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In This Issue [No.117]                                                                            March 30, 2005 Supreme Court High Courts RBI Insurance Regulatory and Development Authority Ministry of Agriculture Ministry of Shipping, Road Transport and Highways Ministry of Health and Family Welfare Ministry of Home Affairs Ministry of Commerce & Industry Ministry of Finance International Site Links Roundup Archives Free Trial Contact us To keep you informed about the latest Legislative and Regulatory information manupatra.com publishes this e-roundup highlighting the recent changes brought about by the Notifications/Acts/Bills /Ordinances etc. About manupatra.com ../ provides comprehensive and easy to use legal and related information over the Internet .Our database covers Central Laws , Judgments of Supreme Court and High Court (full text of the judgments from 1950 onwards ), Orders of Tribunals , Bills , Notifications, Circulars and more Key features of manupatra are Content is derived from reliable primary and secondary sources Database is updated on a daily basis Electronic Ready Reckoner to view the judgments under a particular section of an Act / Subject Powerful search engine with user friendly interfaces Search in any one court/year or multiple courts/year Hyper-linking of documents Updated modules on WTO, Anti Dumping, Arbitration, Investment Destinations Abroad, Capital Markets, Taxation, Environment, Cyber & IT Laws, IPR, Corporate Laws, Industrial Policies, Foreign Trade, Forex & Banking and more     For subscription to manupatra.com or for more details please log onto ../ or call us at 0120 2531811 or send an email to : contact@manupatra.com If at any stage you wish to stop receiving the e-roundup please click here to unsubscribe. Supreme Court  State of Tamil Nadu Vs M. Krishnappan & others MANU/SC/0228/2005 Respondent herein challenged section 4(1-A)((a) of the Tamil Nadu Motor Vehicles Taxation Act, 1974, which imposed compulsory Lifetime tax on motor vehicles to be registered after 01.07.1998, whereas, vehicles registered prior to that date were given an option to pay either one time tax or an annual tax. It was also contended that the levy of motor vehicle tax should have a nexus with the unladen weight of the vehicle and not with its value, as such the value cannot constitute the basis of fixing the charge. The High struck down the impugned provision. The Petitioner approached the apex court against this decision, it was contended that only the mode of collection of tax had been altered, the distinction between new and old vehicles was based on intelligible differentia and did not violate the right to equality. The tax continued to be compensatory in nature, for the wear and tear of roads. The Supreme Court reversed the verdict of the High Court, it was held that the lifetime tax is based on reasonable classification having a rational relation to the object of the levy. Agastyar Trust Vs. Commissioner and Secretary to Government Revenue Department and Anr. MANU/SC/0205/2005 Appellant was claiming exemption from payment of urban land tax for the period 1965 to 1976 in respect of  the land held by it, being  recognized under section 12A(a) of the Income Tax Act, 1961 as a public trust with charitable or religious objects. High Court allowed the writ petition of the petitioner Trust, directing it to approach the authorities for redressal, the application of the petitioner was rejected by the authorities. Another writ petition on behalf of the petitioner was allowed, however the ultimate outcome remained the same, a third writ was dismissed. Consequently the petitioner approached the Apex Court. Among other grounds it was contended that the orders allowing earlier petitions not having been challenged, had attained finality and should not have been deviated from. The Supreme Court while dismissing the appeal, observed that exemption from payment of urban land tax is not a matter of right and would be exercised only if the government was satisfied that its payment would cause undue hardship. High Courts West Bengal Bidyadhar Palai and another Vs. Loomtex Engineering Private Limited and Others. An industrial dispute arose between the respondent company and its workmen. The dispute was referred to the Industrial Tribunal. The Tribunal held that the termination of service of the employees was illegal, and directed the company to reinstate the workmen with full back wages. Against this award the company filed writ petition before the High Court. During the pendency of the writ petition an application was filed by the workmen under section 17B of the Industrial Disputes Act, 1947 for interim relief. On this application the learned Single Judge passed an order directing the company to deposit three months salary of the workmen with the Registrar General of High Court who would deposit the said amount in short term fixed deposit with the United Bank of India. Against this order the instant appeal is preferred before the Division Bench. The Division Bench of the Calcutta High allowed the appeal. The Court held that the Scheme of section 17B is such that while the award is in force and is under challenge by the employer, who has been directed to reinstate the workmen in service, the workmen would continue to receive interim relief during the pendency of the proceedings. Section 17B is attracted as soon as the award is challenged by the employer. Section 17B was intended to provide relief to the workman in whose favour an award of reinstatement has been made and the same has been challenged by the employer. On an application under section17B, when an order is issued for payment, the same is to be made directly to the workmen and no direction could be made to keep the same in deposit, as that would defeat the very purpose of such payment. Tamil Nadu Sivanandi @ Dharmalingam and others Vs. V. Rajendran and another The Public Prosecutor filed an application before the trial court under section 321 of the Code of Criminal Procedure (CrPC) to withdraw the cases relating to communal clashes prior to 1996. The application was made in pursuance to a government order. The trial Court rejected the application on the ground that the offence is not compoundable and that the witnesses are ready to give evidence in the trial. Against this order the revision is preferred before the High Court by the accused persons in those cases. The Madurai Bench of the Madras High Court allowed the revision and set aside the order passed by the trial court. The High Court held that, the application filed by the Public Prosecutor is bona fide and there is no collusion. At the relevant point of time there were no communal clashes in those areas and the government considered it fit to withdraw those cases in public interest. The court should have seen whether the grounds for withdrawal were valid and whether the application was bona fide or collusive in nature. The High Court directed the trial court to discharge the accused. Delhi Montari Industries Limited. Vs. State Bank of Patiala The Bank filed an application against the company for recovery of debt before the Debts Recovery Tribunal (DRT), Delhi. The company filed an application before the DRT, under section 22 of the Sick Industries Companies (Special Provisions) Act, 1985 (SICA) read with rule 18 of the DRT (Procedure) Rules, for stay of the proceedings before DRT. The company urged that an appeal under section 25 of the SICA is pending before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), against an order of the Board for Industrial and Financial Reconstruction (BIFR) and hence the proceedings before the DRT cannot be continued except with the permission of the AAIFR. The presiding officer of the DRT rejected the application of the company. Against that order, the instant appeal is filed by the company before the Debt Recovery Appellate Tribunal. The Debt Recovery Appellate Tribunal, Delhi Bench, allowed the appeal and stayed the proceedings before the DRT. The Appellate Tribunal held as per section 22 of the SICA, where an appeal under section 25 relating to an industrial company is pending, no suit for recovery shall be proceeded with, except with the leave of the BIFR or the Appellate Authority. An appeal is said to be pending from the time it is filed till it is finally disposed of. Dabas Agro Industries and others Vs. The Jammu and Kashmir Bank Limited. The bank filed an application against the company before the Debts Recovery Tribunal (DRT), Delhi, for recovery of debt from the company. There were five defendants. The presiding officer passed an ex parte order. The defendants filed an application to set aside the ex parte order. The presiding officer rejected the application and observed that the second respondent along with the counsel was present before the tribunal and the counsel was instructed by the 2nd respondent to appear. The presiding officer also observed that the 1st respondent did not inform the bank about the change of address. The contention of the defendants that the publication was wrongly carried out was also rejected. Challenging this order the defendants filed appeal before the Debt Recovery Appellate Tribunal. The Debts Recovery Appellate Tribunal, Delhi held that since the second respondent was present with counsel it could be said that he was present not only on his own behalf but also of the 1st respondent company, as he was the proprietor of the company. But respondents 3 to 5 were not represented and there is nothing on evidence to show that notice had been served on them. In the paper publication also the address of the respondents 3 to 5 was not correct. The Appellate Tribunal set aside the ex parte order against respondents 3 to 5. RBI Master Circular on Non-Resident Ordinary Rupee (NRO) Account Master Circular No. 9/2004-05 Dated 19.03.2005: The Reserve Bank of India has consolidated the existing instructions on the subject of "Non-Resident Ordinary Rupee (NRO) Account" in this master circular. This has been issued with a sunset clause and as such will stand withdrawn on July 1, 2005 and will be replaced by an updated Master Circular on the subject. Any person/entity resident outside India may open an NRO account with an authorised dealer or an authorised bank for the purpose of putting through bonafide transactions denominated in Rupees. However, individuals/entities of Bangladesh/Pakistan nationality/ownership require prior approval of Reserve Bank, before opening such accounts. Insurance Regulatory and Development Authority (IRDA) Constitution of Standing Committee on Information Technology Press Release Dated 23.03.2005: The Insurance Regulatory and development Authority has been collecting summary information on important variables from the insurers in prescribed formats, which insurers have been collecting at the base level while writing policies, settling claims etc. Such detailed information is scattered within different archive systems that are not connected with one another producing an insufficient organization of data. Further, there is lack of awareness about the potential use of such organized data for business purposes, which include pricing of product, launching of new products, cost reduction etc. In order to have a collective view of this data and to get the information technology infrastructure implemented, the Authority has constituted a Standing Committee on Information Technology with Shri C.S. Rao as Chairman and eight other members drawn from academics, insurance companies and experts. Ministry of Commerce & Industry DGFT Extension of the Date for Filing of Application for Grant of Star Status Certificate Policy Circular No. 24/2004-2009 Dated 22.03.2005: In Para 3.2 of the Handbook of Procedures Vol. I 2004-09 the last date for filing of application for grant of Star Status Certificate has been prescribed as 1st of March. Now, in view of the representations received in headquarters as well as by Regional Licensing Authorities, and recommendations made by some of the Regional Licensing Authorities, the last date for submission of applications for obtaining Status Certificate during 2004-05 has been extended to 31st March 2005. Ministry of Finance Department of Revenue Central Sales Tax Appellate Authority Notification No. SO327(E) Dated 17.03.2005: Vide this notification, the Central Government has declared that the Authority for Advance Rulings constituted under Section 245-O of the Income-tax Act, 1961 shall also be the Central Sales Tax Appellate Authority to settle inter-State disputes falling under Section 6A read with Section 9 of the Central Sales Tax Act, 1956 on and from 17th March, 2005, the day on which the Central Sales Tax (Amendment) Act, 2001 (41 of 2001) will be coming into force and till such time as the Central Sales Tax Appellate Authority is constituted under Section 19 of the said Act. Ministry of Agriculture Agriculture and Cooperation Fertiliser (Control) (Amendment) Order, 2005 Order No. SO342(E) Dated 18.03.2005: Vide this notification, the Central Government has made the Fertiliser (Control) (Amendment) Order, 2005, further to amend the fertiliser (Control) Order, 1985. These amendments relate to specification of N.P Complex Fertiliser, while specification of Potassium Magnesium Complex Fertiliser has been made subject to omission. Ministry of Home Affairs Indo-Tibetan Border Police, Pioneer Cadre (Group 'B' and 'C' posts) Recruitment (Amendment) Rules, 2005 Notification No. GSR177(E) Dated 16.03.2005: Vide this notification, the Ministry of Home Affairs has amended the Indo-Tibetan Border Police, Pioneer Cadre (Group 'B' and 'C' posts) Recruitment Rules, 1999, making the Indo-Tibetan Border Police, Pioneer Cadre (Group 'B' and 'C' posts) Recruitment (Amendment) Rules, 2005. The amended rules shall come into force on 16th March 2005. The amendments relate to constitution of Departmental Promotion Committee for mentioned posts of group ‘B and group ‘C’. Ministry of Health and Family Welfare Drugs and Cosmetics (IV Amendment) Rules, 2005 Notification No. GSR174(E) Dated 16.03.2005: The Central Government, vide this notification, has made the Drugs and Cosmetics (IV Amendment) Rules, 2005 further to amend the Drugs and Cosmetics, Rules, 1945. Amendments were made in Schedule P of the Drugs and Cosmetics Rules, 1945 and the amended rules shall come into force on 16th of March 2005. Minimum Qualifications for Teachers in Medical Institutions (Amendment) Regulations, 2004 Notification No. MCI-12(2)/2004-Med-32371 Dated 15.03.2005: Amending the Minimum Qualifications for Teachers in Medical Institutions Regulations, 1998, the Medical Council of India, vide this notification, has made the Minimum Qualifications for Teachers in Medical Institutions (Amendment) Regulations, 2004. Now, the maximum age limit up to which a person can be appointed or granted extension or re-employed as Teacher or Dean or Principal or Director in any Medical College or Teaching Institution shall be 65 years. Postgraduate Medical Education (Amendment) Regulations, 2005 Notification No. MCI-23(1)/2004-Med./32370 Dated 15.03.2005: Making significant amendments in the Postgraduate Medical Education Regulations, 2000, the medical Council of India, vide this notification, has brought to the fore the Postgraduate Medical Education (Amendment) Regulations, 2005. These amendments relate to eligibility of consultants or specialists to be equated as Assistant Professor in the department concerned, minimum staff and infrastructural requirements for a postgraduate institution. Ministry of Shipping, Road Transport and Highways Department of Shipping Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2005 Notification No. GSR182(E) Dated 18.03.2005: Vide this notification, the Central Government has made the Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2005. These rules have been made for the purpose of recruitment and placement of seafarers and shall come into force on 18th March 2005. International Legal News Cases V-Formation, Inc. Vs. Benetton Group SpA In the present patent case, the appellant VFI holds the patent right for in-line roller skates of a particular structure. It alleged that certain skates made by Respondent Benetton infringed its’ patent rights. The trial court held that Benetton category 7 skates did not infringe VFI’s patent right and granted Respondent Benetton's motion for summary judgment of non-infringement for six of seven accused skate categories. The Federal Circuit Court upheld the decision of the trial court. Brown, Warden Vs. Payton In the present appeal case to the United States Supreme Court, the respondent Payton is convicted of capital murder and rape. The counsel for the respondent during the trial argued that the Respondent was a reformed man and had turned deeply religious, and pleaded for a light sentence. The trial court sentenced him to death. The Ninth Circuit Court on appeal held that his character after arrest should also be taken into account and granted relief. On appeal to the Supreme Court, the court held that testimony about a religious conversion spanning one year and nine months is insignificant in light of the brutality of the crimes, the prior offenses, and a proclivity for committing violent acts against women and reversed the decision of Ninth Circuit Court and upheld the capital punishment. San Remo Hotel Vs. San Francisco In 1981 the City of San Francisco enacted the Hotel Conversion Ordinance ("the HCO") in order to stem the depletion of housing for the poor, elderly, and disabled by controlling the conversion of hotel units from residential to tourist use. The HCO, as revised in 1990, places harsh requirements on the owners of hotels who want to convert their property from residential to tourist use. These requirements include the construction of a new residential unit for each unit that is converted, or a payment to the city of 80 percent of the cost of constructing such a replacement. The owners of the San Remo Hotel sought to convert their hotel from residential to tourist use, and challenged the legality of the HCO under the takings clause of the California constitution. The California Supreme Court upheld the HCO, and the owners of the hotel then challenged it in federal court under the takings clause of the U.S. Constitution. The Court of Appeals for the Ninth Circuit, however, ruled that they were precluded from raising this issue by virtue of the state court’s prior ruling. News $90 mln award passed against Sony A U.S. court has ordered Sony Corp. to halt sales of its blockbuster PlayStation consoles in the United States and pay $90 million in damages to a California tech company, Immersion Corp. Sony Computer Entertainment (SCE), Sony's gaming unit, said it would appeal the decision by a California federal court in the patent infringement case. In recent years games have been a major contributor to the operating profit of the company, as its electronics division struggles with declining prices. Immersion, a small, California-based developer of digital touch technologies, claimed Sony Computer Entertainment infringed on its technology that makes a game controller vibrate in sync with actions in games. The $90 million awarded by the court is more than triple Immersion's total revenues of $23.8 million in 2004 and represents two-thirds of the company's current market value of around $135 million. US supreme to decide the classification of high speed internet US Supreme Court on Tuesday heard arguments in a telecommunications dispute, which will possibly have huge ramifications for internet law. The issue in question is whether high-speed internet access by cable modem be classified as a “telecommunication” or an “information service”. The outcome of the case will have important implications on the cost of services as also on development of new technology. It is apprehended that if cable providers are considered an information service, they can limit internet access to internet service providers of their choice, thereby creating a monoploy. Domestic-abuse shelters cannot disclose private communication with victims Supreme Court of the State of Colorado has ruled that communications - specifically records of assistance - between a victim and domestic violence shelters are not available to alleged abusers or the public. This is a major victory for advocates of the right to privacy. Trish Thibodo, executive director of the Colorado Coalition Against Domestic Violence said that "(Confidentiality) is the core of what we do. It's the core to victim services and victim advocacy." In the present case, a man accused of domestic abuse had sought information about assistance his alleged victim was receiving from the Alliance Against Domestic Abuse. An opposite outcome would have the potential effect of deterring victims from coming forward. The verdict will help in instilling confidence among victims, in the system. Net fingerprinting to check crime Computer criminals are devising new methods by the day to escape the long arm of the law, one such technique is using swarms of remotely controlled computers to carry out denial of service attacks on websites, launch worms and relay spam around the net. A new system which creates digital fingerprints of ongoing incidents that are sent to every network affected, this will help trace attacks back to their source. Data gathered will be passed to police to help build up intelligence about who is behind worm outbreaks and denial of service attacks. A large number of firms including MCI, BT, Deutsche Telekom, Energis, NTT, Bell Canada and many others are willing to sign up for the system. Apple obtains favourable order in iTunes domain name dispute A man who had had registered itunes.co.uk in 2000, has gone to the High Court seeking review of a decision of the UK domain name registry, Nominet, handing the name over to Apple. It is alleged that Nominet is biased against small businesses, whereas the Registry says the domain name was being misused. It is alleged that itunes.co.uk was being used in a manner taking unfair advantage of the registration, and being unfairly detrimental to, the rights of the complainant Apple. The name was being used while running a music search engine called Cyberbritain. The address now forwards visitors to his new online shopping venture, quickquid.com. Disclaimer (1) While all reasonable care has been taken to ensure that the information provided in the "round up" and on the website is fair and accurate the company and its promoters and employees shall not in any way be responsible for the consequences of any action taken on the basis of reliance upon the contents of this "round up". (2) This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name under our various referral programs. 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