Legislative and Regulatory Update

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In This Issue

[No.126]                                                                            June 30, 2005

High Courts
Ministry of Finance
Ministry of Chemicals and Fertilizers
Ministry of External Affairs
Ministry of Law and Justice
Ministry of Labour And Employment
Telecom Regulatory Authority of India
International

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High Courts

Orissa

  • Sanjay Kumar Sahoo and others Vs State of Orissa and another

Petitioner's marriage dissolved by decree passed by mutual consent. In terms of the divorce his wife withdrew her claim against the petitioner for maintenance, however the criminal case lodged against the husband and his relatives, alleging cruelty sustained due to dowry demand was still pending.

The matter being non compoundable, the accused (petitioners herein) approached the High Court for quashing of the criminal proceedings, exercising its inherent powers under section 482 of the Code of Criminal Procedure, 1973.

The Orissa High Court, allowed the Petition, it was remarked that since the parties were desirous of a settlement, parties should not be compelled to face the trial and appear as witnesses.

Karnataka

  • All India Manufacturers Organisation, Bangalore Vs State of Karnataka and others

The state government entered into a contract with a company for the Bangalore Mysore Infrastructure Corridor Project to be developed at a Build Operate and Transfer (BOT) basis. Petitions filed in public interest alleging fraud by the ultimate beneficiary company and consent of the state government in the process leading to the award of the project.

It was alleged that the contract was obtained by playing fraud and misrepresenting the technical expertise possessed by the beneficiary company. Land much in excess of the requirement was also alleged to have been acquired for the project. The government supported the stand of the Petitioners qua the allegations of misrepresentation.

The High Court of Karnataka, dismissed the petitions with the remarks that the allegations of fraud and misrepresentation were unsubstantiated. Further observed that the company had already incurred considerable expenditure on the project. Besides, most of the issues raised had already been decided in a previous case. In the circumstances, the contract could not be cancelled. Senior officials were directed to be prosecuted under sections 195 and 340 of the Code of Criminal Procedure, 1973 for deliberately withholding important documents from the court and for giving false affidavits.

Madhya Pradesh

  • Brij Maheshwari Vs. Arun Jain and another

In this case, it was alleged that false news was published in daily newspaper “Navbharat” to defame and degrade defendant. The accused Smt. Brij Maheshwari was the Director of the company. Owner of the newspaper ie. M/s. Ramgopal Investments Pvt. Ltd. had leased out the press to lessee “Navbharat”.

It was held by the court that the Owner and its Director cannot be held responsible for printing and publishing news in “Navbharat”. The court relied on the Supreme Court Judgment of State of Maharastra v. Dr R.B. Choudhari and Delhi High Court judgment of S. Nihal Singh v. Shri Arjandas and held that according to provisions of section 7 of the Press and Registration of Books Act, 1867, it is the printer, publisher and editor who is presumed to be aware of what is being printed and published in the newspaper.

Jharkhand

  • M/s Goyel Brothers Ghatsila v. State of Jharkhand

In this case, Petitioner was a contractor of a company and work allotted to him in 1984 could not get completed for long time. Payments were not made due to paucity of funds and the contract finally closed in 1992. It was contended that the final bill was prepared by the respondents in 1995 but all sum payable to the petitioner was not included.

Protest was made against the same to the Executive Engineer and then to the Chief Engineer. A Panel of engineers made to look into his grievances. The petitioner did not agree with their decision. Matter was thus referred for Arbitration by the Chief Engineer, but the respondents did not agree to same.

Respondents filed their counter affidavit, wherein it was stated that petitioner had suppressed material facts in his application, as petitioner earlier filed an application before Subordinate Court. As the matter was sub-judice, prima facie application under Section 11(6) of Arbitration and Conciliation Act was not sustainable.

It was held that inspite of request made by the petitioner in 1996 for reference of the disputes to the Arbitrator for adjudication , respondents did not refer the matter to Arbitrator. The court held that the instant request petition after 9 years was not maintainable as the same was s barred by limitation.

Andhra Pradesh

  • Andhra Bank, Hyderabad and another v. P. Balakrishna (died) by LRs

In this case, petitioner was dismissed from service subsequent to departmental enquiry. However the Industrial Tribunal did not approve such order and petitioner reinstated into service. The petitioner claimed the privilege leave during the period from the date of dismissal to the date of his reinstatement.

It was held in this case that privilege leave is intended for rest and recuperation. A workman has to render actual service to earn privilege leave. A workman out of service for any reason whatsoever is not entitled to privilege leave.

Kerala

  • Vakkom Purushothaman v. State of Kerala

In this case, the summons was issued to the petitioner for production of documents. The petitioner had submitted before court in writing that since he had ceased to be speaker, he is not in possession of documents. Following that submission the Magistrate had passed Ext.P-6 order directing petitioner to appear and to give oral evidence. In pursuance of Ext P-6 order, Ext.P-7 summons was issued .The Writ Petition was filed challenging the Ext.P-6 order. The counter affidavit of respondent contended that since there is no legal infirmity or factual error in Ext.P-6 order so it cannot be interfered in the proceedings. In the result the Writ Petition is disposed of and Ext P-6 order Ext.P-7 summons were quashed.

It was held in this case that under R.252 of the Criminal Rules of Practice summons for the production of documents in the House of Parliament or of a Legislature of a State shall be by a letter of request as in Form 29 .The speaker has no discretion in this matter and he is bound to place the matter before the house and it is for the House to take a decision and not the speaker.

Also, it was held in this case that No Writ will issue to a court under Article 227 of the Constitution of India. When the error pointed out is a patent error and no elaborate discussion of evidence is necessary to consider the point the Court has power under Code of Criminal Procedure or under Article 227 of the Constitution to rectify the Magistrate action.

Ministry of Finance

CBDT

  • Income-tax (14th Amendment) Rules, 2005

Notification No. 163/2005 Dated 17.06.2005: The Central Board of Direct Taxes has made the Income-tax (14th Amendment) Rules, 2005, further to amend the Income-tax Rules, 1962 and by this virtue introduced Forms 15-I and 15-J. Form 15-I is for the purpose of making declaration for non-deduction of tax at source to be furnished to contractor under the second proviso to clause (i) of sub-section (3) of section 194C by sub-contractor not owning more than two heavy goods carriages/trucks during the Financial Year, while form 15-J is for the purpose of making submission of particulars to be furnished by the Contractor under the third proviso to clause (i) of sub-section (3) of section 194C for the Financial Year.

  • Notification No. 164/2005 Dated 17.06.2005

Notification No. 164/2005 Dated 17.06.2005: Further to amend the Income-tax Rules, 1962, the Central Board of Direct Taxes has made the Income-tax (15th Amendment) Rules, 2005, introducing new Forms 58-C and 58-D. Form 58-C is for the purpose of submission of report to be submitted under clause (ii) of sub-section (4) of section 35AC of the Income-tax Act, 1961 to the National Committee by an approved association or institution, while Form 58-D is to enable a public sector company, local authority or an approved association or institution to submit report under clause (ii) of sub-section (5) of section 35AC of the Income tax Act, 1961 to the National Committee on a notified eligible project or scheme.

  • Extension of last date for TCS/TDS e-Filing of Returns for Last Fiscal as well as First Quarter of Current Fiscal to July 31

Order from File No. 385/35/2005-IT (B) Dated 17.06.2005: The Central Board of Direct Taxes has ordered an extension of the due date for filing of annual return of Tax Collection at Source (TCS) for financial year 2004-05, wherever to be filed in electronic format as per the provisions of section 206C (5A) & (5B), to 31st of July, 2005, and at the same time making this day to be the due date for filing of quarterly statements of Tax Deducted at Source (TDS) and Tax Collection at Source (TCS) for the first quarter of financial year 2005-06.

CBEC Customs

  • Anti-dumping Duty on Sodium Cyanide to Continue

Notification No. 56/2005 Dated 23.06.2005: One of the highly used electroplating chemicals, Sodium Cynide, will continue to be subject to anti-dumping duty. The Central Government has expressed via this notification that on every import of Sodium Cynide, originating in or exported from the United States of America, Czech Republic, the European Union and Korea RP, anti-dumping duty shall be applicable till the 26th day of December, 2005.

CBEC Customs NT

  • New SEZ in Surat Notified

Notification No. 50/2005-NT Dated 23.06.2005: The Central Government, vide this notification, has specified an area of 56.64 hectares in the village Sachin located in Surat District, as special economic zone (SEZ).

Ministry of Chemicals and Fertilizers
  • Chemical Weapons Convention Appeals Rules, 2005

Notification No. GSR391(E) Dated 13.06.2005: Vide this notification, the Central Government has made the Chemical Weapons Convention Appeals Rules, 2005, which shall come into force on the 1st day of July, 2005. These rules are intended to facilitate any person aggrieved by any direction of the National Authority issued under section 10 of the Chemical Weapons Convention Act, 2000, to prefer an appeal to the Central Government against such directive order, within a period of thirty days from the receipt of such direction.

Ministry of External Affairs
  • Passports (Amendment) Rules, 2005

Notification No. GSR399(E) Dated 05.05.2005: The Central Government, vide the issue of this notification, has published the Passports (Amendment) Rules, 2005, further making amendments to the Passports Rules, 1980. The amendments relate to the additional processing fees to be charged from the applicants making applications for issue of out of turn (Tatkaal) Passport.

Ministry of Law and Justice

Justice

  • High Court Judges Travelling Allowance (Amendment Rules), 2005

Notification No. GSR412(E) Dated 16.06.2005: With the effect of the amendments brought in by this notification, a Judge of the High Court of Madras, shall be entitled to the expenditure incurred by him for the transport of his wife and dependent son or daughter, if he is required to proceed on circuit from Chennai to Madurai or from Madurai to Chennai, provided that the duration of the circuit concerned is not less than fifteen days at a time.

Ministry of Labour And Employment
  • Addition to the Schedule of the Minimum Wages Act, 1948

Notification No. SO849(E) Dated 16.06.2005: The Central Government, vide this notification, has expressed its intentions to add employment of Sweeping and Cleaning, excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993, to the schedule of the Minimum Wages Act, 1948 in the Central Sphere, thereby bringing the said employment within the realm of the Minimum Wages Act, 1948.

Telecom Regulatory Authority of India (TRAI)
  • Credit Limit for Post-Paid Subscribers

Circular No. 301/27/2005-Eco. Dated 27.06.2005: Keeping in view the prevailing system and procedure, the Authority, in the interest of consumers, has issued a few Directions to all the Telecom Access Providers. The credit limit set for a post-paid subscriber shall be intimated to him in advance. The initial credit limit shall be intimated within 7 days of activation of the service for the new subscribers. Also, the subscriber shall be given full information in advance on the consequences of usage and other applicable charges exceeding the credit limit as well as the manner in which the credit limit set for them could be enhanced.

International Legal Cases and News

Cases

Environment

  • United States et al. v. Duke Energy Corp. et al

In a severe blow to federal regulators and environmentalists, on appeal the Court of 4th Circuit upheld the dismissal of lawsuit brought by the US government against North Duke Energy Corporation, a Carolina based Power Company for violations of the "new source review" provisions of the Clean Air Act. The new source review provision of the Clear Air Act requires power plants, refineries and steel mills to install new pollution controls when the facilities make modifications that result in an increase in air pollution.

Intellectual Property Rights

  • Metro-Goldwyn-Mayer Studios Inc. v. Grokster Ltd

In a significant ruling relating to copyright issues, in the landmark case of Metro-Goldwyn-Mayer Studios Inc. v. Grokster Ltd, the U.S. Supreme Court held that file-sharing companies (napster) are to be blamed for piracy on their network. This landmark judgment specifically addresses the legality of peer-to-peer Internet file-sharing services and has broad implications for any technology that could potentially be used to infringe copyrighted materials. The Trial Courts had held that the defendants in the case -- Grokster and StreamCast Networks could not be held responsible for what users do with their software, even if that includes illegally downloading copyrighted songs, films and software products.

Civil Procedure

  • Taylor v. Van-Catlin Constr

The California 6th Appellate District Court in the above case held that the trial court erred when it corrected an arbitration award under Code of Civil Procedure on the ground that the arbitrator had exceeded his powers in granting attorney fees.

  • Housing Auth. v. Jones

In the case of Housing Auth. v. Jones, on appeal, the California 6th Appellate District Court held that the judge who decided pretrial motions against the defendant and then sat on the appellate division panel, which reviewed the same case, presented before a different judge must be disqualified from the appellate division panel pursuant to Code of Civil Procedure section 170.1(b).

Criminal Law & Procedure

  • People v. Gomez

In the above case it was held by the California 3rd Appellate District Court on appeal that the trial court erred when it found that a search of defendant's residence was illegal since the defendant did not have a reasonable expectation of privacy in the place where the property was found.

Education

  • Ridgecrest Charter Sch. v. Sierra Sands Unified Sch.

The California 5th Appellate District Courts in the above case ruled that the school district's exercise of its discretion in responding to a Proposition 39 facilities request must comport with the evident purpose of the Charter Schools Act to equalize the treatment of charter and district-run schools with respect to the allocation of space between them.

Contract

  • Emerald Bay Cmty. v. Golden Eagle Ins. Corp.

In the above breach of contract dispute case, the California 4th Appellate District upheld the summary judgment in favor of defendant when the plaintiff failed to plead or prove that it suffered any compensable loss as a result of the action of the defendant.

News

  • Canada becomes third country to legalise gay marriages

Canadian parliament has passed a landmark legislation allowing a same sex civil union. After Netherlands and Belgium, Canada is the third country to legalise gay marriages. This bill grants all gay and lesbian couples equal legal rights to those in a traditional union between a man and a woman and is expected to become federal law by the end of July once it passes through the Liberal-dominated senate.

  • Russia approves amendment to election rules

Draft of amendments to election rules has been approved on a second reading by the Russia’s parliament. If introduced the, the proposed amendments would ban political parties merging into blocs to stand in elections and scrap the "against all" option, used as a protest vote, on ballot papers in regional polls. The proposed amendments to election law come after Putin previously abolished gubernatorial elections allowing the Kremlin to appoint regional leaders and would functionally prohibit small parties and independent candidates from having access to the chamber.

  • Egypt’s court rejects new election law

A new election law allowing more than one candidate to run for president has been rejected by Egypt's Higher Constitutional Court. The proposed law is rejected on the ground that it is unconstitutional, and is a harsh blow to the government's efforts to amend the election law as part of political reforms it is seeking to introduce. Opposition parties have also opposed the law on the ground that associated regulations imposed too many strictures on candidates who did not have the support of members of Mubarak's National Democratic Party.