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In This Issue [No.169] September 10, 2006 Supreme Court High Courts PIB RBI TRAI International Cases & News Site Links Roundup Archives Free Trial Contact us 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 http://www.manupatra.com/ provides comprehensive and easy to use legal and related information over the Internet. 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T.S.N. Raju and Anr. The matter arises out of an insistence of two employees of the appellant Visakhapatnam Port Trust to seek retirement under a voluntary retirement scheme, but according to the appellant employer they were not entitled to avail the benefit of the scheme because they have attained the cut off age of 58 years before their cases could be considered. The learned single Judge allowed the writ petition filed by the respondent employees and directed the appellant employer to consider and accept the voluntary retirement scheme of the respondents as on their date of application and pass appropriate orders and pay all the benefits thereunder. On appeal, the Division Bench dismissed the appeal filed by the appellant and directed the appellant to pass orders on the applications of the respondents for voluntary retirement within a period of one month from the date of judgment. The appellant contended that both the learned single Judge and the Judges of the Division Bench of the High Court have mis-read the applicability of the Scheme and directed the appellant to consider and accept the case of the respondents and that such a direction is unsustainable in law and is likely to have a cascading effect. Hence the present appeal. Held, the Port Trust Authorities had the absolute discretion whether to accept or reject the request of the employee seeking voluntary retirement under the scheme. Hence, the appealwas allowed. Commissioner of Customs, Mumbai Vs. Toyo Engineering India Limited The assessee-respondent was engaged in the setting up of an industrial unit such as a fertiliser plant. It filed an application with the Contract Registration Cell for grant of benefit under Project Import Scheme in respect of goods to be imported required in setting up of an initial fertilizer unit. The Assistant Collector rejected the request of the respondent for registration under the Project Import Regulation on the ground that the imported goods were the property of the respondent and even after execution and completion of the work, the goods would remain the property of the respondent and the ownership of the imported goods would not pass on to the Project Authority. Being aggrieved, the respondent filed an appeal before the Appellate Authority which was rejected. An appeal was then filed before the Tribunal, which held respondent to be eligible for the benefit and, hence, the present appeal by the customs department. The Apex Court dismissing the appeal observed that it is not disputed that the construction equipments imported by the respondent were used in the initial setting up of the plant and so as per the provisions of heading 98.01 of the Tariff Act, respondent could not be denied benefit of project import.  Defiance Knitting Industries Pvt. Ltd. Vs. Jay Arts A summary suit was filed by the respondent for recovery of certain amount. In addition to that, interest was also claimed from the date of filing of the suit till the realization of amount by the respondent. After issuing a notice, appellant filed an application under Order XXXVII Rule 3(5) of C.P.C. for leave to defend unconditionally. Said application was rejected by the trial court. The appellant, therefore, approached the High Court which held that the appellant-writ petitioner was to deposit an amount of Rs. 20,00,000/- with the trial Court within four months to show his bona fides and was entitled to take out an application for leave to defend which was required to be heard on merits. If he succeeded in his application for leave to defend, he was allowed to withdraw the amount deposited. The trial court heard the parties afresh and allowed the application of the appellant on the condition that the appellant-writ petitioner deposit an additional amount of Rs. 50,00,000/- in two installments. This was challenged before the High Court once again by the appellant, which then dismissed the petition and hence the present appeal. The Supreme Court allowing the appeal held that stand of the appellant that maximum deposit that could have been directed was fixed at Rs. 20,00,000/- was on a sound footing. The order of the trial court as well as that of the High Court could not be maintained.  High Courts Delhi Smt. Jasbir Kaur Vs. State (Govt. of NCT Delhi) and Ors The petitioner in the present petition was married to one Sardar Satinder Singh according to Sikh rites. After marriage, there was matrimonial discord between the couple on account of which the petitioner left her matrimonial home and filed a complaint of harassment and misappropriation of her dowry and stridhan articles by her husband and other members of her in-laws family. It was contended by the petitioner that the petitioner did not leave her matrimonial home of her own but that she was turned out of from her matrimonial home after harassing her. The grievance of the petitioner in this writ petition is that despite her complaint the police did not register a case under Section 406/498A/34 IPC against her husband and other members of her in-laws family. In response to the notice of the present writ petition, a status report was filed by the respondents which revealed that a case under Section 406/498A/34 IPC has already been registered against the husband of the petitioner and other members of her in-laws family. The petitioner also prayed that the Court should abolish CAW Cells (Crime Against Women Cells) and direct that as soon as the police receives any complaint of a congnizable offence, the same should be dealt with as per the provisions in the Code of Criminal Procedure 1973. Held, the creation of CAW Cells for investigation of crime pertaining to women does not cause any discrimination on the basis of sex as the CAW Cells have been constituted with a social purpose so that the crimes relating to women are dealt with sensitivity. CAW Cell is like any other specialized wing of the Delhi Police where firstly an attempt is made to bring about unity between the two spouses so as to make the marriage a success. On the failure of these reconciliation attempts, the law is allowed to take its course. Thus no fault can be found with the creation of CAW Cells.  Madras K. Ramachandran Vs. Managing Director, Tamil Nadu Government Transport Corporation, (Villupuram Division II) The petitioners appointed as drivers in Respondent Transport Corporations under the State Government were promoted to the post of Driving Instructors. The third respondent was also appointed originally as driver in the corporation subsequent to the petitioners' appointment and was promoted to the post of Driving Instructor long after the petitioners' promotion as Driving Instructor. According to the petitioners’, even after being promoted to the higher post much earlier than the third respondent, they were paid lesser salary than the third respondent. The said fact came to the knowledge of the petitioners only later and they submitted representation in this regard requesting to rectify the pay anomaly. However, the first respondent negatived the request and stated that the petitioners have compared the persons working in different Transport Corporations and therefore the request is rejected. Hence these writ petitions are filed. The petitioners submitted that as per settlement under Section 12(3) of Industrial Disputes Act, 1947, first respondent is legally bound to fix pay of the petitioners at least on par with the pay of their Junior. It was held that section 12(3) settlement is binding on the management and respondents cannot escape from implementing said liability. The Circular cannot override 12(3) settlement. Respondents cannot improve their case by stating a different reason in the counter affidavit than the stand taken earlier. Thus the writ petitions stands allowed. The Managing Director, Tamil Nadu Housing Board Vs. Chinnasamy and Ors. The respondents-land owners made representation for enhancement of the compensation. Their claim was rejected by the Special Tahsildar (LA), Housing Schemes on the ground that the representation has been made after a period of 12 years. The said order was challenged by way of writ petitions by the land owners. The learned Judge, after finding that the Land Acquisition Officer himself had assured the land owners for reference of the matter under Section 18 of the Land Acquisition Act, directed the said Officer to make appropriate reference under Section 18 of the Act to the competent civil court. Aggrieved by the said order, the appellants filed the appeal. It was observed that when there is an assertion by the Land Acquisition Officer, it could not be contended that without a formal application, reference cannot be made to the Civil Court. Appeals dismissed. Press Information Bureau Actuaries Bill comes into Effect PIB release dated 04.09.2006: The Actuaries Bill, 2006 has been enacted. As per the provisions of the Act, the Institute of Actuaries of India will be set up to conduct examinations for the profession of actuaries to regulate the profession. The Institute would look into professional misconduct and create necessary facilities for the growth and training of the members of the profession. As per the Act, the Actuarial Society of India would be dissolved and its assets and liabilities would be transferred to the proposed Institute of Actuaries of India. The responsibilities of actuaries in life and general insurance business include designing and pricing of policies, monitoring the adequacy of funds to provide the promised benefits, recommending fair rate of bonus where applicable, violation of insurance business, ensuring solvency margin and other insurance risks like legal liability and loss of profit. Actuaries also define the risk factors, advise on the premium to be charged and re-insurance to be purchased, calculate the reserve for outstanding claims and carry on financial modelling. Food Safety And Standards Bill, 2006 Enacted PIB release dated 29.08.2006: Vide the above press release it is notified that The Food Safety and Standards Bill, 2006 as passed by the Parliament has been enacted w.e.f from August 24, 2006. The Bill received the assent of the President on August 23, 2006. The enactment is intended to implement international practices in guiding and regulating persons engaged in the manufacture, marketing, processing, handling, transportation, import and sale of food. It seeks to serve the consumers’ interests through food safety systems and sets scientific standards and transparency to meet the dynamic needs of the food trade and industry sector as well as international trade practices in processed food. RBI Press Release United Western Bank Ltd. Placed under Moratorium Press Release No. 2006-2007/323 Dated 02.09.2006: On an application by the Reserve Bank of India, the Central Government issued an Order of Moratorium to United Western Bank Ltd. The Order of Moratorium has been passed by the Central Government in public interest, in the interest of depositors and the banking system. The moratorium will be effective from September 2, 2006 up to and inclusive of December 1, 2006. During this period, the Reserve Bank of India will consider various options, including amalgamation of United Western Bank Ltd. with any other bank and finalise the plans in public interest and with a view to ensuring that the public deposits are protected. During the period of moratorium, the bank will be permitted to make only those payments that have been specified in the Order of Moratorium and the depositors of the United Western Bank Ltd. will be permitted to withdraw, in total, up to Rs.10,000 from their savings bank account or current account or any other deposit account through any of the branches of the bank. The customers of the bank will not be able to withdraw money through the ATMs of the bank/ATMs shared with other banks so as to give effect to the monetary ceiling prescribed in the moratorium. Telecom Regulatory Authority of India (TRAI) TRAI issues an amendment to the Interconnection Regulation for Broadcasting & Cable Services Press Release No. 86/2006 Dated 04.09.2006: The Telecom Regulatory Authority of India notifies the amendment of Interconnection Regulation dated 10.12.2004 vide the above press release. The Interconnection Regulation covers arrangements among service providers for interconnection and revenue share, for all broadcasting and cable services in India. The main amendments made in the Interconnection Regulation dated 10.12.2004 are that a notice period of three weeks has to be served prior to disconnection of TV channel signals by a broadcaster to any distributor of TV channels as well as to the distributors of TV channels prior to disconnection of the re-transmission of any TV channel; Mandatory issue of public notice through newspapers prior to disconnection of TV channel signals has also been necessitated; It has also been mandated that the broadcaster/multi system operator or their agents/ intermediaries to whom a request for providing TV channel signals is made, should either provide the signals on mutually agreed terms, or specify the terms and conditions on which they are willing to provide TV channel signals, within sixty days from the date of the request and Broadcasters will be required to give one months notice for conversion of Free To Air Channels to Pay channels and vice versa. International Legal Cases and News Cases Criminal United States Of America Vs. Patricia Ann Larson, Leon Nels Laverdure A federal grand jury filed indictments against the defendants along with two other accused charging each with a single count for conspiracy to possess and distribute controlled substance methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and 846. Prior to the trial, the other two co-accused and coconspirators pleaded guilty and also agreed to testify against the two defendants as a result of which their otherwise long sentences were reduced. The question that arose in the present appeal was whether the defense counsel was improperly prevented from cross-examining coconspirators about the prison sentences they would have received but for their cooperation with the government, and whether other trial rulings were proper. The Court rejected the constitutional claims of the defendants and held that the defendants have not shown anything that they were prejudiced during trial. Constitution Joey Wells, a Minor, etc., et al. Vs. One2one Learning Foundation et al. & State Of California The present appeal brings into focus The Charter Schools Act, 1992 as amended from time to time. Under this statute interested persons may obtain charters to operate schools that function within public school districts, accept all eligible students, charge no tuition and get financed by the state but nonetheless retain considerable academic independence from the mainstream public education system. The plaintiffs in the present case claimed that the said schools failed to deliver failed to deliver instructional services, equipment, and supplies as promised, and as required by law. These schools just functioned only to collect average daily attendance forms and fraudulently claimed public funds. They brought an action on behalf of the state under California False Claims Act (CFCA). The Court held that charter schools are “persons” subject to suit under CFCA and UCL (Unfair Competition Law) and are not exempt from either law merely because such schools are deemed part of the public school system. Consumer Britt A. Shaw, on behalf of himself and all others similarly situated Vs. Hyatt International Corporation This case arises out of a hotel reservation made through the defendant, Hyatt International Corporation website “Hyatt.com,” by the plaintiff –appellant, an American citizen, from his residence in London, England, for a hotel stay in Moscow, Russia. The appellant reserved the room through the website, and stayed at the defendant hotel. The appellant paid the bill using his American Express card, his hotel bill reflected a hotel exchange rate of 32 Russian rubles per United States dollar, whereas the official exchange rate set by the Central Bank of Russia on the date of check-out was 28.01 Russian rubles per dollar. The result was that the appellant paid approximately 14% more for his room in U.S. dollars than the rate promised by the website. Accordingly, he pursued this class action in Illinois court against the defendant alleging unjust enrichment and violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1 et seq. The district court held that a non-resident plaintiff may sue under the Consumer Fraud Act only if the fraudulent transaction occurred “primarily and substantially” within Illinois. On appeal, it was held appellant’s consumer fraud argument relies exclusively on the express promises made by the defendant website, which he accepted by booking on its site, and therefore is based entirely on the breach of that contract. Appellant failed to pursue a breach of contract action, explicitly disavowing it to this court, and therefore the district court properly granted defendant’s motion to dismiss the complaint. News Draft law to keep out nuclear inspectors approved by Iranian Parliament The Iranian parliament approved a draft bill to bar inspectors of the International Atomic Energy Agency (IAEA) from entering the country if the UN Security Council imposes sanctions on Iran for continuing to enrich uranium past the deadline imposed by UN Resolution. On August 31, the IAEA confirmed that Iran had not taken steps to comply with the Security Council resolution, and Iranian President had expressing his country's defiance on the same. Termination of pilot pension plan by Delta Airlines approved A US Bankruptcy Judge approved a request by Delta Airlines to end its pension plan for pilots. The Airline reached a settlement with a group of retired pilots, agreeing to pay $500,000 for fees and expenses if the group ceased its opposition to Delta's proposal to terminate the retirement plan. As per the settlement, the Airline will pay the retired pilots half of their pension benefits in a lump sum. The proposal must get the official sanction of the Federal Government’s Pension Agency, the Pension Benefit Guaranty Corp, to officially terminate the pension plan. The Airlines had filed for bankruptcy protection last year and had stated that it had no choice but to eliminate its pilot’s pension plan if it is to come out from bankruptcy and remain afloat. Rights lawyer convicted for helping terror client to get long sentences Federal prosecutors have asked that a judge sentence a civil rights lawyer to 30 years in prison stating that the said lawyer had abused her profession and deserves to be severly punished. The lawyer was convicted of conspiracy and providing material support to terrorists and for helping an imprisoned terrorist to communicate with his terrorist followers. The imprisoned terrorist was convicted of seditious conspiracy for plotting to blow up several New York city landmarks and was banned from communicating. Rwanda parliament to vote on abolishing death penalty The Government of Rwanda has confirmed that the Rwandan Parliament would be presented a bill aimed at abolishing capital punishment in the African nation. The legislation, immensely unpopular with the majority of Rwandan citizens, is necessary to qualify Rwanda as a legally permitted partner in extradition proceedings with European nations. Several European countries are currently holding alleged "masterminds" of the 1994 genocide inspite of Rwanda’s repeated requests that these individuals be extradited to face charges of genocide in Rwandan courts. The European Convention on Human Rights prevents extradition to countries that still allow the death penalty, preventing European governments from returning the suspects to stand trial. Disclaimer (1) While all reasonable care has been taken to ensure that the information provided in the "round up" and on the website is fair and accurate the company and its promoters and employees shall not in any way be responsible for the consequences of any action taken on the basis of reliance upon the contents of this "round up". (2) This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name under our various referral programs. 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