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[No.90]                                                                            June 30, 2004

International

SEBI

CBEC Customs Tariff

RBI

DGFT

Press Information Bureau

High Courts

 

 

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International Legal News

Cases

Source: Westlawinternational.com

§         Criminal Justice: Exception to collateral estoppel based on intervening change in law permitted adjudication of refiled case.

An exception to the doctrine of collateral estoppel, based on an intervening change in the applicable law, precluded application of the doctrine and therefore the trial court could adjudicate defendant's DUI case that had been previously dismissed without prejudice and then refiled based on the intervening change in the law. The initial case was dismissed on the ground that the medical assistant who drew defendant's blood was not a "qualified person" to draw blood under the applicable statute, but a subsequent case law ruling that a phlebotomist was a "qualified person" under the statute constituted an intervening change in the law.

State v. Whelan

§         Environmental Law: Tort award was not warranted in groundwater contamination case.

Judgment was awarded to several industrial companies, in a tort action brought by the State of New Mexico, because the State failed to establish that a chemical contaminant plume existed deep in the groundwater which was beyond the scope of remediation systems which had already been put in place by the State Environment Department and the companies. The purported deep contamination was not beyond the scope of the remediation systems, since they were able to monitor for contamination over an extended area, and to expand and adjust when there was credible data evidencing the presence of additional contamination in need of treatment.

New Mexico v. General Elec. Co.

§         Government: Revenue from Pease Development Authority was classified for purposes of city's equalized valuation.

Revenue received by a city from the Pease Development Authority (PDA) airport district for police services other than security was payment in lieu of taxes (PILOT) that was includable in the calculation of the city's total equalized valuation. Revenue the city received to provide other municipal services to the airport district was a municipal services fees established by contract, rather than a PILOT, and was not includable in the total equalized valuation calculation. The distinction was based on whether the city was statutorily obligated to provide the particular service for which the PDA made payment.

In re Appeal of City of Portsmouth

§         Government: Annexation statute required property to be adjacent to both municipal boundary and urban areas.

An annexation statute which allowed annexation of land "adjacent, on at least sixty percent (60%) of its external boundary, to any combination of the municipal boundary and the boundary of an area or areas developed for urban purposes" required the annexed land to be both adjacent to the municipal boundary and adjacent to areas developed for urban purposes, and did not allow the use of only one boundary in the equation. The use of the words "any combination" required such an interpretation. As a result, two areas which were proposed for annexation and which were adjacent to urban areas but which were not adjacent to the municipal boundary line could not be annexed under the statute. The issue was one of first impression.

Carolina Power & Light Co. v. City of Asheville

§         Judicial Administration: A magistrate's inflated salary could be reduced by the county.

A county reduced the supplemental salary paid to the chief magistrate after the county attorney opined that the amount was incorrect due to compounding of cost of living increases. The incorrect salary could be reduced to the correct amount without violating constitutional prohibition on reduction of salary during her term of office.

Maddox v. Hayes

§         Criminal Justice: Defendant was entitled to post-conviction relief on same grounds for which co-defendant was granted relief.

A defendant and co-defendant who were both arrested at the same time for drug and conspiracy offenses following the execution of a search warrant, and who were tried jointly and convicted of the same offenses, were identically situated, and therefore, the defendant was entitled to post-conviction relief based on a challenge to the legality of the search after the co-defendant successfully obtained relief on those same grounds on her petition for leave to appeal, despite that the defendant's challenge to the legality of the search was raised and rejected on direct appeal.

Com. v. Cruz

§         Government: Governor could be compelled by subpoena to testify before impeachment committee.

The Supreme Court of Connecticut has held, in an expedited appeal, that the state's governor was not categorically immune, under the separation of powers provision of the state constitution, from compelled testimony pursuant to a subpoena issued by the select committee of inquiry charged with determining whether sufficient grounds existed for the governor's impeachment. Further, the court held that the subpoena at issue was not inconsistent with the separation of powers provision of the state constitution.

Office of Governor v. Select Committee of Inquiry

§         Health: Patient could not establish claim for professional negligence against doctor who had affair with his wife.

Under Pennsylvania law, a patient could not establish a claim for professional negligence against his general practitioner who had an adulterous relationship with the patient's wife, who was also under the medical care of the general practitioner. The general practitioner's duty of care did not prohibit an extramarital affair with the patient's spouse. This was an issue of first impression.

Long v. Ostroff

§         Legal Services: Client's Sixth Amendment rights did not supersede attorney's disclosure obligation.

The Rule of Professional Conduct requiring a lawyer to inform the court about a material fact when he or she has knowledge that, without such information, the court will be misled required defense attorney to disclose to municipal court that two deaths had occurred and that indictable charges were also pending against his client so that court would not be misled as to double jeopardy implications of acceptance of client's guilty plea on motor vehicle charges on the more serious pending charges. Neither the client's Sixth Amendment rights, nor any other duty owed the client superseded the attorney's disclosure obligation to the court.

In re Seelig

§         Business Organizations: Limited liability company is citizen of any state of which a member is a citizen.

The Court of Appeals for the Eleventh Circuit has held, as a matter of first impression in the Circuit, that, for purposes of diversity jurisdiction, a limited liability company is a citizen of any state of which a member of the company is a citizen.

Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C.

§         Labor and Employment: Application of zero tolerance drug policy violated due process.

The application of a county sheriff department's zero-tolerance drug-free workplace policy, as the basis for discharging from employment a deputy sheriff who had consumed Peruvian herbal tea which caused her to test positive for the presence of cocaine metabolites in her urine, violated substantive due process. Such application of the policy was not rationally related to the legitimate governmental objective of providing and maintaining a work environment free of the unlawful use of drugs or controlled substances. The deputy sheriff had been assured by a Peruvian physician that there was no cocaine in the tea. Thus, she had not known of the tea's illegal contents.

Garrido v. Cook County Sheriff's Merit Bd.

§         Labor and Employment: Female Wal-Mart employees were entitled to class certification in their sex discrimination suit.

Female Wal-Mart employees were generally entitled to class certification in their sex discrimination suit. They satisfied the numerosity, commonality, typicality, and adequacy requirements. Moreover, the proposed class was manageable except with respect to a lost pay remedy for non-promotion claims lacking objective documentation.

Dukes v. Wal-Mart Stores, Inc.

News

§         First Guantanamo Tribunal Formed

The US has announced that it has formed a five-member military tribunal to try terror suspects held at Guantanamo Bay with retired Colonel Peter Brownback to be presiding the officer - or judge. With this the Guantanamo detainees can now challenge their detention. Although no date has been fixed, but it is expected that the first case would be heard by the end of this year.

§         Internet Porn Law Barred By US Court

The US Supreme Court has narrowly ruled that a law meant to protect children from online pornography is probably an infringement of free speech. The law on this was as such was passed in 1998 but never came into effect inspite of Bush administration backing it. The majority said a lower court was right to block it, as it may have violated the First Amendment of the US Constitution on freedom of speech.

§         Leading SA Referees To Face Bribery Charges

Top football referees plus officials from newly-promoted Umtata Bush Bucks made brief court appearances in South Africa in the last week as the police probe into match-fixing continued. The match-fixing allegations come just weeks after the country won the right to host the 2010 World Cup. Corrupt officials are being charged in the magisterial districts in which the match-fixing is alleged to have taken place.

§         Kenya Divided Over Constitution Delay

The issue of the president's powers is dividing the ruling coalition. There has been a mixed reaction to the announcement by Kenya's leader that this week's deadline for having a new constitution would be missed. This could lead Kenya to a complete chaos. Mr Kibaki had promised to introduce a new constitution within 100 days of coming to power in December 2002 but the deadline then slipped to 30 June. The issue of whether to reduce presidential powers has split the ruling Narc coalition.

§         Museveni Gets Angry At Court Ruling

Uganda's leader Museveni has angrily condemned a court ruling, which nullified a 2000 referendum, in which a return to multi-party politics was rejected. He said that a referendum would be held to set out judicial powers. Under Uganda's Movement system, parties are allowed to exist, but they are not allowed to contest elections. Mr Museveni said that the judgement meant that all government acts since 2000 were null and void.

§         Rwanda Expands Genocide Courts

Community courts trying those responsible for Rwanda's genocide are to be established nationwide from 2005. President Paul Kagame said the system which will put tens of thousands of suspects on trial in the villages where they allegedly committed their crimes. Mr Kagame warned opponents of the courts not to try to sabotage them as some of them have tried to oppose the move. While the gacaca, the system as described, hearings will deal with the majority of suspects, those accused of more serious offences will still appear before higher courts.

§         Microsoft's Anti-Trust Case Settles

Microsoft has been given preliminary approval to settle a class-action anti-trust case in Arizona by giving away $105m (£57m) in computer vouchers. The software giant had been accused of using its monopoly position to over charge for its software. Under the deal businesses and homes who bought Microsoft products between January 1996 and January 2002 will get vouchers of up to $24 each. These will be valid for the products of any computer firm, not just Microsoft. Under the settlement, which has been given preliminary approval by an Arizona judge, the state's public schools will get 50% of any unclaimed or unredeemed vouchers. Final approval of the deal is set for December.

§         Ex-Fiji PM Gives Court Evidence

Fiji's first ethnic Indian Prime Minister, Mahendra Chaudhry, has given evidence at the trial of the country's vice president. He was held hostage for almost two months. Ratu Jope Seniloli is accused of treason and sedition. The charges relate to his alleged role in the ousting of Mr Chaudhry and Fiji's elected government in May 2000. The former prime minister told the High Court in the capital Suva how he was handcuffed and dragged across the floor.

§         Court Requested To Drop Cresson Case

A Belgian court has been asked to drop all charges against former French Prime Minister Edith Cresson, because of lack of evidence to support the case. Ms Cresson, heading education and research in the EU executive, was at the centre of the allegations that forced it to resign. The charges relate to a fraud scandal that brought down the entire European Commission five years ago.

§         Court Supports Turkish Headscarf Ban

Turkish state universities have the right to ban Muslim headscarves, the European Court of Human Rights in Strasbourg has ruled. The Court rejected an appeal by a Turkish student who said the ban - and her subsequent exclusion from class - violated her freedom of religion. It is expected that the decision could have implications for other countries.

§         Rape Case Failure Targeted By Lawyers

New rules to improve the way rape cases are handled are being launched by the Crown Prosecution Service. Under the new rules specialist barristers will handle cases in court. The rules come after Home Office analysis of prosecutions revealed wide variations in conviction rates across police force areas in England and Wales. A network of specialist prosecutors, which will include only the most senior barristers whose performance will be closely monitored, has been set up. For dropping a case the consent of two prosecutors will be needed.

§         Labour Party To Impose Smoking Ban

Labour is considering introducing a ban on smoking in public places if they win the next election. According to draft manifesto policy documents obtained by the Guardian the ban is being discussed to protect the health of children and young people. The report comes as the British Medical Association (BMA) called for such a ban to be introduced across the UK.

SEBI

Press Release

§         Suspension of Certificate of Registration of LRM Securities Limited

Press Release No: PR No.129/2004 Dated 21.06.2004: The Securities and Exchange Board of India (SEBI) has passed an order dated June 17, 2004 suspending the certificate of registration granted to M/s. LRM Securities Ltd., (SEBI Registration No. INB050988137), member of the Delhi Stock Exchange for a period of three (3) months with effect from July 08, 2004. The order has been passed by SEBI against M/s. LRM Securities Ltd. for irregularities in issuance of Contract Notes, non-segregation of own funds and client funds, dealing with unregistered sub-brokers, acting as an unregistered sub-broker, failure to make payment of monies to clients in time, failure to extend due co-operation to the inspecting authorities and attempting to mislead the enquiry officer and SEBI etc. The SEBI vide the said press release makes it clear that M/s. LRM Securities Ltd. member of the Delhi Stock Exchange will not be entitled to carry on the business as a Stock Broker with effect from July 08, 2004 till October 07, 2004

CBEC Customs Tariff

§         Transfer of SC Cases Pertaining to Customs to Legal Cell of the CBEC

Circular No: 44/2004 Dated 22.06.2004: The Central Board of Excise and Customs vide the above circular clarifies that all matters relating to Supreme Court, whether Customs, Central Excise or Service Tax (other than those arising from CESTAT orders) and currently being handled by Customs VI and Anti-Smuggling Sections of the C.B.E.C. will be transferred to the Legal Section of the C.B.E.C. with effect from the 15th of July 2004 and henceforth, all communications to the Board on the above matters should be addressed to the Joint Secretary (Legal) or to the Director (Legal) of the C.B.E.C.

RBI

§         Clarification on Process for Wilful Defaulters

Circular No: DBOD.No. DL.BC.94/20.16.003/2003-04 Dated 17.06.2004: By virtue of this circular, the Reserve Bank of India makes it clear to all banks/financial institutions (Fis) that the classification of the defaulter as wilful and the mechanism for redressal of the grievance of the borrower concerned are to be carried out thoroughly through two distinct processes. The first stage would be the identification of default as 'wilful' based on the prescribed norms through a Committee approach and the borrower should thereafter be suitably advised about the proposal to classify him as wilful defaulter along with the reasons therefore. The concerned borrower should be provided reasonable time (15 days) for making representation against such decision, if he so desires, to the Committee headed by the Chairman and Managing Director. A final declaration as 'wilful defaulter' should be made after a view is taken by the Committee on the representation and the borrower should be suitably advised.

§         Guidelines on KYC Norms for Existing Accounts

Circular No: DBOD.AML.BC.No.101/14.01.001/2003-04 Dated 21.06.2004: The RBI vide the above circular makes it clear to all banks that KYC Policy (Know Your Customer) should be adhered to strictly for opening all new accounts. However, with a view to ensuring that the existing small account holders are not inconvenienced and the KYC procedure is completed in time, it has been decided that banks may limit the application of KYC procedures to existing accounts where the credit or debit summation for the financial year ended March 31, 2003 is more than Rs.10 lakh or where unusual transactions are suspected. This process may be completed by December 31, 2004. Banks should however, ensure that KYC procedures are applied to all existing accounts of trusts, companies/firms, religious/charitable organisations and other institutions or where the accounts are opened through a mandate or power of attorney. The KYC procedures may be applied diligently to suit local conditions and completed by December 31, 2004.

§         Prudential Norms for Agricultural Advances

Circular No: DBOD.BP.BC. 102 / 21.04.048/ 2003-04 Dated 24.06.2004: The RBI vide Master Circular DBOD.No.BP.BC.15/ 21.04.048/ 2002-03 dated August 22, 2003 had stated that all direct agricultural advances would become Non Performing Assets (NPA) when interest and / or installment of principal remains unpaid after it has become due for two harvest seasons, not exceeding two half years but it was found that in the case of long duration crops, the current prescription of "not exceeding two half-years" is inadequate. So the RBI in order to align the repayment dates with harvesting of crops, vide Circular No: DBOD.BP.BC. 102 / 21.04.048/ 2003-04 Dated 24.06.2004 set out revised norms applicable to all direct agricultural advances effective from September 30, 2004. As per the revised norms, a loan granted for short duration crops will be treated as NPA, if the installment of principal or interest thereon remains overdue for two crop seasons and a loan granted for long duration crops will be treated as NPA, if the installment of principal or interest thereon remains overdue for one crop season. The RBI vide the above circular further urges the Banks to ensure that while granting loans and advances, realistic repayment schedules may be fixed on the basis of cash flows / fluidity with the borrowers in order to facilitate prompt repayment by the borrowers and thus improve the record of recovery in agricultural advances.

§         Guidelines on Capital Charge for Market risks

Circular No: DBOD.No.BP.BC. 103/21.04.151/2003-04 dated 24.06.2004: The Basel Committee on Banking Supervision (BCBS) had issued the 'Amendment to the Capital Accord to incorporate market risks' containing comprehensive guidelines to provide explicit capital charge for market risks. As a step in this direction, Reserve Bank had issued draft guidelines on computing capital charge for market risks on the lines of the Basel Committee framework in May 2003 to select banks. The RBI vide Circular No: DBOD.No.BP.BC. 103/21.04.151/2003-04 dated 24.06.2004 makes it clear to banks that it has been decided to assign explicit capital charge for market risks on the lines of the Basel Committee guidelines. With a view to ensure smooth implementation of the guidelines, the RBI vide the above circular advises banks that they may nominate suitable official(s) who could be the contact point in the bank.

DGFT

§         Related to Procedure for Import of Certain Items under India Nepal Treaty of Trade

Public Notice No: 69 (RE-2003)/2002-07 Dated 24.06.2004: The Directorate General of Foreign Trade in exercise of powers conferred under Paragraph 2.4 of the Export and Import Policy 2002-07 vide Public Notice No. 68/2002-07 dated 23.6.2004 dealing with procedure for import of certain items under the Indo-Nepal Treaty of Trade signed on 2.3.2002 stated that STC (State Trading Corporation) shall be the sole agency to monitor the imports of Vegetable fats (Vanaspati) from Nepal. Public Notice No: 69 (RE-2003)/2002-07 Dated 24.06.2004 makes further amendments to Public Notice No. 68/2002-07 dated 23.6.2004 stating that "State Trading Corporation (STC) shall be the sole agency to make imports of vegetable fats (Vanaspati) upto the indicated quantity on annual quota basis.

 

Press Information Bureau

§         Dot Announces Reduction in Licence Fee for Infrastructure Providers

PIB Press Release Dated 24.06.2004: The Department of Telecommunications (DOT) vide PIB Press Release Dated 24.06.2004 has notified reduction in annual licence fee for Infrastructure Provider Category-II from 15% of adjusted gross revenue (AGR) to 6% of AGR. This decision was taken by the Government to promote telecommunication infrastructure for seamless flow of data and voice traffic within the country. Infrastructure providers have already been granted relief by way of reduction of the bank guarantee from Rs.100 crores to Rs.5 crores. It is hoped that this measure would help in accelerating the growth of Bandwidth at national level and it will also enable Infrastructure Provider Category-II to effectively utilize their existing infrastructure as well as to cause further augmentation and offer competitive prices. There are six licensees in this category. Gas Authority of India Limited, Power Grid Corporation and Railtel Corporation of India Limited will be the major beneficiaries in addition to 3 private licensees.

 

High Courts

Delhi

§         Smt. Bhawna Dhyani Vs. National Open School Society (Regd.)

The court held that respondent could not apply different norms of service jurisprudence to the same description of the field of experience. Rules for the post of Deputy Director (Admn.) and Section Officer were identically worded for the field of experience. If service as a Stenographer was treated as service in the field of administration, service rendered by the petitioner as P.S. to the Chairman which covered a wider job profile and includes duties over and above that of a Stenographer had to be held as service in the filed of administration. Application of the same norm could not result in different consequences flowing merely because the person was different.

Karnataka

§         Karnataka State Road Transport Corporation and Ors. Vs. KSRTC Employees Death cum Retirement Benefit Fund (DRBF), by its Secretary and Ors.

The Karnataka State Road Transport Corporation ('KSRTC') and the Employees Union entered into a settlement and created a trust under the registered trust deed to render monetary help to members on retirement due to superannuation or medical grounds or to the nominees of the deceased member. On the allegation of misappropriation of money by the then Secretary of the trust, the State Government issued a notification directing the Director (Security and Vigilance) Bangalore Metropolitan Transport Corporation, to take over the management of Death-cum-Retirement Benefit Fund of the Corporation created under the Trust Deed from the Board of Trustees and to administer the said fund. This order was challenged in the Writ Petitions by the Trust represented by its Secretary and other trustees.

The court held that State Government had no power to take over the Management of the Trust in exercise of the power under Section 37 of the Act, as the Trust was not a Corporation with in the meaning of Section 3 of the Road transport corporation Act. Since the Trust had been created as per the Trust Deed, it could not be treated as a Corporation or a part of the Corporation. Hence, the impugned notification issued by the State Government to take over the management of DRBF was without authority of Law.

§         Welcomegroup Windsor Manor Sheraton and Towers, Rep. by its Vice President (South) Vs. State of Karnataka, Rep. by its Secretary, Social Welfare and Labour Department and Anr.

This writ appeal was filed against the order of learned Single Judge of this Court. The question arose for consideration in the appeal was whether the laundry division of the Star Hotel is a factory within the meaning of the Factories Act.

The court held Section 2(m) of the Factory Act excludes a hotel from the meaning of the factory and impliedly any service offered by the Hotel to its customers would also stand excluded. Since the hotel was itself exempt from the operation of the factories act, there was no need for registration or licensing of a Laundry Division of the hotel as a factory. Therefore the communication issued by the inspector of factories demanding registration and licensing of the laundry division of the hotel as a factory quashed.

 

 

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