Legislative and Regulatory Update

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In This Issue

[No.121]                                                                            May 10, 2005

Supreme Court
High Courts
PIB
Ministry of Shipping, Road Transport and Highways
Ministry of Law and Justice
SEBI
Ministry of Power
Ministry of Environment and Forests
Ministry of Finance
International

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Supreme Court

  • Narender Vs. Pradeep Kumar

MANU/SC/0356/2005

The plaintiff filed a suit for eviction of the respondent from the premises under his tenancy. No rent agreement had been executed. It was alleged that the respondent had acquired an alternate accommodation in the name of his wife, who had no independent source of income. Despite service of summons, respondent did not appear to defend his possession of the impugned property. Trial Court decreed the eviction petition.

Aggrieved, the respondent approached the Rent Control Tribunal, which dismissed the appeal of the respondent. Single Judge of the High Court set aside the order of the Tribunal and remitted the case back to the Trial Court. Appeal was filed before the Supreme Court.

The Apex Court allowed the petition, it was observed that the extraordinary jurisdiction under Article 227 of the Constitution of India ought not to be exercised for the benefit of a person who himself had not pursued the remedy available before the trial court

  • Viveka Nand Sethi Vs. Chairman Jammu  and Kashmir Bank Limited and others

MANU/SC/0351/2005

The appellant/workman had been transferred to different places, however he kept on applying for leave, as a result he hardly had any accumulated leave. Even the medical leave had been exhausted.  Since appellant did not report for duty after expiry of leave, action was taken against him as per a bi partite agreement, arrived at between the management and the workers. He was dismissed from service. Labour Court directed reinstatement of the appellant but without backwages.

Workman and the management filed separate writ petitions against the order, both single judge and a division bench dismissed the petitions. Cross appeals were preferred before the Apex Court.

The Apex Court allowed the Managements appeal, it was observed that action had been taken against the workman only after giving a reasonable opportunity of being heard, as such there was no infirmity in the order.

High Courts

West Bengal

  • Subhash Datta Vs. Chief Justice of the Supreme Court

Two Judges of the Calcutta High Court were transferred to other High Courts. A public interest litigation was filed, thereby praying that under the Freedom of Information Act, 2002 the petitioners had a right to be informed about the reasons for transfer of the two judges. It was alleged that the judges were being unfairly victimized as they had initiated contempt proceedings against a politician and passed various adverse orders against the state government.

The Calcutta High Court dismissed the writ petition, relying on a Supreme Court judgment. It was stated that judges' transfer couldn’t be a subject matter of judicial review.

Jharkhand

  • Supriya Kumar Bakshi Vs. Union of India

The applicant had suffered grievous injuries during office hours, while at work.  Despite repeated requests medical leave was not granted. A letter was sent to him regarding his unauthorized absence from duty and was asked to report immediately. The applicant submitted joining report along with medical fitness certificate. However, he was not allowed to join, which resulted in the present proceedings.

The Central Administrative Tribunal, Ranchi Bench, disposed of the application with the directions that the applicant shall appear before a Medical Board and the respondents were directed to issue a letter to the civil surgeon in this regard.

Bombay

  • Joseph Dias and others Vs. Vinod Pandey and others

The promos of a film depicted main protagonist essaying the role of a Catholic Priest. The Petitioner, President of the Bombay Catholic Sabha,, a Public Charitable Trust filed a Writ Petition challenging the exhibition of the film. It was claimed that the the manner in which the promos of the film depicted the priest affected the sentiments of the Christian Community and would lead to wrong opinion about them. It was contended that the filmmaker had exceeded his right to freedom of expression, the limits of such freedom ought to be examined as there is a vulgar depiction of a Catholic Priest with a lady in the film.

The High Court at Bombay, dismissed the petition. It was held that facts show that it is a serious film and adult Indian citizens as a whole may be relied upon to comprehend intelligently the message and to react to it, and not to the possible titillation of some particular scenes. Story line doesn’t show the intention of filmmaker in any way to bring down the institution of priesthood or that of the church.

  • Dattusing Girdharsing Rajput(Thakur) Vs. Bhagwant Devasthan, Barshi and others

Appellants mother had left behind a will in favour of a trust, however, it was claimed that a subsequent will had been executed in favour of the appellant. A suit was filed on behalf of the trust and against the appellant herein. The said suit was stayed pending decision of a cross suit filed by the appellant herein, however the court proceeded with the suit, the appellants counsel, filed a “no instruction pursis” and was discharged from the proceedings. Due to non appearance on behalf of the appellant herein the suit was decided against him. An earlier suit filed by the appellant herein was also dismissed. Separate appeal challenging the judgments were dismissed.

Aggrieved, two second appeals were filed on the grounds that once a case was made out for stay of the suit under section 10 of the Code of Civil Procedure, 1908 , the trial court ought not to have proceeded during the pendency of the earlier suit. It was also contended that advocate cannot seek discharge without informing the client.

The High Court at Bombay, dismissed the appeals, it was held that will executed by testator bequeathing properties in favour of Public Trust will subsist unless revoked by the subsequent Will allegedly executed by the testator, therefore Property must go to the Trust as per the bequest made in the original Will. It was observed that an advocate cannot seek discharge from a case without an advanced notice to the client.

  • Hindustan Engineering & Industries Limited Vs. Container Corporation Of India Limited and another

The petitioner company was allotted a contract by a wholly owned Government of India undertaking. In accordance with the terms of contract petitioner furnished performance guarantee as well as two bank guarantees to the respondent towards the advance for the contracted supplies to be made by it. The petitioner for reasons beyond its control could not adhere to delivery schedule. As a result the respondent terminated the contract. Petitioner sought an injunction against the Respondent, in order to restrain it from invoking the bank guarantee.

The Delhi High Court dismissed the petition with the remarks that a party seeking an interim order against encashment must furnish clear evidence both as to fact of fraud having vitiated contract between parties as also fact that bank had knowledge of such fraud being committed.

PIB
  • Compensation to Affected Families of Bhopal Gas Tradegy

Dated 06.05.2005: Out of 10,29,516 claims, which have been filed under various categories, all the cases have been decided. So far, 5,73018 claims have been settled and claimants have been awarded a total compensation of Rs. 1542,31 crore, whereas 4,56,498 cases have been rejected. As per orders of the Hon’ble Supreme Court dated 19th July 2004, those claimants who have been awarded original compensation (5,73018) have to be paid additional compensation on pro-rata basis. The pro-rata disbursement process has to be completed by 30th April 2006, as per the Orders of the Hon’ble Supreme Court. This process has been started and 1,57,752 claimants have already been paid pro-rata compensation by the Welfare Commissioner amounting to Rs.458.88 crore till 21.4.2005.

Ministry of Environment and Forests
  • Environment (Protection) Amendment Rules, 2005

Notification No. GSR272(E) Dated 05.05.2005: The Central Government has made the Environment (Protection) Amendment Rules, 2005 further to amend the Environment (Protection) Rules, 1986. The amendments relate to the dates of application of noise limits for vehicles at manufacturing stage for the given states.

Ministry of Finance

Excise Non Tariff

  • CENVAT Credit (Fifth Amendment) Rules, 2005

Notification No. 20/2005-NT Dated 02.05.2005: The Central Government, vide this notification, has made the CENVAT Credit (Fifth Amendment) Rules, 2005 further to amend the CENVAT Credit Rules, 2004. The amendments relate to the obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services, as regard to exemption for Liquefied Petroleum Gases (LPG).

CBEC Customs

  • Computers Additional Duty (Amendment) Rules, 2005

Notification No. 38/2005 Dated 02.05.2005: Vide this notification, the Central Government, has made the Computers Additional Duty (Amendment) Rules, 2005 to amend the Computers (Additional Duty) Rules, 2004. These amendment rules have fixed the additional customs duty rate to be 6% ad valorem for Central processing unit (CPU), when imported separately, and 7% ad valorem in case of computers, when they have been imported other than their CPU imported separately.

SEBI

Secondary Market Division

  • Renewal of Recognition of the Guwahati Stock Exchange Limited

Notification No. SO599(E) Dated 29.04.2005: The Securities and Exchange Board of India, vide this notification, has granted renewal of recognition to the Guwahati Stock Exchange Limited under Section 4 of the Securities Contracts (Regulation) Act, 1956 for a period of one year commencing on the 1st day of May, 2005 and ending on the 30th day of April, 2006 subect to the condition the said Exchange shall commence trading only after obtaining final approval from SEBI for establishment of the Settlement Guarantee Fund.

Ministry of Power
  • Central Power Engineering (Group “A”) Service Rules, 2005

Notification No. GSR243(E) Dated 21.04.2005: In supersession of the Central Power Engineering (Group A) Service Rules, 1990, the President, vide this notification, made the Central Power Engineering (Group "A") Service Rules, 2005. The said orders shall come into force on 21st day of April 2005. The order provided for constitution of the Central Power Engineering (Group A) Service and stated the grades and strength of the service.

Ministry of Shipping, Road Transport and Highways

Department of Shipping

  • Madras Port Trust (Recruitment of Heads of Departments) (Amendment) Regulations, 2005

Notification No. GSR250(E) Dated 28.04.2005: The Central Government has approved the Madras Port Trust (Recruitment of Heads of Departments) Regulations, 2005 made by the Board of Trustees of Chennai Port Trust as set out in the Schedule annexed to this Notification. The changes were made in the constitution of the Selection Committee for making such recruitments.

Ministry of Law and Justice

Department of Legislative

  • The State of Maharashtra (Special Responsibility of Governor for Vidarbha, Marathwada and the Rest of Maharashtra) Amendment Order, 2005

Notification No. GSR254(E) Dated 30.04.2005: Vide this notification, the President has made the State of Maharashtra (Special Responsibility of Governor for Vidarbha, Marathwada and the Rest of Maharashtra) Amendment Order, 2005 and specified that the said Order shall remain in force up to the 30th day of April, 2006.

International Legal News

Cases

  • Family

In a divorce proceeding, plaintiff's waiver of any rights that he might have had to his wife's family property does not preclude him from contesting that waiver as having been fraudulently obtained.

Urfirer v. Cornfeld

  • Class Action

In a class action lawsuit against Avon, the trial court erred by dismissing plaintiff-sales representatives' complaint where it properly stated a claim for violations of the unfair business practices and fraudulent concealment.

Blakemore v. LA Super. Ct.

  • Commercial

Dismissal of plaintiff's complaint, alleging that defendant-credit card company aided and abetted in the operation of an illegal lottery, is reversed where plaintiff sufficiently pleads a cause of action for aiding and abetting.

Schulz v. Neovi Data Corp.

  • Property Law

In a challenge to a forfeiture order, defendant's son's claim, alleging that the forfeited property belonged to him, is dismissed where he held only nominal title to the property at the time his father committed the illegal acts that resulted in the forfeiture.

US v. Bryson

  • Criminal

In a murder trial for a dog mauling, an order granting defendant a new trial on her second degree murder conviction is reversed where the lower court 1)used a legally incorrect definition of implied malice, 2)improperly reassessed credibility on the issue of subjective knowledge, and 3)incorrectly considered the relative culpability of defendants.

People v. Knoller

  • Civil Procedure, Contracts

In a breach of contract action, summary judgment in favor of defendant, based on certain inculpatory statements by the moving party's opponent in a deposition, is reversed where the trial court erred by refusing to also consider other evidence disclosing triable issues of material fact

Scalf v. D.B. Log Homes

  • Labor and Employment Law

The National Labor Relations Board's Application for Enforcement of its decision, which held that unusual circumstances did not justify defendant's withdrawal from a collective bargaining agreement, is denied where the decision was not rational or consistent with the National Labor Relations Act.

NLRB v. D.A. Nolt

  • Contracts

The district court correctly decided that plaintiff is likely to prevail on the merits of its breach-of-contract claim; however, the court erred when it concluded that plaintiff would be irreparably harmed by the breach.

Mid-America Real Estate Co. v. Iowa Realty Co.

  • Class Action

In a class action lawsuit against Avon, the trial court erred by dismissing plaintiff-sales representatives' complaint where it properly stated a claim for violations of the unfair business practices and fraudulent concealment.

Blakemore v. LA Super. Ct.

  • Civil Procedure

General Municipal Law section 50-e(3)(c), which saves claims from dismissal on account of defects in the manner of service, does not excuse a plaintiff's failure to serve a timely notice of claim on the correct public entity.

Scantlebury v. New York City

News

  • Advertising by Lawyers

The Monroe Country Bar Association has announced the formation of a committee that will field complaints of inappropriate advertising and advise lawyers whether their advertising crosses the line into sensationalism and bad taste. The Bar also intends to educate people in choosing a lawyer. However the Committee will have no enforcement rights other than issuing a public statement if a lawyer refuses to revise an ad that the committee finds to be inappropriate. As part of an outreach effort, the bar association plans to add links on its Web site to services that give information about lawyers and rate them.

  • Nuclear Non-Proliferation Treaty under  review

Nuclear Non-Proliferation Treaty is presently under review in a month-long conference at the UN. The Treaty was designed to spread the check of nuclear weapons. The 35 year old Treaty has been subscribed to by nearly 190 states.

One of the primary reasons of its failure is the fact that the world has been divided into two camps: those who have nuclear weapon capability (these nations are lawfully allowed to posses nuclear weapons) and those who do not. The five declared nuclear-weapon states promised to cease the nuclear arms race and head toward a complete nuclear disarmament under strict and effective international control. However they have failed to abide by their commitment.

  • Families of dead British soldiers allege war crimes

Families of ten soldiers who lost their lives in Iraq, have moved the international Criminal Court against the British Government. They have disclosed that British troops were unlawfully ordered to use cluster bombs near civilian areas and to destroy essential power supplies which affected hospitals and water. Their complaint to the ICC, in The Hague, also accuses the Government of illegally acting out of all proportion to the official aim of the war: ridding Iraq of weapons of mass destruction. The Attorney General and the head of Britain's armed forces fear that there is a real risk that the ICC would investigate alleged war crimes in Iraq. Tony Blair's government has been accused of committing war crimes in Iraq in a complaint by the families of dead British soldiers to the International Criminal Court.

  • Court rejects FCC's rules to curb TV piracy

The Federal Communications Commission had framed rules requiring the use of technology in consumer electronic devices sold after July 1, which would have the effect of limiting how consumers could record and watch their favourite television programmes. The technology, known as the broadcast flag, would permit entertainment companies to designate, or flag, programs to prevent viewers from copying shows or distributing them over the Internet. The controversial rules were challenged by consumer groups, including library associations. Their lawyers complained the FCC requirement would drive up prices of digital television devices and prevent consumers from recording programs in ways permitted under copyright laws. A three judge panel for a U.S. circuit court ruled that the FCC had exceeded its authority in framing the rules.