Legislative and Regulatory Update

You now have the option of customizing your manupatra round-up .This means that you get updates on the areas of interest that you select .You may change your preferences at any time you wish to. If you do not customize your round up you will continue to get the updates on all areas

 

To customize your round-up now click here.

_____________________________________________________________________

India Centric Online Legal & Business Database

Bringing forth new efficiency and unparalleled results to research efforts.

In This Issue

[No.123]                                                                            May 30, 2005

Supreme Court
High Courts
PIB
RBI
Ministry of Defence
Ministry of Civil Aviation
SEBI
Ministry of Labour And Employment
International

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

  • Jagdish and Anr. V State of Haryana

MANU/SC/0401/2005

The Appellants were convicted and sentenced by the Trial court to undergo rigorous imprisonment for ten years and a fine of Rs.100 each imposed for the attack on the prosecution party, which according to the doctor was considered to be cumulatively dangerous to life.

The Appellants challenged the said order. The High Court upheld the conviction but reduced the sentence of the second appellant from ten years to seven years and directed the appellant No.1 to pay Rs.1lac and appellant No.2 to pay Rs.50000 as compensation.

Aggrieved by the High Court judgment, the appellants were constrained to move the Apex Court, which upheld the High Court judgment with regard to appellant No.1 but reduced the sentence to eight years on payment of the compensation amount. However with regard to the appellant No.2, the impugned judgment was set aside.

  • Sree Vijayakumar and Anr. v State, by Inspector of Police, Kanyakumari

MANU/SC/0402/2005

The Appellants, along with two others were convicted and sentenced to life imprisonment by the Trial Court under section 302 and section 324 read with section 34 IPC.

Aggrieved by the said order, the accused filed an appeal before the High Court which upheld the conviction of the other accused under section 324 read with section 34 IPC. However the conviction of the Appellants was upheld. Aggrieved by the said order, the appellants were constrained to move the Apex Court.

The Apex court allowed the appeal and held that the Appellants can only be held guilty for their individual over acts and therefore appellant No.2 was convicted and sentenced to undergo imprisonment for seven years with a fine of Rs.500, and conviction of Appellant No.1 under section 323 and section 324 IPC was upheld, and since had undergone imprisonment for one year was released.

High Courts

Kerala

  • Ganesh Prasad v. Board of Revenue(08.02.2005)

The father of the petitioner possessed licence under the Arms Act for nearly thirty years before he died. When the petitioner applied for the licence the District Collector called report from the revenue and police authorities. The Tahsildar recommended grant of licence but the SP did not on the grounds that there were already many licensed arms in the area and thus the District Collector too refused the licence. The rejection was confirmed in appeal. This was challenged as being arbitrary and showing non-application of mind.

The court ruled that merely saying all relevant aspects have been considered before making a decision is not enough. The authority has to act bona fide and cannot abuse discretionary power. Therefore each application of licence has to be considered on individual merits. Simply because the Superintendent of Police did not recommend grant cannot be a ground to reject the application

  • Kerala Fisherman Welfare Fund Board v. Kunjan Divakaran(28.02.2005)

The respondent, a member registered under Kerala Fisherman Welfare Board Fund was afflicted with Rheumatoid Arthritis and had lost vision in the right eye with only partial vision in the left. He was denied financial assistance by the board on the ground that Arthritis was not covered under the scheme. The Human Rights Commission directed the board to consider the application and the Kerala Legal Services Authority took up the matter too without any avail.

Responding to a Writ Petition before a single judge bench the Board also averred that its financial position was feeble. However, the single bench directed the board to consider the case with required indulgence. Against this direction the present appeal was preferred.

While dismissing the appeal, the court ruled that though Rheumatoid Arthritis was not a disease recognised under the scheme, paralysis that meant loss of power of motion was. Considering this and the fact that Filariais was a disease enumerated under the scheme coupled with the fact that the scheme is a laudable welfare measure the court ruled that there is no room for interpreting a welfare statute literally. In the result, the court directed the board to reconsider its decision within two months.

Calcutta

  • International General Electric (India) Limited v. Haradhan Sasmal(17.03.2005)

Upholding the view of the Trial court, the Calcutta High Court held that the plaintiff had performed his part of the contract and the defendant had willfully backed out by raising sham disputes and deliberately did not accept the finished materials as the Orissa State Electricity Board had already cancelled the agreement for laches of the defendant.

The respondent had filed a money suit against the appellant for recovery of a certain sum of money along with interest on account of cost of manufacture of certain electrical equipments, which the plaintiff had manufactured under an order from the defendant. The court said that the appellant was aware of the fact that the Orissa State Electricity Board had not extended the time of delivery for their fault and cancelled the order and accordingly did not respond to the letters of inspection issued by the respondent. The court also said that merely because at one stage plaintiff demanded certain amount of advance, for this reason the defendant could not cancel the contract awarded in favour of the plaintiff.

  • Ashit Ghosh v. Director of School Education & Ors.(15.12.2004)

The court debated the jurisdiction of the Writ Court to entertain a dispute between a person to enforce the right conferred upon him under the statute itself against another defaulting member of a committee. This question came up for decision before the court in this writ petition, as to who amongst the Secretary and the Joint Secretary of the Managing Committee of a school would be the custodian of the school records, viz., Resolution Book, Notice Book, Pension Book and Service Book of teaching and non-teaching staff, deeds relating to land owned by the school. According to Rule 27 of the Management Rules, the Secretary shall be the custodian of all such documents. It was held that the joint secretary could not withhold the delivery of such documents, as it would obstruct the smooth functioning of the Management of the school. It was further ruled that the jurisdiction of the Writ Court to entertain such a dispute could not be excluded under such circumstances.

PIB
  • Record Spurt in FDI Inflows in 2004 - Annual Report of DIPP 2004-05

Dated 18.05.2005: India has received a record FDI inflow of 17,266.52 crore rupees (US$ 3.75 billion) in the year 2004(January to December). In its Annual Report for the year 2004-05 the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, attributes this upturn in FDI to the liberal, transparent and investor friendly FDI policy of the government whereby FDI up to 100 % is allowed under the automatic route in most sectors. The Annual Report also notes that the efforts of the NMCC to unlock India’s manufacturing potential and the Destination India events organized by the Ministry in association with CII and FICCI have contributed enormously for investment promotion.

RBI

RPCD

  • Scheme for Small Enterprises Financial Centres (SEFCs)

Circular No. RPCD.PLNFS.BC.No.101/06.02.31/2004-05 Dated 20.05.2005: Vide this circular, the Reserve Bank of India has circulated a scheme for "Small Enterprises Financial Centres (SEFCs)", which it has worked out in consultation with the Ministry of SSI and Banking Division, Ministry of Finance, Government of India, SIDBI, IBA and select banks. The scheme aims at expanding outreach of banks and improving credit flow to the Small Scale Industries (SSIs) sector.

Ministry of Defence
  • Expert Committee on Aircraft Accidents Submits its Report

Press Release Dated 18.05.2005: The Ministry of Defence has acknowledged the receipt of report as submitted by the expert Committee on Flight Safety, which had been constituted in Dec 04 to identify causes of aircrafts in IAF and to suggest remedial measures to reduce the accidents to a minimum.

Ministry of Civil Aviation
  • Aircraft (First Amendment) Rules, 2005

Notification No. GSR330(E) Dated 19.05.2005: The Central Government, vide this notification, has made the Aircraft (First Amendment) Rules, 2005, further to amend the Aircraft Rules, 1937. With effect of this notification, a new Rule 29C as regard to adoption of the Convention and Annexes, has been added. It requires the Director-General to lay down standards and procedures not inconsistent with the Aircraft Act, 1934 (22 of 1934) and the rules made thereunder to carry out the Convention and any Annex thereto.

SEBI

Secondary Market Division

  • The BSE (Corporatisation and Demutualisation) Scheme, 2005

Notification No. SO684(E) Dated 20.05.2005: The Securities and Exchange Board of India (SEBI), has vide this notification, notified a scheme for corporatisation and demutualisation of the Bombay Stock Exchange (BSE), under the Securities Contracts (Regulation) Act, 1956. The SEBI prior to declaring such scheme, has made thorough observations as regard to voting rights of a shareholder, recognition of trading members of the demutualised stock exchange, composition of Board, utilization of assets and reserves, and measures to establish uniformity of standards such that all trading members may have similar rights and privileges.

Ministry of Labour And Employment
  • Employees' State Insurance (Central) (1st Amendment) Rules, 2005

Notification No. GSR322(E) Dated 17.05.2005: The Central Government, after consultation with the Employees' State Insurance Corporation, made the Employees' State Insurance (Central) (1st Amendment) Rules, 2005, further to amend the Employees' State Insurance (Central) Rules, 1950. Now, for the promotion of measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured, the Corporation may incur an expenditure upto a limit of Rs. three hundred crores per year from the Employees' State Insurance Fund. These Rules shall come into effect from 1st May, 2005.

International Legal Cases and News

Cases

Labour & Employment Law

  • Williams v. Missouri Dep't of Mental Health

In a claim for hostile work environment, the U.S. 8th Circuit Court of Appeals made a judgment in favor of the defendant-employer where the plaintiff unreasonably failed to take advantage of the preventative and corrective opportunities provided by the defendant-employer to avoid any harm to the plaintiff’s career.

  • Campbell v. Gen. Dynamics

The U.S. 1st Circuit Court of Appeals ruled that a mandatory arbitration agreement, contained in a dispute resolution policy linked to an emailed company-wide announcement, is unenforceable where the plaintiff-employee is not provided adequate notice of the contractual nature of the emailed policy by the defendant employer.

  • Bell Atl. v. Saporito

The Delaware Supreme Court ruled in a suit concerning workers' compensation benefits that the trial judge erred in concluding that plaintiff's erroneous characterization of some payments made to an employee resulted in a waiver of his workers' compensation lien.

Environment Law

  • US v. Wyatt

U.S. 9th Circuit Court of Appeals ruled that 18 U.S.C. section 1864(a), which prohibits the use of dangerous equipments on federal land to obstruct the harvesting of timber is not unconstitutional as applied to visible and unmodified ropes strung above a proposed helicopter landing site.

  • Syms v. Olin Corp.

In a suit to recover cost related to the cleaning up of hazardous substances, the U.S. 2nd Circuit Court of Appeals ruled in favor of defendant whereby the plaintiff is not eligible to seek contribution under the Comprehensive Environmental Response, Compensation, and Liability Act.

News

  • French reject EU Constitution

The proposed European constitution drafted by a European Constitutional Commission headed by former French President Valery Giscard d'Estaing and strongly endorsed by current President Jacques Chirac and most of the French political and media establishment was defeated in France, which is a major blow to the ratification process. It also throws grave doubt on the current constitutional document, which must be ratified by all 25 EU member states before it can take effect.

  • The Proposed Safe Games Act by Illinois law makers

The Illinois Senate has passed a bill, which bans the sale of violent or sexually explicit video games to minors. The proposed Safe Games Act would punish sales clerks who knowingly sell adult video games to minors though a seller could defend himself by showing that he did not know that the buyer was a minor or that it followed the industry ratings on the games. The stores will determine which games are too violent or sexually explicit for minors.

  • Life without parole approved by Texas Senate

To give jurors in capital murder cases the option of sentencing a defendant to life in prison without parole instead of death, Texas Senate has approved the Senate Bill 60. At present Texas leads US states in the number of annual executions and Texas juries can only sentence people convicted of capital murder to either death or life in prison with the possibility of parole after 40 years. The opponents to the proposed bill say life without parole would make prisons more difficult to manage because inmates with no hope of parole would have no incentive to behave.