About Innovative Group of Colleges

Innovative Welfare and Educational Society (Regd.) was incorporated more than a decade back with the avowed objective of dissemination of literacy amongst the under-privileged segment of society in India and to provide an impetus to growth of professional education in varied streams for self-reliance amongst future generations.

About the Innovative 1st National Moot Court Competition 2022

Innovative First National Moot-Court Competition, 2022 is the first edition of the Moot – Court Competition organized by Innovative Institute of Law, Greater Noida, U.P.

The event aims to construct a productive platform where young legal minds come together and showcase their skills which are far more valuable than winning or being eliminated in an event.

Eligibility

The Competition shall be open for

  • Students duly enrolled and are pursuing an integrated 5years or 3 years Law Program in India from an institution recognized by the Bar Council of India.
  • Students enrolled and pursuing a post-graduate diploma or short-term certificate courses in law are not eligible to apply.
  • Students from any university/ Institute not recognized by the Bar Council of India to impart a Law degree are not eligible to apply.

Awards and Prizes

  • Winner: 21,000/- + Trophy + Certificate of Merit
  • Runner Up: 11,000/- + Trophy + Certificate of Merit
  • Best Speaker: 5000/- + Memento + Certificate of Merit
  • Best Memorial: 5000/- + Memento + Certificate
  • Best researcher: 5000/- + Memento + Certificate
  • All other participants shall receive participation certificate + Memento

Mode of Conducting Competition

Offline/Physically

Location

Innovative Institute of Law, Plot No.-6, Knowledge Park-2, Greater Noida, U.P.-201308

Registration and Selection of Teams

  • Teams shall register themselves through the link provided at the end of this post.
  • All the teams shall be required to make a payment of INR 1500/- via NEFT in favour of details provided below to register for the Competition.
    • The payment confirmation of same has to be sent attached in the registration form. 
    • Registration of a team shall be confirmed only after the receipt of registration form and payment by the Organizers.
    • The confirmation of registration shall be conveyed to the teams via mail which shall also mention the team code allotted to the teams. During the competition teams shall be identified by the team code allotted to them.

Fee Details

Mode of payment of the registration fee shall be via Paytm/PhonePe/Google Pay to the following mobile number: 8860982973 

Queries Regarding Moot Problem

  • Any queries regarding the moot problem should be communicated to e-mail: mcc@innovativeinstituteoflaw.com 
  • No queries will be entertained after 9th April 2022.

Team Composition

A team shall consist of two Mooters and one Researcher in the team.

How to Register?

  • Interested participants can register for the competition through this link.
  • The rules and regulations are given here.
  • The moot problem for the competition is available here.

Important Dates

  • Date of Competition: April 29th, 30th & 1st May 2022
  • Release of problem: March 12th, 2022
  • Last date for registration: April 9th, 2022
  • Submission of memorial: April 15th, 2022

Brochure

Contact details

For any queries/clarifications:

  • Email: mcc@innovativeinstituteoflaw.com
  • Anand Singh: Faculty Convener: 9651499636
  • Rahul Singh: Faculty Co- Convener: 9289554476, 9289554475 
  • Simran Singh: Student Convener: 9319314629
  • Arundhati Thakur: Student Co- Convener: 9891778222

Disclaimer: All information posted by us on LexPeeps is true to our knowledge. But still, it is suggested that you check and confirm things on your level.

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Introduction

Tort is a civil wrong, meaning it is a wrong committed against a person. Tort comes from the Latin word “tortum,” which means “crooked” or “twisted.” It is equivalent to the English term ‘wrong’ in this sense. There are two kinds of law: civil and criminal. Tort and contract law are two subsets of civil law. It’s essentially a violation of a legal obligation. It violates the legal rights of others. A tort happens when someone intentionally or carelessly harms another person.

Civilization and law coexist. It is not possible for one to exist without the other. If one thrives, the other develops as well, and if one declines, the other suffers. As a result, tort law was created to deal with everyday offenses.

The Tort Law can be traced back to the Roman precept alterium non-laedere. The maxim means “not to harm another,” implying that no one should be harmed by their actions or words. This maxim is similar to the maxims of honesty vivere, which means “to live honorably,” and suum clique tribuere, which means “to render to every man that which belongs to him,” or “to bring fairness to every person.” The development of tort law can be traced back to these three maxims.

What is Tort according to jurists?

Salmond defined tort as, “It is a civil wrong for which the remedy is a common-law action for unliquidated damages and which is not solely a violation of contract, trust, or other essentially equitable obligation.”

Winfield mentions, “Tortious liability comes from the breach of a primary legal obligation: this duty is owed to all individuals, and its failure is redressable by an action for unliquidated damages,” Winfield says.

The definitions of Winfield and Salmond are incompatible. The practical point of view is represented by Salmond’s definition, but the theoretician point of view is represented by Winfield’s definition. Salmond’s point of view is preferred by lawyers, but Winfield’s is preferred by students. Furthermore, Salmond’s perspective is narrower, whereas Windfield’s perspective is larger.

Application of English Law of Torts in India

In India, tort law is based on English tort law.
The English Law of Torts has a significant influence on Indian tort law, despite the fact that the act has been changed to reflect Indian legislation. When the British ruled India, they established their own set of rules and procedures for administering justice. Jimha, which means crooked in Sanskrit, was believed to be akin to “tortious of fraudulent conduct” in ancient Hindu law. At the time, the scope of British tort was limited.

Because the Indians were utterly uninformed of the English laws, they were found to be unjust and inequitable. It was difficult to administer Indians in the early days of British law since there was an English Judge who had to deal with a case in a foreign language. As a result, they resolved to draught an Indian Tort Law based on English concepts in order to avoid chaos. They chose to set up courts in India in the 18th century after studying the Indian laws at the time and obtaining the necessary approval.

Mayors Courts in the Presidency Towns of Calcutta, Madras, and Bombay were the first courts established by the British in India. These courts were subject to English statutes and Acts, which were then implemented in England.
The courts established that “justice, equity, and good conscience” were the guiding principles at the time. The Privy Council understood the phrase “justice, equity, and good conscience” to include norms of English law that are suitable to Indian society and circumstances. All of this meant that the High Courts of Bombay, Calcutta, and Madras adhered to the Common Law of Torts, while the other courts applied the principles of justice, equity, and good conscience.
Also, when looking at Indian decisions, Justice Bhagwati stated in M.C. Mehta v. Union of India,

“In a highly industrialized economy, we need to develop new ideas and lay down new rules that will effectively deal with new challenges that occur.” We cannot allow our judicial thought to be shaped by the law as it currently exists in England, or for that matter, in any other country. We are absolutely open to receiving illumination from any source, but we must first establish our own jurisprudence.” We can infer from the words that Justice Bhagwati recognized the importance of having one’s own law and how it contributes to the nation’s growth.”

The main purpose of Law of Torts in India

The primary goal of tort law is to provide compensation to people who have been injured. Though, in current times, the goal is to distribute losses among those who are connected in some way.

Furthermore, some authors argue that Tort Law is more concerned with punishing than compensating. For the purpose of Torts, everyone has their own point of view. The violation of a general duty is a common ingredient in both crimes and torts. Murder, robbery, burglary, and other major crimes are all under governmental supervision. The state has power over all common wrongs in Tort Law as well. Individual harm is thought to be equivalent to societal harm.
As a result, the primary goal of tort law is to punish wrongdoers and foster social peace.

Reasons for the slow development of Law of Torts in India

In comparison to other countries, India’s tort law is not well developed. Even the Indian Tort Law does not have a codified version. There are several reasons for India’s sluggish development of tort law, some of which are stated below:

  1. The law is ambiguous. People face a great deal of uncertainty because the legislation is not codified and is still in its early phases of development. This is why only a small number of cases are filed under Indian Tort Law. Furthermore, there are few precedents, which adds to the vagueness of Tort law. The existing precedents are from English Tort law and cannot be applied to Indian law.
  2. There is a general lack of political awareness among the general public. Because most people are unaware of their rights, tort law is rarely employed in the country. This issue arises as a result of India’s widespread illiteracy, which also causes people to avoid going to court to exercise their rights. People who carry out their responsibilities are given more weight than those who demand their rights.
  3. Why do people disregard their legal rights? This is due to a lack of awareness of their rights and the country’s high illiteracy rate. Because of their illiteracy, people are unaware of their rights and are hesitant to seek redress through the courts.
  4. Poverty continues to be a factor in India’s delayed development of tort law. The majority of India’s population is economically poor, and as a result, they are unable to afford the hefty costs of litigation. This is still a major reason to avoid bringing a Tort case.
  5. The court system is also highly expensive. The cost of going to court and hiring a lawyer is extremely significant. As a result, rather than approaching the court, the poor man chooses to suffer the torture. The cases are likewise handled in a molasses-like manner. On the other hand, in England, the administration of justice is so cheap and quick that these types of cases are resolved in under a year. All of these issues contribute to the tort law’s delayed evolution.

The number of pending cases in India as of October 13, 2018, is depicted in the graph below.

The graph was created using data from the National Judicial Data Grid. Due to the sluggish evolution of Indian legislation, a considerable number of cases are still waiting.

Have Torts been Ignored in India?

The next stage will be to see if the Indian court system has disregarded tort law. Simply said, tort law has not been forgotten. The M.C. Mehta case, which established the absolute liability rule, the Supreme Court’s direction on Multinational Corporation Liability, recognition of Governmental tort by government employees, principles on the legality of the state, the evolution of the tort of sexual harassment, a grant of interim compensation to a rape victim, and award of damages for violations of human rights under writ jurisdiction are all examples of this.

Despite the fact that most areas of law, such as crimes, contracts, property, trusts, and so on, have been systematically organized, India’s lack of a torts code is notable. The work of Indian attorneys and judges has contributed significantly to the evolution of tort law. Tort reform has been advocated for about a century and a half, with the earliest support coming from Sir F Pollock in 1886, who drafted the ‘Indian Civil Wrongs Bill.’ The bill, however, was not brought up for consideration in the legislature.

The value of code cannot be denied, but it is vital to remember that tort law is still in its infancy, and codifying it would not only be difficult but may also stifle its progress. However, the lack of a code prevents torts from becoming the dominant mode of litigation. The evolution of tort law in India pales in comparison to that of other progressive countries, where tort law is substantially more mature.

As previously stated, codification of tort law at this time would be premature. A more prudent approach would be, to begin with, enactments in areas where case law is lacking. The subject of the government’s liability when it comes to torts committed by its workers is one of the first suggestions made by the Law Commission in this regard.

In the report of the commission led by MN Venkatachaliah CJ, the National Commission for Review of the Working of the Constitution (NCRWC) has also recommended a statute that makes the state liable for the torts of its employees (2002). The small volume of tort litigation in Indian courts, on the other hand, contributes considerably to why an Indian code on this branch of law may be premature. Currently, only a small percentage of tort lawsuits are ever brought to court. However, this is a catch-22 since until a code for tort law is developed, there will be few tort cases brought in courts because people have no means of knowing what they are getting into.

Concerns with Tortious Litigation in India

Despite the fact that India is regarded as a litigious country, the number of lawsuits filed is quite modest. This is because of the limits and roadblocks that have been placed in place, including prohibitive fees, lengthy delays, and inadequate harm grants. In recent years, there has been a notable increase in the number of cases completed, particularly in cases involving the administration. This is typically linked to India’s financial development and, as a result, increased awareness of legal rights.

Common law jurisprudence shaped the Indian legal system and was introduced to the Indian people in an uncommon way. Although the English tort law served as a model for its Indian counterpart, its application is still ambiguous and limited. Several decisions and cases involving defamation and contributions between joint tortfeasors plainly illustrate that India cannot and does not adhere to English common law.

The English tort law applied differentially to Presidency towns and the mofussil throughout the colonial era. Indian citizens are exempt from the champerty and maintenance statutes. In fact, only those provisions of English tort law that suit the local conditions in India have been upheld and are valid in India. Given this situation, determining whether a given English statute also applies in India is difficult.

It was also unclear whether a specific statute remained in force in India after being abolished or changed under English law. For such a question, there is no final answer. As a result, unless a judge decided otherwise, it was difficult to know whether aspects of English law were applicable in India. Tort law remained uncodified even after the Constitution took effect. Article 372 of the Indian Constitution states that legislation in effect immediately prior to the adoption of the Constitution remains in effect. Any rulings issued by English courts, on the other hand, are no longer required to be upheld by Indian courts.

These decisions may only have persuasive power at most. As a result, the state of tort law remains unchanged. Because English tort law cannot be applied generally to the Indian setting, Indian tort law as a whole remains ambiguous. Furthermore, there is still a discrepancy in the application of laws in Presidency towns against the mofussil.
Citizens do not have a clear knowledge of their rights and responsibilities before going to court. Lawyers are likewise constrained in how much assistance they can provide in this circumstance because many areas of the law are still uncertain. The judge presiding over the case also has a difficult assignment ahead of him.

It’s simple to understand why victims often accept the wrongdoings they’ve been subjected to without pursuing legal redress. Is there always a way to stand up for one’s rights? The explanation, according to Professor Northrop, could be found in the cultural contrasts between eastern and western nations. Compromise is encouraged in Eastern societies. Furthermore, Asian tribes have a reluctance to use Western, right-wing legislation to resolve their conflicts. As a result, when it comes to torts, there is very little litigation.

People have been skeptical of such sweeping generalizations for a long time, while also urging that we reconsider the need for tort law litigation in India and its repercussions. Such recommendations strongly propose that empirical research be conducted to evaluate the validity of such reasons, which are mostly based on sociological, civilizational, and cultural elements.

If there is one thing that is certain in today’s culture, it is that quality justice is not provided; rather, it can only be purchased at a hefty cost. This is not to imply that the court is corrupt; rather, it demonstrates how a common man cannot even imagine receiving proper recompense for the damages to which he is entitled. This is true because the adversary can always use his money or influence to get around our country’s complicated judicial structure.

The commoner, on the other hand, will face a chain reaction of procedural issues as soon as he approaches the judicial system with his grievance, which will absorb all of his money, willpower, and time. The aggrieved will be obliged to pay hefty lawyer’s fees, court fees, and other incidental charges just to file his claim in court. To the uninitiated, it may not seem true, yet his legal expenses in seeking to recover his losses might sometimes much outweigh the original amount of his claim.

Unfortunately for him, if he loses at the conclusion of the trial, he may be forced to pay even more money to the court, first as costs, and then to file an appeal in a higher court. We haven’t even discussed the length of time it takes to resolve a civil case in India. According to studies, courts in tortious litigation cases take an average of nearly 6 years to reach a judgment. So far, the shortest time it has taken for a tort case to be resolved in 5 years, while the longest time it has taken is 13 years. Even severely harmed people are discouraged from resorting to civil action due to the excessive costs and lengthy decision-making process involved in tort claims.

We have highlighted a few cases that have further discouraged those who have been wronged in order to show the court attitude in such scenarios where compensations must be paid. According to precedent, in a case where the plaintiff’s claim was for Rs. 10,000/-, he was only awarded Rs. 1/- in compensation. In another case, two civil actions were valued at Rs. 500/- apiece, but the court only granted the aggrieved parties Rs. 60/- and Rs. 50/-, respectively.

The Hon’ble Nagpur Bench of the erstwhile Bombay High Court determined that in a matter where the claim was for Rs. 11,300/-, the aggrieved would be satisfied with an award of only Rs. 315/-. In a case before the Hon’ble Madras High Court, a plaintiff filed a claim for Rs. 10,000/- but was only given Rs. 650/- in compensation. It should be noted that these examples are somewhat ancient, yet they have been mentioned to emphasize the Indian judiciary’s inclination to ignore tort proceedings and award grossly disproportionate amounts when contrasted to the plaintiff’s claims.

Major Breakthroughs in Tort Law in India

UPHAR CINEMA CASE –The Gateway to Tort Law in India

The Uphaar Cinema, located in a wealthy suburb in the center of the country, New Delhi, caught fire on June 13, 1997, due to a malfunctioning generator mounted by the Electricity Board in the theatre’s basement. The exits from the balcony were clogged due to the installation of unlicensed seats years ago. As a result, the occupants inside the theatre were unable to flee, and fifty-nine people perished and another hundred were injured.

In November 1997, all of the injured’s outraged family members established an association and filed a complaint in the High Court of New Delhi, represented by a volunteer lawyer. The group sought Rs. 22.1 crore in compensation and Rs. 100 crore in punitive damages, which would be used to establish a trauma center, making it the biggest demand in an Indian tort case to date.

Following that, in 2003, the court ordered Rs. 21 crores in compensation for the families of the deceased people, as well as Rs. 1.04 crore for the 104 injured theatre-goers. In addition, a sum of Rs. 2.5 crore has been approved for the establishment of a trauma center in this regard.

The multimillionaire theatre owners were then charged with criminal offenses, and the Sessions Court found them guilty and sentenced them to two years in prison. However, the aggrieved association, dissatisfied with the penalty, went to the Supreme Court in 2007, which maintained the convictions and enhanced the sentence.

In India, the Uphaar Cinema Case was a watershed moment for tort relief in catastrophes. It had well-organized and affluent appellants represented by a dedicated lawyer who did not charge for his services, as well as a case with no evidentiary issues.

However, fourteen years after the fire, on October 13, 2011, the Supreme Court reduced the damages awarded to the deceased victims to a fraction of their original amount, from 2.5 crores to 25 lakhs, a 90% reduction, and all government agencies charged with the fire were exonerated except the Delhi Electricity Board. Even when it was a win-win case totally in favor of the appellants who had been tortured by the incompetent authorities, the future of mass tort in India appeared dismal once again.

In 2014, the Supreme Court heard a new appeal in the criminal case of Uphaar. It upheld the Ansals’ convictions, i.e. the cinema owners who had previously been found guilty, but it couldn’t agree on the amount of compensation to be paid to the victims. Justice T.S. Thakur favored restoring the Ansals’ original punishment, but Justice Gyan Sudha Mishra favored awarding Rs. 100 crore as compensation for the establishment of a Trauma Center in the Uphaar Victims’ memory. The judge’s readiness to award such a large sum for a tort law case in India, far bigger in magnitude than had previously been contemplated, demonstrated the growth of mass torts in India.

INDIAN MEDICAL ASSOCIATION VS. V.P. SHANTHA– The Saha Case

In 1986, Parliament passed the Consumer Protection Act, which established a three-tiered consumer grievance redress system to give remedies for substandard “goods and services” across the country. In 1995, the Supreme Court ruled that “medical services” would fall under the Consumer Protection Act of 1986’s “goods and services” category. As a result, medical claimants no longer have to travel to court and pay high court fees, and they began submitting claims in Consumer Tribunals, which accounted for the majority of the cases handled by the Consumer Tribunals at the time.
From 2008 to 2014, the National Consumer Dispute Redressal Service delivered 154 medical malpractice lawsuits, accounting for 8% of its total judgments. Surprisingly, the claimants won over the medical practitioner in nearly 45 percent of the cases. From the moment the lawsuit was filed until the final verdict was reached, it took an average of 11.7 years.

An Indian-American couple traveled to Kolkata a year after the Uphaar tragedy to meet their relatives. The husband was a medical doctor, and the wife was a child psychologist who was 36 years old. The wife had a treatable but uncommon skin ailment and was admitted to the AMRI hospital, where she was cared for by a number of famous medical professionals. The treatment involved the administration of massive amounts of Depomoderol, which exacerbated the wife’s condition and finally led to her death.

Dr. Kunal Saha, the dissatisfied spouse, filed a complaint with the West Bengal Medical Council, which cleared the doctors. The spouse then filed criminal charges against the doctors under section 304A of the Indian Penal Code. The doctors were convicted by the West Bengal courts, but the Calcutta High Court overruled the District Court’s decision and exonerated them. Regrettably, the Supreme Court confirmed the Calcutta High Court’s decision regarding criminal responsibility.

Dr. Saha’s wife died as a result of the negligence of the three AMRI doctors, and a claim of Rs. 77 crore was made with the National Consumer Disputes Redressal Commission (NCDRC). The National Consumer Disputes Redress Commission (NCDRC) dismissed his claim and complaint in 2006. Dr. Saha represented himself in all of these proceedings, which cost him in a number of ways: (1) He had to travel 50 times from the United States to India as the case advanced. (2) Due to legal and travel expenditures, he declared bankruptcy in the United States of America. (3) He did not take up his academic position in Cincinnati, and as a result, his academic career was cut short.

Finally, the Supreme Court of India rejected the NCDRC’s ruling in 2009, and the matter was referred back to the National Consumer Disputes Redressal Commission to determine the amount of compensation. In October 2011, the commission finally awarded Dr. Saha damages of Rs. 1.5 crore. When the matter was appealed to the Supreme Court, a sum of Rs. 6.08 crores was awarded to Dr. Saha, directed against the doctors and the hospital, plus interest of 6% per annum, more than double the compensation previously awarded.

The Saha Case is a classic example of a one-on-one case that resulted in a milestone in Indian tort law. The Supreme Court granted increased damages because of the loss of a long career with a high American income that was harmed. The Saha case is an interesting reversal of the Bhopal Gas Tragedy, in which the perpetrator was an American Union Carbide Company and the victims were Indians, whereas the Saha case involved Indian wrongdoers and an American victim. We still don’t know if the broad tort damages based on monetary losses perpetuate gaps and inequality among the general public.

The Future of Torts in India – Conclusion

There is no empirical evidence to claim that India is a litigious nation. The truth is that Indian courts move slowly not because they are inept, but because there are too many cases for too few judges. We need to increase capacity in order to make our judicial system more strong, not just for civil cases, but also for criminal proceedings. Personal harm, which is addressed by tortious litigation elsewhere in the globe, requires significant attention in India, as has been adequately portrayed in this study. Tortious responsibility claims, both against the government and private parties, abound in the country. The procedure of approaching the court, on the other hand, is so delirious for the plaintiff that they are better off not going.

In general, as things stand now, those with money and privilege are able to buy their way out of the judicial system and avoid responsibility for their own negligent behavior. With little resources, it is the poor who must fight the system and the aggressor. This deplorable state of affairs necessitates a reassessment of tort litigation in India. Perhaps there is a need to constantly issue statutes that correctly deal with diverse tort law principles, rather than codifying and therefore making the entire branch immobile. A strong civil-litigation system will undoubtedly strengthen the government’s and citizens’ discipline, while also protecting human life and dignity. A strong civil-litigation system will undoubtedly strengthen the government’s and citizens’ discipline, while also elevating the value of human life and dignity for all people, not just the wealthy.

This article is written by Uday Todarwal.

Introduction

One of the primary players in India’s journey to prevailing in quick structure its economy has been the banking sector. Since our present legal framework for business exchanges has not stayed aware of developing strategic policies and monetary sector changes. This outcome in an extended recuperation of defaulted advances and an expansion in the number of nonperforming resources held by banks and monetary organizations. The Central Government laid out the first and second Narasimham Committees, as well as the Andhyarujina Committee, to look at banking sector changes. These committees surveyed the need for changes in the legal framework in these sectors. These committees, among others, have proposed new regulations for securitization that would permit banks and monetary organizations to take care of protections and sell them without the requirement for judicial activity.1

In light of these suggestions, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) were passed by the Parliament on December 17, 2002. The motivation behind this act is to permit banks and financial organizations to expeditiously recover cash progress. The Act licenses banks and financial organizations to sell sold property to recover outstanding obligations that poor person been paid for quite a long time in spite of various updates. Non-performing assets (“NPA”) in the records of banks and financial foundations must be dealt with in much the same way. The property being referred to could be a private or business property that has been sold with a bank or financial establishment as security for the assets progressed. Before the execution of the SARFAESI Act, distressed parties, like banks or financial establishments, would record a common recuperation claim in common court, and the interaction would delay for quite a long time in light of the fact that the common suit was battled by the two sides. Considering this, the law-making body chose to enact regulation that would permit such nonperforming assets (NPAs) to be quickly settled, permitting the bank to reinvest the recuperated reserves. Banks and financial foundations will save time by not recording a claim in common court, which would regularly be an extensive strategy.2 Unstable advances, credits under $100,000, and obligations that are under 20% of the underlying guideline are excluded from the resolution. This regulation allowed the arrangement of resource reconstruction organizations (ARCs) and the offer of non-performing assets by banks to ARCs. Without the assent of a court, banks are approved to take responsibility for the property and sell it.

Objective and Applicability

It’s a legal framework that governs securitization transactions. Security interests can be implemented without the support of a court. The Act encourages banks and financial institutions to manage their assets to successfully deal with NPAs, asset reconstruction, and asset securitization organizations are being established. This Act empowers banks and financial institutions to seize hypothecated or mortgaged assets to recover nonperforming assets (NPAs). Without the participation of the court, the SARFAESI Act enables the following recovery channels for NPAs: securitization, asset reconstruction, and security enforcement.

The following topics are covered under the Act:

  • The Reserve Bank of India regulates and registers Asset Reconstruction Companies (ARCs). Facilitating the securitization of banks’ and financial institutions’ financial assets, with or without the use of underlying securities.
  • The ARC supports the consistent transferability of financial assets by issuing bonds, debentures, or any other instrument as a debenture to buy financial assets from financial organizations and banks.
  • By entrusting the Asset Reconstruction Companies with the task of raising cash through the sale of security receipts to eligible buyers, the Asset Reconstruction Companies will be able to obtain funds.
  • Facilitating the reconstruction of financial assets obtained when exercising securities enforcement authorities, management change powers, or other powers intended to be placed on banks and financial organizations.
  • The borrower’s account is classified as a non-performing asset following the Reserve Bank of India’s instructions or guidelines released from time to time.
  • In this case, the officials authorized shall exercise the rights of a secured creditor in line with the Central Government’s laws.
  • An appeal to the relevant Debts Recovery Tribunal and a second appeal to the Appellate Debts Recovery Tribunal against any bank or financial institution’s activity.
  • The Central Government may establish or compel the establishment of a Central Registry to register securitization, asset reconstruction, and security interest formation transactions.
  • Applicability of the proposed legislation to banks and financial institutions initially, with the Central Government empowered to expand the proposed legislation’s application to non-banking financial enterprises and other organizations.
  • The proposed regulation does not apply to security interests in agricultural lands, loans under one lakh rupees, or circumstances where the borrower repays 80% of the loan.

Asset Reconstruction

Asset Construction is covered by RBI regulations and legislative provisions under the SARFAESI Act, 2002. It consists of the following:

  • The fundamental definition of “asset reconstruction” is the process of transforming nonperforming assets (NPAs) into performing assets.
  • It all starts with a specialist Asset Reconstruction Company purchasing defective assets, including hypothecated assets, and financing them by issuing Bonds, Securities, and cash.
  • The Asset Reconstruction Company takes over or changes the management of the borrower’s business, sells or leases a part or all of the borrower’s firm, and reschedules the borrower’s debt payments using this approach.

Working of Security Enforcement

The SARFAESI Act gives banks and financial institutions the authority to enforce their securities. The procedure begins with the Debtor being given a 60-day notice period to pay the owing amount. If the outstanding dues are not paid within the required term, the Banks and FI’s have the authority to enforce their SECURITY INTEREST by taking the following steps:

  • Banks and financial institutions have the legal right to take ownership of the secured property.
  • Banks and financial institutions have the option of selling or leasing such property or assigning the right to security.
  • Appointment of a “Manager” to oversee the aforementioned security.

It can approach the borrower’s debtors for payment of the borrower’s debts.

Landmark Cases

M/S Transcore vs Union of India & Anr3
The appellant is M/s Transco, while the respondent is Union of India and Anr. This case is of general interest since it brings up a public approach issue about whether the principal stipulation to Section 19(1) of the DRT Act, 1993 (added by the Amending Act No.30 of 2004) is a condition that should be met prior to utilizing the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The respondent (Indian Overseas Bank) recorded activity with the DRT in Chennai for the recuperation of duty from the appellant in Civil Appeal No. 3228 of 2006. In 2005, the Respondent gave a Possession Notice to the appellant under segment 13(4) of the Act, expecting him to reimburse his duty of Rs. 4.15 crores (around) in addition to premium inside sixty days, and expressing that the appellant had neglected to do as such and that the bank had claimed the undaunted properties recorded in the timetable to the Notice, which was then sold. In any case, a common allure has been recorded, and the sale deal has been deferred.

In this case, the Supreme Court reasoned that pulling out a case forthcoming before the DRT is definitely not essential for utilizing the SARFEASI Act. This choice has settled the lawful issue encompassing the send-off of simultaneous procedures under the SARFAESI Act. The allure/I.A. made by the appellant in this Court is excused, yet the allure/I.A. is presented by the banks/FIs. is allowed with no expense’s choice. Besides, the choice in the Transcore case permitted banks and monetary foundations to start systems under both the SARAESI Act and the DRT Act simultaneously. The court likewise held that segment 13(2) of the SARFAESI Act is a notification of interest expecting activity to be directed inside the time expressed and not a simple show-cause notice. At the point when a notice is given to the indebted person it is adequately evident, that borrower has neglected to put in his time and his record is classed as NPA. The obligation is distinguished and the record is delegated a nonperforming resource (NPA) under RBI rules. Prior to the bank/FI can summon Section 13(4) of the SARFAESI Act, the requirements of Section 13(2) of the SARFAESI Act should be met. Following the culmination of Section 13(2) conditions, the bank or FI would be qualified to assume responsibility for the borrower’s gotten resources or make different moves. For this situation, the possibility of the political race doesn’t matter in light of the fact that the Act is a beneficial solution for the DRT Act. They are joined to frame a solitary cure; henceforth the possibility of the political race doesn’t have any significant bearing. The SARFAESI Act gives an additional cure that isn’t in a struggle with DRT. The SARFAESI Act was intended to safeguard the bank/premium FI’s in monetary resources that it claims because of an agreement or the use of customary regulation standards. Segment 13 of the SARFAESI Act intends to recuperate reserves utilizing a non-adjudicatory way. Under the SARFAESI Act, a got resource is one in which the borrower makes revenue for the bank/FI and the SARFAESI is determined exclusively on that premise. The reason for adding the stipulation to Section 19(1) of the DRT Act is to bring the arrangements of the DRT Act, the SARFAESI Act, and Order XXIII CPC into the arrangement.4

Mardia Chemicals Ltd. vs Union of India5
Here, the protected authenticity of SARFAESI was addressed, especially Sections 13, 15, 17, and 34, on the grounds that they are erratic and outlandish. Whenever the Act became real, IDBI Bank gave a notification to Mardia. Mardia defaulted-spoke to the court, where a progression of comparable petitions was assembled and tended to as a solitary case. The appellant battled that section 13 of the SARFAESI Act gives full freedoms to banks and monetary establishments while overlooking the privileges of defaulters. Likewise, borrower interest was not thought about by any means in Section 13. Besides, the borrowers had no right of direction or response to an adjudicatory technique. Section 17(2) of the Act expressed that the defaulter should store 75% of the sum to like and allure the sum was inordinate and subsequently restricted admittance to the legal plan of action of allure maybe a suggested bar had been made/to this, respondent battled that few different regulations accommodated such preconditions/Pet contended that those were for the claim and not for the use of first occurrence/respondent attempted to invalidate that by expressing that The strategy for assuming control over the business and the board of an element, especially a firm, was canvassed in Section 15 of the 15. The appellant likewise fought that section 34 was indistinguishable from Section 34 of the RDB Act, which announced that DRTs have selective locale, i.e., no respectful court will give any request or order against a bank practicing privileges under the Act. SARFAESI was pointless on the grounds that there was at that point a regulation managing this subject issue, and a few regulations were not expected to deal with a similar topic. It was additionally brought up that the most inconvenient obligation section somewhere in the range of 25,000 and 1 lakh dollars-didn’t require separate regulations.

For this situation, the Supreme Court held that the Parliament’s prevalence in concluding the requirement for regulation is underlined. The association between the RDB Act and SARFAESI was dismissed since the last option manages the exceptionally specific issue of nonperforming resources (NPAs) (among different contrasts, for example, the last option managing got leasers). Accordingly, it really depends on Parliament to conclude regardless of whether regulation is required. Section 13 was viewed as intrinsically authentic by the Court. The got bank is just practicing his privilege on the grounds that the default that prompted the sec 13 measure may be viewed as a “second default”- NPA + 60 days additional chance to reimburse following notification. Prior to the 2016 Amendment, Section 13 recognized the Right of Redemption it might be said. Rule 8 and 9 of the SI Rules expressed that the bank should serve a notification affirming the offer of gotten property and that the borrower might take care of the commitment and recover ownership any time before the genuine deal. While the Supreme Court affirmed the section’s legality, it pushed it difficult for borrowers to reserve the privilege to the portrayal. The Supreme Court decided Section 17(2) to be inconsistent and requested that the heading be modified from “claim” to “application.”6

Pandurang Ganpati Chaugale v. Vishwasrao Patil Murgud Sahakari Bank Ltd7
“‘Banking’ relating to cooperatives can be included within the purview of Entry 45 of List I, and it cannot be said to be over inclusion to cover provisions of recovery by cooperative banks in the SARFAESI Act,” a five-judge bench of Justices Arun Mishra, Indira Banerjee, Vineet Saran, MR Shah, and Aniruddha Bose, has held in this case. The ruling of the Court came in a reference made in light of contradictory decisions in Greater Bombay Coop. Bank Ltd. v. United Yarn Tex (P) Ltd.8, Delhi Cloth & General Mills Co. Ltd. v. Union of India9, T. Velayudhan Achari v. Union of India10, and Union of India v. Delhi High Court Bar Association11.

The seat held that the whole situation and banking action of helpful banks is represented by a regulation authorized under Entry 45 of List I, i.e., the BR Act, 1949, and the RBI Act ordered under Entry 38 of List I, saying that “recuperation of duty would be a fundamental capacity of any banking foundation, and the Parliament can sanction a regulation under Entry 45 of List I as the action of banking done by agreeable banks is inside the domain of Entry 45 of List I.” Obviously, under Section 13 of the SARFAESI Act, Parliament has the position to endorse the solution for recuperation.” The Court likewise clarified that the principal part of the matter of the agreeable bank connecting with banking was covered by the BR Act, 1949, and the Reserve Bank of India Act, such regulations are connected with Entries 45 and 38 of List I of the Seventh Schedule. The parts of ‘joining, regulation and twisting up’ are covered by Entry 32 of List II of the Seventh Schedule. “As we would see it, such bankers’ banking movement is covered by Entry 45 of List I, which considers the Doctrine of Pith and Substance, as well as the passability of accidental infringement on the field held for the State.” The court reasoned that disturbing ‘banking,’ the regulation connecting with Entry 45 of List I of the Seventh Schedule of the Constitution of India administers cooperative banks enrolled under State regulation and multi-State level cooperative social orders enlisted under the Multi-State Cooperative Societies Act, 2002 (MSCS Act, 2002). The cooperative banks run by cooperative social orders enrolled under State regulation for ‘joining, regulation, and ending up,’ specifically, to issues that are outside the domain of Entry 45 of List I of the Constitution of India, are administered by the said regulation connected with Entry 32 of List II of the Constitution of India. The significance of ‘Banking Company’ is characterized under Section 5(c) read with Section 56(a) of the Banking Regulation Act, 1949, which is a regulation associated with Entry 45 of List I. It manages the ‘banking’ part of co-employable social orders’ banks. The Banking Regulation Act, 1949, and some other regulation appropriate to helpful banks interesting in ‘Banking’ in Entry 45 of List I, and the RBI Act appealing to Entry 38 of List I of the Seventh Schedule of the Constitution of India, deny agreeable banks from participating in any movement except if they conform to the arrangements of the Banking Regulation Act, 1949, and some other regulation relevant to such banks engaging to ‘Banking’ in Entry 45 of List I. Under section 2(1)(c) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, state-contracted helpful banks and multi-state agreeable banks are alluded to as “banks.” The recuperation component laid out under section 13 of the SARFAESI Act, regulation connected with Entry 45 List I of the Seventh Schedule to the Constitution of India is pertinent on the grounds that recuperation is a significant part of banking.12

Amendment to the SARFAESI Act

The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016, was introduced in Parliament to amend four laws: the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI), the Indian Stamp Act, 1899, and the Depositories Act, 1996. When secured creditor defaults on a loan, the SARFAESI Act permits secured creditors to seize the collateral used to finance the transaction. This procedure is carried out with the help of the District Magistrate and does not necessitate the involvement of courts or tribunals. The District Magistrate must finish this process within 30 days, according to the Bill. Furthermore, the Bill authorizes the District Magistrate to assist banks in assuming management of a company if it is unable to repay loans. This will be done if the banks convert their outstanding loans into equity shares and hold a 51 percent or greater ownership in the company as a result.

The Act establishes a single registry to keep track of secured asset transactions. The bill establishes a consolidated database that will allow property records from diverse registration systems to be integrated into one central registry. This contains registrations made under the Companies Act of 2013, the Registration Act of 1908, and the Motor Vehicles Act of 1988. Secured creditors will not be able to take possession of collateral unless it is registered with the central registration, according to the bill. Furthermore, after the registration of a security interest, these creditors will have priority over others in the repayment of their debts.13

Conclusion

With the recent judgment made by the Supreme Court of India, all state and multi-state cooperative banks will now be subject to the SARFAESI Act of 2002. Banks can now sell and seize defaulters’ properties to recover their debts, because of the Supreme Court’s crucial decision. The court bench also recognized a 2003 notification that cooperative banks are covered by the SARFAESI Act and are entitled to seek redress. Cooperative banks had to go to court to recover their dues before this notification was written. The Supreme Court went on to say that this decision was made to eliminate delays in collecting dues because cooperative banks are required to resort to civil courts under the Cooperative Societies Act to do so. The court also held that co-operative banks that engage in banking activities are subject to Sections 5 (c) and 56 (a) of the Banking Regulation Act of 1949, which are laws related to List I Entry 45. (Union List).14 After the judgment made by the Court regarding this issue, experts hope that it would bring the much-needed reforms in the cooperative banks sector, which has been subjected to bankruptcy and corruption. They also believe that it would bring large-scale implications.

References:

  1. SARFAESI ACT, 2002- Applicability, Objectives, Process, Documentation, cleartax.in https://cleartax.in/s/sarfaesi-act-2002 
  2. An overview of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), Arun Bapat, iPleaders https://blog.ipleaders.in/overview-securitisation-reconstruction-financial-assets-enforcement-security-interest-act/
  3. 2006(5) CTC 753(SC)
  4. M/S Transcore vs Union of India & Anr, Darshika Rughani, Pro Bono India https://probono-india.in/research-paper-detail.php?id=415 
  5. Case No.: Transfer Case (civil) 92-95 of 2002
  6. Constitutional Validity of SARFAESI Act of 2002 tested under ‘Mardia Chemicals vs. UOI’, Shubham Phophalia, taxguru  https://taxguru.in/finance/constitutional-validity-sarfaesi-act-2002-tested-mardia-chemicals-vs-uoi.html
  7. 2020 SC 431
  8. (2007) 6 SCC 236
  9. (1993) 2 SCC 582
  10. (1983) 4 SCC 166
  11. (2007) 6 SCC 236
  12. SARFAESI Act applicable to Cooperative Banks: Constitution Bench, Prachi Bharadwaj, SCC Online https://www.scconline.com/blog/post/2020/05/05/sarfaesi-act-applicable-to-cooperative-banks-constitution-bench/ 
  13. The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016, PRS India https://prsindia.org/billtrack/the-enforcement-of-security-interest-and-recovery-of-debts-laws-and-miscellaneous-provisions-amendment-bill-2016#:~:text=Amendments%20to%20the%20SARFAESI%20Act,intervention%20of%20courts%20or%20tribunals.
  14. What is SARFAESI Act? Jagran Josh https://www.jagranjosh.com/general-knowledge/sarfaesi-act-1588850144-1

This article is written by Arryan Mohanty, a student of Symbiosis Law School.

This article talks about Section 13(B) and the effects of the cooling period being waived off and various cases to understand this better.

INTRODUCTION 

Marriage is considered one of the essential sacraments for all Hindus. None other than the Hindus have endeavored to Idealize the institution of marriage. Due to this a divorced person was stigmatized and hindered in the Hindu Society but over the years as our nation developed and Hindu Marriage Act came into force eventually the divorce aspects also found their own place in the act. The Hindu Marriage Act, 1955 under Section 13 (B) states that a petition for mutual consent divorce is presented by the parties with the following averments: –

  1. That both the spouses are living separately for a period of one year,
  2. The Spouses have not been able to live together,
  3. Both the spouses have been living separately by consent.

In recent years Supreme Court has given a new perspective to the cooling period in mutual and consented divorce. The court held that this clause of the Hindu Marriage Act,1955 which allows a cooling-off period of six months is not compulsory but just directory to the courts. According to this, the courts in which the divorce proceedings are ongoing under extraordinary cases have the right to suspend this time if other conditions are met, including the fact that the spouses have been piecemeal for a period of more than18 months, that all comforting and concession attempts to reunite the parties have collapsed and the parties have truly resolved their controversies, indeed in regard to alimony.

MEANING OF THE TERM ‘COOLING-OFF PERIOD’?

Under Section 13 of the Hindu Marriage Act, 1955 a married couple can get a divorce on the grounds of mutual consent through filing a petition to the court. It’s a straightforward method to dissolve the marriage where both the parties peacefully agree to the separation. According to Section 13 (b) of the Hindu Marriage Act, 1955 for a statutory interregnum understanding, a cooling period of six months between the first and the last motion for divorce by mutual consent so as the possibility of cohabitation and settlement could be explored. This period of 6 months is called the cooling-off period.

APPLICABILITY OF COOLING PERIOD IN CASES OF DIVORCE

The expenses are the clearest preferred position of consensual divorce. Consensual divorce that stays uncontested is sort of often the foremost economical method of dissolving the wedding. The minimal effort of the cooling period isn’t, be that because it may, but it’s the littlest bit of leeway in consensual divorce. In the event that the degree of contention between the 2 partners stays low, a consensual divorce offers an approach to stay it that way. It is extremely private and progressively helpful and is helpful to keep a greater amount of your advantages in all of your personal assets and not on the hands of the law, and other required things within the procedure of the dissolution of marriage. Separation by mutual consent expels superfluous squabbles and saves a lot of time and money. With the expanding number of uses being applied for a separation, a consensual divorce is the best alternative. Uncontested separation offers to break away life partners the chance to finish their marriage discreetly and with dignity.

UNDER WHAT CIRCUMSTANCES IT CAN BE WAIVED OFF?

In Abhay Chauhan v. Rachna Singh, 2006 both the parties were 30 years old, well educated, and mature and the marriage of the parties was solemnized four years ago and there was absolutely no possibility of reconciliation. The Delhi High Court in such a case held that the cooling period of 6 months can be exempted in certain cases but this controversy is still continuing. High Courts are overwhelmingly waiving this period by calling it directory rather than mandatory provision but some high courts beg to differ.

In an important judgment of Amardeep Singh vs Harveen Kaur on 12th September 2017, the Supreme Court held that this cooling period of 6 months can be waived in cases of mutual consent. Section 13B (1) of the Hindu Marriage Act deals with the petitions sustainability therefore it cannot be abolished and Section 13B (2) in spite of being administrative should be repealed after the details of every situation as they may vary from each other, wherever the little possibility of reconciliation is seen.

In the Avneesh Sood vs. Tithi Sood case and in the Shikha Bhatia case vs Gaurav Bhatia & Ors case, the courts held that a spouse who undertakes to comply with the consent given in the first motion for the dissolution of marriage under Section 13B (1) of the Hindu Marriage Act and for filing a second motion he/she would not be allowed to withdraw such an undertaking subject to an agreement reached between both the spouses.

Rajiv Chhikara vs. Sandhya Mathu, the Delhi High Court held that retracting from mediation would be considered as mental cruelty. The Court also noted in the case that the partner had lived apart since 2009 and that their relationship was now beyond repair. Therefore, under these circumstances, one partner demands that the marital bond be maintained and the same would be as putting the partner in extreme mental cruelty.

In Suman v. Surendra Kumar, the High Court of Rajasthan addressed this question for the purpose of the cooling period whose purpose is to give both the partner time and opportunity to reflect on their decision. The partners or one of them may have second thoughts in this cooling period and may change their minds about the dissolution of marriage.

However, the court always takes into consideration the following aspect before waving off the cooling period:

  1. The statutory cooling period of 6 months as given under Section 13B (2) and the period of one year as specified under Section 13B (1) is already over before the commencement of the first movement of the divorce case.
  2. If the parties have already dealt with their differences and have come to terms in matters such as alimony, custody of their child, and all other disputes between them then the waiting period only increases their agony and there is no point of it.
  3. That all means of conciliation/mediation and efforts made in terms of Section 23(2) of the Hindu Marriage Act,1955 and Order XXXII A Rule of Code of Civil Procedure have failed to reunite and save the marriage, and no hope is left for saving the marriage.

Thus, the Supreme Court has given family courts the discretion to determine whether to waive the six-month cooling-off period or not. The Court also held that the application for a waiver of the cooling period can be made as early as one week after the divorce petition had been filed in the court.

SOME OTHER IMPORTANT CASES UNDER SECTION 13 (B)

In the Sureshta Devi v. Om Prakash case, the Hon’ble Supreme Court held that the phrase ‘living separately’ refers to not living as husband and wife. It has no reference to where the spouses live. It is possible that the partners may are living under the same roof and still may not live as husbands and wives. The partners don’t wish to fulfill marital obligations. The Supreme Court of India had ruled that mutual consent is a sine qua non I.e an essential condition for passing a decree of divorce and the said agreement must be binding and subsist until a final decree of divorce has been issued.

In Hirabai Bharucha vs. Pirojshah Bharucha, the High Court held that the courts are obliged to make every effort to maintain the institution of marriage. That is an arrangement between the partners specifying the terms of settlement runs counter to public policy, they should be regarded as void ab initio and it is unenforceable and, in such cases, it cannot be recourse to contempt proceedings.

The court ruled that where a solicitation is submitted for divorce through common concurrence under Section 13B of the Act, the Court will move that the concurrence granted by the mates persists until the date of the allocation of the divorce decree. And if one mate freely withdraws its support, in view of the provision of Section 13B of the Act, the Court doesn’t have the power to grant a divorce decree by collective concurrence.

CONCLUSION

Consensual divorce refers to that stage where both the partners dissolve their marriage by mutual consent. Divorce is an equally important part of society as marriage. As we all know that all marriages are not perfect and cannot be sustained or continued, ending such marriage is the best possible damage control that can be done for both spouses. Divorce by Mutual-consent is one of the recent addition to the Indian jurisprudence of divorce and is fairly integral. Earlier, Indian couples resorted to the very time-consuming and expensive method of ground-based litigation, which did no good to the parties but rather induced animosity between them and involved many maligning.

Reference: 

  1. https://nrilegalconsultants.in/waiving-off-period-of-6-months-cooling-off-period in-case-of-a-mutual-divorce/ 
  2. https://www.latestlaws.com/latest-news/couple-gets-divorce-without-6-month cooling-off-period/ 
  3. https://www.thehindu.com/news/national/sc-sanctions-divorce-to-couple-without six-months-cooling-off-period/article25237873.ece 
  4. https://health.economictimes.indiatimes.com/news/industry/future-of-artificial intelligence-in-healthcare-in-india/56174804

This article is written by Tanya Arya, a second-year law student at Vivekananda Institute of Professional Studies.

INTRODUCTION

The word ‘federalism’ is derived from the Latin word ‘foedus’ which means ‘covenant or treaty. Federalism refers to the distribution of powers between the state and the central government. Three lists are provided by the seventh schedule of our Indian constitution and the three lists are union lists, state lists, and the concurrent list. The central government deals with the issues mentioned under the union list such as defense, trade and commerce, citizenship, insurance, banking, highways, railways, higher education, navigation and shipping, and many more. The state government deals with the issue given under the state lists such as agriculture, pilgrimages within India, prisons, state court fees, public health and sanitation, and the last list is a concurrent list which consists of issues on which both the central government and the state government can exercise jurisdiction such as contempt of court, evidence, protection of wild animals and bird, labor welfare, stamp duties, food, administration of justice, etc. if there is a conflict between the central government and the state government then, the decision of the central government will supersede the decision of the state government.

PRINCIPLES OF FEDERALISM

SEPARATION OF POWERS
The power is divided into three branches: legislative, executive, and judiciary. These three organs of the government are independent of each other. These branches are well-known examples of the tripartite system in the united states. The main purpose of this separation of power is to prevent the concentration of power and autocracy.

CHECKS AND BALANCES
Checks and balances are important to prevent the concentration of power and violation of the separation of power. It is required for the proper functioning of the three organs of the government. Some of the examples of checks and balances are judicial review, basic doctrine structure of the Indian constitution, etc.

KEY FEATURES OF THE FEDERALISM UNDER THE INDIAN CONSTITUTION

DIVISION OF POWER
Division of power is the essential feature of federalism so that the power is not concentrated in the hands of the central government. In this, the power flows from the central government to the state government and the local government i.e panchayat.

SUPREMACY OF THE INDIAN CONSTITUTION
Supremacy of the Indian constitution means that the powers of the executive, judiciary, and the legislative are mentioned in the Indian constitution and they are bound by the constitution hence, no one is above the constitution. This feature gives strength to the basic structure doctrine of the Indian constitution which was given by the Keshvananda Bharti vs the State of Kerala1.

WRITTEN CONSTITUTION
A written constitution is necessary to constitute a country as a federal nation. As it is difficult to distribute the powers orally among the center and the state government. Written constitution helps to maintain the supremacy of the Indian constitution and provides clarity.

RIGID CONSTITUTION
It is important to have rigidity in the constitution to maintain the supremacy of the constitution.

JUDICIARY
There can be a dispute between the center and the state and the judiciary provides the proper mechanism to solve the dispute between them and the decision of the judiciary is binding upon all of them.

  • ARTICLE 131
    According to this article, the supreme court has original jurisdiction to hear the disputes between the center and the state, two or more states, etc.2
  • ARTICLE 262
    This article focuses on the issue of water and valley disputes between states. This parliament Is allowed to make laws on the distribution of water or control of river valleys and can even bar the supreme court to hear disputes related to water or valley disputes.3
  • ARTICLE 263
    Article 263 is based on the issue of the “establishment of the inter-state council”. In this article, the president can ask to establish a council on the charge of interest of the public or to resolve disputes between them. The duty of these councils is to advise and inquire the states if a dispute arises between them, make a recommendation for the better functioning of the policy, and discuss the subjects which are common to both the state and the union.4

BICAMERAL LEGISLATION
Like Canada, India has also bicameral legislation. India also has two houses upper house [Rajya Sabha] and the Lower house [Lok Sabha] and a bill have to be passed by both the houses of the parliament. In India even states also have bicameral legislation such states are Karnataka, Maharashtra, Uttar Pradesh, Bihar, Telangana, and Andhra Pradesh. They have an upper house [Vidhan sabha] and a lower house [Vidhan Parsihad].

QUASI FEDERALISM

Quasi federalism means a form of government that has features of both the federal government and the unitary government. For example India and Canada. But the major control and authority lie with the central government. India is a quasi-federal country in which the states have the power to make laws under list 2 of the seventh schedule of the Indian constitution and the central government has jurisdiction on the matters mentioned in the first list of the seventh schedule of the Indian constitution. The state government and the central government both have the powers to make laws on the matter listed under the third list of the seventh schedule of the Indian constitution. If the dispute arises between the center and the state then the opinion of the central government will prevail.

In India, emergencies can be imposed under articles 352, 356, and 360 of the Indian constitution. During an emergency center government retains all the power and the state government has no autonomy during an emergency. This way federalism loses its luster.

ISSUES AND CHALLENGES FACED BY THE INDIAN FEDERALISM

REGIONALISM
As center focuses more on bigger states than the smaller states and states work according to the democratic system. Then, the conflict can arise between them and they demand to be separated from the union.

ABSENCE OF FISCAL FREEDOM
Fiscal freedom basically means the distribution of financial and tax-related power between the center and the state government. It is necessary for the development of the nation. Though the main power lies in the hands of the center and also they have a finance commission whose work is to decide the state’s share in the center’s revenue.

OFFICE OF THE GOVERNOR
Governor is the head of the state and is appointed by the president of India under Article 155 of the Indian constitution. The decision of the president can overrule the decision of the governors appointed by the president.

INTEGRATED SERVICES
India has integrated services of the judiciary, audits, elections, and many more. The judiciary system of India consists of the supreme, the high court at the state level, and district courts. Supreme courts decisions are bound on the high court and the high court doesn’t have jurisdiction to entertain cases related to disputes between the states. The process of election is the same at both the center and the state level. At the center, it is conducted by the election commission and at the state level it is conducted by the chief electoral officer [CEO] but they are under the supervision of the election commission.

DIFFERENT RELIGION
India is a diverse country and has people who belong to many religions but India is a secular state and the word secular was added in the preamble under the 42nd amendment act which means India will not have any religion or will not promote any religion. This can lead to a conflict between the two religions and then makes federalism weak.

CASE LAWS

MANEKA GANDHI VS UNION OF INDIA
In the year 1978, the verdict passed under this law is that any law made by the legislature is considered to be ultra vires if it violates or infringes any of the fundamental rights. The fundamental rights can only be changed by the constitution, hence this is a check on both the executive branch and the parliament and the state legislatures. During times of emergency article 19 of the Indian constitution is taken away as during the times of emergency our country follows a unitary government. Therefore India is a quasi-federal country.5

STATE OF WEST BENGAL VS UNION OF INDIA
The exercise of sovereign rights by Indian states was the central issue in this case. The Parliament’s legislative competence to implement a statute requiring the Union to acquire land and other properties vested in or owned by the state, as well as the sovereign authority of states as separate entities, were also investigated. The Supreme Court of India ruled that the Indian Constitution did not contain an absolute federalism provision.6

Article 13 of the Indian Constitution will therefore become a non-issue, and it may be overlooked because even regular legislation will be exempt from judicial examination because they were passed on the strength of a constitutional amendment that is not subject to challenge.7

CONCLUSION

Federalism is the distribution of power from the central government to the state government and the local government. The main objective of this is to prevent autocracy. India is quasi federalism country which means it has the features of federalism but the main authority lies with the central government. No doubt there is a lack of balance between the center and the state government.

References:

  1. Kesavananada Bharti vs state of Kerala, [1973 SC 1461]
  2. Constitution of India, 1950 Art 131
  3. Constitution of India, 1950 Art 262
  4. Constitution of India, 1950, Art 263
  5. Maneka Gandhi Vs Union of India, [AIR 567, 1978 SCR[2] 621]
  6. State of West Bengal vs union of India, [AIR 1987 Cal 226]
  7. Constitution of India, 1950 Art 13

This article is written by Prerna Pahwa, a student of Vivekananda Institute of Professional Studies, New Delhi.

Eligibility

All students who are either enrolled in a 3-year LLB program or a 5-year integrated LLB program shall be eligible to participate.

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Each team shall consist of only two speakers and one researcher. The teams may choose to participate without a Researcher, and therefore with two speakers, one of them may choose to appear as researcher in Researcher Test as in case of tie, the marks of researcher test may be considered to come to a conclusion. The teams will be assigned Team Codes by the Organizers.

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  • The registration form is available here.
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  • If team registers themselves in between 13th April – 20th April 2022, than registration fees is: Rs 3000/- per team. 

Important Dates

  • Date of Release of Moot Proposition: March 12, 2022
  • Last date for registration (Early Bird Registration): April 12, 2022
  • Last date for registration: April 20, 2022
  • Last date for raising clarifications regarding the Moot Problem April 12, 2022
  • Clarifications, if any, to be published: April 16, 2022
  • Last date for submitting the soft copy of the memorials : May 03, 2022
  • Last date for submitting the hard copy of the memorials: May 07, 2022 (on or before 8:30am of May 07, 2022 either by post or in person)
  • Date of competition: 07-08 May, 2022.

Contact details

Mail at: mootcourt.isl@inmantec.edu

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About the Competition

The ‘National Moot Court Competition, 2022’ (Virtual) will be organized by the K.G Shah Law School, SNDT University, Mumbai.

  • Language: The official language for the Competition will be in English
  • Structure of the Competition: The Competition shall consist of Preliminary Round, Semi – Final Round and Final Round.
  • Dress Code: All the participants shall adhere to the following dress code for the competition:
    • Female: Black and White Western or Indian Formals
    • Male: Black and White Western Formals

Structure of the Competition

Preliminary Rounds:

  • Preliminary Round will be conducted on Saturday, 09th April, 2022.
  • Plaintiff/Appellant or Defendant/Respondent shall present in accordance with the Team Code as chosen by the Organizing Committee.
  • Teams with highest Total Marks in the Preliminary round will qualify for the Semi-Final Round.

Semi-Final Round:

  • The Semi-Final Round will be conducted on Sunday, 10th April, 2022.
  • Plaintiff/Appellant or Defendant/Respondent shall present in accordance with the serial number as chosen by the organizers of the team.
  • Teams with highest total marks in the Semi-Final Round will qualify for Final Round.

Final Round:

  • The Final Round is scheduled or will be conducted on Sunday, 10th April, 2022.
  • The team obtaining the Highest Score shall be declared as the ‘Winner of the Competition.

Eligibility

Students pursuing Three or Five-years LL.B. or B.L.S, LL.B. Degree Courses (or equivalent course) from any recognized Law Colleges are eligible to participate.

Team Composition

Only one team will participate from each college. Each team shall consist of 2 Participants as Mooters. This number cannot be modified under any circumstances.

Prizes

Every Participant shall be awarded with a Certificate of Participation. However, following are the Prizes:

  • Best Team – Cash Rs. 5000/- + Certificate
  • Best Mooter – Cash Rs. 2000/- + Certificate

How to Register?

  • Interested participants, fulfilling the eligibility criteria are required to register for the event by filling out a Google Form.
  • The registration fee is Rs.1000/-per team.
  • Link to the moot problem is here.
  • Subject to registration, each team will be provided a Team Code.
  • The teams should submit the soft copy of both the memorials in ‘.pdf’ format,by 11:59:59 pm (IST) on 31th March, 2022 to kgsnmc2009@gmail.com with the subject line as “Memorial Team Code ”

Important Dates

  • Last Date of Registration: 25th March,2022
  • Last Date of Submission of Memorials: 31st March,2022
  • Inauguration: 9th April,2022
  • Preliminary Round: 9th April,2022
  • Semi Final Round: 10th April,2022
  • Final Round: 10th April,2022
  • Declaration of Results: 10th April,2022

Rules & Regulations

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About Vaikunta Baliga College of Law

Vaikunta Baliga College of Law, Udupi, a Unit of Dr. T.M.A Pai Foundation which was formerly known as Udupi Law College, was named after former Law Minister, Government of Mysore, Late Sri. B. Vaikunta Baliga, was established in 1957 with an avowed objective of imparting quality legal education in the mofussil area. Ever since it has emerged as one of the premier institutions on the horizon of legal education. Since its inception the institution has made a very fast stride to emerge as a hub of academic and cultural activities.

121@airtel

About the Moot Competition

Vaikunta Baliga College of Law, Udupi is organizing its 6th Advocate. P. Shivaji Shetty Memorial National Moot Court Competition hosted which will be held from April 7th to 9th, 2022.

General Details

Due to Covid Protocols, the Moot Court competition shall be conducted through virtual mode onZoom App from 7th April 2022 to 9th April 2022.

Eligibility and Team Composition

  • Students who are pursuing 3year/5year LLB at Law Colleges recognised by the Bar Council of India are eligible to participate in the Competition.
  • From each College a team consisting of 3 members shall be eligible to participate in the competition.

Rules and Guidelines

  1. The team shall notify the organizers at the time of registration as to who shall be the two Speakers and one Researcher.
  2. The language of all the competitions shall be English.
  3. The enclosed Registration Form should be duly filled in and returned on or before 20th March 2022. The maximum number of entries would be restricted to 24 teams.
  4. There shall be a registration fee of ₹ 3,000/- (Rupees Three Thousand Only) for each team
  5. The teams shall pay the registration fees through GPAY . (Mobile no : 9964069522) or scan the QR Code
  1. Fill the details of payment in the Registration Form with a transaction ID.
  2. Each team shall be provided with a “Team Code” as soon as their registration is confirmed, and the same must be used for all purposes during the Competitions.
  3. Link for Provisional Registration: https://docs.google.com/forms/d/e/1FAIpQLSec-qdCIfzaocS4gXYr2yqG-SIDyVtDcsPbCjhsxP52ObcqMg/viewform
  4. Link for Moot Problem: Click here
  5. Hard copy of the registration form has to be sent to the below mentioned address:
  6. Sri. Raghunath K.S Co-ordinator Assistant Professor
    Vaikunta Baliga College of Law Kunjibettu Post
    Udupi
    Karnataka-576102
    Mob No. 9964069522

Important Dates

Last Date for RegistrationMarch 20, 2022
Last Date for Submitting Soft Copy of MemorialMarch 28, 2022
Last Date for Submitting Hard Copy of MemorialApril 3, 2022

Awards & Prizes

1. WinnersRs. 25,000
2. Runners-upRs.15,000
3. Best MemorialsRs. 5,000
4. Best Male AdvocateRs. 5,000
5. Best Lady AdvocateRs. 5,000

Contact details

Prof. (Dr.) Nirmala Kumari K. Principal

Faculty Co-ordinator:

Shri. Raghunath. K.S Assistant professor

  • Mob No: 9964069522
  • Email Id: vbclmootcourt2022@gmail.com

Student Co-ordinators MsShaima

  • Contact Number: 0748389794
  • WhatsApp Number: 8105796239

Ms. Prathyusha

  • Mob Number: 9380715989
  • WhatsApp Number: 8762748639

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About Reva University

REVA University is a private state university located in Bangalore, Karnataka. REVA Group of Educational Institutions was established in 2002, managed by Rukmini Educational Charitable Trust. In 2004 it was taken over by Rukmini Educational Charitable Trust led by Dr. P. Shyama Raju.

About School of Legal Studies

The School of Legal Studies offers graduate and post graduate programmes with an objective of preparing law professionals, with a sound understanding of the foundations of legal knowledge. The school offers B.A., LL. B (Hons.), B.B.A, LL. B (Hons.) of five-year duration and one-year LLM in Business & Corporate Law and Criminal Law.

Objectives of the Conference

  • To explore the various aspects of cryptocurrency along with-its regulatory framework for its effective governance.
  • To promote an exchange of tested ideas about Cryptocurrencies, the Bitcoin mania and beyond.
  • To clarify basic concepts of cryptocurrency and to understand global response to evolving Cryp to economy.
  • To provide a platform of opportunities for participants to share ideas with renowned leaders, seasoned businessperson and academics, industry titans, and development partners to establish global partnerships for future business, research and project collaborations.

Sub-themes

Papers are invited on the following sub-themes and such related themes which can contribute to the objective of the conference:

  • Cryptocurrency Regulation in India and other Countries.
  • Cryptocurrency as a Legal Tender and its Implications.
  • Impact of cryptocurrency on the world economy.
  • Cryptocurrency vs cyber-law
  • Cryptocurrency and Emerging Technologies
  • Digital Divide
  • Entrepreneur and Entrepreneurism
  • Block Chain Technology: Paradigm Shift in the Business Model
  • The Bitcoin mania and beyond
  • Cryptocurrency and Smart Contract

Eligible Participants

The National Conference is open to:

  • Academicians
  • Researchers
  • Students
  • Cyber Professionals
  • Cyber Stakeholders
  • Cyber Forensic Experts
  • Advocates
  • Banking Professional
  • IT Professionals

Submission Guidelines

Abstract

The abstract shall not exceed 300 words, and must be accompanied by a cover page, stating the following:

  • Title of the Paper and Sub – Theme
  • Name of the Author(s)
  • Name of the Institution
  • E-mail Address and Contact number
  • Postal Address

Paper

  • The paper must be accompanied with the following details: A cover letter mentioning the Name of the Author(s), Course, Year of Study (if applicable), Name of the College/University (if applicable), Professional Position (if applicable), with Postal Address, Email Address and Contact Number.
  • The abstract and the full papers to be sent at nationalconference_2022@reva.edu.in.

Rewards

The top 2 presenters will receive a certificate of appreciation.

Registration Fee

  • For Students/ Research Scholars: Rs.500/-for single authorship and Rs.800/- for co-authorship
  • Academicians and Professionals: Rs.1000/- for Single authorship and Rs.1400/- for co-authorship.

How to Register?

Interested participants can register for the conference through this link.

Important Dates

  • Submission of Abstract: 25th March, 2022
  • Communication of Acceptance of Abstract: 27th March, 2022
  • Last date of Registration: 30th March, 2022
  • Submission of Full Paper: 4th April, 2022
  • Date of the Conference: 21st – 22nd April, 2022

Brochure

Contact details

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About Advocate Nilesh Bijlani

Advocate Nilesh Bijlani, a 2018 RGNUL graduate is a Litigation/Dispute Resolution counsel. An experienced and distinguished legal expert handling varied matters involving different statutes at several legal fora across the country (though anchored and based out of Delhi).

Being a counsel of choice for various corporate and several eminent citizens across the country, work involves consultations and advice(as per the client’s requirement), drafting of pleadings and appearing thereafter in a variety of Civil, Criminal, Consumer and Banking cases before various Tribunals, Consumer Forums, High Courts and all the District Courts. He also regularly briefs and engages senior counsels as and when required.

About the Opportunity

Advocate Nilesh Bijlani is inviting applications for the post of virtual legal intern for 1-2 deserving law students. Joining is immediate.

Eligibility

Preferably 4th and 5th Year Law Students. (Junior batches may apply if they possess requisite skills and have learning and performing attitude.)

Stipend

Yes. Based on performance

Mode

Virtual

Duration

Minimum 3 months.

Requirements

Certain things to be kept in mind before applying-
1. Cover Letter along with CV- Be precise;
2. Interest in litigation;
3. Readiness to dig deep, research and deliver;
4. Good command over English language;
5. Should be devoid of college restraints as the mode will be virtual for initial 2 months;
6. Minimum duration- At least 3 months;
7. Writing skills are a must;
8. Seriousness towards each and every assignment;
9. Joining: Immediate;
10. Remuneration: Based on the evaluation of your skills;
11. Evaluation period: 7 working days. 

Application Procedure

Interested candidates are required to send their cover letter along with CV to bijlani.nilesh@gmail.com.

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