Legislative and Regulatory Update

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In This Issue

[No.157]                                                                    May 10, 2006

Supreme Court
High Courts
Ministry of Commerce and Industry
Ministry of Finance
Ministry of Shipping, Road Transport and Highways
RBI
International Cases & News

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Supreme Court

  • Board of the Trustees, Port of Kolkata Vs. Efclon Tie-up Pvt. Ltd. and Ors.

The matter in the present case pertains to the renewal of lease in favour of the respondent No: 1, a company, which owned the assets of the liquidating company, with whom the original lease subsisted. The clause in the lease agreement was that the lease would come to an end if the company were either voluntarily or compulsorily wound up. The appellants pleaded that since the company went into liquidation the lease ceased to exist and could not be extended to company holding assets of liquidated company. The issue determinable was whether the High Court was correct in granting a fresh lease to the respondent No. 1 on the terms specified in the original indenture of lease between the Port Trust and the liquidated company.

The Apex Court realizing the need for protection of interest of workman of the liquidating company and obliging to the demands of social justice directed the grant of fresh lease in respect of the property at the rental rates contained in the present Schedule of the Kolkata Port Trust Act. But the lease could be renewed only subject to the payment of all the arrears and dues together with interest.

  • Anil Kumar Tulsiyani Vs. State of U.P. and Anr.

The respondent, an accused, charged under Section 201 and 302 of IPC sought bail, which, was rejected by Sessions Court. But on appeal the High Court stating that the report of ballistic expert does not show the alleged fingerprints found on the recovered revolver to be of the accused and since there was no previous criminal history of the accused who is a practicing advocate of the High Court, application for bail was allowed.

The Apex Court reiterated the principle that one of the considerations in granting bail in non-bailable offences was the gravity and the nature of the offence. The High Court without considering these factors has granted bail to the respondent. The Apex Court held that as accused was in a commanding position and was an advocate and hence a reasonable apprehension of witnesses being tampered with or won over, coerced, threatened or intimidated by using his influence and position cannot be ruled out. Hence the order of high Court granting bail has to be set aside and the appeal deserves to be allowed.

  • Nayini Narasimha Reddy Vs. Dr. K. Laxman and Ors.

An election petition was filed by the first respondent assailing the election held in Musheerabad Assembly Constituency before the High Court of Andhra Pradesh on the grounds of misalignment of the voting machine and pointing to the facts that both the parties polled nil votes from a particular booth where the independent candidates polled a high number of votes. The respondents also prayed for issuance of summons to some witnesses apart from those mentioned in election petition. The High Court allowed the election petition filed by respondent.

The issue revolves round the interpretation of Section 94 of the Representation of the People Act, 1951 which states about right to secrecy of ballots. Secrecy of ballots was necessary for ensuring free and fair elections and no voter must be required to state in court as to for whom he has voted in an election. But pressing on the principle of purity of election the Apex Court observed that Section 94 of the Act could not be pressed into service to suppress a wrong and to protect a fraud in the election process. It was also observed that there was two possible constructions for Section 94, one in which there was absolute prohibition and seals the mouth of the voter permanently and admits of no exception in which he can divulge his vote and secondly, voter has a privilege, whether or not to disclose his vote, but he could not be compelled by court or any other authority to divulge his vote. But once he waives his privilege, nothing prevents him from disclosing how he voted. Hence, Summons can be served on voters but they are at privilege to use their right under Section 94.

High Courts

Bombay

  • Sarvajanik Shri Ganeshotsav Mandal & another vs. Municipal Corporation of Greater Mumbai & others

In a writ petition, the appellants had challenged the entrustment of the subject land on caretaker basis for construction, management and maintenance of ‘playground’ to respondent No. 3, but it was dismissed by the Single Judge and hence the appeal. The appellants had contended that the subject plot was reserved in the final development plan sanctioned by the State as ‘park’ and changing the reservation from ‘park’ to ‘playground’ without following the procedure provided in Section 37 of the Maharashtra Regional and Town Planning Act, 1966 by issuing corrigendum under Section 31(1) of the said Act was illegal. It was also alleged that the corporation had acted illegally in permitting combined user of parking-cum-swimming pool, sports complex at the subject site without permission of the of the State Government. The main question for consideration was whether the space that was reserved for ‘playground’ in the development plan could be used for any other purpose.

The court held that as a matter of law, change of user of subject plot reserved for playground into swimming pool/sports complex was against public interest and grossly illegal. The court also held that entrustment of the subject plot to the respondent No. 3 for its development was also illegal and amounted to misuse of powers vested in the Corporation. Accordingly the appeal was disposed of with appropriate directions.

  • Eknath Bhiku Yadav & another vs. Ganpatrao Shankarrao Dhawan

The petitioners had challenged the certificate of exemption granted to the respondents under Section 88-B of the Bombay Tenancy and Agricultural Lands Act, 1948. The respondents were trustees of Shri Maruti Deo Pimpli Limtek that was registered as a public trust under the Bombay Public Trust Act, 1950. It was contended that since the petitioner were in possession of the said lands as tenants on the ‘tillers day’, he had become owner of the said lands under the provisions of Sections 32 to 32-R of the Bombay Tenancy and Agricultural Lands Act. The trust was not registered on ‘tillers day’ i.e. on 1-4-1957 as prescribed under the Act, but was registered in 1984.

The court held that for the trust to claim exemption under Section 88-B, the trust must be registered before 1-4-1957 and if the trust was not registered on that day, the tenant would become deemed purchaser of the lands and the ownership would vest in him on 1-4-1957. And the ownership so vested could not be divested by subsequent registration of the trust. Accordingly the petition was allowed and the certificate was quashed.

Andhra Pradesh

  • Meda Anjamma and another vs. Vikram China Veeraiah

The petitioners, being aggrieved by the order dated 25-07-2003 in O.S. No. 27 of 1995, had filed the present civil revision petition under Article 227 of the Constitution. The petitioners had filed the O.S. for declaration of title and for injunction in respect of certain items of the suit property and at the time of trial they had sought to mark an agreement of sale executed in their favour by the respondents. By the impugned order, the trail court had come to the conclusion that the suit document could not be marked as it was not registered and not properly stamped.

After hearing the parties, the High Court held that the trial court had erroneously referred to the pleadings for deciding the nature of the document. It was held that the court could decide the matter as to evidentiary value of the document and its admissibility at the time of the hearing. The court held that the stamp duty paid at the time of the agreement was sufficient and so the document could be received in evidence. Accordingly it was held that the finding of the trial court that the document was improperly stamped could not be accepted but the question whether it amounts to sale deed or sale agreement could be decided at the trial of the suit. The civil revision petition was accordingly disposed of with directions to the trial Court to receive the disputed document as evidence and proceed further with the trial.

Ministry of Commerce and Industry

DGFT

  • Amendment in Schedule – 2 (Export Policy) of the ITC(HS) Classifications of Export and Import Items, 2004-09

Notification No.:3 (RE-2006)/2004-2009 Dated 03.05.2006. Vide this notification the Central Government has amended Schedule – 2 (Export Policy) of the ITC(HS) Classifications of Export and Import Items, 2004-09. Vide the same in Chapter 25 of Schedule 2, the following shall be added after export licensing Note (b)- (c) For the financial year 2006-2007 (on annual basis) Stone Aggregate: 2,70,000 MTsRiver Sand: 3,00,000 MTs.

  • Amendments in Handbook of Procedures Vol. I Sub-para 6.22 (c)

Public Notice No.: 6 RE-2006)/2004-2009 Dated 02.05.2006. Vide this public notice the Director General of Foreign Trade has amended Handbook of Procedures Vol. I. Vide the same Sub-para 6.22 (c) shall be amended as “The unit has been in existence for at least two years and engaged in export of agriculture / horticulture/ aquaculture products; otherwise it shall furnish bank guarantee equivalent to the duty foregone on the capital goods/inputs proposed to be taken out to the Deputy/Assistant Commissioner of Customs/Central Excise till the unit completes two years.”

Ministry of Finance

CBEC Customs Non-Tariff

  • Amendment in Notification No. S.O. 828 (E), dated 21st November, 1994

Notification No.: 50/2006–Customs (N.T.) Date 03.05.2006. Vide this notification the Central Board of Excise and Customs has amended notification number S.O. 828 (E), dated 21st November 1994 (No. 61/94 – (NT) Customs, dated the 21st November, 1994). Vide the same in the Table, against serial No. 8, in column (3) and the entries relating thereto in column (4), certain entries have been substituted.

Ministry of Shipping, Road Transport and Highways

Shipping

  • New Mangalore Port Trust Employees (Recruitment, Seniority and Promotion) Amendment Regulations, 2006

Notification No: GSR242(E) Dated 24.04.2006. Vide this notification the Central Government hereby approves the New Mangalore Port Trust Employees (Recruitment, Seniority and Promotion) Amendment Regulations, 2006. The same shall come into force from the date of publication of this Notification in the Official Gazette. Vide this notification the existing Schedule 33, 65 and 150 has been deleted and substituted with a new schedule.

RBI

UBD

  • Facilities at Extension Counters by Primary (Urban) Cooperative Banks

Circular No.: UBD.LS. (PCB). No. 49/07.01.000/2005-06 Dated 28.04.2006. Vide this circular in order to enable the banks to provide better customer service, it has been decided to allow them to undertake following limited transactions at the extension counters: i. Deposit / withdrawal transactions ii. Issue and encashment of drafts and mail transfers iii. Issue and encashment of travellers' cheques iv. Collection of bills v. Advances against fixed deposits of their customers (within the sanctioning power of the concerned officials at the Extension Counter) vi. Disbursement of other loans (only for individuals) sanctioned by the Head Office / base branch up to the limit of Rs.10.00 lakh only.

International Legal Cases and News

Cases

IPR

  • Michael Baigant and Richard Leigh v. The Random House Group Limited

Claimants who were the author of the book Holy Blood Holy Grail filed a claim before the court alleging that the book Da Vinci Code had infringed their copy right in Holy Blood Holy Grail. It was contended by them that the central theme of the Holy Blood Holy Grail had been copied by the author of Da Vinci Code, Mr. Brown. However, Mr. Brown denied the allegation stating that he wrote the synopsis of Da Vinci Code before he had ever looked Holy Blood Holy Grail. Also, it was stated by defendant that claimants had no monopoly over the historical matters, ideas or theories and the matters set out in VSS were not capable of protection under Copy right Law.

It was observed by the court that there was no case based on text comparison to support the allegation of substantially copying Holy Blood Holy Grail and in order to claim protection for central theme, the claimants would have to prove that the central theme was capable of protection as literary work under CPDA 88 and that Mr. Brown had substantially copied it.

It was found that there was no central theme in the Holy Blood Holy Grail. It was merely an expression of the number of facts and ideas at a very general level and only for the purpose of alleging infringement this illusion of central theme was created, under a plan. Accordingly, the claim was dismissed.

Also, it was observed by the court that the defendant is the publisher of both Holy Blood Holy Grail and Da Vinci Code. Also, a film on Da Vinci Code has been produced and is scheduled to be released in May 2006. Thus, it was doubted that the entire episode was designed to maximize the publicity of both the books.

  • Apple Corps Limited V. Apple Computer, Inc.

Apple Corps Limited (the claimant), filed a claim for breach of a Trade Mark Agreement made between it and the Apple Computer Inc. (the defendant) in 1991 by which they had decided the use of their respective similar marks.

Apple Corps Limited is a record company synonymous with the Beatles and had used the sideways view of a whole apple as its symbol. Apple Computer Inc is a well-known computer and software house and had also adopted a stylized apple with a bite taken out of it as its mark.

The dispute arose in relation to the use of the apple as a mark by the defendant for its I-pods and ITunes Music Store. ITunes Music Store is a form of electronic "shop" where music could be downloaded for a relatively small sum. The introduction of the ITunes Music Store caused the dispute between the parties. The claimant contended that the defendant is not entitled to use the impugned mark on or in connection with music content and as it is using the mark in relation to the ITunes Music Store, it is causing breach of the Trade Mark Agreement.

It was held that there is no breach of the Trade Mark Agreement as ITunes Music Store is a form of electronic shop and is not involved in creating music. And the use of apple logo has no connection with the creative work. As there is no use of the logo in connection with the recorded music for the purposes of the Trade Mark Agreement, the use made by the defendant was reasonable and fair.

Criminal Law

  • US v. Johnson

Appellant who was a convicted sex offender filed an appeal against the orders of the United States District Court modifying the conditions of his supervised release. It was contended by the appellant that the conditions, including polygraph testing, a bar on contact with minors, and a ban on Internet access, imposed on him would cause excessive deprivation of liberty and challenged the conditions as unconstitutional. Court rejected the appeal and affirmed the orders of the district court modifying the conditions of appellant’s supervised release.

News

  • Supervision of the new parliamentary elections by the constitutional court of Thailand

Constitutional Court of Thailand while invalidating the results of the April 2 parliamentary elections held that the election organized by the Election Commission was unconstitutional as the poll was held too soon after the dismissal of parliament by the Prime Minister, which prevented the candidates from having sufficient time to prepare for elections. Also, court decided to take a leading role in the new parliamentary election to guarantee free and open elections.

  • Rating of a judicial nominee lowered by American Bar Association

The American Bar Association in a reversal of judgment had lowered the rating of Mr. Brett Kavanaugh, a White House aide and nominee to the US Court of Appeals for the DC Circuit from "well qualified" to "qualified" as his experience and the court room performance was found to be inadequate by the judges and the lawyers who had interviewed him.

  • Kenya ex-minister challenge UK’s Travel ban

Lawyers of former Kenyan transport minister Chris Murungaru would appear in the London High Court on Tuesday to challenge a travel ban imposed upon him due to the corruption accusations made against him in Kenya which prevented him from entering the country. It is claimed by Murungaru that the ban imposed upon him is a personal attack and is damaging his reputation.