Legislative and Regulatory Update

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In This Issue

[No.122]                                                                            May 20, 2005

Supreme Court
High Courts
Telecom Regulatory Authority of India
RBI
Ministry of Health and Family Welfare
Ministry of Environment and Forests
Ministry of Finance
International

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Supreme Court

  •  Ajendraprasadji Narendraprasadji Pandey v Swamy K. Narayandasji and Ors.

Manu/SC/0399/2005

The Appellant filed for a Special Civil suit questioning the legality of the removal of the appellant from the post of Acharya. The Trial court passed an interim order restraining the Respondents from entering the temple premises and removing the defendant from the post of Acharya. Respondents challenged the said order.

The High court admitted the appeal but no interim orders was passed, in the circumstances the appellants herein were constrained to approach the Apex Court.

The Apex Court allowed the appeal. High Court was directed to hear the matter afresh and consider the cumulative factors while deciding the application for interim relief.

  • Sanjeev Bhatnagar v Union of India and Ors.

Manu/SC/0397/2005

The Petitioner filed a petition in Public interest under Article 32 of the constitution of India, seeking a direction for the rectification of the National Anthem by deleting the word “Sindh” there from.

The main contention of the petitioner was that since ‘Sindh’ was a part of India pre-partition and as such the use of this word in the national anthem is misplaced.

The Apex court held that the petition was devoid of any merit and dismissed the petition with costs.

High Courts

Karnataka

  • Babu Shirole Vs. Smt. Kshama Babu Shirole (26.11.2004)

Petitioner and respondent are husband and wife respectively. They had filed two separate divorce petitions in two separate places, one in Karnataka and one in Maharashtra. Petitioner husband has filed divorce petition on the ground of mental cruelty and desertion etc. and respondent wife’s grounds has filed her petition on the grounds of mental and physical cruelty, desertion, illicit relation and dowry demand etc. As per the petitioner husband issues of both these petitions are directly and substantially the same therefore the petition for divorce filed by the wife should be stayed.

The High Court of Karnataka while dismissing the petition held that though the issues in both the petitions are identical but are not directly and substantially the same. On the question of jurisdiction to stay the matter of another court it was held that the Court at Karnataka has no territorial jurisdiction over the court located at Maharashtra.

Punjab and Haryana

  • Smt. Asha Gupta alias Anju Gupta Vs. Rajiv Kumar Gupta (08.09.2004)

Respondent husband had filed a suit for divorce on the ground of cruelty on the part of the appellant-wife by lodging complaint under Sec. 406/ 498A and also by approaching Mahila Sangathan. The learned Addl. District Judge has passed the decree of divorce on the basis of cruelty and stating that the marriage had irretrievably broken because the appellant and respondent are living separately for the last 11 years.

Appeal was allowed by Punjab and Haryana High Court while setting aside the divorce decree passed by the trial court is set aside .It was held that filing of dowry complaint couldn’t be a ground for cruelty when the husband still posses the items of dowry and merely living separately would not be a ground to hold that marriage has irretrievably broken.

Gujarat

  • Haresh Jodhabhai ZinZala vs. State of Gujarat and another (20.07.2004)

Petitioner was a student of P.T.C. for the year 2003-2004 and was facing criminal charges for appearing as dummy student in place of another student in class 12th examination. Petitioner was not allowed to fill the examination form for P.T.C. as per the order issued by the State examination Board. It was held that there is no prohibition in allowing the student from appearing in examination in case he is facing criminal case or trial.

The High Court at Gujarat allowed the petition and set aside the order passed by the Gujarat State Examination Board

Chennai

  • Indian Pistons Ltd. Vs. CCE, Chennai

Aluminum ingots received by the appellants herein are clearly recognizable as non-duty paid. The suppliers have not paid any excise duty as they satisfied the conditions of Notification. When it is clearly evident that raw material cleared has not discharge any Excise duty, they are recognizable as non –duty paid goods. -No Deemed Credit is allowed on such non-duty paid- goods.

The appeal was rejected with the observation that the government has no intention to allow deemed credit on non-duty paid goods.

Delhi

  • JCT Ltd. Vs. CCE, Jalandhar

Goods received in the factory were used in the manufacture of final product eligible for Modvat credit. Modvat Credit was denied on two grounds –vague description of vehicle and delay in intimating Assistant Commissioner. The Appellant herein filed an appeal for availing Mod vat Credit on the original copy of invoice as duplicate copy of the bill lost on the way.

Appeal was allowed, it was observed that manufacturer could take credit on the basis of duplicate copy of invoice but where duplicate copy has been lost in transit, credit could also be taken on the basis of original copy after satisfying the Assistant Commissioner about the loss.

Telecom Regulatory Authority of India (TRAI)
  • TRAI Meetings for Transaction of Business (First Amendment) Regulation, 2005

Notification No. 14-7/2005-FA Dated 17.05.2005: The Telecom Regulatory Authority of India has vide this notification, made the TRAI Meetings for Transaction of Business (First Amendment) Regulation, 2005. These amendments have brought forward the decision of the Authority to allow members to participate through videoconference, as it would facilitate higher participation of members, especially those residing at distant places from Authority’s head office. The amendments would also help chairperson to convene extra-ordinary meetings in terms of regulation 14 of the TRAI Meetings for Transaction of Business regulation, 1999 at short notices to discuss items requiring urgent decisions.

  • The Telecom Regulatory Authority of India (Officers and Staff Appointment) (4th Amendment) Regulation 2005

Notification No. 5-4/2000-A&P(Vol.II) Dated 10.05.2005: The Telecom Regulatory Authority of India has vide this notification, made The Telecom Regulatory Authority of India (Officers and Staff Appointment) (4th Amendment) Regulation 2005, further to amend the Telecom Regulatory Authority of India (Officers and Staff Appointment) Regulation 2001. Now, the service of drivers has been segregated into two salary classes, viz. grade–I and grade–II.

RBI

AP DIR (Series)

  • Liberalisation as regard to Overseas Investment

Circular No. A.P.(DIR Series) Circular No.42 Dated 12.05.2005: Till this circular came into being, in terms of Regulation 6 of the FEMA notification no. FEMA.120/RB-2004 dated 7th of July, 2004, an Indian entity is permitted to invest upto 100 per cent of their net worth in overseas Joint Ventures and/or Wholly Owned Subsidiaries (JV/WOS) in any bonafide business activity under automatic route. Now, with a view to promote Indian investment abroad and to enable Indian companies to reap the benefits of globalisation, it has been decided to raise the above ceiling from the present 100 per cent of the net worth to 200 per cent of the net worth of the investing company.

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

Notification No. GSR315(E) Dated 16.05.2005: The Central Government has made the Environment (Protection) Second Amendment Rules, 2005 further to amend the Environment (Protection) Rules, 1986. The said rules shall come into force on 16th day of April 2005. The amendments relate to the noise limit for generator sets run with diesel.

Ministry of Finance

 CBEC Excise Non-Tariff

  • CENVAT Credit (Seventh Amendment) Rules, 2005

Notification No. 27/2005-NT Dated 16.05.2005: The Central Board of Excise and Customs, has vide this notification, made the CENVAT Credit (Seventh Amendment) Rules, 2005, further to amend the CENVAT Credit Rules, 2004. Now, if the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.

  • New Forms ER-1 and ER-3 specified under Central Excise Rules, 2002

Notification No. 26/2005-NT Dated 16.05.2005: The Central Board of Excise and Customs, has vide this notification, specified new format for forms ER-1 and ER-3. Form ER-1 is used for filing monthly return for production and removal of goods and other relevant particulars and CENVAT credit, and form ER-3 is a form to be submitted by the assessees falling under proviso to rule 12 of the Central Excise Rules, 2002, along with returns.

CBEC Customs

  • Exemption to Goods Produced/Manufactured in a SEZ from Additional Duty

Notification No. 45/2005 Dated 16.05.2005: Vide this notification the Central Board of Excise and Customs, has exempted the goods produced or manufactured in a Special Economic Zones (SEZs) from additional duty of customs leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975, provided that no such exemption shall be applicable if such goods, when sold in domestic tariff area, are exempted by the State Government from payment of sales tax or value added tax.

Economic Affairs

  • Post Office Savings Account (Amendment) Rules, 2005

Notification No. GSR286(E) Dated 13.05.2005: The Central Government, vide this notification, has made the Post Office Savings Account (Amendment) Rules, 2005, further to amend the Post Office Savings Account Rules, 1981. The amendments focused on definition of the terms ‘deposit’ and ‘depositor’. 'Deposit' means the money deposited by a depositor in an account under these rules, while a ‘Depositor’ is an individual who, on his own behalf or on behalf of a minor or a person of unsound mind of whom he is the guardian, deposits money in an account under these rules.

  • Post Office (Monthly Income Account) Amendment Rules, 2005

Notification No. GSR288(E) Dated 13.05.2005: The Central Government, vide this notification, has made the Post Office (Monthly Income Account) Amendment Rules, 2005, further to amend the Post Office (Monthly Income Account) Rules, 1987. The amendments focused on definition of the terms ‘deposit’ and ‘depositor’. 'Deposit' means the money deposited by a depositor in an account under these rules, while a ‘Depositor’ is an individual who, on his own behalf or on behalf of a minor or a person of unsound mind of whom he is the guardian, deposits money in an account under these rules.

  • Public Provident Fund (Amendment) Scheme, 2005

Notification No. GSR291(E) Dated 13.05.2005: The Central Government, vide this notification, has made the Public Provident Fund (Amendment) Scheme, 2005, further to amend the Public Provident Fund Scheme, 1968. Now, such accounts could be survived in the name of self or minor, and not in the name of a Hindu Undivided Family or an Association of persons.

Ministry of Health and Family Welfare
  • Drugs and Cosmetics (V Amendment) Rules, 2005

Notification No. GSR285(E) Dated 11.05.2005: The Central Government after consultation with the Ayurvedic, Siddha, Unani Drug Technical Advisory Board (ASUDTAB), has made further amendments in the Drugs and Cosmetics Rules, 1945. The permitted excipients, that is, additives, preservatives, anti-oxidants, coloring agents, flavouring agents, alternate sweeteners, to be used in Ayurveda or Siddha or Unani drugs as per reference standard or grade under the prevention of Food Adulteration Act (PFA), have been notified.

International Legal News

Cases

  • ENVIRONMENTAL LAW

The California Coastal Commission's approval of a coastal development permit that straddles the coastal zone boundary is in conformity with the Coastal Act's policies and requirements.

Sierra Club v. Cal. Coastal Comm'n

  • CRIMINAL LAW & PROCEDURE

A conviction under section 10851(a) for unlawful taking or driving of a vehicle does not bar a conviction under section 496(a) for receiving the same vehicle as stolen property when the evidence is such that it is not reasonably probable that a properly instructed jury would have found that the defendant took the vehicle but did not engage in any post-theft driving.

People v. Garza

  • LABOR & EMPLOYMENT LAW

Plaintiff's defamation claim is dismissed under the anti-SLAPP law where defendant's submission of a Form U-5 to the National Association of Securities Dealers, which described the reasons for plaintiff's termination, is absolutely privileged under Civil Code section 47(b).

Fontani v. Wells Fargo Inv.

  • CONTRACTS, PROPERTY LAW & REAL ESTATE

A nonjudicial foreclosure sale conducted by mistake was invalid where the trustee had no right to sell the property since the buyer and lender entered into an agreement to cure the buyer's default.

Bank of Am. v. La Jolla Group

  • CIVIL PROCEDURE, INJURY AND TORT LAW, PROPERTY LAW & REAL ESTATE

A successful plaintiff's right to recover prejudgment interest in an action for conversion will run until entry of a judgment resolving the issue of disputed title.

Irving Nelkin & Co. v. S. Beverly Hills Jewelry

  • IMMIGRATION LAW

Aliens denied temporary or permanent resident status by the INS, under the legalization program of the Immigration Reform and Control Act, retain the right to judicial review of that denial.

Guzman-Andrade v. Gonzales

  • HABEAS CORPUS

Denial of plaintiff's petition for a writ of habeas corpus is reversed where plaintiff made out a prima facie case that the prosecutor had violated Batson v. Kentucky, 476 U.S. 79 (1986), by striking prospective African American jurors based on race.

Brinson v. Vaughn

  • IMMIGRATION LAW

Lawful reentry to the United States after commission of an offense entitles an individual to establish a new period of continuous physical presence in the United States.

Okeke v. Gonzales

News

  • Manner of Execution of Death Penalty divides Washington Supreme Court

In the last minute appeal before the Supreme Court, over death penalty involving the lethal chemical cocktail used by many states, 5-4 vote was illustrative of the court’s sharp division on the manner of execution of death penalty barring executions of juvenile killers on grounds that they were cruel and unusual punishment. The Supreme Court however has never found a specific form of execution to be unconstitutional. The Corrections Department also laid down that there is no evidence that the drugs don't work to produce a relatively painless death and that the lawsuit is more of a public relations assault on capital punishment than a legitimate scientific attack.

  • Search Warrant executed in Data Theft Probe

With the execution of search warrants and seizure of evidence from several individuals across the country, the federal investigation into the massive theft of sensitive three lakh personal records from database giant LexisNexis Inc. intensified. Personal computers and discs were removed from several locations including the homes of the individuals suspected to be involved in the breach as the break-in began when hackers sent out a surge of emails containing a virus, which allowed them to record the keystrokes typed by all recipients of the junk mail.

  • Ordinance barring day Laborers from soliciting work from curbsides struck down in Los Angeles

A Federal Judge struck down the city law that barred the day laborers from soliciting work from curbsides holding that the ban infringed on their constitutional rights, including the right to free speech. The judge also held that Ordinance was vague since it bars making solicitations from streets and curbs - which could be misinterpreted as to mean that it is also illegal to solicit from sidewalks.