commission on International Trade Law), Model Law on Electronic Commerce, 1996, does not define e-contracts, but merely states in Article 11 that a contract can be made by exchanging data messages and when a data message is used in the formation of a contract; the validity of such contract such not be denied. Therefore, there exists no formal definition of an e-contract, provided by any statute. 

Types of E-Contracts

There exist three broad types of e-contracts, namely click-wrap, shrink-wrap, and browse-wrap or web-wrap. 

  • Shrink-Wrap: Such contracts have been part of traditional transactions too and are not indigenous to the e-commerce industry. This type of contract can be understood through the example of computer software one may purchase from the electronic store. On the box of the software, a clear plastic wrap is attached, displaying a warning sign that the software is subject to terms of a license agreement that the user cannot read unless she purchases it. If the user does not wish to enter into a contract, she may choose not to purchase the software. However, the moment she opens the plastic wrap, she shall enter into a valid contract with the manufacturer. In the case of Pro CD Inc. v. Zeidenburg, the court observed that once the user checked the product, used it and reviewed the license, and chose not to reject it, shrimp wrap would be treated as valid. 
  • Click-Wrap: These contracts are fairly common on the web. Before purchasing merchandise, a service, or even surfing on a website, netizens may come across a dialogue box displaying terms and conditions, that after being read can be assented to, through the “I Agree” option, or dissented to, through the “I disagree” option. In the case of Hotmail Corp. v. Van $ Money Pie Inc., the defendants violated the click-wrap agreement and sent pornographic content to the user, to which the court granted the injunction. These contracts can also be classified further into two categories:
  • Type and Click: In such contracts, the user is required to type, “I agree” and submit her response 
  • Icon Clicking: In such contracts, the user is already provided with two clickable options of “I Agree” and “I disagree”, from which she merely needs to choose. 
  • Browse-Wrap/ Web-Wrap: In such contracts, browsing through a particular website to purchase their services or goods, or merely use these services, shall be considered to be a contract. 

Are E-Contracts Standard Forms of Contracts? 

To answer this question short and crisp, yes, most e-contracts such a click-wrap and shrink-wrap are standard forms of contracts. In such cases, the user has no autonomy to dictate terms and is only at the disposal of either accepting or rejecting the terms. Moreover, every user is subject to the same standardized terms and conditions, which, in the absence of legal regulations, may also be discriminatory and aversive to user rights. The most recent example of this is the Whatsapp Privacy Policy Update, 2021 which renders WhatsApp users with only the choice of agreeing to the update, or not being able to utilize the services of WhatsApp.  

Validity of E-Contracts 

As far as the validity of e-contracts is concerned, the Information Technology Act, 2000 is the statute dealing with the same. This act is based on UNCITRAL Model Law on Electronic Commerce, 1996, and aims to provide legal recognition to transactions carried out through the means of the internet. Section 10A of the IT Act, 2000 states that “wherein, a contract formation, the communication of proposals, acceptance of proposals, the revocation of proposals and acceptances, as the case may be, is expressed in the electronic form, or by means of an electronic record, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose.”, this provision corresponds with Section 3 of the Indian Contract Act. Moreover, the Indian Evidence Act, 1872, also lays down provisions for the recognition of electronic records as evidence. Therefore, even though devoid of a formal definition, e-contracts are recognized as valid under Indian law. The case of Trimex International FZE Ltd. v. Vedanta Aluminum Ltd. recognized that e-mail exchanges between parties regarding mutual obligations constitute a contract.

Whether a contract is traditional in nature or over the internet, it needs to satisfy some pre-requisites of a valid contract, mentioned under the Indian Contract Act, 1872, which are the following: 

  • Offer: In a traditional contract, the offeror has to make an offer, as the very first leg of a valid contract. In the case of e-contracts, the user browses through the website and chooses a product or service of his liking. This practice loosely constitutes an offer. 
  • Acceptance: Once an offer is made, it has to be accepted to constitute a promise. A non-acceptance even in the case of e-contracts shall not make them valid. In case of electronic mode, acceptance is complete as against the offeror, when the electronic mode is dispatched and enters into the program of the offeree, to be outside the control of the originator. Similarly, acceptance is complete as against the offeree, when it enters an information system designated by the offeror for this purpose. In the case of Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co., the Supreme Court held that Section 4 of the India Contract Act is only applicable in non-instantaneous forms of contract such as an email and not instantaneous forms such as a click-wrap contract. In the case of instantaneous forms of contracts, the contract is concluded when the offeror receives the acceptance, rather than when it is put in course of transmission so as to be out of the power of one party. 
  • Lawful Consideration: For the formation of a valid contract on the electronic mode, there should be a valid consideration. 
  • Free consent: Consent is said to be free when it is not caused by coercion, misrepresentation, undue influence, or fraud. In the case of e-contracts, wherein there is no face-to-face interaction and even any sort of active communication in some cases. Therefore, the “click-through procedure” displayed while users surf through the website, ensures free consent. 
  • Competency of Parties: Only parties that are competent to enter into a contract, under the Indian Contract Act, can form a valid contract. More often, a minor may click “I agree” options of a click-wrap contract on the internet. According to the India Contract Act, an agreement entered into by a minor is void. The legal fraternity has so far been silent upon this issue of competency of e-contracts. 

Challenges accorded with E-Contracts 

The most contentious issue accorded to e-contracts is that of jurisdiction, traditionally a court of law can exercise territorial, subject-matter, or pecuniary jurisdiction. In the case of e-contracts, since the contract has basically been entered into over the web, the matter of territorial jurisdiction, stands questionable. If a user from India has clicked on the “I Agree” option of a website based in the US, what territorial jurisdiction would matters of this contract has? Or, if a user based in India enters into a contract through an email, with an individual, based in the US; what would be the territorial jurisdiction in this case? The Delhi High Court, in the case of Casio India Co.Ltd. v Ashita Tele Systems Pvt Ltd, held that if a website is accessible from Delhi, then territorial jurisdiction can be invoked.  However, in the case of India TV Independent News Service Pvt Ltd. v. India Broadcast Live LLC, it was held that since a particular website is accessible from a place, does not render a reason enough for the contract to fall under the jurisdiction of that place. 

Conclusion

Electronic contracts have facilitated communication and business around the world since they pose no boundary restrictions, however lack of proper guidelines have also aggravated ambiguity. The confusion around the time and place (jurisdiction) of when and where has an electronic contract concluded, still lies unanswered. Hence, the government has to step-up and take necessary action to regulate and facilitate e-commerce for consumer interests. 

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This article is written by Rishita Naredi, a First-year B.B.A. LL.B. student in NMIMS Kirit P. Mehta School of Law.

INTRODUCTION

According to Merriam Webster, betting is an act of giving a pledge, or stake between 2 parties which leads to the formation of a contingent contract. In layman language, it refers to forecasting the future of a particular event. 

People often confuse betting with gambling. But there are some differences which ought to be highlighted. Gambling is wholly based on the concept of probability, permutation, and combination. The outcome ranges from ‘win’ or ‘loss.’ It is also heavily reliant on one’s good fortune and coincidence. A person’s ability is rarely used in the game. On the other hand, Betting is a broad concept. It is a more calculated risk where the parties take into account the circumstances, external forces, etc. 

This article will mainly focus on different aspects of Sports Betting in India.  

Sports Betting

 Nowadays, sports betting in India is growing at a tremendous rate. A large number of individuals want to wager on every sporting event because of the huge profits people make out of winning without much effort. There are many people who bet on sports, ranging from cricket to football to basketball including ice hockey as well as field hockey. Sports betting is further divided into 6 more sub-categories. These are listed below-

Straight Bet

This is the simplest form of a bet. Here, the individuals are supposed to choose an individual or team, which they predict might win or the match will end in a draw. If the said team wins, individuals win the money for correct estimation. 

Pre-Betting

This is relatively an old form. Here, the individuals bet on a team or individuals before the match begins. This is similar to in-play betting, but the individuals are supposed to bet before the game. 

In-play Betting 

This is a revised form of Pre-betting. Here, the individuals bet on a team while the game is still ongoing. This is less risky and less profitable as well. 

Accumulator Betting 

 In this form of betting 2 or more bets are combined to form one single bet known as Accumulator’s bet. For example, a person might bet that England would lose over India, and India will score more than 2400 runs if both the bets are fulfilled the person wins money. 

Single Bet 

It is part of Accumulator’s bet. It refers to one bet a person might go for, Example, RCB will win the next IPL is a single bet. 

Spread Betting 

This is a relatively different concept. Here the person betting on specific sports forecast whether an outcome will be above a particular number or below. This is called Spread betting. For example, a person bets that Brazil will score more or less than 7 goals in the football World cup. 

Legality of Sports Betting  

Laws related to sports betting are very vague and ambiguous in India. This might be because there are no specific international laws related to betting. Each country has a different set of laws for sports betting. 

According to the Indian laws, betting in ‘Games of Luck’ is illegal as it amounts to gambling, and betting on ‘Game of Skill’ is legal. The main issue lies in determining whether a game is of luck or skill. Fantasy sports are legal according to the laws of India because it involves ‘Game of Skill’ where the opponent is a human being, who can be analyzed. Most states allow betting on games such as horse race betting and card games which are based on players’ skills rather than fortune. On the other hand, traditional betting is not legal in India, but has its acceptance in many other countries like Australia, Western Europe, and even the US. 

According to the Indian provisions Public Gambling Act, 1867 and Technology Act, 2000 apply to the majority of India. Sports betting is prohibited by such rules, but individual states have the authority to enact their legislation. All forms of gambling are illegal in India, according to the Public Gambling Act (1867).  

There are no specific laws for online betting which encourage people to bet illegally online. Many betting websites work freely making it accessible to every individual. While bookmarks are illegal in India, there is no law prohibiting an individual customer from placing an online bet with a bookmark based outside the country. 

Online Betting

With the technology up-gradation around the world, including India, more than 5 million people are connected with the internet. This has made the online websites more accessible which were earlier not even known by many. One of the most visited websites is online betting. According to a study, more than 40% of the internet users in India gamble, and reports further point that India may soon surpass the United Kingdom in terms of gamblers per capita. 

Online betting usually involves placing a bet through the internet and earning money thereafter. All the transactions take place in a virtual environment. Some of the online games are Rummy, Three-card games, etc. 

Legality of Online Betting

No laws are governing Online betting in India, still there are some provisions in laws that help the judges to decide the legality of betting on a game-to-game basis. For example, games like Three-card are purely based on luck. On the other hand, Rummy cannot be categorized as a game of chance. This is because rummy requires players to have a certain level of ability, particularly when it comes to memorizing. While bookmarks are illegal in India, there is no law prohibiting an individual customer from placing an online bet with a bookmark based outside the country. 

Several state governments have banned online gambling applications, including those in Andhra Pradesh, Telangana, Tamil Nadu, and Punjab. The Government of Sikkim released the Sikkim Online Gaming Rules, 2009 as a memorandum. 

CONCLUSION 

 In India, there is no clear law that governs gambling and betting. To protect the public from the negative effects of these activities and to improve transparency, proper legislation governing gambling and betting activities is required. The IT Act, 2000 which governs cyber operations in India, does not include “gambling” or “betting”, so it is up to the courts to define and interpret the laws and give judgments accordingly. The allure and dignity of sports must be protected at all costs and so there is a need for more specific laws governing betting in India. 

REFERENCES 

  1. https://www.asianfortunenews.com/2015/06/understanding-the-basic-distinction-between-gambling-and-betting/ 
  2. https://www.merriam-webster.com/dictionary/bet
  3. http://www.legalserviceindia.com/legal/article-3111-sports-betting-and-laws-relating-to-it.html
  4. https://www.thequint.com/tech-and-auto/online-gambling-apps-in-india-is-it-legal-to-play-details-here

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This article is written by K.Lasya Charitha pursuing BA LLB in Damodaram Sanjivayya National Law University, Visakhapatnam. In this article, the researcher discusses theories and the  classification of rights and duties in Jurisprudence. 

INTRODUCTION

Rights and Duties are interrelated, because where there are rights, there are duties, and people are given rights to protect them and fulfill their duties to the state. Duties and  rights go hand in hand. It is not wrong to say that both twins grew up from one root. Both concepts of rights and duties have been thoroughly discussed under the  Jurisprudence. Many internationally renowned lawyers and scholars try to define their  ideas and criticize the ideas of others. 

Meaning of Rights 

The Rights in the general sense mean different things, but it is usually understood as the standard of actions allowed in a given area. As a legal term, it refers to the standard of conduct permitted by law. Such permitted action of the people is called their legal right. The Legal right should be distinguished from the moral right or natural right. Legal rights are the interests recognized and protected by law. Violation  of this interest is a violation of the law and respect for that is a legal duty. Moral law  or natural law refers to the interests recognized and protected by natural justice.  Violating this interest would be moral evil and respect, for that is, a sense of moral duty. 

Definitions of Rights 

Broadly speaking, it means that actions permitted by law are called legal rights, or  actions recognized or protected by the state are called legal rights. The definition is  given by many lawyers such as Holland, Austin, Pollock, etc. 

As per Austin, right is personnel which lives in a determinate party or parties by  temperance of a given law and which profits against a party or parties (or answers to  an obligation lying on a party or parties) other than the party or parties in whom it  lives. As indicated by him, an individual can be said to have a privilege just when  another or others are bound or obliged by law to accomplish something or hold back  concerning him. It implies that a right has consistently a relating duty. This definition,  as it shows up on its very face, is defective on the grounds that in this definition there  is no place for blemished rights.

Holland in one way or another follows the definition given by Austin. As per him,  “capacity residing in one man of controlling, with the assent and assistance of the  state the actions of others.” 

Salmond characterizes directly from an alternate point. He says, “A right is an interest  recognized and protected by a rule of right’. It is an interest in respect for which is a duty,  and disregard of which is wrong.”  

According to Gray: A legitimate right is “that power which the man has, to make an individual or people to do to or limit from doing a specific demonstration or acts so  particularly far as the power emerges from society forcing a lawful duty upon the  individual or people.” He expresses that the “right isn’t simply the interest, it is the  way to appreciate the interest got.” 

In the case of the State of Rajasthan versus Union of India, the Supreme Court  expressed that “Legal rights in the exact sense are correlatives of legitimate duties and  lawful rights are characterized as the interests which the law ensures by forcing duties  on different people. In any case, the lawful right in the exacting sense implies right is  the insusceptibility from the legal power of another. Immunity is no subjection by any  means.” 

Rights Guaranteed under the Constitution of India 

The Constitution of India has ensured certain rights to the residents of India which are  known as Fundamental Rights which are viewed as the main rights. On the off chance  that these rights get disregarded, the individual has the option to move to the Supreme  Court of India or the High Court of any state for enforcement of these rights. 

The fundamental rights guaranteed by the Constitution of India are: ✓ Article 14: Right to Equality 

✓ Article 19: Right to Freedom 

✓ Article 21: Right to life 

✓ Article 23 and 24: Right against Exploitation 

✓ Article 25: Right to Freedom of Religion 

✓ Article 32: Right to Constitutional Remedies 

Theories of Rights 

❖ Interest Theory 

The interest theory was developed by Rudolf Von Jhering. Rudolf Von Jhering said that  legal rights are interests protected by law, and he emphasizes the interests of the  people, not the will of the people. The main goal is to protect people’s interests and avoid conflicts between personal interests. You are interested in the life of the  community itself, and you are not bound by any laws. 

Salmond’s opinion: He Supports the theory, but he states that compliance with the  theory is an important condition. He Criticized the theory of interests on the ground 

that interests are not protected by the state. In order to confer a legal right, the  important thing is to protect the interests and be recognized by the state. 

Gray‘s point of view: He said that the theory is partly correct because the lawful right  itself is not an interest, it is only to protect the personal interests. He also pointed out  that legal rights impose legal obligations on individuals through “state” laws, thereby giving them the right to take certain actions/temperance. 

Dr. Allen‘s point of view: It can be said that the two theories are not contradictory, but  this is a combination of the two theories. He tried to combine these two theories and pointed out that the essence of a legal right is not the right protected by law, nor the  right protected by itself, but the right to exercise legal protection of interests. It can be  concluded that both theories are an important part of the legal right. 

❖ Will Theory 

This theory is supported by Kant, Hagel, Hume. According to this theory, “rights are  the inalienable attributes of human will.” The purpose of the law is to achieve freedom of speech. The Subject Matter comes from human will. Austin, Pollock, and  Holland defined right as will. John Locke believes that “the foundation of the right is  the will of man.” Puchta believes that legal rights give a person the right over an item,  and according to the law, the item can obey the wishes of the person who uses the  right. 

Duguit’s view: According to him, the basis of law is not subjective will, but objective  will. The purpose of the law is to protect only those measures that further support  social solidarity. In addition, he found that subjective law theory is a metaphysical  abstraction. 

❖ Protection Theory 

The state grants all rights in the form of laws and regulations, so rights are permitted  by government agencies. Therefore, the most significant feature of the legal right is its  recognition by the legal system and its judicial enforceability. 

Elements of Legal Right 

All legal issues and practices revolve around the rights and duties of individuals and  authorities. Despite the existence of moral rights, all rights in our time are legal. According to Salmond, all legal rights include the following elements: 

➱ Person of Inheritance or Subject of right object: This is the person who owns the right. This is the subject of law. Such people are called persons of inheritance. Even if the property is bequeathed to the unborn child, even if it is not safe, the  unborn child still owns the property.  

➱ Person of incidence or Subject of Duty: Another person has a responsibility to  respect and recognize the rights of other persons. That person has a legal duty and  is called a person of incidence.

➱ The content or subject matter of the legal right: The object of the legal right is  an essential element. This is a legal issue; it refers to doing something or not  doing certain actions or indulgence; it forces a person to abstain from voting or to  act on behalf of a person with legal rights. Example: Y purchased a Van of  20,000 rupees. Here, Y is the subject of the right. Subject (Y) has legal rights and  can exclude others.  

➱ Objects of legal rights: Objects of rights are things or objects over which legal  rights are exercised. Example: A bought a car at a price of 100,000 rupees, and  the car here is an object.  

➱ Legal right title: Title is the process of transferring or transferring rights to an  individual. These are certain events whose previous owners have obtained their  rights, such as through purchases, gifts, or wills. 

Classification of Rights 

➱ Right in rem and Right in persona: Right in rem is a right that is available to the  entire society. Right in persona refers to the rights that individuals can use. An  example of a breach of contract: If a breach of contract occurs, the party initiating the lawsuit will bring a lawsuit against the party concerned. Rights in persona are  temporary and can become right in rem. Right in rem is permanent.  

➱ Positive and negative rights: A positive right is a right when an action must be  carried out by a person who has the corresponding responsibility. The person in  charge must take positive action. Negative rights are the right to prevent you from  taking certain actions. Negative rights correspond to negative responsibilities.  The person on whom this duty is imposed is deprived of the opportunity to  perform certain actions.  

➱ Personal rights and proprietary rights: Personal rights are rights that respect the  owners of the right. Personal rights have no economic value and are related to  them i.e., Personal wealth or well-being. For example, the right to dignity, the  right to freedom of speech. Proprietary right is granted to the owner of the  property. These rights are rights with a certain currency or economic value and  are estates of a person. For example patent rights, land rights, debts, etc.  

➱ Perfect and imperfect rights: Perfect rights are protected and recognized by law,  and infringers can be sued. Example: B borrows a loan from A and he needs to  repay the loan, and A has the right to demand the loan amount. If B fails to pay,  A has the right to file a lawsuit. Incomplete rights refer to rights that are not  recognized or protected by law. Example: If the loan expires, you can claim the  money, but you cannot execute it.  

➱ Principal and Accessory Rights: According to law, the principal right is the most  important. This is a basic right granted to people. Accessory rights are indirect  rights or security rights. They are not important, but they are considered to be a  fundamental right. 

➱ Right in Re-aliens and Right in Re-propria: The rights in Re-aliena are available  rights against the property of others. One example is the right to easement. This is  the result of inheriting the concept of Jurisprudence from rulers and ministers.  The right in the Re-propriais the right related to one’s own property, and this right  leads to absolute ownership of the property. This is the result of the legal concept  of ownership.  

➱ Corporal and Incorporeal rights: Both rights are protected by law. Corporal  rights are rights over tangible objects or material objects. These rights refer to the  rights over objects that can be seen or touched. Incorporeal rights are rights to  objects that cannot be seen or touched. Example: the right to reputation. 

➱ Legal and Equitable rights: legal rights are protected by common law (ie,  English courts). Common law depends on habit and custom. Equitable rights are  protected by the equity court or the court of chancellor. The basic principles are  natural justice, equity, fairness, and Clean conscience.  

➱ Primary and Sanctioning Rights: Primary right is very important, and it is also a  very basic right. These rights are independent in nature and have a Binding force.  They are right in rem. For example, right of reputation. If these rights are violated  in this situation, the person can go to court. This right is protected by law and  takes the form of compensation, fines, or imprisonment. Sanctioning rights are  the ultimate rights. These are rights that support primary rights. They are right in  persona which results in some wrongdoing. Example: in violation of primary  rights and private rights. 

➱ Public and Private Rights: Public right is the right enforced by the state. For example, voting rights, travel rights, etc. Private rights are exercised for personal  benefit. Examples: the right to sleep, the right to drink water.  

➱ Vested and Contingent Rights: vested rights are rights granted to someone from  the beginning. There is no need to do anything to grant someone these rights. It  depends on the current situation. Contingent rights are rights granted to  individuals on the occurrence or nonoccurrence of certain actions. This right  depends on future actions. When a prescribed act occurs, only then the person is  granted these rights. 

Concept of Duties 

Duty is also an action. Duty is a service to others, A person is responsible for a  country and a man. It acts against unfair laws. These are the main duties enforced by  the law. If the duty is not properly performed, it will constitute an offense under the  law. The kinds of duties consist of moral and legal duties. The classification of duties  includes primary and secondary duty, positive and negative duty, and absolute and  relative duty, such as protecting and maintaining the environment. Cleanliness is a person’s responsibility to the country.

Duties under the Constitution of India 

Article 51-A of the Constitution of India guarantees certain duties to all Indian citizens. Article 51-A of the Constitution of India stipulates that all Indian citizens must abide by the provisions of the Constitution and respect the national flag and the  National anthem: 

1. To safeguard the sovereignty and integrity of India  

2. To follow the noble ideals of a national struggle  

3. To defend the country and contribute to national service when called  4. To preserve the national heritage of the country;  

5. To promote and maintain the harmony of brotherhood amongst the people of India.  6. To protect the dignity of women  

7. To protect the natural habitat, including forests, lakes, rivers, and wildlife;  8. To protect public property and to avoid violence;  

9. To contribute to the development of the nation in all spheres. 

Classification of Duties 

➱ Moral duty and legal duty: Legal duties are opposite to legal rights, and are recognized by the law in the administration of justice. Moral duty is the opposite  of moral right. Although it is not recognized by law, it is implemented in  accordance with established norms and social values.  

➱ Antecedent duty and remedial duty: The duty that exists independently of  another duty is the antecedent duty, and the duties arising from the infringement  of rights constitute the remedial duties.  

➱ Fundamental duties and legal duties: Fundamental duties are obligations  imposed over citizens in accordance with their country and the constitution, while  legal duties are obligations imposed by laws and regulations. 

➱ Positive duty and negative duty: When the law forces us to take a certain action,  it is called a positive duty, and when the law forces us not to take a certain action,  it is called negative duty.  

➱ Primary duty and secondary duty: Primary duty is an independent duty, and is an  absolute duty, independent of other duties, while secondary duty is a duty that is  not independent of other duty, and is the result of a violation of a duty.  

➱ Vested duty and Contingent duty: Vested duty is a direct duty, while contingent  duty is conditional duty. 

➱ Duty in rem and duty in personam: Duty in rem is the duty with respect to  ownership of property, while Duty in personam is the duty with respect to human dignity and transitional rights.  

➱ Duty in repropria and duty in realiena: The duty in repropria means an absolute  duty to own property, and the duty in realiena means the duty of partial property. 

➱ Corporeal duty and incorporeal duty: Corporal duties are duties over physical  property, while incorporeal duties are duties for non-physical properties like  intellectual property rights.  

➱ Absolute duties and Relative duties: Absolute duties are not corresponding and  are not relative, while relative duties are related to each other and are  corresponded with a man’s duty, which is interdependent. 

Conclusion 

Therefore, the concept of rights and duties occupies an important position in all legal  systems in the world. Without rights and duties, citizens can only exist as animals.  Merely granting of rights and duties is of no use, If they do not have the support of the  rule of law, this is the legal protection that can be enforced in court. In modern times,  the concept and scope of rights and duties have continued to expand, and even non-human rights are important and recognized. Various trends are seen in the practice  and application of these rights and duties. The courts have adapted to the changing  needs of society.

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Vishrut Gupta, Lloyd Law College. This article strives to explain the readers about the Principles of Natural Justice, which is nowhere mentioned in the constitution but used widely in the Indian Law. It also covers the concept of Social Justice briefly.

Administrative Law and Natural Justice

Administrative Law is a type of public law that is specifically made for public welfare. Its formulation arises post-independence when there was a shift in the working of the state and welfare of the society was set to priority. This statute grants the discretionary powers and guidelines to exercise power avoiding arbitrary ruling and keeping a check. According to K. C. Davis, “Administrative law concerns with the powers and procedures of administrative agencies, including especially the law governing judicial review of administrative action”. Our topic of discussion has deep roots in the statute mentioned above. To avoid the misuse of wide discretion of powers, principles of Natural Justice is used in administrative actions such as fair trials, unbiased judgement, and limited exercise of powers by the executives. ‘Fairness’ is the key term of Natural Justice and these principles are also known as substantial Justice or fundamental Justice or Universal justice or fair play in action. In India, the principles of Natural Justice were first highlighted in the case of ‘Maneka Gandhi v. Union of India, 1978’.

Social justice

Social Justice is a civic concept of equality based on economic rights, political rights and social rights and opportunities. This concept arose in the early 19th century during the Industrial Revolution, when employers started exploiting the labourers. It aimed to create a more egalitarian and capitalist society. Initially, the justice system only restricted to boost the economy, but by the mid- 20th century, the objectives extended to the environment, race, gender and inequality issues. There are five main principles of social justice-

1) Access to Resources- Many a times, the basic resources to live such as food, shelter, education and healthcare are not given to the citizens leading to social injustice.

2) Equity- All the people are given the same socio-economic tools to uplift the social status and gradually achieve growth in certain parameters.

3) Participation- People are given equal rights to raise the voice and actively participate in the public policy. They play a major role in every policy formed affecting their standard of living and livelihood.

4) Diversity- Due to a diverse population, discrimination in employment based on sex, caste, creed, ethnicity and race are some constant issues faced.

5) Human Rights- Human Rights are universal rights and they are applied regardless of nationality, race etc.

Justice v. Natural Justice

Justice is a notion of rightness based upon ethics and morality, law, religion, fairness, equality and religion. Legal Justice works based on a legal framework laid down and regulated by the government and enforced by the courts while the principles of Natural Justice are not codified; these are merely based upon the judge’s discretion whether to include them in certain cases or not. The principles of natural justice don’t have a standard or scientific definition. Various jurists have defined it according to their hypothesis. These principles can step in only in the presence of an administrative action leading to the infringement of the rights of an individual. The importance of these principles can be recognised in various statutes as every law made has the ingredient of equity in it. All such theories and postulates are impractical in the absence of a ‘Good Judge’. Impartiality, Neutrality and Unprejudiced- are the three essential qualities which a good judge possesses. 

Exceptions to Natural Justice[i]

These principles of Natural Justice are excluded from the exceptions of-

1) Statutory Provisions

2) Constitutional provisions.

3) Legislative act.

4) Public interest and welfare.

5) Urgent action or in case of emergency or necessity.

6) Ground of chaos.

7) Confidentiality.

8) Educational postponement.

9) Interim prevention action.

10) Fraud cases.

Principles of Natural Justice 

There are two main principles of natural justice-

1) Nemo judex in causa sua’

2) Audi alteram partem 

Nemo judex in causa sua’- A bias is an “operative prejudice concerning a party or issue.” Whenever an opinion is formed as an outcome of selective thoughts to favour, give an edge to a party or oppose a party for the sake of a relationship or liking, the opinion so formed is known as ‘biased opinion’. It can be in a form of real bias, imputed bias or apparent bias. ‘Nemo judex in causa sua’ or the Rule against Bias is made to rectify the unfairness and partiality in the judgement based on evidence. The above phrase means- “No one should be a judge in his case.” There are three kinds of bias found-

  1. Personal bias– In this situation, the judge has personal feeling, or favouring a party because of some relationship with that party. There are two types of tests for personal bias, namely, the ‘Likelihood of Bias’ and the ‘Suspicion of Bias’.
  2. Pecuniary bias – This means biased actions due to money-related incentives. Sometimes a judge is prejudiced in his judgement after being bribed and does not follow the Natural Justice.
  3. Subject-matter bias– In some situations, the judge creates a pre-formed opinion of the subject matter. Ultimately he fails to give fair judgements. This may be due to departmental conflicts, acting under dictations or even connect with the issue.

Case Laws[ii]

(a) R. v. Brandsley, 1976 I.R. 217 at 223

A licence had to be granted to a cooperative society. The judgement was given in favour of that society and later it was found that 5 out of 7 judges were the members of that society. The granted license was later cancelled because of the financial interest of the judges.

 (b) Tata Cellular v. Union of India, 1994 INSC 401

The father was a government employee and the tender was submitted by his son’s company and approved for the same company due to his father. Due to personal bias, the tender was finally quashed by the court.

(c) Meenglass Tea State v. Workmen, 1963

A manager beat the workmen and the inquiry was conducted by him only. In a way, he became the witness and the judge of the case, later quashed by the court.

(d) State of U.P. v. Mohd. Nooh, 1958

In a departmental inquiry against an employee, a witness turned hostile. The inquiry officer left the inquiry and gave evidence against that employee. Later, he resumed the inquiry and dismissed that employee. Here also, the order of dismissal was quashed as it was based on personal bias.

Audi Alteram Partem

The natural right to be heard cannot be condemned. Each party should be provided with a reasonable opportunity to tell their side of the story, to produce their evidence and to rebut the evidence against him. Audi alteram partem or Right to Fair Hearing is the second strength of the principles of natural justice, which ensures that a fair opportunity to speak must be given to the party to defend the case against him. Some of the pre-requisites and essentials of the fair hearing are-

1) Notice should be served to the accused providing him a certain period so that he could also get legal aid to defend him

2) Accused should know the evidence against him which are presented in the court. He should also be given legal representation and financial aid to defend the case against him

3) He should be allowed to present his case and facts, and tell his version of the story. The chance to rebut or prove the evidence against him as wrong must also be given.

4) The right to cross-examine the witness should be enjoyed to make his side safer and stronger.

5) The fair hearing must be followed and both parties should be allowed to speak.

6) The Rule against Dictation should be followed and the decisions made by the judge should be his own and he should be dictated by external powers.

Case Laws

(a) Newspaper Express Pvt Ltd. v. Union of India, AIR 1958 SC 578

The court said that any administrative order passed by an authority without giving the parties, the reasonable opportunity to speak, and the order so passed will be considered illegal and must be set aside. Hearing is an essential ingredient in Indian Law.

(b) Public Prosecutor v. K.P. Chandrashekharan, (1957) 8 S.T.C. 6 (Mad)

The notice must give sufficient time to any person summoned or connected to the case.

(c) Dhakeswari Cotton Mills Ltd. v. C.I.T., AIR 1955 SC 65           

Supreme Court overruled the Tax Tribunal decision where the taxpayer was not informed by the concerned department to pay off the due taxes.

(d) State of Orissa v. Binpani Dei, AIR 1967 SC 1269 

A 55-year old employee was forcefully given the pre-mature retirement on the ground of the age; the order was set aside as he was not allowed to be heard.

(e) Khatri v. the State of Bihar, AIR 1981 SC 928

The court said that legal aid should be provided to the needy accused not only during the trial but also at the time of remand.

Maneka Gandhi v. Union of India, 1978[iii]

It was a landmark judgement where the petitioner was asked to surrender her passport by the Regional Passport Officer, New Delhi. When asked the reason for this order, ‘interests of general public’ grounds were provided. The petitioner reached the SC saying that the order by the authorities has infringed the fundamental rights under Article-14, 19(a), 19(g) and 21. They also rose that this order by the Passport authorities has also violated the principles of natural justice by not providing the petitioner with a reasonable opportunity of a fair chance of hearing to defend her (violation of Audi alteram partem). The respondents said that article-21 needs not to pass the ‘test of reasonability’ and the makers of the constitution have deliberately made it. They further added that the principles of natural justice are nowhere mentioned in the constitution of India and are highly vague.

The Supreme Court in their judgement admitted that there is a conflict between ‘procedure established by law’ and ‘due process of law’ but it does not mean that the law need not pass the ‘test of reasonability’, and further said that we cannot ignore the principles of natural justice even if they are absent in the constitution. They insisted that article-21 should be given a wider scope and should be exercised in a fair and just manner. The court also created an interlink between article- 14, 19 and 21 by overruling the A.K. Gopalan v. State Of Madras Case and these three laws were together termed as the ‘Golden Triangle’ of the Constitution and insisted to be read together.

Conclusion[iv]

Natural Justice is a very essential postulate and should definitely be included in our constitution. The principles of natural justice provide a blanket covering an individual from unfairness. It is not codified cannon. The principles of Natural Justice improve the functioning of administrative authorities. It ensures the right of people against the unjustified and arbitrary practice of power by the administrative authority. The main motive of natural justice is that it prevents the failure of justice. It also ensures that justice is done to both the parties in trial. The infringement of principles of natural justice results in arbitrariness and unfairness and the decision made in such a way is void or voidable.


[i] PaathShala, L. (2020, 12). Principles of Natural Justice. Retrieved 05, 2021, from https://legalpaathshala.com/principles-of-natural-justice/

[ii] The Fact Factor, Pecuniary Bias and Official Bias (2019), https://thefactfactor.com/facts/law/civil_law/administrative-law/pecuniary-bias-and-official-bias/4410/#:~:text=Official Bias or Subject Matter Bias: Another type,not disqualify a judge from deciding the matter. (last visited 2021).

[iii] Law Circa, Maneka Gandhi v. Union of India Case Analysis (Interconnection between Articles 14, 19 and 21) (2020), https://lawcirca.com/maneka-gandhi-v-union-of-india-case-analysis-interconnection-between-articles-14-19-and-21/ (last visited 2021).

[iv] Corner, L. (2020, 07). Significance of Natural Justice under Administrative Law. Retrieved 05, 2021, from https://lawcorner.in/significance-of-natural-justice-under-administrative-law/

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This article is authored by Sanskriti Goel , a 1st year law student from Chanderprabhu Jain College of Higher Studies and School of law, GGSIPU. This article discusses the heinous crime of marital rape which any of the Indian laws fail to address effectively. 

“They say that marital rape does not become a rape. And why would it be? Since, he had posted a logo of his surname on her body.”

—Anonymous

INTRODUCTION

Marriage is a social institution consisting of a pure relationship between two souls, but unfortunately, the social evil of rape does not even spare this bond of purity. According to the National Family Health Survey (hereinafter ‘NFHS’) conducted in 2015-16, the average Indian woman is 17 times more likely to face sexual violence from her husband than from others. The same data indicate that 5.4% of women were physically forced to have sexual intercourse with their husbands even when they did not want to. Further, the data shows that an estimated 99.1% of sexual violence cases go unreported, and in most of such cases, the perpetrator is the husband of the victim. 

In spite of these worrisome reports, Indian law fails to effectively address this heinous crime of marital rape. 

What is Marital Rape

Marital rape is the act of forceful and non-consensual sexual intercourse with one’s spouse. Marital rape is also known as spousal rape. The essential element here is lack of consent. It has been observed in many instances that it takes no time for domestic violence to turn into marital rape. So in simpler words, marital rape is a form of domestic violence and sexual abuse. 

Lacunae in the Law

Section 375 of Indian Penal Code, 1860 (hereinafter ‘IPC’) defines rape as:

A man is said to commit “rape” if he—

  1. penetrates his penis, to any extent, into the vagina, mouth, urethra or anus of a woman or makes her to do so with him or any other person; or
  2. inserts, to any extent, any object or a part of the    body, not being the penis, into the vagina, the urethra or anus of a woman or makes her to do so with him or any other person; or
  3. manipulates any part of the body of a woman so as to cause penetration into the vagina, urethra, anus or any part of body of such woman or makes her to do so with him or any other person; or
  4. applies his mouth to the vagina, anus, urethra of a woman or makes her to do so with him or any other person,

under the circumstances falling under any of the following seven descriptions:—

First.—Against her will.

Secondly.—Without her consent.

Thirdly.—With her consent, when her consent has been obtained by putting her or any person in whom she is interested, in fear of death or of hurt.

Fourthly.—With her consent, when the man knows that he is not her husband and that her consent is given because she believes that he is another man to whom she is or believes herself to be lawfully married.

Fifthly.—With her consent when, at the time of giving such consent, by reason of unsoundness of mind or intoxication or the administration by him personally or through another of any stupefying or unwholesome substance, she is unable to understand the nature and consequences of that to which she gives consent.

Sixthly.—With or without her consent, when she is under eighteen years of age.

Seventhly.—When she is unable to communicate consent.

However, exception 2 to Section 375 states that sexual acts by a man with his own wife, the wife not being under fifteen years of age, is not rape. Therefore,  the exception discriminates between married and unmarried females and defeats the entire objective of Section 375 which is to protect women from all kinds of sexual assault. Perhaps, as per the current law in India, it is presumed that there is a perpetual ‘implied consent’ on part of a woman to have sexual intercourse with her husband. Here is a question to ponder upon how can the meaning of ‘non-consensual’ differ in marital rape? It seems like rape laws in India are made by people who believe in patriarchy and they are trying to tell all the women in India that once you get married your body becomes a property of your husband and you lose all of your rights over it. 

Article 14 of the Constitution of India gives the right to equality. The exception 2 to Section 375 violates Article 14 by discriminating among women on the basis of their marital status. Not only this, the exception also violates Article 21 of the Indian Constitution, which gives the right to life. The Hon’ble Supreme Court of India in the State of Karnataka v. Krishnappa 2000 CriLJ 1793 held that sexual violence is not only a dehumanizing act, but is also an unlawful intrusion of the right to privacy and sanctity of a female. It was also observed that non-consensual sexual intercourse amounts to physical and sexual violence. Thus, marital rape clearly violates the right to live with dignity of a married woman. Moreover, the exception defeats the entire objective of Section 375 which is to protect women from all kinds of sexual assault as it creates a class of women which is not protected under this section. The wife cannot get out of the sexually abusive relationship and the husband who should be deemed a rapist continues committing the same crime under the tag of marriage. 

The Protection of Women from Domestic Violence Act, 2005 consider marital rape as a form of domestic violence. Under this Act, if a woman is raped by her husband, she can go to the court and obtain a judicial separation from her husband. The Act does not consider marital rape as a crime and hence does not protect woman against marital rape completely.  640

In 2016, former Union Minister for Women and Child Development, Maneka Gandhi said, “The concept of marital rape as understood internationally cannot be suitably applied in the Indian context due to various factors like level of education, illiteracy, poverty, myriad social customs and values, religious beliefs and the mindset of the society to treat the marriage as a sacrament.” The Government of India is of the view that if marital rape is criminalized in India, it would destabilize the institution of marriage. Apparently it is believed that criminalizing of marital rape would lead to malicious prosecutions against husbands of those wives who want to take some kind of revenge from their husband. 

Moreover, the IPC is based on the ‘Doctrine of Coverture’. The doctrine of coverture belongs to the common law foundation which postulates that the rights and obligations of a married woman are subsumed by her husband’s rights and obligations and does not consider a married woman as an independent legal entity. As a result, the notion of ‘implied consent’ in marriage continues to exist till now.

CONCLUSION

India is one of the only 36 countries where marital rape is still not criminalized. The Justice J.S. Verma committee which was formed after pan India outrage over the 2012 Nirbhaya gang rape case had also recommended criminalizing marital rape in India. But all in vain. What changes after marriage? Why is a sexual predator allowed to hide behind the mask of a husband? Why marriage is considered as a license to ‘lawfully rape’ your wife? Interestingly, in India marital rape only exists in the data, not in law. While we call for women empowerment, we fail to guarantee even the basic rights to a married woman. The doctrine of the coverture is no longer applicable in India and this calls for elimination of Exception 2 to Section 375 and stringent laws on marital rape. 

Rape is rape. A rapist is a rapist, whether a husband or a stranger. 

REFERENCES

  • The Indian Penal Code, 1860
  • https://www.google.com/amp/s/indianexpress.com/article/opinion/columns/the-impunity-of-marital-rape/lite/
  • https://prsindia.org/policy/report-summaries/justice-verma-committee-report-summary
  • https://www.google.com/amp/s/www.thehindu.com/opinion/editorial/criminalising-marital-rape-and-maneka-gandhi/article8352904.ece/amp/
  • https://www.mondaq.com/india/crime/691482/law-on-marital-rape-a-much-needed-reform-in-our-legal-system 

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About the Internship – 

CEERA is inviting applications for online internships for the months of June 2021 and July 2021.

The internship would involve in depth research in areas such as Contractual enforcement, Smart Contracts, Law & Technology, Urban Law and Governance, Environmental Law, Chemical Waste Management, Water Law and allied areas.

For more information on us visit our websites – www.nlspub.ac.in | www.nlsenlaw.org | www.nlsabs.com

Eligibility

CEERA invites applications from 3rd, 4th and 5th year students enrolled in recognised five-year law programs; 2nd and 3rd year students enrolled in recognised three-year law programs and students from recognised LL.M. programs. 

Candidates should have a learning curve towards litigation research, drafting of agreements, petitions, RTI Applications, legal opinions, etc and should possess strong reading and writing skills.

Candidates must have a stable and strong broadband/internet connection to work remotely.

Duration of Internship

The online internship shall be for a minimum period of 4 weeks commencing from:

ï»żFirst Batch : June 1, 2021 to June 30, 2021

Second Batch: July 1, 2021 to July 31, 2021

How to Apply?

Interested candidates may send an e-mail to lianne@nls.ac.in along with the following documents: (i) Curriculum Vitae, (ii) A sample write up not exceeding 1000 words on or before May 26, 2021.

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This internship is situated in the Office of Legal Affairs (OLA) at The International Seabed Authority (ISA) under the supervision of a legal officer or any other staff member within the OLA team. Daily tasks include assisting the team with completing and optimizing the day-to-day tasks within the office. Selections will be made on a rolling basis. Workdays are Monday to Friday. In view of the pandemic, work from home and flexi-hours arrangements are available for this role, which will be determined on a case-by-case basis.

The minimum period for each internship role is two months with a possibility for extension depending on the needs of the Office.

In the context of the COVID-19 pandemic, applicants may be requested to undertake the internship remotely in view of constraints regarding visa issuance, international travel and access to ISA premises. Applicants must be willing and prepared to undertake the internship remotely for a part or the entirety of the internship.

The internship is UNPAID and full-time.

Interns work five days per week (35 hours) under the supervision of the assigned supervisor. The following responsibilities can be adapted, as appropriate, to fit each intern.

Responsibilities

This opportunity is designed for an intern to work with experienced legal officers and other team members in OLA whilst at the same time developing capacity, skills, and knowledge base in the work of the ISA.

Duties may include, but are not limited to:

1. Undertake background research, based on public international law as well as ocean law and policy as and when required. Assisting legal officers with the preparation and documentation work involved in preparing of annual sessions, including note taking and transcribing of recorded meetings as and when necessary.

2. Assist with the compilation of a manual/ historical document detailing the progress made by the international Seabed Authority in the development of the Draft Exploitation Regulations from its inception till date.

3. Provide administrative and quasi-legal support on the work related to the document gathering and compiling of data related to the development of a Deepsea mining registry for the International Seabed Authority.

4. Assisting with any other quasi-legal tasks that may be assigned on a rolling basis by the supervisors.

Education

1.Applicants must:
(a)be enrolled in a graduate school programme in law or related field (second university degree or equivalent, or higher); or
(b)be enrolled in the final academic year of a first university degree programme in law or related field (minimum Bachelor’s level or equivalent); or
(c)have graduated with a university degree in law or related field (as defined in (a) or (b) above) and, if selected, must commence the internship within a one-year period of graduation.

2.Be computer literate in standard word processing and spreadsheets software applications such as Microsoft Word and Excel or similar.

3.Have a demonstrated keen interest in the work of the United Nations and have a personal commitment to the ideals of the Charter; and

4.Have a demonstrated ability to successfully interact with individuals of different cultural backgrounds and beliefs, which include willingness to try and understand and be tolerant of differing opinions and views.Work Experience

No working experience is required to apply for the United Nations Internship Programme. Your training, education, advance course work or skills should benefit the United Nations during your internship.

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Eligibility:

  • 4th and 5th-year students from 5-year integrated law course
  • Final year students from a 3-year law course, from a recognized law college in the country.
  • Preference shall be given to the students who have opted for Legislative Drafting as a subject in their course of study.

Duration of the Internship:

4-6 weeks

Maximum Number of Selected Interns:

5 at a time

Role and Responsibilities:

  • Any responsibility related to study, research, or other work in connection with the working of the Department.
  • They may work under the supervision of any officer to be decided by the department.
  • The work done by the interns shall be evaluated by the Department.
  • Interns may be required to present a report at the time of completion of their internship.
  • Any material prepared by the intern shall be the property of the Department.
  • The intern shall be allowed to use the library of the Ministry of Law and Justice only for reference purposes.

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This article is written by Kalyani Gupta, a Master’s in Law student from Amity University, Noida. This article discusses meaning and rules for determining the residential status of an assessee.

INTRODUCTION

An ‘Assessee’ implies to an individual on whom tax, or any additional sum of cash is imposed under the Income tax and he is legally responsible to reimburse the same. According to section 2(7) of the Income tax Act, 1961, “assessee” implies an individual by whom any tax or any additional sum of money is outstanding under this Act, includes –

  • “Every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or assessment of fringe benefits or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person”
  • “Every person who is deemed to be an assessee under any provision of this Act”
  • “Every person who is deemed to be an assessee in default under any provision of this Act”

Hence, any individual who is responsible to pay tax through his personal income or income of any other individual is said to be called an assessee.

Need to Determine the Residential Status

The aggregate income is separate in case of an individual resident in India and a person who is a non-resident in India. Additionally, in case of a single person and HUF being “not ordinarily resident in India”, the implication of the total income shall be slightly distinct. Subsequently the total income of an assessee differs in accordance with his residential status in India, the occurrence of tax will also fluctuate keeping in mind such residential status in India.

Tax is imposed on the total income of assessee. According to the provision of Income-tax Act, 1961 the entire income of each individual is created upon his residential status. Section 6 of the Act separates the assessable individuals into three groups:

  • Ordinary Resident
  • Resident but Not Ordinarily Resident
  • Non-Resident

Residential status is a name devised under Income Tax Act and does not have nothing to do with nationality of an individual or his domicile. A person who is an Indian and a citizen of India can be non-resident for purposes of Income-tax, but an American who is a citizen of America can be an Indian resident for purposes of Income-tax. The residential status of an individual varies upon the territorial links of the individual with this country, which means that, the number of days he has actually and physically stayed in India.

The residential status of various kinds of persons is decided in a different way. Likewise, the residential status of the assessee is decided each and every year while referring to the “previous year”. This may change from year to year. What is important here is that the status throughout the previous year and not in the current assessment year.

An individual may be a resident in the preceding year and a non-resident in India in another preceding year, for example: Mr. X is a resident in India in the preceding year which is 2018-19 and in the next year he becomes a “non-resident in India”.

Duty of Assessee: It is duty of the assessee’ to put relevant statistics, evidence and information before the Authorities of Income Tax backing the determination of “Residential status”.

Dual residential status: A dual residential status is permissible. An individual may be resident of more than one country in a relevant preceding year for example, Mr. A may be an Indian resident during the preceding year 2018-19 and may also be a “resident/non-resident” in US in the same preceding year. The advent of such a condition varies upon the following:

  • the presence of the Residential status in countries under such considerations
  • the distinct set of rules getting put down for purpose of determining residential status.

Determination of Residential Status of Different Person’s

The Income tax is indicted on every person. The term ‘Person’ has been well-defined under section 2(31), which includes:

  • An individual
  • Hindu Undivided Family (HUF)
  • Firm
  • Company
  • Local authority
  • AOP/BOI
  • Every other artificial juridical person not included in the above categories

Therefore, it is necessary to ascertain the residential status of the above-mentioned different categories of persons.

Types of Residential Status

The following fundamental rules must be adhered to while ascertaining the residential status of an Assessee:

  • Residential status is ascertained for each type of persons individually and separately for example, there are distinct set of rules for deciding the residential status of a person and different rules for companies, etc.
  • Residential status is constantly ascertained for the preceding year because we must determine the aggregate income of only the preceding year.
  • Residential status of an individual is to be ascertained for every preceding year because it may vary every year. For example, X, who is an Indian resident in the year 2017- 18 which is considered the preceding year, could become a “non-resident” in the previous year 2018-19.
  • If an individual is an Indian resident in a preceding year related to an assessment year in regard of any basis of income, he shall be considered to be a resident in India in that preceding year which is pertinent to the current assessment year in reverence of each of his sources of income. 
  • An individual can be a resident of one or more countries for any preceding year. For example, If A is an Indian resident for the previous year i.e., 2017-18, it will not imply that he cannot be a resident of any other country for that same preceding year.
  • It is the responsibility of the assessee to put all relevant facts before the assessing officer to allow him to ascertain his appropriate and accurate residential status.

An assessee can be classified into the subsequent residential status during the preceding year:  

  • Resident in India
  • Non-Resident in India 

A resident person and HUF are further sub-categorized into the following:

  • Resident and Ordinarily Resident
  • Resident but Not-ordinarily Resident

1. Individual:

The “residential status” of a person for the objective of taxation is decided on the foundation of his bodily presence in India for the duration of the preceding year (April 1 to March 31) and the preceding previous years. A person is deemed to be an Indian resident if he is:

  • “Physically present in India for a period of 182 days or more in the previous year”
  • “Physically present in India for a period of 60 days or more during the relevant previous year and 365 days or more in aggregate in four preceding previous years”

If an individual does not fulfil any of the two conditions mentioned above will be considered a non-resident in India for the objective of taxation in India. A resident person is additionally categorized into ‘Resident but not Ordinarily Resident’ if:

  • “His stay in India is of 729 days or less in previous 7 years”
  • “He was considered as ‘non-resident’ in 9 out of previous 10 years”

2. Hindu Undivided Family (HUF):

A Hindu Undivided Family is believed to be resident in India if the control and administration of HUF is in India. A resident Hindu Undivided Family is further categorized into ‘Resident but not Ordinarily Resident’ if:

  • “Stay of Karta in India is 729 days or less in previous 7 years”
  • “Karta was considered as ‘non-resident’ in 9 out of the previous 10 years. If the control and management of HUF are situated wholly outside India, then HUF shall be treated as non-resident”

3. Company: 

An Indian Company is always considered as a resident in India. But, in the case of a Foreign Company, it will be regarded as a resident in India only if the “Place of Effective Management” (POEM) of that foreign company is situated in India. If Place of Effective Management of Foreign Company is beyond India, then it will be considered as a non-resident in India.

4. Every other Person: 

In the situation of every other person, which is, Firm/BOI/AOP, they will be considered as a resident in India if the control and supervision of person is in India. If it is located outside of India, then the status will be considered as non-resident. It must be stated that if an individual is a resident in India in a preceding year in regard of any of his source of income, he is considered to be an Indian resident in regard of all his other sources of income. An assessee is not permitted to obtain separate residential status for his various sources of income. So, before determining the income during the year, it is very crucial to assess the residential status of the assessee for the duration of the preceding year.

CONCLUSION

“Origin, Nationality, place of birth, domicile” does not play a crucial role in the computation of Income Tax. If an individual who is a citizen of Indian can be non- resident and the individual who is not an Indian citizen and if he is residing in India and satisfying the conditions of being a resident then as an eye of Income Tax he can be a resident of India and will be taxable in nature. 

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