United States attempts to increase military power by testing Hypersonic Missile, 17 times faster than sound

The United States has designed a Hypersonic Missile which speeds 17 times faster than sound. According to a Senior American Military Official, this Hypersonic was successfully tested in the Pacific Ocean in March. CNN gave information on this test in its report. American President Donald Trump hinted towards designing a missile like this in May. However, this is the first a Military Official claimed to this.

The US is also testing a Cruise Missile. However, it will not be equipped with nuclear power. The US did inform about the successful test of missile 5 times faster than the speed of sound on March 20.

America will test 40 hypersonic missiles

On June 30, Mark Lewis, director of the US Defense Research and Engineering Department said they will conduct 40 flight tests of hypersonic missiles over the span of 4 years. America has already tested the long-range missile X-51 in the Pacific Ocean region in March. Russia and China are ahead in the race with such weapons. In view of this, Trump administration is also focusing on designing hypersonic missiles. US defense scientist says China has acquired this technology using sources from The United States.

Russia and China are already acquired with such missiles

Hypersonic missiles can normally hit targets up to 5 times faster than sound and can be fired from a high altitude. In December 2019, Russia’s President Vladimir Putin announced to include the first hypersonic missile Avanguard in its defense fleet. While China already informed about its DF-17 hypersonic missile in October 2019, two months before Russia.

Sexual Harassment

Sexual harassment includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or learning environment, according to the Equal Employment Opportunity Commission (EEOC). 

It is a type of harassment involving the use of explicit or implicit sexual overtones, including the unwelcome or inappropriate promise of rewards in exchange for sexual favors.Sexual harassment includes a range of actions from verbal transgressions to sexual abuse or assault.Harassment can occur in many different social settings such as the workplace, the home, school, churches, etc. Harassers or victims may be of any gender.

Sexual harassment by an employer is a form of illegal employment discrimination. For example many businesses or organizations, preventing sexual harassment and defending employees from sexual harassment charges have become key goals of legal decision-making.

Where can sexual harassment occur?

Sexual harassment may occur in a variety of circumstances and in places as varied as factories, schools, colleges, the theater, and the music business.Often, the perpetrator has or is about to have power or authority over the victim (owing to differences in social, political, educational or employment relationships as well as in age). Harassment relationships are specified in many ways:

•The perpetrator can be anyone, such as a client, a co-worker, a parent or legal guardian, relative, a teacher or professor, a student, a friend, or a stranger.
•Harassment can occur in varying locations, in schools,colleges, workplaces, in public, and in other places.
•Harassment can occur whether or not there are witnesses to it.
•The perpetrator may be completely unaware that his or her behavior is offensive or constitutes sexual harassment. •The perpetrator may be completely unaware that his or her actions could be unlawful.

With the advent of the internet, social interactions, including sexual harassment, increasingly occur online, for example in video games or in chat rooms, social networking sites such as Instagram, Twitter, Facebook etc .

Status in India

Sexual harassment in India is termed “Eve teasing” and is described as: unwelcome sexual gesture or behaviour whether directly or indirectly as sexually coloured remarks; physical contact and advances; showing pornography; a demand or request for sexual favours; any other unwelcome physical, verbal or non-verbal conduct being sexual in nature or passing sexually offensive and unacceptable remarks. 

According to the Indian constitution, sexual harassment infringes the fundamental right of a woman to gender equality under Article 14 and her right to life and live with dignity under Article 21.

In 1997, the Supreme Court of India in a Public Interest Litigation, defined sexual harassment at workplace, preventive measures and redress mechanism. The judgment is popularly known as Vishaka judgement.In April 2013, India enacted its own law on sexual harassment in the workplace—The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Almost 16 years after the Supreme Court’s landmark guidelines on prevention of sexual harassment in the workplace (known as the “Vishaka Guidelines”), the Act has endorsed many of the guidelines, and is a step towards codifying gender equality.. The Act is intended to include all women employees in its ambit, including those employed in the unorganized sector, as well as domestic workers. The Indian law does not permit the victim or complainant to take assistance of a legal professional in the inquiry, however, in Arti Devi Vs Jawaharlal Nehru University,the High Court of Delhi permitted the complainant to avail the services of a counsel as her defence assistant.

The Act has identified sexual harassment as a violation of the fundamental rights of a woman to equality under Articles 14 and 15 of the Constitution of India and her right to life and to live with dignity under article 21 of the Constitution; as well as the right to practice any profession or to carry on any occupation, trade or business which includes a right to a safe environment free from sexual harassment. The Act also states that the protection against sexual harassment and the right to work with dignity are universally recognized human rights by international conventions and instruments such as Convention on the Elimination of all Forms of Discrimination against Women, which has been ratified on the 25th June, 1993 by the Government of India.

The Criminal Law (Amendment) Act, 2013 introduced changes to the Indian Penal Code, making sexual harassment an expressed offense under Section 354 A, which is punishable up to three years of imprisonment and or with fine. The Amendment also introduced new sections making acts like disrobing a woman without consent, stalking and sexual acts by person in authority an offense.

What are some effects of sexual harassment?

Experiencing sexual harassment may cause some survivors to face emotional, physical, or mental health concerns. Some of them might include:


Emotional effects:

  • Anger
  • Fear
  • Humiliation
  • Shame
  • Guilt
  • Betrayal
  • Violation
  • Powerlessness and loss of control

Mental health effects:

  • Anxiety
  • Depression
  • Panic attacks
  • Difficulty concentrating
  • Loss of motivation
  • Sucidial ideation

Physical effects:

  • Increased stress levels
  • Headaches
  • Fatigue
  • Sleep disturbances
  • Eating disturbances

Rajasthan Crisis on the door of SC

Rajasthan Political crisis has knocked the door of Supreme Court. Speaker of the state assembly, CP Joshi has filed the Special Leave Petition to the Apex court challenging the High Court order. The SC is likely to hear the matter on 23rd july.

Judiciary vs. Legislature

Former Deputy Chief Minister of state, Sachin Pilot and eighteen other rebel congress MLAs were served disqualification notices by the state assembly to the dissidents for “anti-party activities” last week. Against this notice Pilot and his supporter MLAs approached the High Court. On July 21st the HC granted some relief and had requested to the Speaker to extend the period given to the Pilot and his camp to reply the notice till the evening of July 24.

Differing to the decision of the High Court, Speaker C.P Joshi called a press conference and showed his displeasure against the HC order. Joshi said, “There should be no conflict between the judiciary and the legislature. The role of everyone in the parliamentary system is well defined. The Supreme Court gave instructions in 1992 to stop Aya Ram Gaya Ram culture, in which the Speaker has the right to disqualify members for defection. No one has the right to interfere in the process.”

He also said that, “In 1992, the constitutional bench of the Supreme Court made it clear that under the anti-defection law, the speaker has the right on the issue of disqualification. No one can interfere in the Speaker’s decision,” adding further he said, ‘‘whatever judgment the court has given, I have respected till now. However, does this respect and acceptance mean that one authority overlaps the role of the other?”

Drama in the SC

After filing of Special Leave Petition by the Speaker, Pilot camp has also filed a caveat in the SC, asking to be heard before the court takes a decision on the Speaker’s request.The apex court will hear the matter on July 23rd.  Congress leader and Senior Advocate Kapil Sibal will represent the Speaker in this case. From Pilot’s camp Mukul Rohatgi, will be their lawyer.

What is Special Leave Petition?

Special Leave Petitions or SLP is filed in the Supreme Court only when any substantial question of law is involved or gross injustice has been done. This is a “residual power” given to the Supreme Court by the Constitution of India under article 136.

It provides the aggrieved party a special permission to be heard in Apex court. It can be appealed against any judgment or order of any Court or tribunal in the territory of India, except the military court.

SLP is not a right to the aggrieved party but the Supreme Court has privilege to grant special leave. The SC may also refuse to grant the leave to appeal by exercising its discretion.

10 Movies to Watch on Netflix Right Now

Netflix has a higher turnover rate for it’s movie library. And since the Netflix home screen often promotes Netflix Original content above all else, it’s easy to miss the full breadth of movies available on the service.

Here’s the compilation of excellent movies from the last couple of decades that are now on Netflix.

  1. Uncut Gems (2019)

In this gambling thriller set in 2012 New York City, a jeweler with a gambling addiction accepts extreme risks in both his personal and professional life on day to-day basis.

Runtime: 2 hours and 15 mins

2. There Will be Blood (2007)

In this period drama set in the early 1990s West Coast, an oilman tries to expand his drilling empire through any means necessary.

“There Will be Blood” earned nine Academy Award nominations and won two categories: Best Actor (Daniel Day-Lewis) and best cinematography.

Runtime: 2 hours and 38 mins

3. A Serious Man (2009)

In this black comedy set in 1967 Minnesota, a Jewish professor grapples with the collapse of his family, health and professional aspirations as everything that seemingly can go wrong does.

“A Serious Man” earned two Academy Award nominations: Best Picture and Best Original Screenplay.

Runtime: 1 hour and 46 mins

4. 20th Century Women (2016)

In this comedy drama, a single mother and her younger neighbors help raise a young boy in Santa Barbara, California, during the end of the 1970s.

“20th Century Women” earned an Academy Award nomination for Best Original Screenplay.

Runtime: 1 hour and 59 mins

5. The Master (2012)

In this psychological drama, an aimless war veteran stumbles inti a nascent religious cult in 1950.

“The Master” earned three Academy Award nominations: Best Actor (Joaquin Phoenix), Best Supporting Actor (Phillip Seymour Hoffman), Best Supporting Actress (Amy Adams).

Runtime: 2 hours and 18 mins

6. The Lobster (2015)

In this abundant comedy, a recently single man must find a partner within 45 days or he’ll be forcibly turned into a lobster.

“The Lobster” earned one Academy Award nominations for Best Original Screenplay.

Runtime: 1 hour 49 mins

7. Steve Jobs (2015)

In this period drama, Steve Jobs becomes one of the most venerated tech leaders in history while ignoring friendships and familial obligations.

“Steve Jobs” earned two Academy Award nominations for Best Actor (Michael Fassbender) and Best Supporting Actress (Kate Winslet).

Runtime: 2 hours and 2 mins

8. The Little hours (2017)

In this comedy, nuns in a convent break religious rules and wreak havoc.

“The Little Hours” has a long cast of comedy stars from the 2010s.

Runtime: 1 hour 30 mins

9. Spider-Man into the Spider-Verse (2018)

In this animated superhero movie, a young, Black Spider-Man discovers the existence of other universes (and other Spider-Men) that will come to help him save his own universe.

“Spider-Man into the Spider-Verse” won the Best Animated Feature category at the Academy Awards.

Runtime: 1 hour 57 mins

10. Drive (2011)

In this action dram, a Hollywood stuntman also works as a getaway driver for violent criminals.

“Drive” earned one Academy Award nomination for Best Sound Editing.

Runtime: 1 hour 40 mins

JOB WORK UNDER GST

Introduction

The Indian economy is one of the most robust economies in the World and one of the key components which constitutes it significantly is known as Job work. So what’s the definition of Job Work?

Definition

As per Section  2(68) of the CGST Act, 2017 Job Work is defined as ‘any treatment or process undertaken by a person on goods belonging to another registered person’. 

Meaning

Job-work means it is the processing of goods supplied by principal. The job worker is required to carry out the process specified and it includes outsourced activities that may or may not culminate into manufacture. 

The one who does the said job would be termed as ‘job worker’. The ownership of the goods does not transfer to the job worker but it rests with the principal.

About the Concept

The concept of job work is stated and explained in the Central Excise. It is a concept wherein a principal manufacturer can send an input or semi-finished good to a job worker for further processing. 

Many facilities and procedural concessions have been given to the job workers as well as the principal supplier who sends goods for job work.

The whole idea behind this is that the principal must be made responsible for meeting the compliances on behalf of the job worker on the goods processed by the worker.

One must also consider the fact that typically the job-workers are small persons who are unable to comply with the discrete provisions of the law.

The most relevant and pertinent point is what are the Procedural aspects that have to be dealt with in regards to the Job Work?

Certain facilities with the specific conditions are offered in relation to job work some of which are as under:

a) A registered person (Principal) can send inputs/capital goods under intimation and subject to the certain conditions without payment of tax to a job worker and from there to another job worker and after completion of job work bring back such goods without payment of tax.

The principal is not required to reverse the ITC availed on inputs or capital goods dispatched to job worker.

b) Principal can send inputs or capital goods directly to the job worker without bringing them to his premises, still the principal can avail the credit of tax paid on such inputs or capital goods. 

c) However, inputs and/or capital goods sent to a job worker are required to be returned to the principal within 1 year and 3 years,respectively, from the date of sending such goods to the job worker.

d) After processing of goods, the job worker may clear the goods to-

(i) Another job worker for further processing;

(ii) Dispatch the goods to any of the place of business of the principal without payment of 

(iii) Remove the goods on payment of tax within tax;

(iv) India or without payment of tax for export outside India on fulfilment of conditions.

The facility of supply of goods by principal to the third party directly from the premises of the job worker on payment of tax in India likewise with or without payment of tax for export may be availed by the principal on declaring premise of the job worker as his additional place of business in registration. In case the job worker is a registered person under GST, even declaring the premises of the job worker as additional place of business is not required. 

Before supply of goods to job worker, principal would be required to intimate the Jurisdictional Officer containing the details of description of inputs intended to be sent by the principal and the nature of processing to be carried out by the job worker.

The said intimation shall also contain the details of another job worker, if any. The inputs or capital goods shall be sent to the job worker under the cover of a challan issued by the principal. 

The challan shall be issued even for the inputs or capital goods sent directly to the job worker. The challan shall contain the details specified in Rule 10 of the Invoice Rules.

The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.

Input Tax credit on goods supplied to job worker under Section 19 of the CGST Act, 2017 provides that the principal (a person supplying taxable goods to the job worker) shall be entitled to take the credit of input tax paid on inputs sent to the job- worker for the job work. 

Further, the proviso also provides that the principal can take the credit even when the goods have been directly supplied to the job worker without bringing into the premise of the principal.

The principal need not wait till the inputs are first brought to his place of business.

Time Limits for return of processed goods

As per section 19 of the CGST Act, 2017, inputs and capital goods after processing shall be returned back to principal within one year or three years respectively of their being sent out.

Extended meaning of input

As per the explanation provided in section 143 of the CGST Act, 2017, where certain process is carried out on the input before removal of the same to the job worker, such product after carrying out the process to be referred as the intermediate product.

Waste clearing provisions

Pursuant to section 143 (5) of the CGST Act, 2017, waste generated at the premises of the job worker may be supplied directly by the registered job worker from his place of business on payment of tax or s such waste 

may be cleared by the principal, in case the job worker is not registered. 

Transitional provisions 

Inputs or partially processed inputs which are sent to a job worker prior to introduction of GST under the provisions of existing law [Central Excise] and if such goods are returned within 6 months from the appointed day i.e. 1st July, 2017 no tax would be payable. 

If such goods are not returned within prescribed time, the input tax credit availed on such goods will be liable to be recovered. 

If manufactured goods are removed, prior to the appointed day, without payment of duty for testing or any other process which does not amount to manufacture, and such goods are returned within 6 months from the appointed day, then no tax will be payable. 

For the purpose of these provisions during the transitional period, the manufacturer and the job worker are required to declare the details of such goods sent/received for job work in prescribed format GST TRAN-1, within 90 days of the introduction of the GST.

Conclusion

The tax treatment of job work under GST remains largely similar to the current regime. An important point to note is that the period within which inputs should be brought back or supplied from the job worker’s place is now 1 year instead of 180 days earlier. 

Similarly, the period within which capital goods should be brought back or supplied is now 3 years instead of 1 year earlier. Also, GST will now be levied on processing charges charged by the job worker.

For the manufacturing industry, these provisions are positive and in line with the Government’s all-out support for the sector.

WEBSITES REFERRED

  1. https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.cbic.gov.in/htdocs-cbec/gst/Job_Work.pdf&ved=2ahUKEwiM4NO6weDqAhXyzjgGHczlBlEQFjAAegQIBRAB&usg=AOvVaw2keJbawF1WoGvEOssOT6H9
  1. https://blog.saginfotech.com/job-work-under-gst
  1. https://www.google.com/amp/s/blogs.tallysolutions.com/job-work-under-gst/amp/
  1. https://www.simpletaxindia.net/2017/07/job-work-under-gst.html?m=1
  1. https://www.google.com/amp/s/www.taxscan.in/job-work-gst-need-know/12594/%3famp
  1. https://www.slideshare.net/mobile/VijayaKumarKavilikat/central-goods-and-sales-tax-act-overview

JUVENILE JUSTICE BOARD

Introduction:

In the last few decades, the crime rate by the children under the age of 16 years has increased. The reason of increasing crime rate is may be due to the upbringing environment of the child, economic conditions, lack of education and the parental care. These are the some of the basic reasons. And the most disappointing part is that, children (especially under the age group of 5 to 7 years) now a days are used as tool for committing the crime as at that this stage their mind is very innocent and can easily be manipulated.

The Introduction of the Act has replaced the existing juvenile laws and has introduced some remarkable changes. One of the remarkable changes is juvenile under the age group of 16 to 18 years should be tried as an adult.

The frightful incident of “Nirbhaya Delhi Gang Rape Case” on December 16, 2012 shocked the whole nation and many debates were started among legal fraternity and socialists. The main reason and issue of the debate was the involvement of accused, who was just six months short to attain the age of 18 years. The involvement of the accused in such a heinous crime of rape forced the Indian Legislation to introduce a new law and thus, Indian Parliament came up with a new law which is known as “Juvenile Justice (Care and Protection), 2015.

Definition of Child and Juvenile under the Juvenile Justice Act, 2015 and other various laws

Generally, a “child” means a person who has not attain the age of 18 years and is not mature to understand that what is right and wrong. In modern era, the penal laws of most countries have adopted the principle of ‘Doli Incapex’ “which means of knowing that act there are committing is a crime”.

The penal laws also state that Only child between the age of seven to twelve age can be convicted, provided that, the act they have committed is a heinous crime and they have knowledge and has attained the sufficient knowledge to understand the consequences of their act.

According to sub- section 12 of Section 2 of The Juvenile (Care and Protection) Act, 2015 a “child” means a person who has not completed eighteen years of age. The Act classifies the term “child” into two categories: –

  • “child in conflict with law” 
  • “child in need of care and protection

The child who has committed an offence and he or she is under the age of 18 years on the date of commission of the offence is basically called as “ child in conflict with law”. The second sub – category is “ child in need of care and protection”  means a child ad defined under Section 14 of the Act.

  • Children Act, 1960 :- Section 2(e) of the Act states “ child” means a boy who has not attained the age of sixteen years or a girl who has not attained the age of eighteen years.
  • United Nations Convention: – The UN Convention on the Rights of Child, 1989 defines that “child” means a human being below the age of eighteen years unless the law declaration applicable to child, majority is attained earlier.

Juvenile Justice Act, 2015

The aims to consolidate the laws relating to children alleged and found to be in conflict with law and children in need of care and protection by catering and considering their basic needs through proper care& protection , development, treatment , social- integration , by adopting a child friendly approach in the adjudication and disposal of matters in the best interest of children. The act also focuses on rehabilitation of juvenile offenders through various child care houses and institutions.

Juvenile Justice Board

There shall be a constitution of Board for the purpose of inquiry and hearing in the matters of juvenile in conflict with law.

The Board shall consist of Principal Magistrate and two social workers, among whom one should be a women. The Act provides that under no circumstances the Board can regulate and operate from regular court premises. The decision taken by the Principal Magistrate shall be final.

  1. Special Procedure of Juvenile Justice Board:-  The Act has provided the procedure against the juvenile offender .Following are the main special procedure –
  2. The proceedings cannot be initiated on a complaint registered by the police or citizen
  3. The hearing must be informal and should be strictly confidential.
  4. The offenders should be kept under Observation Home after detention.
  5. The trial of juvenile in conflict with law shall be conducted by lady Magistrate.
  6. A child in conflict with law may be produced before an individual member of the Board, when Board is not sitting.

Juvenile Justice and Constitution of India

The Constitution of India is consider as the fundamental law of India. Constitution provides rights and duties of citizens. It also provides provision for the working of the government machineries. Constitution in Part III has provided Fundamental Rights for its citizens in the same manner in its Part IV it has provided Directive Principles of State Policies (DPSP) which acts as general guidelines in framing government policies. Constitution has provided some   basic rights and provisions especially for the welfare of children.

  1. Right to free and compulsory elementary education for all the children under the age of 6 to 14 years. (Article 21A)
  2. Right to be protected from any hazardous employment under the age of fourteen age. (Article 24)
  3. Right to be protected from being abused in any form by an adult. (Article 39(e)).
  4. Right to be protected from human trafficking and forced bonded labor system. (Article (Article 39)
  5. Right to be provided with good nutrition and proper standard of living. (Article 47)
  6. Article 15(3) of the Constitution of India provides special powers to State to make any special laws for the upliftment and the betterment of children and women.

Therefore, the law makers while drafting the Juvenile Act, 2015 has consider all the necessary provisions laid down by the Constitution so that child’s rights are protected in all the possible ways.

Case laws :

  1. 1998 SCC, Del 879 : (1999) 77 DLT 181
  2.  Section 82 of IPC states that a child below the age of seven years is doli incapex.
  3. Section 13 of The Juvenile Justice (Care and Protection of Children) Act,2015.
  4. Section 14 of The Juvenile Justice (Care and Protection of Children) Act,2015.
  5.   AIR 2014 SC 2726.
  6. Section 4 of Juvenile Justice (Care and Protection) Act, 2015
  7. Section 4(2) of Juvenile Justice (Care and Protection) Act, 2015.
  8. Section 5 of Juvenile Justice (Care and Protection) Act, 2015.
  9. Section 7(2) 0f the Juvenile Justice( Care and Protection) Act, 2015.

Conclusion

The increasing rates of juvenile crime in India in very concerning issue and need to be focused upon. Although government has laid various legislation and rules to stop the incidents of juvenile crimes but the present laws on juveniles is not creating a deterrent effect on the juveniles and thus the results are not fruitful and legislative intent is not accomplishing.

 References

  1. https://blog.ipleaders.in/juvenile-justice-system-india
  2. https://en.wikipedia.org/wiki/Juvenile_Justice
  3. https://thefactfactor.com/facts/law/legal

Digitization with a human touch

A couple of days back, I was experiencing a bit of headache due to such long hours of online classes and so I decided to buy a pair of spectacles. During an online session, I just casually mentioned my intention when my friend suggested me to schedule an online appointment in Lenskart. I was a bit surprised that I failed to think about that in the first place, so I said I will check that out. So booked an appointment today and waiting for their response.

Now one might think that this is so weird because this method of digital appointment and 3D trying existed for such a long time and that’s true, no doubt. But what’s surprising is that, may people, including me, who looked for things in offline mode, they are now resorting to try out even the rarest of things in the online mode. We are constantly being surrounded by technology and all kinds of buzzwords “WFH”, “webinar”, ‘zoom’, ‘virtual coffee break’ and so are constantly bugging our life. We are progressing towards ‘humanized technology’ where technology, especially Artificial Intelligence, is completely integrated with a normal human life.

That being said, technology also needs to adapt to human life, meaning that the technology should also be human-friendly. Just engineering a technology to do human-like work will not help, rather it should also be capable enough to assist the humans in every possible way. Multiple reasons exist as to why such integration or amalgamation between technology and human is necessary. Firstly, for convenience. Human being are such generations who need specific information in the fastest and efficient way possible. So technology should be streamlined in a way to alleviate the situation. Presently, Microsoft and Google are looking out for such avenues. Second, is the simplification. We always look up to technology when we face any complex situation because we have always known technology to reduce the complexities of our lives. Since we are dealing with apps and software all the time, organizations should pay heed to the situation so that we, human being can find it easy to search and asses the information. Thirdly, emotional quotient factor. Technology is in fact great when it comes to assess human beings, especially during performance appraisal process, to provide the ratings. Now since we have converted our homes to cubicles, it is imperative that surveys which previously used to work, will fail. Technology should be leveraged to use emoticons and mood sensors to understand the non-verbal cues as well as which emoticons they use to respond to certain events. Fourth, and last but not the least, which is the most important is inclusion. Not all of us are tech-savvy. Many are trying to learn and grasp the technical way outs. It is very important that technology creates an inclusion environment so as to make them relevant in the workforce.

To summarize, we might be progressing rapidly towards the digitization phase, but we should not forget the human aspect to bring about this change. Both has to exist concurrently.

Without the other, one cannot exist.

Source: Self

The unsung corona warriors

Despite odds and amid crises, farmers deliver produce. Today, farmers need government

Burn down your cities and leave our farms, and your cities will spring up again as if by magic. But destroy our farms and the grass will grow in the streets of every city”.
— William Jennings Bryan, 
‘Cross of Gold’ Speech (1896)

COVID-19 may go down as India’s first ever natural disaster not to register widespread starvation in terms of a total collapse in food consumption levels. About three million people perished in the Great Bengal Famine of 1943. The 1966-67 Bihar famine led to the state’s

The novel coronavirus pandemic and the ensuing lockdown have had a far wider, nationwide impact. Yet, they haven’t produced the severe food deprivation, soaring prices and hoarding that defined the previous great calamities. We have had reports of stranded migrant workers not getting enough cooked food or dry rations. But these are largely stories of localised administrative neglect, and not comparable to the general lack of access to food seen in past catastrophes.

This time, not only is there no food crisis, the problem has been more about demand than supply. Panic buying of milk, atta, dal, sugar or cooking oil in the initial period of lockdown has given way to demand destruction from the closure of hotels, restaurants, tea stalls, caterers, sweetmeat shops and other business consumers. As a result, producers are the ones really suffering. Even with all the supply chain disruptions, there aren’t too many cases of food not being available in markets or at ration shops, community kitchens and relief camps. People may be hungry, but not starving.

daily per capita calorie intake dropping from 2,200 to nearly 1,200 in several regions. Maharashtra’s drought of 1972-73 caused an estimated 1,33,000-plus “excess deaths”.

The credit for this not-small transformation goes partly to the much-derided government foodgrain procurement and distribution system. India entered the lockdown with roughly 77 million tonnes (mt) of rice and wheat, plus another 2.25 mt of pulses, in public godowns. But the unsung heroes — without whom all this grain, now being distributed or cooked in food camps, wouldn’t have been produced at all — are the country’s farmers. These women and men have kept supplies going, even without being designated Frontline Corona Warriors.

The abundance of produce that farmers have delivered comes in spite of the many “coronas” faced by them in recent times — from droughts in 2014 and 2015, growing stray cattle menace, an anti-producer inflation-targeting policy and the demonetisation-induced crash in crop realisations. Each time, they have risen, phoenix-like, from the ashes. They weathered the DeMo storm by simply replacing cash with deferred payments for farm inputs. Currently, they are harvesting wheat and sugarcane using whatever labour is available, whether of family members or non-farm workers rendered jobless by the lockdown. Theirs is a tale of resilience and human endurance.

What is it that makes our true Corona Warriors carry on, come rain or shine, drought or flood?

One is, of course, the nature of their work that allows little rest or procrastination. The period from about mid-February to mid-July is the busiest for farmers, when they are harvesting wheat, mustard, chana, potato, onion or sugarcane and then preparing the field to sow paddy, cotton, soyabean, maize or bajra. The workload reduces somewhat subsequently till around mid-September, being limited to day-to-day monitoring of the crop and giving water, fertilisers and pesticides or removing weeds. From mid-September till end-December, it’s back to harvesting and marketing the kharif crop and planting for the rabi season. For dairy farmers, even the 3-3.5 months of relative relaxation is ruled out, as their animals have to be fed, cleaned and milked daily.

This full-time activity — which involves following the dictates of nature and managing production as well as price risks — breeds toughness and equanimity in the face of adversity. Last year, when auto companies were announcing factory shutdowns amid a pile-up of inventories, a plain message circulated in a farmers’ WhatsApp group: “Why can’t they slash car prices from Rs 10 lakh to Rs 2 lakh, if we can sell Rs 20 onions for Rs 2? If we can bear losses and continue to farm, what stops them from running their plants?” Survival against all odds is hardwired into their genes.

A second reason why farmers are able to soldier on may have to do with their not having a narrow accountant’s approach to profits. Operating income, return on capital employed or earnings per share are all alien concepts; the key metric for them is bhaav (price). So long as it covers costs, not the most rigidly defined, and generates cash flows to run the home and finance the next crop cycle, they will keep producing.

How should we express gratitude to this Frontline Corona Warrior? Farmers don’t need our thalis and taalis (beating of plates or clapping of hands). They have filled our stomachs even in this hour of crisis. The least we can do is return the favour. As mentioned earlier, the problem now isn’t supply, but demand. With private trade practically non-existent and nobody apart from households buying, the onus to guarantee a market for farm produce lies on the state.

Government agencies have begun procuring the rabi crop, but in the name of maintaining social distancing, only few farmers are being allowed to come to the mandis every day. They are being issued coupons or SMSs to bring quantities as low as 5-10 quintals, similar to women Jan Dhan bank account-holders having to queue up for hours to withdraw a measly Rs 500. Why not open purchase centres at rice and dal mills or even schools, colleges, panchayat offices, cooperative societies, district courts and other public places shut during the lockdown? Wheat just has to be unloaded, cleaned, weighed, bagged and reloaded for dispatch to Food Corporation of India warehouses. If overcrowding is to be avoided, the best way is to spread out buying beyond the mandis.

Tailpiece: My friend and editor of Outlook Hindi magazine, Harvir Singh, recalls a door-to-door survey conducted at his village near Uttar Pradesh’s Shamli in 1976. The district authorities checked how much freshly-harvested wheat each farm household had stocked. After assessing the self-consumption requirement, they requisitioned the entire balance quantity as levy. Procurement was done without any fuss at the village’s junior high school. That was during the Emergency, when the government needed grain. Today, the farmer needs the government.

INDIAN FLAG ADOPTION DAY

On today, July 22 within the year 1947, India had formally adopted the “tricolor” as the nationwide flag. The flag has remained unchanged since then. The identical flew excessive above all democratic establishments within the Dominion of India between August 15, 1947 and January 26, 1950 and the Constitutional Republic of India since then.

Evolution of the Tricolor

It is really amazing to see the various changes that our National Flag went through since its first inception. It was discovered or recognised during our national struggle for freedom. The evolution of the Indian National Flag sailed through many vicissitudes to arrive at what it is today. In one way it reflects the political developments in the nation. Some of the historical milestones in the evolution of our National Flag involve the following:
Unofficial flag of India in 1906

The first national flag in India is said to have been hoisted on August 7, 1906, in the Parsee Bagan Square (Green Park) in Calcutta now Kolkata. The flag was composed of three horizontal strips of red, yellow and green.


The Berlin committee flag, first raised by Bhikaiji Cama in 1907

The second flag was hoisted in Paris by Madame Cama and her band of exiled revolutionaries in 1907. This was very similar to the first flag except that the top strip had only one lotus but seven stars denoting the Saptarishi. This flag was also exhibited at a socialist conference in Berlin.


The flag used during the Home Rule movement in 1917.

The third flag went up in 1917 when our political struggle had taken a definite turn. Dr. Annie Besant and Lokmanya Tilak hoisted it during the Home rule movement. This flag had five red and four green horizontal strips arranged alternately, with seven stars in the saptarishi configuration super-imposed on them. In the left-hand top corner was the Union Jack. There was also a white crescent and star in one corner.


The flag unofficially adopted in 1921


During the session of the All India Congress Committee which met at Bezwada in 1921 (now Vijayawada) an Andhra youth prepared a flag and took it to Gandhiji. It was made up of two colours-red and green-representing the two major communities i.e. Hindus and Muslims. Gandhiji suggested the addition of a white strip to represent the remaining communities of India and the spinning wheel to symbolise progress of the Nation.


The flag adopted in 1931. This flag was also the battle ensign of the Indian National Army.


The year 1931 was a landmark in the history of the flag. A resolution was passed adopting a tricolor flag as our national flag. This flag, the forbear of the present one, was saffron, white and green with Mahatma Gandhi’s spinning wheel at the center. It was, however, clearly stated that it bore no communal significance and was to be interpreted thus.


The present Tricolour flag of India


On July 22, 1947, the Constituent Assembly adopted it as Free India National Flag. After the advent of Independence, the colours and their significance remained the same. Only the Dharma Charkha of Emperor Asoka was adopted in place of the spinning wheel as the emblem on the flag. Thus, the tricolour flag of the Congress Party eventually became the tricolour flag of Independent India.

Who Designed The Indian Flag?

In 1929, agriculturalist and freedom fighter Pingali Venkayya had drawn the design on which the Indian nationwide flag relies. Venkayya started engaged on the flag design after Mahatma Gandhi had raised the significance of envisaging a flag which displays the aspirations of an unbiased India. 

What The Indian Flag Represents?

The color saffron of the flag represents braveness, valour and sacrifice of all countrymen. The center white portion displays the aspiration for peace and justice. The green color of the flag is reflective of India’s agricultural prosperity and environmental assets.

indian national flag colours represent لم يسبق له مثيل الصور + ...

5 days past but no clue of Pilot’s supporters and their whereabouts.

Since last 5 days, SOG team is inspecting in Delhi and Haryana but the’ve got no clue about Sachin Pilot’s loyalists and their whereabouts.

It’s been 5 days since Former Dept. Chief Minister Sachin Pilot’s supporting MLA’s have been absconding from Rajasthan. Chief Minister Ashok Gehlot ordered the SOG Team to find out the rebellious 19 MLA’s location. It is said that even after the letter of DGP Bhupinder Singh there is no helping hand or co-operation offered by the Delhi and Haryana Police.

The SOG and ACB team have lodged various complaints against the politicians. The list includes the name of famous leaders Bhanwar Lal Sharma and ex-minister Vishwendra Singh. These two are the main targets of Congress Government.

ADG, SOG-ATS- Ashok Rathod told that CID-CB, ASP Vikas Sharma along with his team is out there in Delhi and Haryana in search of the politicians in suspected areas.

Although, they have mot been successful until now. We also got to know from the sources that more than half a dozen hotels have been inspected in Delhi and Haryana.

It is said that DGP Bhupinder Singh asked for aid from Delhi and Haryana Police by writing through a letter so that they can ask out the MLA’s for further investigation.

how to register a partnership firm

Partnerships are a common form of business organization in India, particularly for a medium-scale business. With a partnership, you join forces with another person (or group of people) to run a business, sharing the profits. To register your partnership in India, you must first create a partnership deed, then register that deed with the Registrar of Firms. Partnership registration isn’t required, but provides proof of the existence of your firm and allows you to switch to a different form of organization, such as an LLP or a company, more easily.

Method1Creating a Partnership Deed

  1. 1Choose a name for your partnership. Choose a name that is unique and represents your business to the public. It can’t be too similar to any other registered business names and can’t include words such as “Crown” or “Empire,” or any words that imply direct approval, sanction, or patronage by the government. These rules ensure that your business name won’t potentially mislead your customers.
  2. 2Draft a basic partnership deed. The partnership deed describes your business and lists the rights and duties of each of the partners in your partnership firm. At a minimum, your partnership deed must include:
    • The name and address of the firm
    • The names and address of the partners
    • The nature of your business
    • The duration of your partnership
    • The capital contribution of each partner
  3. 3Add specific details to the partnership deed as needed. Beyond the basics, there are additional clauses that you can include in your partnership deed, depending on the needs or desires of the partners. Additional clauses typically cover hypothetical circumstances that may arise over the course of the partnership and provide a process for dissolving the partnership. Examples of some other areas you might cover include:
    • Procedures for admitting or introducing a new partner
    • Interest on partners’ capital contributions
    • Salaries or commissions payable to partners
    • Division of powers and responsibility among the partners
    • Audit procedures
    • Procedures in the event of the retirement or death of a partner
  4. 4Finalize the deed in the proper format. To be legal, your partnership deed needs to be printed on stamp paper and signed by each of the partners. The partners’ signatures should be signed in front of a notary. The notary will stamp each signature as valid.
    • The value of the stamp paper required for a partnership deed varies depending on location. You can find the amount by checking the Stamp Act for the state in India where your partnership is located.
    • After the deed is signed, make enough copies that each partner has a copy for their records. Keep the original as part of the business records.
  5. 5Apply for a PAN card for the partnership firm. Even though the partnership firm is not distinct from the partners for tax purposes, you still must get a PAN in the name of the partnership. You are required to pay taxes for the partnership under this PAN regardless of whether you register your partnership.[6]

Method2Filing Your Registration Application

  1. 1Complete your registration application. Your registration application includes basic information about your firm, including the partnership’s name and business address, the names and addresses of all the partners, the duration of the partnership, and the date you started business. Each partner must sign the application in the presence of a notary, who will notarize the signature.
  2. 2Submit your application and supporting documents. Take your paper application to the Registrar of Companies to complete your registration. To locate the Registrar of Companies nearest you, go to http://www.mca.gov.in/MinistryV2/registrarofcompanies.html and scroll through the list. In addition to your application, bring the following documents:
    • A certified original copy of your Partnership Deed
    • The PAN card for your partnership firm
    • Address proof for the partnership firm (ownership deed or lease)
    • PAN cards and proof of address for all partners
    • An affidavit certifying all details in the application are correct
  3. 3Pay your fees and stamp duties. When you take your documents to register your partnership, the Registrar will tell you any fees and stamp duties that you owe. These fees vary depending on your business’s location. Your partnership will not be registered until all fees and duties are paid.
    • You may want to call ahead to the Registrar’s office and find out what the fees are in your area.
  4. 4Wait to receive your certificate from the Registrar. The Registrar reviews your application and documents. If everything is in order, the Registrar will officially register your partnership firm. Within a few weeks, the official registration certificate will be mailed to your business address.
    • You should get the certificate within a few weeks of the date you submitted your application. However, since registration of a partnership isn’t legally required, you don’t need the certificate to start doing business.

example:

Registration of partnership according to sec 69 of indian partnership ac JURISDICTION – green park come under jurisdiction of saket sdm office PROCEDURE-
1. FILL FORM NO 1 of schedule 49(stam charges 3 rs)a. must have photos of the partnersb.ted must be done notary c. attested
2. have partnership deed a. 1% of the capital b. must be done notary c. attested  3. DOCUMENTSa. adress proof(attested) b. aadhar card(attested)c. pan card(attested) 4. documents required  of the land owner on which the firm has set up a. elecrticity bill(attested)b. any id having the same adress proof as the firm has setup(attested) NOTE: ALL SHOUD BE ATTESTED THROUGH NOTARY
NOTE: AFTER COMPLETION THESE ARE SUBMITTED IN ROOM NO 12.

sailent features of companies act 2013.

Shareholders: The Companies Act 2013 has introduced new concept of class action suits with a view of making shareholders and other stakeholders, more informed and knowledgeable about their rights.More power for Shareholders: The Companies Act 2013 provides for approvals from shareholders on various significant transactions.Women empowerment in the corporate sector: The Companies Act 2013 stipulates appointment of at least one woman Director on the Board (for certain class of companies).Corporate Social Responsibility: The Companies Act 2013 stipulates certain class of Companies to spend a certain amount of money every year on activities/initiatives reflecting Corporate Social Responsibility.National Company Law Tribunal: The Companies Act 2013 introduced National Company Law Tribunal and the National Company Law Appellate Tribunal to replace the Company Law Board and Board for Industrial and Financial Reconstruction. They would relieve the Courts of their burden while simultaneously providing specialized justice.Fast Track Mergers: The Companies Act 2013 proposes a fast track and simplified procedure for mergers and amalgamations of certain class of companies such as holding and subsidiary, and small companies after obtaining approval of the Indian government.Cross Border Mergers: The Companies Act 2013 permits cross border mergers, both ways; a foreign company merging with an India Company and vice versa but with prior permission of RBI.Prohibition on forward dealings and insider trading: The Companies Act 2013 prohibits directors and key managerial personnel from purchasing call and put options of shares of the company, if such person is reasonably expected to have access to price-sensitive information.Increase in number of Shareholders: The Companies Act 2013 increased the number of maximum shareholders in a private company from 50 to 200.Limit on Maximum Partners: The maximum number of persons/partners in any association/partnership may be upto such number as may be prescribed but not exceeding one hundred. This restriction will not apply to an association or partnership, constituted by professionals like lawyer, chartered accountants, company secretaries, etc. who are governed by their special laws. Under the Companies Act 1956, there was a limit of maximum 20 persons/partners and there was no exemption granted to the professionals.One Person Company: The Companies Act 2013 provides new form of private company, i.e., one person company. It may have only one director and one shareholder. The Companies Act 1956 requires minimum two shareholders and two directors in case of a private company.Entrenchment in Articles of Association: The Companies Act 2013 provides for entrenchment (apply extra legal safeguards) of articles of association have been introduced.Electronic Mode: The Companies Act 2013 proposed E-Governance for various company processes like maintenance and inspection of documents in electronic form, option of keeping of books of accounts in electronic form, financial statements to be placed on company’s website, etc.Indian Resident as Director: Every company shall have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year.Independent Directors: The Companies Act 2013 provides that all listed companies should have at least one-third of the Board as independent directors. Such other class or classes of public companies as may be prescribed by the Central Government shall also be required to appoint independent directors. No independent director shall hold office for more than two consecutive terms of five years.Serving Notice of Board Meeting: The Companies Act 2013 requires at least seven days’ notice to call a board meeting. The notice may be sent by electronic means to every director at his address registered with the company.Duties of Director defined: Under the Companies Act 1956, a director had fiduciary (legal or ethical relationship of trust)duties towards a company. However, the Companies Act 2013 has defined the duties of a director.Liability on Directors and Officers: The Companies Act 2013 does not restrict an Indian company from indemnifying (compensate for harm or loss) its directors and officers like the Companies Act 1956.Rotation of Auditors: The Companies Act 2013 provides for rotation of auditors and audit firms in case of publicly traded companies.Prohibits Auditors from performing Non-Audit Services: The Companies Act 2013 prohibits Auditors from performing non-audit services to the company where they are auditor to ensure independence and accountability of auditor.Rehabilitation and Liquidation Process: The entire rehabilitation and liquidation process of the companies in financial crisis has been made time bound under Companies Act 2013.ReplyForward

Lifting Of The Corporate Veil

From the juristic point of view, a company is a legal person distinct from its members.This principle may be referred to as the ‘Veil of incorporation’. The courts in general consider themselves bound by this principle. The effect of this Principle is that there is a fictional veil between the company and its members. That is, the company has a corporate personality which is distinct from its members. But, in a number of circumstances, the Court will pierce the corporate veil or will ignore the corporate veil to reach the person behind the veil or to reveal the true form and character of the concerned company. The rationale behind this is probably that the law will not allow the corporate form to be misused or abused. In those circumstances in which the Court feels that the corporate form is being misused it will rip through the corporate veil and expose its true character and nature disregarding the Salomod principal as laid down by the House of Lords. Broadly there are two types of provisions for the lifting of the Corporate Veil- Judicial Provisions and Statutory Provisions. Judicial Provisions include Fraud, Character of Company, Protection of revenue, Single Economic Entity etc. while Statutory Provisions include Reduction in membership, Misdescription of name, Fraudulent conduct of business, Failure to refund application money, etc. This article at first introduces to the readers the concept of “Veil of incorporation”, then it explains the meaning of the term-‘Lifting Of The Corporate Veil’, it then points out the Judicial as well as the Statutory provisions for Lifting of The Corporate Veil with the help of various case-laws.

Introduction-

Incorporation of a company by registration was introduced in 1844 and the doctrine of limited liability of a company followed in 1855. Subsequently in 1897 in Salomon v. Salomon & Company, the House of Lords effected these enactments and cemented into English law the twin concepts of corporate entity and limited liability. In that case the apex Court laid down the principle that a company is a distinct legal person entirely different from the members of that company. This principle is referred to as the ‘veil of incorporation’.

The chief advantage of incorporation from which all others follow is the separate entity of the company. In reality, however, the business of the legal person is always carried on by, and for the benefit of, some individuals. In the ultimate analysis, some human beings are the real beneficiaries of the corporate advantages, “for while, by fiction of law, a corporation is a distinct entity, yet in reality it is an association of persons who are in fact the beneficial owners of all the corporate property.” And what the Salomon case decides is that ‘in questions of property and capacity, of acts done and rights acquired or, liabilities assumed thereby…the personalities of the natural persons who are the companies corporators is to be ignored”.

This theory of corporate entity is indeed the basic principle on which the whole law of corporations is based. Instances are not few in which the Courts have successfully resisted the temptation to break through the corporate veil.

But the theory cannot be pushed to unnatural limits. “There are situations where the Court will lift the veil of incorporation in order to examine the ‘realities’ which lay behind. Sometimes this is expressly authorized by statute…and sometimes the Court will lift its own volition”.

Meaning Of Lifting Or Piercing Of The Corporate Veil-

The human ingenuity however started using the veil of corporate personality blatantly as a cloak for fraud or improper conduct. Thus it became necessary for the Courts to break through or lift the corporate veil and look at the persons behind the company who are the real beneficiaries of the corporate fiction.

Lifting of the corporate veil means disregarding the corporate personality and looking behind the real person who are in the control of the company. In other words, where a fraudulent and dishonest use is made of the legal entity, the individuals concerned will not be allowed to take shelter behind the corporate personality. In this regards the court will break through the corporate shell and apply the principle of what is known as “lifting or piercing through the corporate veil.” And while by fiction of law a corporation is a distinct entity, yet in reality it is an association of persons who are in fact the beneficial owners of all the corporate property. In United States V. Milwaukee Refrigerator Co., the position was summed up as follows:

“A corporation will be looked upon as a legal entity as a general rule……but when the notion of legal entity is used to defeat public convenience, justify wrong, protect fraud or defend crime, the law will regard the corporation as an association of persons.”

In Littlewoods Mail Order Stores Ltd V. Inland Revenue Commrs, Denning observed as follows:

“The doctrine laid down in Salomon v. Salomon and Salomon Co.Ltd, has to be watched very carefully. It has often been supposed to cast a veil over the personality of a limited liability company through which the Courts cannot see. But, that is not true. The Courts can and often do draw aside the veil. They can and often do, pull off the mask. They look to see what really lies behind”.

Judicial Provisions Or Grounds For Lifting The Veil-

FRAUD OR IMPROPER CONDUCT- The Courts have been more that prepared to pierce the corporate veil when it fells that fraud is or could be perpetrated behind the veil. The Courts will not allow the Salomon principal to be used as an engine of fraud. The two classic cases of the fraud exception are Gilford Motor Company Ltd v. Horne and Jones v. Lipman. In the first case, Mr. Horne was an ex-employee of The Gilford motor company and his employment contract provided that he could not solicit the customers of the company. In order to defeat this, he incorporated a limited company in his wife’s name and solicited the customers of the company. The company brought an action against him. The Court of appeal was of the view that “the company was formed as a device, a stratagem, in order to mask the effective carrying on of business of Mr. Horne” in this case it was clear that the main purpose of incorporating the new company was to perpetrate fraud. Thus the Court of appeal regarded it as a mere sham to cloak his wrongdoings.

In the second case of Jones v. Lipman, a man contracted to sell his land and thereafter changed his mind in order to avoid an order of specific performance he transferred his property to a company. Russel judge specifically referred to the judgments in Gilford v. Horne and held that the company here was “a mask which (Mr. Lipman) holds before his face in an attempt to avoid recognition by the eye of equity” .Therefore he awarded specific performance both against Mr.Lipman and the company.

FOR BENEFIT OF REVENUE-“The Court has the power to disregard corporate entity if it is used for tax evasion or to circumvent tax obligations. A clear illustration is Dinshaw Maneckjee Petit, Re;

The assesse was a wealthy man enjoying huge dividend and interest income. He formed four private companies and agreed with each to hold a block of investment as an agent for it. Income received was credited in the accounts of the company but the company handed back the amount to him as a pretended loan. This way he divided his income into four parts in a bid to reduce his tax liability.

But it was held that, “the company was formed by the assessee purely and simply as a means of avoiding super tax and the company was nothing more than the assessee himself. It did no business, but was created simply as a legal entity to ostensibly receive the dividends and interests and to hand them over to the assessee as pretended loans”.

ENEMY CHARACTER-A company may assume an enemy character when persons in de facto control of its affairs are residents in an enemy country. In such a case, the Court may examine the character of persons in real control of the company, and declare the company to be an enemy company. In Daimler Co.Ltd V. Continental Tyre And Rubber Co.Ltd, A company was incorporated in England for the purpose of selling in England, tyres made in Germany by a German company which held the bulk of shares in the English company. The holders of the remaining shares, except one, and all the directors were Germans, residing in Germany. During the First World War, the English company commenced action for recovery of a trade debt. Held, the company was an alien company and the payment of debt to it would amount to trading with the enemy, and therefore, the company was not allowed to proceed with the action.

WHERE THE COMPANY IS A SHAM- The Courts also lift the veil where a company is a mere cloak or sham (hoax).

COMPANY AVOIDING LEGAL OBLIGATIONS- Where the use of an incorporated company is being made to avoid legal obligations, the Court may disregard the legal personality of the company and proceed on the assumption as if no company existed.

SINGLE ECONOMIC ENTITY- Sometimes in the case of group of enterprises the Salomon principal may not be adhered to and the Court may lift the veil in order to look at the economic realities of the group itself. In the case of D.H.N.food products Ltd. V. Tower Hamlets, it has been said that the Courts may disregard Salomon’s case whenever it is just and equitable to do so. In the above-mentioned case the Court of appeal thought that the present case was one which was suitable for lifting the corporate veil. Here the three subsidiary companies were treated as a part of the same economic entity or group and were entitled to compensation.

Lord Denning has remarked that ‘we know that in many respects a group of companies are treated together for the purpose of accounts, balance sheet, and profit and loss accounts. Gower too in his book says, “There is evidence of a general tendency to ignore the separate legal group”. However, whether the Court will pierce the corporate veil depends on the facts of the case. The nature of shareholding and control would be indicators whether the Court would pierce the corporate veil. The Indian Courts have held that a ‘single economic unit’ argument could work in certain circumstances. These circumstances would depend on the factual control exercised. This view is strengthened by the Supreme Court decision (cited in Novartis v. Adarsh Pharma) in New Horizons v. Union of India. State of UP v. Renusagar was decided in 1988. Back in the year 1988 also, in Renusagar case, the Court proceeded, on the basis of prior English law which had accepted the ‘single economic unit’ argument. Thus, Renusagar case seems to support the conclusion that a ‘single economic entity’ argument would succeed in India for lifting the corporate veil.

AGENCY OR TRUST- Where a company is acting as agent for its shareholder, the shareholders will be liable for the acts of the company. It is a question of fact in each case whether the company is acting as an agent for its shareholders. There may be an Express agreement to this effect or an agreement may be implied from the circumstances of each particular case. In the case of F.G.Films ltd, An American company financed the production of a film in India in the name of a British company. The president of the American company held 90 per cent of the capital of the British company. The Board of trade of Great Britain refused to register the film as a British film. Held, the decision was valid in view of the fact that British company acted merely as he nominee of the American Company.

AVOIDANCE OF WELFARE LEGISLATION- Avoidance of welfare legislation is as common as avoidance of taxation and the approach of the Courts in considering problems arising out of such avoidance is generally the same as avoidance of taxation. It is the duty of the Courts in every case where ingenuity is expended to avoid welfare legislation to get behind the smokescreen and discover the true state of affairs.

PUBLIC INTEREST- The Courts may lift the veil to protect public policy and prevent transactions contrary to public policy. The Courts will rely on this ground when lifting the veil is the most ‘just’ result, but there are no specific grounds for lifting the veil. Thus, where there is a conflict with public policy, the Courts ignore the form and take into account the substance.

Statutory Provisions For Lifting The Veil-

REDUCTION OF NUMBER OF MEMBERS- Under Section 45 of The Indian Companies Act, 1956, if a company carries on business for more than six months after the number of its members has been reduced to seven in case of a public company and two in case of a private company, every person who knows this fact and is a member during the time that the company so carries on business after the six months, becomes liable jointly and severally with the company for the payment of debts contracted after six months. It is only that member who remains after six months who can be sued.

FRAUDULENT TRADING- Under Section 542 of The Indian Companies Act, 1956, if any business of a company is carried on with the intent to defraud creditors of the company or creditors of any other person or for any fraudulent purpose, who was knowingly a party to the carrying on of the business in that manner is liable to imprisonment or fine or both. This applies whether or not the company has been or is in the course of being wound up. This was upheld in Delhi Development Authority v. Skipper Constructions Co. Ltd. (1997).

MISDESCRIPTION OF THE COMPANY- Section 147 (4) of The Indian Companies Act, 1956, provides that if any officer of the company or other person acting on its behalf

signs or authorizes to be signed on behalf of the company any bill of exchange, promissory note, endorsement, cheque or order for money or goods in which the companies name is not mentioned in legible letters, he is liable to fine and he is personally liable to the holder of the instrument unless the company has already paid the amount.

PREMATURE TRADING- Another example of personal liability is mentioned in Section 117 (8) of The English Companies Act. Under this section a public limited company newly incorporated as such must not “do business or exercise any borrowing power” until it has obtained from the registrar of companies a certificate that has complied with the provisions of the act relating to the raising of the prescribed share capital or until it has re-registered as a private company. If it enters into any transaction contrary to this provision not only are the company and it’s officers in default , liable to pay fines but if the company fails to comply with its obligations in that connection within 21 days of being called upon to do so, the directors of the company are jointly and severally liable to indemnify the other party in respect of any loss or damage suffered by reason of the company’s failure.

FAILURE TO REFUND APPLICATION MONEY-According to Section 69(5) of The Indian Companies Act, 1956, the directors of a company are jointly and severally liable to repay the application money with interest if the company fails to refund the money within 130 days of the date of issue of prospectus.

HOLDING AND SUBSIDIARY COMPANIES- In the eyes of law, the holding company and its subsidiaries are separate legal entities.

But in the following two cases the subsidiary may lose its separate entity-

Where at the end of its financial year, the company has subsidiaries, it must lay before its members in general meeting not only its own accounts, but also attach therewith annual accounts of each of its subsidiaries along with copy of the board’s and auditor’s report and a statement of the holding company’s interest in the subsidiary.

The Court may, on the facts of a case, treat a subsidiary as merely a branch or department of one large undertaking owned by the holding company.

Conclusion-

Thus it is abundantly clear that incorporation does not cut off personal liability at all times and in all circumstances. “Honest enterprise, by means of companies is allowed; but the public are protected against kitting and humbuggery”. The sanctity of a separate entity is upheld only in so far as the entity is consonant with the underlying policies which give it life.

Thus those who enjoy the benefits of the machinery of incorporation have to assure a capital structure adequate to the size of the enterprise. They must not withdraw the corporate assets or mingle their own individual accounts with those of the corporation. The Courts have at times seized upon these facts as evidence to justify the imposition of liability upon the shareholders.

The act of piercing the corporate veil until now remains one of the most controversial subjects in corporate law. There are categories such as fraud, agency, sham or facade, unfairness and group enterprises, which are believed to be the most peculiar basis under which the Law Courts would pierce the corporate veil. But these categories are just guidelines and by no means far from being exhaust

IMPACT OF THE CONSTITUTION OF NCLT AND NCLAT ON COMPANY LAW LITIGATION

The Ministry of Corporate Affairs (‘MCA’) on 1st June 2016 notified the constitution of National Company Law Tribunal (‘NCLT’) and National Company Law Appellate Tribunal (‘NCLAT’) in exercise of powers conferred under §408 and §410 of the Companies Act 2013 (‘Companies Act‘). This notification has been in abeyance for almost 14 years since it was first introduced by the Companies (Second Amendment) Act 2002 based on the recommendations of Eradi committee. However, in recent times the Government of India has been emphasising on easing the process of carrying out business in India. Thus, in recent times, various legal reforms have been carried out and the constitution of the NCLT and the NCALT is one more step in this direction.

The newly setup NCLT will, initially, have 11 benches including two benches in the national capital, New Delhi. Retired Supreme Court judge Hon’ble Justice SJ Mukhopadhaya will be the first Chairperson of NCLAT and Retired Justice MM Kumar will be the first President of the NCLT.

The constitution of the NCLT is likely to have a fundamental impact as far as company law litigation is concerned. Some of the more important consequences of this development are enumerated below:

  1. Single Window: The most significant benefit likely to arise from the constitution of the NCLT and the NCLAT is that the tribunals will, effectively, act as a single window for settlement of all company law related disputes. The newly constituted tribunals will replace the existing Company Law Board (‘CLB’), the Board of Industrial and Financial Reconstruction (‘BIFR’) and its appellate authority. Thus, the unnecessary fragmentation and multiplicity of the proceedings before various courts and tribunals in the same matter will be now be curbed.

    The constitution of the NCLT is in consonance with the recently enacted Insolvency and Bankruptcy code and the liquidation process of companies and corporate debtors will now be considerably simplified.

    Further, in the previous regime most powers were reserved either for the Central Government, the CLB or the High Courts. However, with the formation of the NCLT, the intent is to consolidate these powers and jurisdiction and assign them to a single authority, thereby simplifying the dispute adjudication process as far as companies are concerned.
  2. Class Action Claims: Shareholders are allowed to file class action suits before the NCLT, against the company for the breach of provisions of the Companies Act. Per this provision, if 100 or more shareholders or depositors find that the company’s affairs are not being managed in its best interests, they may approach the NCLT. In a class action suit, shareholders can collectively sue directors or auditors of the company for their misconduct or unwarranted acts. This remedy will be crucial for the minority shareholders who seek redressal against arbitrary/oppressive decisions of their management.  In addition, with the increase of shareholder activism in India such a remedy would be a valuable remedy in the hands of shareholders against their boards.
  3. Greater Field Impact: Under the old law, the CLB was operating through only 5 benches. However, the NCLT will commence with 11 benches, with the Principal Bench being in New Delhi. This will undoubtedly aid in ensuring a wider reach for adjudicating company law matters in India.
  4. Speedy Disposal of Cases: The NCLT has been given the powers to regulate its own procedure which will assist them in disposing matters in a simplified manner. Further, the NCLT and the NCLAT are under a mandate to dispose of cases before them as expeditiously as possible. In this context, a time limit of 3 months has been provided to dispose of cases, with an extension of 90 days for sufficient reasons to be recorded by the President or the Chairperson, as the case maybe. This time limit is expected to ensure the speedy disposal of cases by the NCLT and the NCLAT.
  5. Limitations and Unanswered Questions: The notification does not expressly specify the manner or procedure for transferring pending cases from the CLB and High Courts to the NCLT. It is likely the process of transfer will be commenced and implemented as a gradual process. The objective may be to transfer the matters to the new body in a gradual manner, so as to give the NCLT ample amount of time to structure itself in the company law litigation of the country. However, effective steps will need to be taken to prevent unnecessary confusion amongst litigants.

    In addition, provisions relating to the winding up of the companies and those under Chapter XV of the Companies Act have not yet been notified. Therefore, these matters will continue to be governed by the provisions of Companies Act 1956. There is no updated information available in terms of when the provision of Chapter XV are likely to be brought into force.

IT LAWS –is it a restriction of fundamental right?

After the sc has declared right to privacy is fundamental right then how can it laws in the country be full operative and meet its objectives in last few years threre has been several cases related to the right to privacy and one of the most eminent is adhar card issue .

A nine-judge bench of the Supreme Court pronounced this verdict on Thursday morning of  24 aug 2017 .It was a unanimous decision with all the nine judges in favour of the Right to Privacy. The constitutional bench headed by Chief Justice JS Khehar ruled that “right to privacy is an intrinsic part of Right to Life and Personal Liberty under Article 21 and entire Part III of the Constitution.”

the judgement certainly gives incentives to work towards a strong data privacy policy. “There will be a need to set up appropriate and detailed standards of care regarding what is done with your data and how it is used. There is already a Data Protection Bill in consideration. Legislation will be required to implement the fundamental rights, so that in the future even private parties are subjected to regulation.

What privacy includes

Preservation of personal intimacies, the sanctity of family life, marriage, procreation, home and sexual orientation.

A right to be left alone.

Safeguards individual autonomy, recognises the ability of the individual to control vital aspects of his or her life.

Personal choices governing a way of life are intrinsic to privacy.

Protection of heterogeneity and recognition of plurality and diversity of our culture.

——. Privacy is not surrendered when a person is in public place

By being in public place doesn’t mean an individual has surrendered privacy, even as the legitimate expectation of privacy may vary from the intimate zone to the private zone and from the private to the public arena.

Privacy attaches to the person since it is an essential facet of the dignity of the human being

——- What Right to Privacy doesn’t mean

Not an absolute right: Like other rights which form part of the fundamental freedoms protected by Part III, including the right to life and personal liberty under Article 21, privacy is not an absolute right.

——Can law/state encroach upon privacy?

According to SC, a law which encroaches upon privacy will have to withstand the touchstone of permissible restrictions on fundamental rights.

In the context of Article 21, an invasion of privacy must be justified on the basis of a law which stipulates a procedure which is fair, just and reasonable.

The law must also be valid with reference to the encroachment on life and personal liberty under Article 21.

An invasion of life or personal liberty must meet the three-fold requirement of (i) legality, which postulates the existence of law; (ii) need, defined in terms of a legitimate state aim; and (iii) proportionality which ensures a rational nexus between the objects and the means adopted to achieve them; and

—— Privacy has both positive and negative content.

The negative content of privacy restrains the state from committing an intrusion upon the life and personal liberty of a citizen.

Positive content of the right to privacy imposes an obligation on the state to take all necessary measures to protect the privacy of the individual.

——-Robust regime needed for data protection

Informational privacy is a facet of the right to privacy. The court observed that dangers to privacy in an age of information can originate not only from the state but from non-state actors as well. The Union Government, hence, needs to examine and put into place a robust regime for data protection. The creation of such a regime would require a careful and sensitive balance between individual interests and legitimate concerns of the state.

—— For what reasons state can encroach upon individual’s privacy?

According to the judgement, the legitimate aims of the state should be “protecting national security, preventing and investigating crime, encouraging innovation and the spread of knowledge, and preventing the dissipation of social welfare benefits.” These matters should be considered by the Union government while designing the regime for the protection of the data.

How the IT laws be improved —

India’s existing data privacy framework dates only to the year 2009, introduced to address growing concern relating to ‘data protection’ and ‘data privacy’. This framework was primarily introduced through Sections 43-A and 72-A of the Information Technology Act 2000. Subsequently, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules 2011 were issued. These regulate the collection, disclosure, transfer and storage of sensitive personal data and information.

Unfortunately, the above-mentioned legislative framework does not extend to government agencies, and also stops short of imposing an obligation upon the data collector to mandatorily report any data compromises to data subjects. Further, it imposes a stiff requirement to establish intent to cause wrongful gain or loss before an enforceable remedy against a data breach would be available to data subjects.

A well-functioning data privacy regime should ideally set the rules of the game for all actors, cut out any regulatory uncertainty and strike a balance between protecting the right of privacy of data subjects with the business needs of data collectors.

In 2012, the AP Shah report studied global best practices with a view to rebooting the existing domestic framework; it identified transparency, consent, and accountability as the fundamental building blocks of the ideal data protection regime. The report also observed that any new data privacy framework must aim to harmonise principles such as the principle of notice, choice and consent, limitation on collection and purpose, disclosure, openness, security, and accountability. These would also be relevant today.

Moreover, with technology constantly evolving, an approach based on standards would enable the law to keep pace with rapid changes in technology, as against objective rules that would fail to be relevant with constant technological developments.

Perhaps the biggest shift required from the existing regime is with respect to its applicability. It is imperative to bring government agencies within the ambit of the new framework. Although drafting a legislation that is applicable to both the private sector and the Government alike is a daunting task, it may be a streamlined method of ensuring that data subjects are adequately safeguarded.

While ‘consent’ is the cornerstone of any data privacy regime, the adequacy of such consent from the data subjects is sometimes debatable, especially in the context of standard-form contracts such as click wrap agreements. Recent studies show that this problem has been exacerbated manifold; people are often forced to accept unfavourable terms of service since most apps are designed to quit immediately if one does not click on the ‘I agree’ button.

Behavioural research also points to the inability of data subjects to manage their own data. This is attributed to a combination of lack of understanding and general disinclination.

To counter this, researchers have argued that perhaps regulating only the collection of data may not be enough, its use by data collectors and data processors could also be regulated such that there is a prohibition on using certain data in a manner that is detrimental to data subjects. This could be a useful supplement to temper the current prior consent-based approach where data subjects often surrender their data without truly understanding the wider ramifications of exploitation of such data.

Several stops and starts and multiple draft privacy Bills later, the Government has now taken the step to constitute a committee under Justice (Retd) BN Srikrishna to suggest and draft a new data protection Bill. While the Supreme Court continues to deliberate whether the right to privacy should be elevated to a separate fundamental right, a robust and well-functioning data privacy legislation will go a long way in complementing the constitutional right to privacy in not only creating the right incentives for all stakeholders but also providing an efficient redress mechanism for data subjects.