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The Puttaswamy Judgement- How Is Privacy a Fundamental Right?

The jurisprudence in India with respect to the status of right to privacy as a fundamental right has been quite dicey, as pointed out in the previous section. It was only in the case of Justice K. S. Puttaswamy v. Union of India[1] that the Apex Court exclusively dealt with this issue. The case was a reference made by a five-judge bench of the Apex Court to a nine-judge bench. The reference was made owing to the ambiguity arising from the judicial precedents on the status and scope of the right to privacy. The nine-judge bench unanimously held that the right to privacy is an intrinsic part of personal liberty under Article 21 of the Indian Constitution.

The majority opinion authored by Justice Chadrachud discusses in detail, a number of reasons which led to the recognition of privacy as a fundamental right. The following are some of the reasons pointed by the Hon’ble Court in this regard-

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  • Natural and inalienable rights[2]

The court pointed out that privacy, as a right, can be traced to the notion of inalienable rights i.e. the rights which are inherent in and are inseparable from a human being.

Although these rights are inalienable, however, the autonomy which an individual enjoys, by virtue of these rights, is not absolute. The court pointed out an example wherein one employs another person to kill oneself. Here, the individual exercised his autonomy to violate his inalienable right to life. For this simple reason, such autonomy cannot be absolute in nature.

  • Jurisprudence on dignity[3]

The court asserted that ‘dignity’, as a constitutional value, finds its place in the Preamble of the Indian Constitution[4]. The court also said that individual is the main focus of the Constitution as the realisation of individual rights plays a key role in achieving the collective well-being of the community. Therefore, human dignity forms an integral part of the Constitution.

The court held that the sanctity of privacy lies in its functional relationship with dignity, thereby establishing a link between dignity and privacy.

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  • Essential nature of privacy[5]

The court was of the opinion that privacy highlights the reservation of a private space for the individual; the right to be let alone. The concept is based on the autonomy of the individual.

The court further held that the ability to make choices lie at the core of the human personality. In this process, privacy plays an instrumental role by enabling the individual to assert and control the choices he/she makes. Recognizing a zone of privacy is a mere acknowledgment that individual should enjoy autonomy in the development of his/her personality.

Therefore, the court established a relationship between dignity and autonomy with privacy. By virtue of this relationship, the right to privacy forms an important element of human dignity as well.

  • International obligations[6]

Secondly, the court pointed out India’s international obligations towards protection of privacy by virtue of Article 12 of UDHR[7] and Article 17 of ICCPR[8]. Further, Article 51 of the Constitution requires the State to endeavour to “foster respect for international law and treaty obligations in the dealings of organized peoples with one another[9].

The Protection of Human Rights Act, 1993 also defines “human rights” and includes ‘dignity of individual’[10] under its ambit. Therefore, India is under an obligation to safeguard the privacy aspects of human dignity.

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The court also took note of India’s commitment towards international obligations by pointing out the stand of the Indian judiciary in Bacchan Singh v. State of Punjab[11], with respect to the use of the death penalty underlining India’s obligations under ICCPR, and Vishaka v. State of Rajasthan[12], where the court relied on the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) to provide guidelines prohibiting sexual harassment.

  • Statutory protection cannot deny a constitutional right[13]

The court stated that although certain aspects of privacy have been protected under different statutes, nevertheless, providing constitutional protection to a right, places it “beyond the pale of legislative majorities[14]. If privacy is considered as a part of the basic structure of the Constitution, it becomes inviolable even through an amendment. However, ordinary statutes come under the ambit of amendment/modification.

  • Not a mere common law right[15]

The court, while addressing the issue that privacy is protected through common law, held that common law protection cannot bar constitutional recognition of a right, which is afforded because such right is an aspect of fundamental freedom or liberty which the draftsperson considered to be so significant as to require constitutional protection.

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  • The ruling of the court- Right to privacy as a fundamental right[16]

Taking into account the reasons summarized above, the court finally held that the right to privacy is constitutionally protected, emerging from the right of life and personal liberty under Article 21 of the Constitution.[17]

Secondly, privacy safeguards personal intimacies, the sanctity of family life, marriage, procreation, the home and sexual orientation[18]. However, this list is not exhaustive[19].

Thirdly, the right to privacy is not an absolute right, like any other right under Part III of the Constitution, including the right to life and personal liberty. Privacy can be encroached by law however, such law should withstand the touchstone of permissible restrictions on fundamental rights. The court formulated a three-pronged test which a law has to pass to intrude into the right to life and personal liberty[20]

  1. Legality
  2. Legitimate state aim
  3. Proportionality

The Court also unequivocally held that the doctrinal premise of M.P. Sharma[21] and Kharak Singh stand invalidated. The court also appreciated the minority view of Justice Subba Rao in Kharak Singh[22].

  • THE IMPLICATIONS OF RIGHT TO PRIVACY AS A FUNDAMENTAL RIGHT

Common Cause v. Union of India[23] represents the first important application of the principles laid down in Puttaswamy[24] with respect to right to self-determination and freedom to make fundamental choices about how to use one’s body[25], as part of fundamental rights under the Constitution.

Further, the Supreme Court while restoring Hadiya’s marriage opined that Hadiya is having internal freedom of choice, marriage and autonomy.[26]

Therefore, ‘privacy’, as a concept incorporates a number of aspects that are now accorded protection under the umbrella of personal liberty under Article 21 of the Constitution.

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[1] Justice K. S. Puttaswamy v. Union of India, (2017) 10 SCC 1.

[2] Id, part G.

[3] Supra note 32, part I.

[4] Supra note 6, Preamble.

[5] Supra note 32, part R.

[6] Supra note 32, part J.

[7] Supra note 4.

[8] Supra note 5.

[9] Supra note 6, Art. 51.

[10] Protection of Human Rights Act, 1993, s. 2(1)(d).

[11] Bacchan Singh v. State of Punjab, (1980) 2 SCC 684.

[12] Vishaka v. State of Rajasthan, (1997) 6 SCC 241.

[13] Supra note 32, part N.

[14] Supra note 32, para 153.

[15] Supra note 32, part P.

[16] Supra note 32, part T.

[17] Supra note 32, part T(3)(C).

[18] Supra note 32, part T(3)(F).

[19] Supra note 32, part T(3)(G).

[20] Supra note 3.

[21] Supra note 14.

[22] Supra note 9.

[23] Common Cause v. Union of India, (2018) 5 SCC.

[24] Supra note 32, part T.

[25] Recognition of right to die with dignity as a part of right to life under article 21.

[26] Shafin Jahan v. Ashokan K.M, 2018 SCC Online SC 201.

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Challenges Posed by the Development of Information Technology

Technology is an essential part of our day-to-day lives. It has made communication and dissemination of information faster and easier. Further, exchange of ideas as well as sale and purchase of goods and services have been facilitated with the advent of internet. Technology and the internet has become so intrinsic a part of our life that we cannot even think about planning our day without the involvement of such technology or the internet. However, this is just one side of the coin. On the flip side, technological advancement has created issues which impact different aspects of our lives. The following part analyses different challenges posed by information technology and the internet to the global community at large.

  • Criminal law

Technological advancement and the internet has provided a breeding ground for commission of crime as the use of computers and the internet is a cheaper means to perpetrate crime which simultaneously impacts a large section of society. These crimes are termed as cybercrimes. They are specifically different from traditional crimes owing to its global import, the anonymous identity of the perpetrator and the involvement of third parties like the Internet Service Providers and the Intermediaries. However, this difference is discarded by the scholars who believe that traditional system of laws are adequate to deal with the crimes in the digital age.

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It is pertinent to note that although cyberspace just acts as a medium to perpetrate a crime, however, it has a number of implications attached to it, which highlights the need for a separate legal framework to punish cybercrimes. Taking into account this issue, different jurisdictions[1] have enacted separate piece of legislations to specifically deal with cybercrimes.

Generally, cybercrimes can be classified as-

  1. Against persons (for example, harassment, spoofing, stalking)
  2. Against property (for example, IPR, data theft, trespass, squatting)
  • Against infrastructure (for example, attack on critical infrastructure)
  1. Against society (for example, pornography, gambling, cyber trafficking, forgery etc.)

Therefore, considering the fact that certain crimes emerged only because of the use of technology, traditional laws cannot be applied to address the criminal law issues posed by cyberspace.

  • Privacy and data protection

Right to privacy is considered a fundamental human right[2] and state is under an obligation to protect the same from unnecessary intrusion. Although cyberspace is not a real place and does not actually exist, however, vast amount of digital information exist in the servers, which includes personal as well as sensitive personal data of individuals. Further, with time, the collection of such data will only increase, which further increases the risk posed by technology in protection of such data.

The manner in which data of individuals is collected and stored has changed after technology came into being. Previously, such data was stored in paper files locked in the chambers of the institutions which collected it. Therefore, the sheer costs of retrieving such data, the impermanency of the forms in which it was stored and the inconvenience experienced in procuring access (assuming that its existence was known), made the issue of privacy and data protection were negligible. However, information stored in servers, which are susceptible to cyberattacks, has significantly increased the risk of data breach/leak.

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Therefore, cyberspace is, in essence, a public domain and if such space is left unregulated, the violation of individual’s right to privacy is a real possibility.

  • Intellectual property rights

With respect to intellectual property right, advances in digital technology and the commercialization of the Internet has altered the core of copyright. The internet has facilitated the level of online piracy of copyrighted works. Unlicensed, but always perfect, copies and streams of copyrighted works are readily available on the internet. With the growth of streaming services, direct download sites, and peer-to-peer services such as BitTorrent, the old problem of online piracy has extended and spread in an unanticipated manner.

With respect to the realm of trademark, information technology and the internet has led to emergence of domain name issues like typosquatting (where a person registers a domain name similar to a real domain name, but with a typo, in hopes that web surfers reach it by accident), cybersquatting (Cybersquatting is done when domain names are registered, sold or trafficked-in with the intention to make profit from the goodwill of someone else) and pagejacking (when the offender copies part of an existing website, and then puts it up on a different website to make it look like the original).

Therefore, technology and the internet have created new issues with respect to the protection of intellectual property rights and has compromised the rights of individuals who legally own the intellectual property.

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  • Contract and tort law

Internet has ensured that communication is no more restricted to the constraints of geography and time. The speed and ease with which communication as well as transactions take place on the internet has led to the evolution of electronic commerce sector, which provides flexibility to business environment in terms of place, time, space, distance, and payment.

With the growth of e-commerce, there is a rapid advancement in the use of e-contracts. These e-contracts are different from the traditional paper contracts, not just in the form, but also with respect to the specific issues posed by it, for example when exactly is acceptance considered to be communicated on the internet. To address these specific issues, the courts have modified the traditional principles of contract law to adapt to the changing requirements posed by the technology.

Further, the issue of defective softwares as well as cyber defamation require specific deliberation with respect to the applicability of conventional contract and tort law respectively.

  • Jurisdiction

With respect to the issues highlighted above, one of the remedies available to the aggrieved party is to approach the court. However, internet and cyberspace has further created issues in ascertaining appropriate jurisdiction to entertain a suit. The traditional territorial principles become fallible in the computer-world as the Internet greatly diminishes the significance of physical location of the parties, because transactions in cyberspace are not geographically based and are borderless.

A cybercriminal might be a national of one country, operating his computer, in second country and hacking the computer systems of a company located in the third country. If we adopt the traditional territorial principle of jurisdiction, the country from where the cybercriminal is operating his computer will assume jurisdiction over him. But if that country does not have proper legal framework criminalising such cybercrime, then the territorial principle could be made use of for evading criminal liability, as then such criminals will necessarily locate their computers in the jurisdictions with weak or no control over the cybercrime. Thus, the effective prosecution of such a crime can be seriously hampered if proper jurisdictional principles are not evolved.

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This highlights the need to have principles which allow application of extra-territorial jurisdiction in cases of cyber crime.

[1] Computer Misuse Act, 1990 (United Kingdom), Information Technology Act, 2000 (India) etc.

[2] Universal Declaration of Human Rights, 1948, Art. 12; International Covenant on Civil and Political Rights, 1966, Art. 17.

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Artificial Intelligence and Copyright Protection of Computer-Generated Works

Copyright is a type of intellectual property which provides the exclusive right to the owner to make copies of a creative work, either artistic, literary, dramatic, musical or otherwise. The creator of such creative work, or “author” has the exclusive commercial rights over the work.

Artificial intelligence has great significance in the realm of creative work. Recent successes have demonstrated that AI can independently learn how to perform tasks, prove mathematical theorems, and engage in artistic endeavors such as writing original poetry and music, and painting original works. AI with and sometimes without human assistance is also able to create artistic or innovative works. Therefore, such interplay of AI with the creation of creative work raises certain concerns in the field of copyright law.

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Before understanding the specific issues pertaining to copyright protection of AI generated work, it is pertinent to understand the difference between AI code and AI’s work product. AI code relates to the computer program or algorithm or the source code per se which constitutes AI. This code is what the programmer inputs into an AI. Such code is provided protection under copyright laws of various jurisdictions as TRIPS agreement provides that “Computer programs, whether in source or object code, shall be protected as literary works under the Berne Convention (1971)”[1]. Therefore, the programmer, or the person/entity which buys such AI from the programmer, is considered as the owner of such AI and enjoys the fruits out of copyright protection. On the other hand, AI’s work product relates to the creative product created by the AI. The major legal issue concerns the copyright protection provided to the work created by AI, either with or without human interference.

As discussed above, the AI’s creative work product can further be bifurcated into two categories, one where there is no human intervention, and the other where the programmer has minimal input into the final product. The legal issue pertains to whether in the former situation, the AI can be given authorship over the creative product, and in the latter situation, whether AI can be considered as a co-author of the creative work.

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With respect to the first issue, the jurisprudence developed in different jurisdictions clarify the situation as they unanimously believe that the creative works generated solely by AI are not copyrightable, if such creation does not involve any input or intervention by a human author.

In the United States of America, human authorship is the basic requirement as the Copyright Office reinforced the decision in New Idea Farm. Equip Corp. v. Sperry Corp[2] by holding that it will not register works produced by a machine or mechanical process if there has been no creative input or intervention from a human. Further, in Naruto v Slater[3], the court has opined that a non-human cannot hold copyright and hence cannot sue for infringement of copyright.

In the United Kingdom, the Copyright Designs and Patents Act, 1988 provides that the author of any literary, dramatic, musical or artistic work created by a computer is the person that made the arrangements necessary for the creation of the work undertaken[4]. A computer-generated work has further been defined by the Act as “work generated by computers without any human author of the work[5].

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India also adopted a similar approach under Section 2(d) of the Copyright Act, 1957 by providing that “in relation to any literary, dramatic, musical or artistic work which is computer-generated, the person who causes the work to be created.”[6] However, it does not contain any explicit exclusion of interference from human author for computer-generated works.

Therefore, the copyright law regime of different jurisdictions expressly mention that the author of a computer-generated work is the person by whom the arrangements necessary for the creation of the work are undertaken.[7] Therefore, intervention by a human is necessary to render the output of an AI copyrightable.

Therefore, AI cannot be an author of the creative work. However, if we take this proposition into consideration, then the next issue arises as to who would be an author of the work created by AI if no human intervention takes place in the process of such creation?

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Let us consider a situation wherein an AI creates an artistic work without any human intervention and this work is infringing the right of another author of same/similar work. Even though work created by AI without any human intervention is not given copyright protection, however, does it imply that others also lose their right to sue for copyright infringement? To resolve such conflicts and the issue of liability arising out of the works created by AI, it is imperative to understand who should be considered the author of the work created by AI, without human involvement.

A possible solution to this issue is the doctrine of principal-agent relationship. If AI is considered as a mere agent of the person (human) who has a control over it, the issue of liability will be resolved. Also, since AI is created by a programmer and it functions according to the algorithms which have been programmed into it by the programmer, such programmer can be considered a principal, and AI be considered as its agent, as AI performs the specific tasks for which it is programmed. In the course of such performance, if the AI creates a creative work, the principal i.e. the programmer can benefit out of such creation, and also be considered liable, in case of any infringement (as principal is vicariously liable for the acts of agents). Further, though compensation is considered an important factor in the principal-agent relationship, and AI cannot be “paid” by the programmer in practical sense, the AI can be considered as a gratuitous agent as a gratuitous agent acts without a right to compensation from the principal. Furthermore, the gratuitous agent owes the same duties of care and loyalty that it would otherwise owe the principal as if it were a standard agent.

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If the AI is sold by the programmer to a third person/entity, such person/entity becomes the principal and enjoys the benefits and the burdens arising out of the creation of AI.

Therefore, although the copyright law regime globally necessitates human involvement or interference for protection of a creative work, the work generated by AI without such human interference should be given protection because firstly, it would provide incentive for further creations of such nature and secondly, it would provide a remedy to the party whose rights have been infringed by the creative work of AI. Thus, the principle of principal-agent relationship between the programmer and the AI can help in addressing these lacunas.

 

[1] Supra note 3.

[2] Supra note 7.

[3] Naruto v. Slater, 2018 WL 1902414.

[4] The Copyright Designs and Patents Act, 1988, s. 9(3) (United Kingdom).

[5] The Copyright Designs and Patents Act, 1988, s. 178 (United Kingdom).

[6] The Copyright Act, 1957, s. 2(d) (India).

[7] Ireland, UK, New Zealand, South Africa, and India.

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Role of Private Equity in the Construction Industry

By: Divya Tandon

What is Private Equity Investment?

Private Equity is one of the methods of financing an entity wherein capital is invested by private set of investors into a business in return for equity in the company wherein the capital is invested.

Private Equity investors are generally leveraged buyout funds, growth equity funds, venture capital funds, real estate investment funds, special debt funds or individuals having high net worth etc.

Private Equity Investors provide funding to the companies they invest in which help in meeting the capital requirements of the companies for funding their projects, pay off existing debts, solidifying the balance sheet, launching new projects etc.

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Due to huge size of investment, private equity investors often get involved in the functioning of the company and have a significant control and decision making rights in the company they invest in. The Private equity investors uses their enormous experience and skills to manage and improve the operations and revenue of the investee company over a period of time. The intent of the private equity investors is to improve the worth of the company so that they can later sell their stake for more than it was when they bought it thereby making profit.

Importance of Private Equity in the Construction/Real estate industry

The construction companies/firms require huge funds for their projects. Most companies/firms are not self-sufficient to fund their projects on their own. Hence, they look for alternative investment options to fund their projects. The construction companies can approach the banks for availing loans, look for joint venture partners, find suitable individual investors willing to invest in the form of equity or debt or private equity firms willing to invest in the company.  Since, huge funds are required by construction companies, most of the times the companies adopts more than one of the investment options to fund their projects.

Earlier, private equity investors used to avoid investment in construction industry due to certain inherent risks.  However, in recent years investment by Private Equity investors has gained momentum. The enactment of Real Estate (Regulation and Development) Act, 2016 (“RERA Act”) which has come into force with effect from May, 2017 has also made developers more accountable as their acts are now regulated by the RERA Authority. The RERA Act is more stringent as compared to previous legislation which has been brought to eradicate the problems that were inherent in the real estate sector. The RERA Act ensures transparency with respect to real estate transactions. Heavy penalties are imposed on the developers for violation of the provisions of the RERA Act or the terms and conditions of the agreement executed with the customers. Hence, RERA has brought in positive transformation in the real estate sector and boosted the confidence of private equity investors to invest in this sector.

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Besides the enactment of RERA Act, various other government policies and schemes have led to surge in investor interest in the real estate sector including foreign investors. Some of the policies of the government which has boosted private equity investment in construction industry are easing of FDI regulations, Housing for All, Affordable Rental Housing Complex Scheme, Credit Linked Subsidy Scheme (CLSS) to name a few.

Private Equity firms often fund real estate companies and provide financial support in development of real estate projects. Private equity investment provides the required liquidity to the company for its projects and provide support in launching new projects or to complete the pending projects. After enactment of RERA, the developers prefer completing their projects as per the agreed timelines to avoid payment of interest on the amounts paid by the customers. But due to liquidity crunch, sometimes the developers struggle with the available capital to complete the ongoing projects and provide possession to the customers. In such a scenario, the private equity investors come to the aid of the construction companies to provide last stage funding. Thus, the demand for funds in the last stages of completion of projects have risen. The last stage funding is also favorable for the private equity investors as it is comparatively less risky as during the last stages of construction generally necessary approvals are in place and construction is on the verge of completion. However, the private equity investors should ensure proper due diligence to understand the reason for the project being stalled. If the project is stalled only due to financial crunch, the investment by the private equity investors can help in reviving and completing the project and provide benefit to the investors by maximizing their value. On the other hand if the project where the private equity investor is considering to invest is stalled due to some third party dispute or pending litigations then the funding by private equity investors may not solve the problem and the project may not be completed as per the estimated timelines. This may result in the investment of private equity investors getting stuck.

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“Post the liquidity crisis in NBFCs in Q4 2018, private equity players including the domestic ones have become increasingly active once again and are expected to bridge the funding gap”[1]

In recent years, private equity investors are funding some major projects. The investment by private equity investors is not only in residential projects, but also in commercial and retail projects.  Due to the private equity investment, some of the stalled projects have been able to see the light of the day and have been completed, providing much needed relief to the customers who had invested in such projects.

Depending on the size of investment, the private equity investors get involved in the decision making process. The level of influence depends on the stake invested. They provide their inputs through out the development process and act as strategic partners.

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Impact of Covid-19 on the private equity investment in the construction industry

Due to the outbreak of the global pandemic Novel Corona Virus – COVID-19 in March, 2020, the current financial markets, trade, commerce and thereby business continuity is facing an unprecedented situation due to lockdown imposed by the central and state governments from time to time to curtail the spread of the deadly virus. This pandemic has paralyzed and destroyed the very economic fabric of the entire world including India.  Both the Central Government as well as State Governments had placed severe restrictions and implemented various remedial measures in an all-out effort to halt the spread of the virus.

The impact of the Covid-19 is thus a calamity and the adverse consequences on the Real Estate Industry is serious and has impacted the business severely. As a fall out of the above, there is total disruption in the supply–chain of materials, shutdown of construction activities due to huge shortage of construction materials in the market on supply–chain issues due to import restrictions, global manufacturing, shutdown of materials, heavy escalation in prices of materials etc. The site labourers had returned back to their native homes/villages due to the fear of contracting the virus due to which construction sites had either substantially slowed down or had come to a grinding halt. Since the real estate as an Industry being the most labour intensive, being extremely reliant on hundreds of materials coming from everywhere in projects and reliance on stable financial inflows into the projects; all these either being slowed / unavailable / stalled in most projects, severely affected current ongoing projects of the most real estate developers. The sale of residential/commercial premises had also been affected due to liquidity crunch in the market.

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It is also learnt that across the real estate industry, almost 60% – 65% of flat purchasers are defaulting in paying their due instalments to the companies towards the flats booked by them thereby further adversely affecting the business of the construction firms. The developers however on the other hand are without any respite/remedy in terms of payment of instalments towards huge loans taken from banks as well as payment of taxes and premiums to the various departments of the Government. Under these facts and circumstances, where on the one hand the payments are not being made by customers/purchasers, the construction work being affected and standstill due to the supply chain being disrupted and the workers unable to come to work, whereas the developers having to make payments towards service of finance loans, taxes, premiums etc. entire real industry is under the grave stress.

The outbreak of the Covid-19 and the forced lockdown (by the competent Government/Authorities) pursuant thereto, was a sudden setback to real estate sector which was already going through a rough patch due to low demand. Thus the construction industry is facing challenging times due to the drastic impact of the pandemic. The real estate industry is facing financial crunch to launch new projects and also to finish ongoing projects. Though, the restrictions have been relaxed by the governments, the impact of the Covid-19 and lockdown will be felt for months to come. Many construction companies are on the verge of bankruptcy. In such a scenario, private equity investors can come to the rescue of the severely hit real estate entities/firms.

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In recent times many private equity investors are in negotiation talks with construction companies to provide much-needed funding for their projects.

Recent trends

“Indian real estate attracted U$ 5 billion institutional investments in 2020, equivalent to 93% of transactions recorded in the previous year. Investments from private equity (PE) players and VC funds reached US$ 4.06 billion in 2020. The real estate segment attracted private equity investments worth Rs. 23,946 crore (US$ 3,241 million) across 19 deals in Q4 FY21. Investments in the sector grew 16x compared with Rs. 1,470 crore (US$ 199 million) in Q4 FY20. In value terms, these investments were 80% of that in 2020 and 48% of 2019, according to a report by Knight Frank”[2]

As per the reports from the property consultant, Savills India “Private equity investment inflows into the Indian real estate sector stood at $2.7 billion during the first half of 2021 as investors’ confidence remained intact despite the pandemic-induced slowdown. This inflow is equivalent to 41 per cent of the investment that the sector saw in the entire year of 2020. However, in the second quarter of 2021, Indian real estate market saw an investment of $865 million, a 54 per cent decline from the previous quarter.”[3]

As per Colliers’ report Investments Turbocharged with Focus on Alternate Assets Classes “Despite COVID-19, the total expected private equity inflows in the Indian real estate sector is expected to touch $5 billion in 2021, a 4.1 percent increase from 2020” [4]

As per ICRA estimates, Indian firms are expected to raise more than Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth US$ 29 billion to date.[5]

According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction is the third-largest sector in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at US$ 50.8 billion between April 2000 and March 2021.[6]

Thus it can be seen from the above that the private equity investors both domestic and foreign have gained confidence in the Indian construction industry and have joined hands with some of the major construction companies to boost the growth of the sector.

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[1] As per the report of Savills on Private Equity in Indian Real estate

[2] https://www.ibef.org/industry/real-estate-india.aspx

[3] https://economictimes.indiatimes.com/news/india/indian-realty-attracts-2-7-billion-private-equity-investments-in-january-june-report/articleshow/84339543.cms?from=mdr#:~:text=Private%20equity%20investment%20inflows%20into,from%20property%20consultant%20Savills%20India.

[4] https://www.moneycontrol.com/news/business/real-estate/no-covid-19-impact-private-equity-inflows-into-indian-real-estate-sector-to-touch-5-billion-in-2021-7195641.html

[5] https://www.ibef.org/industry/real-estate-india.aspx

[6] https://www.ibef.org/industry/real-estate-india.aspx

 

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Role of IP in the Media Industry

By: Ilakkiya Kamaraj

Introduction: 

“Is there anyone who hates entertainment?” The media has never stopped entertaining us. It plays an important role in our lives from fascinating us through films to feeding our brains with up to date information about the happenings in the world. From one corner of the world, we can know the happenings of another part of the world through media. That too in this internet world we can access each and every information or watch films through phones anywhere and everywhere. Media is such a wide area which plays an important role in our lives needs a sort of protection for the work of its people’s work. Such protection can be given to media by Intellectual property. Intellectual property protection is used in various fields. In this paper, we are going to see how IP’s role is important in protecting the works of media.

Intellectual property:

The ownership of any creation of the mind or ideas or designs by a person is known as Intellectual property. IP can be categorized into many types but the most widely used IP are patents, trademarks, copyrights and trade secrets.

  • A right granted to a person for his/ her invention is called a patent. It prevents usage of one’s invention by others illegally. The inventor can sell, use, distribute, create, import or export their invention for over 20 years once his/ her work is patented.

“A person has an entitlement to an invention if that person’s contribution, either solely or jointly with others, had a material effect on the final concept of the invention”.[1]

  • Protection of logos and brand names used on various goods and services is known as a trademark.
  • Copyright is used to protect creators artistic works such as music, films, paintings, technical drawings, computer programs etc.,
  • Any secrets related to a company’s business protected, to avoid its accessible by its competitors is referred to as trade secret.

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Intellectual property is very important for protecting one’s innovation. If IP is not in use there are high chances for many individuals and businesses to lose their rights to their innovation.

Media:

The storage and delivery of information or data through various modes like radio, television, mobile phones, magazines, newspapers, internet etc., are referred to as media. The information is disseminated as films, news, music, promotional messages etc., Since media consists of artistic work from one’s own knowledge, an individual must protect his/ her work through media. There is how IP plays a very important role in protecting the works of media.

IP’s role in media industry:

We all love movies! But to make a scene and combine it into a movie involves many various complicated works. From making movies to shaping every stage of the filmmaking process Intellectual property rights play a vital role.

  1. Copyright in media:

As copyright protects the artistic ideas of individuals it is considered as the lifeblood for media. Copyright guarantees the protection of creative minds without affecting the creation of new media and protects the creators work from the usage of others without their permission. The copyright of the original material is mandatory nowadays, as a lot of competition has emerged in the entertainment industry.

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Benefits:

  • A public record of the work is registered.
  • Provides with economic benefits such as broadcasting the work, making copies etc.,
  • Filing a lawsuit and taking legal action is enabled when copyright is registered. Legal evidence of one’s own can be obtained.

Passing the rights of one’s work is allowed and one can change the form of his/her work.[2]

  1. Trademark in the media industry:

Any symbol, design, word or phrase that differentiates the goods of one company from others is referred to as a trademark. In media, a trademark is used to protect a movie’s brand or merchandise in connection to it. In media trademark law protects every title of a movie, album, music, famous characters etc., For instance, Disney has its own logo, the same goes for Pixar, discovery and many other channels as its logo to stand out from the crowd in the market. Similarly, movie titles like star wars, harry potter can also be protected using the trademark.[3]

Benefits:

  • The exclusive right of the trade can be enjoyed by the owner.
  • There will be no infringement.
  • Big brand names act as a magnet and attract young minds.

Merchandising:

Character merchandising is one of the ways to generate income. In a case where the unauthorised sale of dolls resembling a famous pop singer without their permission injunction was granted for the tort of passing off by the Delhi High Court to the third party.[4]

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  • Patent in media industry:

Just like trademark and copyrights patent also plays an important role in media. Making the film is not an easy task. It needs funding and substantial efforts. It involves lighting, sound effects, editing, special effects etc., Patent is used to protect the innovation of a person which is considered as the eye of filmmaking. By patenting, third parties are excluded from using or selling another person’s product without permission.

Benefits:

  • Restricting the competition in regards to a particular invention.
  • Inventor’s monopoly is been safeguarded with patent registration.
  • The inventor has the right of royalty when he decides to license his product.
  • Patent registration helps in start-ups and small business entities.
  • The credibility of the company in the market increases through patent registration.
  • In media to begin an industry patent registration is necessary.

Laws protecting IP in the media industry:

Therefore copyright, patent and trademark act as a shield for the media industry. Recognition of the rights of the creators and protection against infringement of content are guaranteed through copyright. Whereas the key characters of a film, movie titles and other related elements are protected through trademark. Though there are IP rights for protection, violation of IP rights, trademark and copyright are being infringed as the media industry expands.

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India being a signatory of the TRIPS agreement and other International IP treaties helps in avoidance of misuse and protection of IP. There are certain laws in India in order to prevent such misuse in the media and entertainment industry. They are.,

  • The Copyright Act, 1957
  • The Trademark Act, 1999
  1. The Copyright act, 1957:
  • Section 14 of the Copyright Act, 1957 defines copyright as the right given over a work to do or to authorise to do that work.
  • If the own work of any individual is been infringed in India then the person who infringed would be punished under section 63 of the copyright act, 1957. If a suit is pending before the civil court then the criminal court cannot give a finding on the infringement of copyright.[5]
  • The Bombay High Court held that the act of the infringer will be preposterous if he attributed infringement without knowing that owner of the copyright has registered under section 44 of the Act.[6]

De minimis infringement:

The principle of “de minimis non-curat lex” that is “the law does not concern itself with trifles” applies to copyright. A court has the authority to apply the de minimus principle in a lawsuit if it is of trivial matter. For instance, the De minimus doctrine is used in music sampling where a music w is modified by sound engineers from a small portion of music work and incorporated in new musical work.[7]

In the case of the India Independent News v Yashraj Films Pvt Ltd[8]., the doctrine of De minimus was applied to decide copyright infringement where parts of popular songs were played in a singer’s interview who appeared on a television chat show. It was held that it was not actionable as the alleged infringement was deemed de minimus.

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  1. The Trademark Act, 1999:

Under the trademark act, the name of songs, music albums, movie titles and their famous characters are being protected.

Conditions:

There are few conditions for the protection of titles and symbols under the trademark act. They are;

  • There must be originality of titles and phrases. Titles should be unique; if not the general ones will not be protected under trademark.
  • Single film titles will not be trademarked. Series of films such as harry potter, Narnia and series like F.R.I.E.N.D.S, money heist etc., can be protected under trademark.

Social media and IP:

The Internet has grown so fast with the evolution of time. In the early days, there was only a television mode of media. And therefore the risk of infringement has been less. There are plenty of content creators on online platforms nowadays. For example youtube. Online platforms also follow strict policies such as copyright verification programs, copyright strikes etc.,

The Bombay High Court held in the case of the Marico Limited v Abhijeet Bhansali[9], that the suit constituted by the defendant cannot be taken into legal action has his video was just his opinion.

Rights of celebrities:

Celebrities’ images are used without their knowledge and have been misused. Both copyright and trademark act protect celebrity rights in India. In addition to these, the Universal Declaration of Human Rights also tries to protect celebrity rights.

Under copyright act sections 38 and 39 covers celebrity rights.

Section 38 of the copyright act- the performer’s right is provided to any performer concerning his performance for fifty years.

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Section 39 of the copyright act- a person will be held liable for infringement if he takes the recording of the performance of the performer without his consent.

Conclusion:

IP plays a major role in keeping the media industry running smoothly without any problem. Movies are protected through IP. Everything we experience, hear or see-through media is covered by IP. Intellectual property and media should go hand in hand. If IP is not there media would have been at high risk. Everything from television serials to Netflix series involves huge funds and labour of various people such as cameraman, director, producer, screenwriter, actors etc. Therefore protection of such work from infringement is mandatory. Such a role of protection can be given only by Intellectual property. Therefore intellectual property plays a very important and dominant role in the media industry.

[1] Row Weeder Pty Ltd. v. Nielsen, 39 IPR 400 (1997).

[3]CS Prachi Prajapati, Advantages Of Registering Trademark, LEGAL WIZ (Jul. 31, 2017, 11:15 AM), https://www.legalwiz.in/blog/advantages-of-registering-trademarks.

[4] DM entertainment v. Baby Gift House, MANU/DE/2043/2010.

[5] Cheran P Joseph v. K. Prabhakaran Nair, 1517 CriLJ  (1967).

[6] Dhiraj Dharamdas v. M/s Sonal Info Systems Pvt Ltd, 3 MhLJ 888 (2012).

[7] De Minimus Use, USLEGAL (Aug. 25, 2019, 09:30 AM), https://entertainmentlaw.uslegal.com/intellectual-property/copyright/de-minimis-use/.

[8]  53 PTC 586 (2013).

[9] 1094 COMIP 596 (2019).

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Analysis of Civil Procedural Laws in U.S.A. and U.A.E

By: Shirleen Kaur

ABSTRACT

Laws are generally divided into two major heads i.e., substantive law and the procedural law. Both the heads are considered together as one is purposeless without the other. The former contains the rules and regulations, characteristics of laws with bare acts of those laws. While the latter one gives an approach on how to implement substantive laws. Essentially, the judicial structure is divided into two kinds of case matters: civil and criminal. Hence, a study of Civil Procedure is basically a study of the procedures the substantive statues that are not criminal.

INTRODUCTION

United Arab Emirates (UAE) has arisen to be one of the main powerhouses in economically aspect in Middle East. With time has also recognized the need of modernizing its laws as the growth of commercial contracts continues to increase as well. Despite that the ambiguous global changing nature of the world cannot be brushed aside when it comes to emerging markets, Dubai’s economic and dynamic cultural growth. These factors cannot be strengthened if legal and regulatory framework has not been developed and continue to develop sufficiently to encourage substantial internalized local and international enterprise in Dubai. It is well established that there is immense analysis done while deciding willingness to set up international businesses. Legal and regulatory framework has a major role to play in it as most pf the decision is based on their suitability of country’s legal framework. American philosophers have a major part in making civil procedure to be especially substantial. The civil procedure rules are so important as it is correlated to larger American norms. This loyalty for procedural to be ideal in due process explains how USA law makers have faith in individualism promoting a requirement for legal framework to proclaim that every claimant will get individualized justice. Consequently, this even reflects what is the USA’s cultural view regarding civil disputes. They follow the approach that there is supposed to be a winner and losers whenever a dispute arises rather than having a negotiation resolution approach.

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UAE CIVIL LAW PROCEDURE

United Arab Emirates was affirmed as independent, united and a sovereign state comprising seven emirates. Relevantly, just like Indian legal system is based on Indian Constitution likewise, UAE legal system based on its the constitution. UAE legal system is a dual nature as it has local and federal courts together with a Supreme Court. “Civil Procedure Law” has been issued under Federal Law No. 11 of 1992 which is followed accordingly by the UAE courts to adjudicate all the civil matters.

  • Sources of civil laws in UAE

The main ideas and beliefs of the United Arab are taken from the Sharia law. Although, most laws entail a combination of European and Islamic notions of the civil law whose source is that the Egyptian legal code created within the 19th and 20th century. The adoption of civil law by variety of states within the area exhibits the French influence.

In Addition, having a specific legal legislation for all the agencies particularly of labour law, company law, and intellectual property, United Emirates has over the time recognized commercial and civil codes. This formation has facilitated some expansion in civil legal systems to be more structured and complete. Every new structure may affect someone in some way or the other as a consequence, it can be interpreted as inflexible sometimes. This rigidity has brought the same to some extent when it comes to establishing the job work linked to numerous countries within the geographic region. The UAE functions under a civil law system and acts are the first source of law.

The other thing that may differentiate the legal system of UAE from other countries would be that the Judgments of the higher courts don’t seem to be obligatory on the lower courts (although they could be a beneficial guide and often cited for backing of a position). Each case is set on its own advantaged and facts.

NATURE

All court proceedings in UAE courts follow Arabic language. If there are any non- Arabic documents that are to be filed in the Court, needs to be converted into Arabic by a professional translator certified by the Ministry of Justice.

Correspondingly, the system within the UAE is fundamentally investigative in nature. In each case, the judge would prefer investigating the facts (generally through an expert allocated by Court) and apply the law to detailing of the facts of the case in reaching their judgment. There has never been a discussion of introducing a jury trial. All proceedings in UAE civil cases are supported with the written pleadings of the parties and reinforced by all the documentary evidence admitted. In general, there is no oral hearing in civil cases. There is a common practice which is prevalent for both the federal and also the Dubai courts to refer the matters to court-appointed experts for appropriate conclusions of fact in order to help in variety of expertise areas.

Even though, the judgement is followed, but importantly the concept of cease-and-desist order isn’t practiced in UAE. However, if after a while evidence is further submitted, the court may grant extension of the time supported by the request of the parties concerned treated as the additional submissions made by parties.

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The temporary remedies that are provided in UAE, are orders such as prohibiting the defendant from leaving the UAE or an order with relevance of surrendering of the passport by the defendant. These interim reliefs may be sorted if the claimant believes that the defendant might leave the concerned jurisdiction.

After a judgement is given, the judgment holder will start execution proceedings, and once this process is initiated, the debtor of the judgment shall receive a notice and they shall be expected to pay the debt, and if it isn’t fulfilled within the prescribed time then further execution proceedings commences. Then there are chances that the court may order attachment and sale of the concerned debtor’s property and even attachment of shares, bonds, stocks etc. In exceptional rare cases, imprisonment may also be passed for stricter approach to condemn violations.

Unlike India, there is no provision mentioned in UAE law regarding mandatory and prohibitive injunctions.  The applying for an attachment order of debtors’ assets is the only method that resembles to an injunction given in Indian Courts.

  • In the matter of Commercial disputes in UAE, they are resolved through either Litigation or Arbitration. The UAE is signatory to the UN convention on for the interest related to foreign arbitral award. Apart from arbitration, concepts which comes under the umbrella of arbitration such as conciliation and mediation are not that developed which means that these methods are not practiced like that in India. Although ADR may be considered a useful method for
    resolving the commercial disputes, but the need has not been recognized under UAE laws as no statutory framework exists which enforces ADR at large scale as a most vital method for resolving commercial disputes[1].Bottom of Form

USA CIVIL PROCEDURE LAWS

Civil proceedings in the United States district courts are governed by the Federal Rules of Civil Procedure.  The substantial purpose is “to secure the just, speedy, and inexpensive determination of every action and proceeding.” [2]These rules were first adopted by order of the Supreme Court in 1937 and came into effect in 1938. The latest amendment of Civil Regulations was in 2020.

  • Sources of laws in USA: US Rules has composed the complex laws to specifically talk about how “it exists in different forms at every level of the government. To start with laws in US exist not only in the statutory form, but also the common laws that are formed through the judiciary.” [3]

Therefore, what distinguishes the sources of laws in USA in simple terms can be covered within the following.

  1. Constitution of USA and its Statutes
  2. Common laws
  3. Executive action
  4. Administrative directive
  5. Law of equity

Thus, the abovementioned sources of US laws identify the fabric of its governance in the society,

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Constitution and statues: “A constitutional law in USA constitute unique forms of various states. Constitution as it can be understood are the laws of the people, which is different from ‘statues’, constitution cannot be changed or amended, however, changes to statues can be amended in accordance to change in the society. Moreover, statutory is held responsible by the US congress at the federal level,” [4]

Administrative and Executive laws come from different sources referred in Code of Federal Regulation (CFR) and the federal US government respectively.

Common Law and equity laws: these laws are looked upon as providing common platforms of opinions that should be able to make sure that all parties leave during trial proceedings.

NATURE

Legal action plays a broader role in the United States than any other countries. US system of rules provide constructive remedies to parties and is well recognized for its confrontational nature.

American procedural law has advanced class action measures that have no counterparts in the procedural law of Civil-Law authorities and go well beyond the practices of most other Common-Law authorities. As a consequence of an administration of intricate legal procedures that is so distinctive of the American legal system, regular citizens are less capable of handling their disagreements on their own, and more reliant on upon engaging the services of lawyers. Many think, for instance, disputes over auto accidents and the acquisition and sale of homes and apartments should be figured without lawyers. Yet, in most states in the Unites States the unsolved practices that now functions are the simple matters that could force people to turn these problems over to lawyers.

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Generally, in all civil cases, suits filed are initiated by the plaintiff where cases are decided by a judge or if any significant suit is presented then juries may be involved. As similar to other countries, punishments of civil nature cases are almost always of a monetary nature and not of imprisonment. Defendants’ liability has to be established by the plaintiff after and according to “preponderance of evidence”.

Sometimes, the charges against the defendant may constitute both a civil charge and a criminal charge if the particular wrongful act consisted of both a private injury or a public offense.

Generally, below mentioned stages are followed in a civil suit including the process followed within those stages:

  • A lawsuit is initiated by the plaintiff filing a complaint.
  • A reply is filed by the defendant against the complaint.
  • A scheduling order is then issued by the judge arranging out a timeline for case proceedings which may include the initiation of trial.
  • Motions by the parties and other pleadings may be filed.
  • A jury is then selected to begin the trial proceedings.
  • After hearing both the parties, a decision is then given by either by the jury or the judge.
  • The aggrieved party after the decision may file for an appeal in the appellate court which may prefer for further appellate review.

ANALYSIS

After comprehending UAE and USA laws, it can be realized that both countries’ civil laws are fundamentally different from one another. Laws which are applicable in UAE might not be similar in US. For an instance, if we take administrative laws prevailing in both nations, in US, administrative laws are regulated under code of federal regulation, on the other hand in UAE, the civil code is defined in each state in a separated form. Nevertheless, the UAE follows Sharia law, an Islamic law having it relevance in administrative laws or civil code. Thus, there can be seen a significant difference in both nations and their prevailing administrative laws.

The constitution and the statue in US are considered to be supreme due to which it can be said that it can be held responsible by the US congress at the federal level. Whereas, in UAE in that regard, the Federal Supreme Court is supreme. Although interestingly UAE and USA common laws are somewhat in forms and few parts similar to one another. As an example, UAE common law legislation has an influence of English common laws and in USA common laws, the definition of liberty is also paramount.

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Another similarity is related to media laws in specific, wherein UAE, the judiciary plays a substantial part in order to provide a solution relating to disputes of any in a civil nature and relevantly in USA such media laws are considered to be form of civil laws under the common heading of ‘common’ and ‘equity’ laws in the society specific to media regulation.

The hesitancy of civil laws of USA to imply good faith into agreements while negotiating amongst two commercial parties is widely known and mostly based on the traditional doctrine. The doctrine Is called doctrine of freedom contract in similarity with English Common Law. In contrast to USA, civil law in countries such as the UAE, they follow fulfilling obligations in such a manner that is consistent with good faith recognized as a fundamental part of the contract.

CONCLUSION

The civil law of UAE follows an interrogative approach which is usually applied by the bench. The courts follow litigation to be entirely court-driven where they have the control over hearing schedules, appointment of experts and so on. The judge hearing the case have absolute discretion in any case for the final decision. As far as the UAE courts are in question, they do not particularly adhere to traditional common law standards of evidence, for instance the “likelihood test” in civil claims or the “beyond reasonable doubt” in criminal matters.

USA can be said to be more liberal country so most of its laws also classify themselves in the same bracket. Subsequently, if we consider societal sphere and their cultural domain between these countries there would be quite a disparity. That being said, nearly all of the laws that are applicable in USA might not be applicable in UAE. However, with a few similarities to common laws, it just indicates that common laws are universal in nature. The major difference even so would be few laws which would UAE laws in general to not strengthen be it due to societal, cultural, or traditionally not applicable.

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[1] International Journal for Legal Research & Analysis, Pavan Kumar,R, June 2021

[2] Fed. R. Civ. P. 1.

[3] Jennings, 2005, p. 20

[4] Jennings, 2005, p. 20

 

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Contributory Negligence

By:- Manas Mishra

Many times, we overlook various rules which are made for ourselves or if we say, for the public welfare. It is our duty to act or omit acts which we are not supposed to obey and not obey, respectively. We should always take reasonable steps, keeping our eyes open and adhering to various legislations.

We all are supposed to be law-abiding person and everything depends upon our acts or omission of acts. Acting or obeying restricted acts always result in the creation of unavoidable happenings while the consequences of not following welfare concerned laws cost us more than expected.

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When the plaintiff corresponds by himself to the injury suffered by the negligence of the defendant or unlawful conduct, he is held guilty of contributory negligence. Contributory negligence comes into existence when the plaintiff does not take reasonable care on his part to avoid the harmful consequences. He contributes himself to the mishappening of the event.

Illustration:-

  • A person, riding on the wrong side of the road and meet with the accident arising out of the collision of the car.

Municipal Corpn. Of Greater Bombay v. Laxman Iyer[1]

In this case, it was said that both the parties would be liable for the negligence arising out of an accident. In cases related to contributory negligence, the question of liability would depend upon whether either of them would have tried to take due care and avoid the consequences of other’s negligence. Whoever between them would have taken necessary care to get the consequences rid of, arising out of other’s negligence, would be liable for the negligence. Contributory negligence is completely dependent on the conduct of a plaintiff.

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For exercising defense under contributory negligence, defendant mustprove that the plaintiff did not take reasonable care avoid the accident.

Rural Transport Service v. Bezlum Biwi[2]

The conductor having known the fact that the bus is full of passengers and cannot afford more yet invited many others and made them comfortable at the roof of the bus. The driver tried to overtake the bus, forgetting that passengers of roof of the bus. This action of driver led to death of one of the passengers of roof due to injury arose out of hit by the branch of a tree. The court held that driver and conductor would not be liable for this misshaping since there was contributory negligence on the part of deceased passengers and others who had implied consent to travel on the roof of the bus, taking risk.

Rules for determining Contributory Negligence

  1. The plaintiff’s carelessness regarding the contributory negligence defense does not have the identical meaning as the tort of negligence. The plaintiff does not have to owe the other party a duty of care in this case. What must be proven is that the plaintiff failed to take reasonable precautions for his own safety, therefore contributing to his own harm. Thus, all it takes to show contributory negligence is to demonstrate to the jury and satisfy them that the injured person did not take reasonable care of himself in his own interests and contributing to his own lack of care for himself.

Bhagwat Sarup V. Himalay Gas Co.[3]

It was held that the deliveryman’s fault was solely his own. It has also been noted that simply giving an axe/hammer to the delivery person on request did not indicate contributory negligence on the petitioner’s part, because the petitioner was a layman, whereas the delivery person was a trained individual who was expected to understand the consequences of the conduct he was performing.

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  1. It is insufficient to establish that the plaintiff did not take reasonable precautions to ensure his own safety. It should still be demonstrated that his carelessness caused to the resultant damage. The defense of contributory negligence cannot be invoked if the defendant’s carelessness might well have inflicted the same harm even when the plaintiff had already been cautious, and the petitioner’s fault may not be the main reason for the crash.

Agya Kumar V. Pepsu Road Transport Corporation[4]

It was held there has been simply carelessness on the part of the bus driver, and despite the reality that the rickshaw was overburdened, there was almost no contributory negligence on the part of the rickshaw driver, because the rickshaw’s overburden had no bearing on the accident’s occurrence.

National Insurance Co. V. Kastoori Devi[5]

In this case there was a collision between a motorcycle consisting of three to four people and truck. The collision led to serious accident. It was held that the circumstance that the motorcyclist was transporting three people in the passenger seat did not suggest that he was guilty of contributory negligence. Unless  he veered off the road due to its overweight so this led to the outcomes would he even be convicted of contributory negligence.

 

Scope of Contributory negligence as defence

Contributory Negligence on the claimant’s behalf was proven to be a good defence, and the claimant’s case was dismissed. The claimant was barred from bringing further actions against the reckless defendant due to his own carelessness. Plaintiff’s carelessness does not really imply a violation of duty to one of the other parties, but rather a failure to take reasonable precautions to ensure his own protection. The rule of law states that if both parties share fault for the catastrophe, regardless matter how minor that culpability is on one side, the loss is borne by the party who fails.

Butterfield V. Forrester[6]

It was held that the plaintiff has no basis of claim even though he could have averted the mishap by taking reasonable precautions. When one individual is at fault, it does not negate the need for the other one to take reasonable care of oneself. To establish this claim, there must be an obstacle on the road caused by the defendant’s fault and no lack of due prudence on the claimant’s to prevent it.

The doctrine posed a significant burden for plaintiffs, since even little carelessness on their side might result in their losing their case against a defendant whose carelessness was the primary source of the complainant’s damages. Laws concerned with contributory negligence have been amended by initiating Last opportunity Rule.

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Last Opportunity Rule

When two people are careless, the one who had the later chance to avoid the accident by using ordinary caution should be held responsible for the loss. It indicates that if the defendant is negligent and the plaintiff has a later opportunity to prevent the defendant’s negligence’s effects, the plaintiff will be held responsible. Similarly, if the defendant had the final chance to avoid the disaster, he would be held responsible for the whole damage suffered by the plaintiff.

Davies V. Mann[7]

The complainant chained his donkey’s forefeet and abandoned it on a winding road. The defendant was driving his horse-drawn cart too quickly, and the donkey was killed as a result of his carelessness. Despite his own fault, the plaintiff was found to be entitled to compensation since the defendant failed to follow the last-chance rule.

Subhakar V. Mysore State Road Transport Corporation[8]

The court lowered the amount of compensation due since the claimant was at fault. The claimant-appellant, who was riding a bicycle at the time, abruptly switched to the right side of the road. He was hit by the respondent’s bus, which caused him to fall and injure his leg, needing two and a half months in the hospital. It was held that due to the fact that both parties contributed equally to the accident via their negligence, the claimant’s compensation was lowered by 50%.

Vidya Devi V. M.P. Road Transport[9]

In this case, a motorcyclist collided with a bus and died because of the collision. The bus driver was also found to be at fault for failing to keep a good lookout to avoid a probable accident. It was held that the plaintiff was entitled to one-third of the damages, and he would have been entitled to if the dead motorcyclist had not been negligent.

Municipal Corporation of Greater Bombay V. Shri Laxman Iyer[10]

Supreme court held that in the case of contributory negligence, courts have power to apportion the loss between the parties as seems just and equitable. In this context means that damages are reduced to such an extent as the Court thinks it is just and equitable having regard to the claim.

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Doctrine of Alternative Danger

Despite the fact that the plaintiff is expected to be cautious and the defendant’s carelessness, there may be times when the plaintiff is justified in taking a risk since the defendant has created a dangerous scenario. The plaintiff may feel puzzled or worried because of a risky scenario caused by the defendant, and to protect himself, his property, or a third party from harm, he may take an alternative risk.

As a result, the law allows the plaintiff to face an alternative hazard to protect himself from the threat posed by the defendant. His action against the defendant will not fail if the route he chooses cause him some injury.

Shyam Sundar V. State of Rajasthan[11]

Due to defendants’ carelessness, (the State of Rajasthan), a truck actually belonged to them went up in flames after just four kilometres on a specific day. When one of the inmates leapt out to escape the flames, he collided with a stone by the roadside and died instantly. The defendants were found to be responsible for the same.

Sayers V. Harlow Urban District Council[12]

It was held that Defendants were responsible because the plaintiff’s damage was a natural result of their breach of duty.

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Contributory Negligence of Children

What constitutes contributory negligence in the instance of an adult may not apply to a kid since a youngster cannot be assumed to be as cautious as an adult. To determine whether a suspect is convicted of contributory negligence or not, the maturity of the individual must be taken into account.

  1. Sriniwas V. K.M. Parasivamurthy[13]

In this case, it was held that a 6-year-old kid lacks the road sense and familiarity of his or her elders, the plaintiff cannot be held liable for contributory fault.

D.T.C. V. Lalita[14]

The position of children for the purpose of contributory negligence was explained by Delhi High court I this case:-

“In the case of a held of tender age, conduct on the part pf such child contributing to an accident may not preclude it from recovering in circumstances in which similar conduct would preclude a grown up person from doing so.”

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Conclusion

Contributory negligence often led the claimant to meet with loss as it acts as defence for the defendants. Myriads of judicial decisions show that claimants do not prove their point to get compensated by the defendant when there is a reckless conduct of other party. On other side, it works with great ease as of its defence nature for them. There is no doubt that certain proviso exists for this defence. For instance, in Last Opportunity Rule in which who is found that he has had chance to avoid the mishappening at last, but nothing is brought into action, so he will be liable for reckless conduct. Contributory Negligence is much seen in motor vehicle accident cases.

Many a times there is no way left where plaintiff has to take corrective measures on the spot to save himself or others or the property knowing the fact that complex circumstances have been created by the defendant, he takes the risk. Further while deciding the case, Court has to consider the age in Contributory negligence arises out of conduct of children.

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[1]AIR 2003 SC 4182

[2]AIR 1980 Cal. 165

[3]AIR 1985 H.P. 41

[4]AIR 1980 P. & H. 183

[5]1988 ACJ 8 (Raj.)

[6](1809) 11 East 60

[7](1882) 10 M. and W. 546

[8] AIR 1975 Kerala 73

[9] AIR 197 M.P. 89.

[10]AIR 2003 SC 4182

[11]AIR 1974 SC 890

[12](1958) 2 All E.R. 342

[13]AIR 1976 Goa 1

[14]AIR 1982 Delhi 558

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Contracts in Fashion Industry

By:- Prachi Parekh

INTRODUCTION:

Nowadays, people love to spend upon fashion-related products and this has helped the fashion industry to grow tremendously within a short span of time. The growth in the industry has led to employment generation and variety of career opportunities in the same, as well as innovative services and techniques are being welcomed by the industry. This has again led to growth and discovery of various new channels of providing these services and for which different contracts have to be created for each and every channel. Let us find out about various contracts that can be made under this industry.

TYPES OF CONTRACTS IN THE FASHION INDUSTRY AND CLAUSES CONTAINED IN THEM:

  1. CONSIGNMENT CONTRACT: This is a contract between a retailer and his agent wherein the retailer grants the right to sell, merchandise, conduct an exhibition for sale of the fashion apparel or inventory. Here, the retailer is called as consignor and his agent as consignee in the whole contract.

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CLAUSES IN CONSIGNMENT CONTRACT[1]:

  1. Preamble: It depicts the details and facts of whole contract in short
  2. Duration clause
  3. Terms of sale of products clause
  4. Percentage that each party would receive clause or Consignment fee clause
  5. Payment options clause
  6. Liability for lost or damaged stock clause or Insurance Clause
  7. Effect on non-sale clause
  8. Minimum Price clause:the price below which the fashion products should not be sold
  9. Location and storage of stock during consignment clause
  10. Expenses clause
  11. Modification/Amendment clause
  12. Applicable law clause

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  1. SHOWROOM RENT CONTRACT: It is a contract between the shop owner or showroom owner and the designer of fashion products for renting out the shop space to sell his stock. It is a type of a rent contract between these parties wherein the shop owner grants his shop to the designer against periodical payments of rent for the letting.

CLAUSES IN SHOWROOM RENT CONTRACT:

  1. Preamble
  2. Duration clause
  3. Expenses clause
  4. Terms of the rent payment clause
  5. Applicable law clause
  6. Dispute Resolution clause: In which court to refer the dispute in is included in it.
  7. Terms of letting clause: for example, whether the showroom will be furnished or not
  8. Payment of taxation clause
  9. Breach of contract clause
  10. Liability for damage to the showroom clause
  11. Security deposit clause: the amount of deposit to be given by the designer to the owner for rent
  12. Modification/Variation clause
  13. Termination clause: it also includes notice period to be given to each other

 

  1. FRANCHISE CONTRACT IN FASHION INDUSTRY: This is acontract wherein one party grants the authority to other to open and operate the business in the name of the selling party. The party granting such a right is called as a franchisor and other party is termed as a franchisee. We find many franchises in fashion industry such as Being Human,Fittin, Choupette, Duke, lenskart.com, Bombay dyeing[2], etc.

CLAUSES UNDER FRANCHISE CONTRACT IN FASHION INDUSTRTY:

  1. Preamble
  2. Franchise fee clause
  3. Security Deposit clause
  4. Royalties clause
  5. Mode of Payment clause
  6. Confidentiality clause: wherein the franchisee agrees not to disclose franchisor’s trade secrets
  7. Standards of Operations clause: wherein fixed set of standards have been set and the franchisee needs to follow them accurately
  8. Inspection clause: Right of franchisor to inspect the premises at regular intervals
  9. Applicable laws clause
  10. Proper registrations by franchisor relating to licenses clause
  11. Advertising and Brand Promotion clause
  12. Training, supervision and support clause
  13. Use of trademark and intellectual property clause: This is one of the most important clauses wherein the franchisor needs to have registered the trademark and should have exclusive rights for use of such a trademark
  14. Duration of contract clause
  15. Renewal clause
  16. Termination of contract clause
  17. Dispute Resolution clause: for example, arbitration, mediation, conciliation
  18. Force Majeure clause: Wherein any of the parties fails to perform their functions due to unforeseen circumstances, then what should be done?
  19. FASHION RELATED ADVERTISING AND PROMOTIONAL CONTRACT: It includes a contract between a designer/retailer/manufacturer of fashion products and an advertising and marketing agency for promoting these products through various channels in exchange of an advertising fee.

CLAUSES UNDER FASHION RELATED ADVERTISING CONTRACT:

  1. Preamble
  2. Duration of contract
  3. Scope of Work clause
  4. Budget and Payment schedule clause
  5. Advertising fee/price clause
  6. Consequences of late payment clause
  7. Breach of contract clause
  8. Termination clause
  9. Dispute Resolution Clause
  10. Copyright clause: This ensures that the ad agency is properly disclosing all the due credits and information relating to their use of any product or services which leads to prevention in copyright violations.
  11. Confidentiality clause
  12. Indemnity clause: If the designer/retailer/manufacturer faces any financial hit, or some similar situation and has not paid the ad agency as per the terms of the contract, then they will need to indemnify the ad agency for their loss
  13. Terms and conditions clause

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  1. FASHION INDUSTRY EMPLOYMENT CONTRACTS:The employment contracts in fashion industry have a wide range. These can include employment for modelling and acting, designing, stitching, manufacturing, transportation and distribution/shipping of fashion products.

CLAUSES OF FASHION RELATED EMPLOYMENT CONTRACTS[3]:

  1. Preamble: Information relating to the facts for entering into the contract, parties and type of employment
  2. Duration clause
  3. Force Majeure clause
  4. Salary/Wages/Remuneration related clause
  5. Number of working days clause
  6. Confidentiality clause
  7. Annual/sick Leave clause
  8. Maternity/Paternity leave clause
  9. Liability for breach of contract clause
  10. Termination clause
  11. Dispute resolution clause
  12. Places to be worked at clause
  13. Other perks or social benefits clause
  14. Overtime clause
  15. Retrenchment Benefits clause
  16. Outsourcing/ sub-contracting clause
  17. Restrictions/prohibitions in employment clause: Sometimes there may be restrictions to the person being employed by and an employer in the fashion industry relating to age, marriage etc and is included in this clause.
  18. Survivability clause
  19. Severability clause

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  1. OUTSOURCING CONTRACTS IN FASHION INDUSTRY:These contracts include outsourcing certain services or products which are important to the fashion industry. For example, fashion events management services, human resource services, apparel outsourcing, technology outsourcing.

CLAUSES UNDER FASHION OUTSOURCING CONTRACTS INCLUDE[4]:

  1. Preamble: including the reason, facts and details of parties entering into the contract
  2. Retained Rights clause: Each party retains certain rights with respect to title, interest etc
  3. Terms and conditions clause: It may include that the services or products must be of good quality and free from any defects
  4. Remuneration clause
  5. Duration clause
  6. Liability for Breach clause
  7. Confidentiality clause
  8. Survivability clause: it ensures that even after the contract has been performed certain terms and conditions in the contract will still remain in force, this is because of the confidentiality and non-disclosure clause, as the trade secrets have to be kept secret even after completion of the performance to the contract.
  9. Termination clause
  10. Guarantee/Warrantee clause
  11. Modification/Amendment clause
  12. Technical assistance clause
  13. Territories of providing services clause
  14. Inspection and acceptance clause
  15. Applicable Law clause
  16. Severability clause:Due to any uncertainty if provision of this contract becomes unlawful or impossible to perform, then this clause ensures that the whole contract is not termed as unenforceable but except the certain provisions remaining of the contract remains in force with full validity.
  17. Independent contractor clause
  18. Dispute resolution clause

CONCLUSION:

Thus, as we saw above these were some of the different types of contracts under the fashion Industry and some of which though contains similar clauses but are also specialised as per their work. Some clauses such as severability, survivability, dispute resolution, applicable governing laws, confidentiality clause, force majeure clause are amongst the most important clauses which safeguards the contract against uncertain or unforeseen events that can make the contract disputable or void. Inserting these clauses ensures that the contract remains in force and is termed to be valid. The non-disclosure clause also ensures that the valuable trade secrets are not revealed by the parties to the contract and the survivability clause exists even after the parties have finished dealing or performing as per the contract and if such a term is breached, the consequences need to be faced by the defaulting party as per the provisions in that effect in the respective contract.

[1]https://www.pandadoc.com/consignment-agreement-template/

[2]https://topfranchise.com/articles/the-top-10-fashion-franchise-businesses-in-india/

[3]https://legaltemplates.net/form/employment-contract/

[4]https://www.pandadoc.com/business-contract-template/

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Inconspicuous Agony of The Innocent: Child Sexual Abuse in India

By: Isiri Rajaneesh

Introduction:

An omnipresent yet a discreet problem in India, child sexual abuse, defined as “the misuse of power and authority, combined with force or coercion which leads to the exploitation of children in situations where adults, or children sufficiently older than the victim to have greater strength and power, seek sexual gratification through those who are developmentally immature, and where, as a result, consent from the victim is a non-concept,”[1]has a slew of negative effects on children and contributes to conditions such as arrested development, psychological, physical and behavioral impacts and may also lead to post traumatic stress, depression, anxiety, etc.

The problem of sexual abuse of children is one which often goes unreported and the innocent victims are just left to agonize in silence. Offensive activities such as molestation, sexual assault, incest, sodomy, etc. are included under the ambit of child sexual abuse. In 2012, the Protection of Children from Sexual Offences Act (POSCO), was enacted in order to protect children from sexual abuses as well as to secure the rights of children. This article analyses the different facets of the act and also looks into a few of its shortcomings.

An abridgement of Child Sexual Abuse in India:

With a population as huge as India’s, the sexual abuse of children is an entrenched social problem and this problem is a culmination of various socio-cultural factors such as poverty, abandonment of children, illiteracy, cultural beliefs and practices pertaining to parental rights and styles, family secrecy, etc.[2]Child sexual abuse is a problem which is as substantial as adult rape, but the line of difference between the two is that children usually aren’t aware that they are being sexual abused or experiencing any kind of abuse for that matter and if they do, they are scared to report it to their parents.

Child abuse is categorized into various types, namely sexual abuse, physical abuse, non-physical abuse, incest, commercial sexual exploitation of children, online sexual abuse and so on. In rural India, especially, girls face discrimination pertaining to education, status, etc. and are most likely to experience infanticide and it was this problem of infanticide, along with child rapes and institutional abuse of children that led to the commissioning of the first, large scale, government sponsored research study to assess the extent and nature of child abuse in India.[3]As according to this study,while for every second a child reported emotional abuse, 69% reported physical abuse and 53% reported some form of sexual abuse and half of the sexual abuses reported were committed by people known to the child.[4]As according to many studies, upto 20% of sexual abuse transpired in families and upto 50% in various institutional settings.[5]In 2018, as per the data released by the National Crime Record Bureau, close to a 109 children faced sexual abuse every day, and the number increases substantially every year.

Until 2012 there was no bona fide legislation in India to address sexual crimes against children. Those sections of the Indian Penal Code which recognise sexual offences against children have a loophole and are not specific to children and other forms of sexual assaults, exploitations, etc. were beyond the domain of explicit crime. In 2012, the government of India enacted the Protection of Children from Sexual Offences Act (POSCO) which criminalizes child pornography, sexual harassment and sexual assault against children. This legislation was a milestone pertaining to the area of child protection.

POSCO and its distinguishing characteristics:

A landmark legislation, acquiring justice for children who have been victims of various sexual offences as well as securing their interests and well-being are some of the objectives of the POSCO act. The act also mandates setting up of special courts in order to accelerate trials of these offences[6]as any delay in the conveyance of justice can discombobulate the lives of the victims and their families, not to mention that facing the complexity of the judicial system, such as intense questioning of the victim in the court, the media hype surrounding the case, etc., can be an enervating journey for victims and their families alike. Some of the features of POSCO are as follows-

  • Copious offences, ranging from complete or partial penetration, non-penetrative sexual assault, to stalking, exhibitionism, child pornography, etc. [7] are criminalised by the act.
  • As according to sections 5 and 9 of the act, perpetrators who are familiar to the victim or are in a position of authority, such as public servants, police officers, etc. attract severe penalties. This includes sexual offences such as gang rape, assault, causing bodily harm, infecting a child with HIV, etc., committed by people in a shared household with the child or by people who are in a position of power pertaining to the victim.[8] The act takes into account a slew of possible scenarios.
  • POSCO takes into account sexual offences committed against both girls and boys who are under the age of 18 and also necessitates punishment for all offenders, disregarding age or gender.
  • An exclusive feature of the act is that the burden of proof is on the accused, i.e., the accused is presumed to be guilty until proven innocent. This is in order to ensure that the child is not burdened to prove that the crime took place.
  • POSCO also provides for trials to be held in a child-friendly way in order to reduce the trauma of the victim and calls for procedures to be held in a sensitive manner according to the needs of the child, for example, section 24 provides that the police reach out to the child rather than the child being taken to a police station and made to report the offence committed.
  • In order to protect the identity of the victim, the act calls for trial proceedings to be held privately and in a sensitive manner, with the victim’s testimony given either in camera or held behind curtains or screens.[9] Also, under the rules of the act, a Child Welfare Committee is to be appointed in order to support and provide assistance to the victim through the investigation and trial procedures

While the enactment and implementation of the act was a welcome move, there were a few shortcomings, which may cause unintended, negative consequences and which are discussed below.

Lacunae in the POSCO Act:

While there were several issues pertaining to the implementation of the POSCO Act, the three main lacunae are age of consent, incumbent reporting and determination of the ages of the victim as well the perpetrator.

As according to the act, all sexual acts are criminal offences if the victim is under the age of 18 years. [10]The law criminalises sexual behaviour for those under the age of 18 and there is no sexual autonomy given to those below 18, which gives birth to complications in cases of consensual sex between two minors, where the victim and the perpetrator become synonymous since they are liable for violating the law which obdurately criminalises sexual activity between minors. There is tension between the letter of the law and the spirit of the law as criminalizing such behaviour would not serve the purpose of the enactment and the notion that the state can restrict individual autonomy on sexual behaviour was rejected.[11]

Pertaining to incumbent or mandatory reporting of child sexual abuse, three main issues arise, which are-

  1. Criminalizing sexual behaviour for those below 18 has led to the problem of health professionals, counsellors, etc. being disinclined to treat the effects of unsafe sexual practices as reporting such behaviour to the authorities breaches the confidentiality of the patient and also leads to the health professionals’ involvement in the case.
  2. The breach of trust would affect the efforts of those institutions and organizations working with backword communities and young people as the communication and relationship with them is placed on trust and the legal duty to report any knowledge of consensual, underage sexual behaviour jeopardises the efforts of those organizations to communicate, educate and work with young people.
  3. There is also the issue of who is responsible for the enforceability of this legal duty. Imposing a legal duty with sanction without a proper structure for its enforcement results in cases of failure to report being overlooked.[12]

Determination of the ages of the victim and the offender is tangled as there are no bona fide guidelines on how to do so. In India, a large proportion of births are not registered andage determination without birth certificates and other official documents is difficult and the measure of constructing a special medical team or board for determining the age cannot be the only conclusive facet. This poses a problem as the ages of both the victim and the perpetrator is important in determining the outcome at the investigation and trial stages under POSCO.

Conclusion:

Child sexual abuse is a very significant problem in India and the enactment of the protection of Children from Sexual Offences Act was a commendable move on behalf of the government of India. This legislation has many distinctive provisions and has made a noteworthy contribution to tackle the problem of sexual abuse of the innocent. With the expeditious increase in the number of child sexual abuse cases being reported, there is no doubt that POSCO has significantly contributed to educating the masses about sexual abuse of children, has accelerated the investigation and trial stages of the offences and has ensured that the trials are held in a sensitive manner, so as to reduce the trauma of the victim. Overall, the law is unique and lucid, but the issues identified can create latent problems, pertaining to the implementation of the law. While the government has enacted a significant legislation to tackle the problem of child sexual abuse, it is paramount to realize that the people of this country are also responsible to provide as safe an environment as they can for children and to make sure that a victim of child abuse does not feel inferior or frightened by building an approachable perspective so as to ensure that the victim does not feel hesitant to talk about the problem they are facing.

 

————-

 

Isiri Rajaneesh is a second-year law student, pursuing a BA.LLB [Hons]. at PES University, Outer Ring Road Campus in Bengaluru

 

————

 

[1] David K. Carson, Jennifer M. Foster & Nishi Tripathi, Child Sexual Abuse in India: Current issues and Research, PSYCHOLOGICAL STUDIES (Aug 14,2013), https://www.researchgate.net/publication/271951215

[2] Ibid

[3] Belur, J., Singh, B.B., Child Sexual Abuse and the law in India: a commentary, CRIME SCIENCE 4 (Oct 9, 2015), https://doi.org/10.1186/s40163-015-0037-2

[4] Ibid

[5] Ibid

[6] Ibid

[7] Legal Service India, http://www.legalserviceindia.com/legal/article-4985-child-sexual-abuse-in-india.html

[8] Belur, J., Singh, B.B., Child Sexual Abuse and the law in India: a commentary, CRIME SCIENCE 4 (Oct 9, 2015), https://doi.org/10.1186/s40163-015-0037-2

[9] Ibid

[10] Ibid

[11] Ibid

[12] Ibid

 

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Analysis of Insurance laws in India and UAE

By:- Khushi Sharma

Abstract:

Banking can be described as the activities such as depositing and protecting the capital of people and several business organizations and ultimately returning the money as per the wants of the depositors. The term insurance means the process in which the insurer agrees to make good the loss of the insured. There are several types of insurance like life insurance, health insurance etc. For the smooth functioning of banks and financial institutions there are various rules and regulations formed by the legislature. These rules regulate the working of banks and other financial institutions. The banks like any other entity are under the obligation to follow various central and state regulations. The banks majorly deals with the different transactions that takes place on daily basis whereas the financial institutions majorly deals in serving customers to build their businesses. The banking laws are formulated with a view to regulate the lawful fulfillment of the duties allotted to the banks. The insurance laws on the other hand deals with the formation and execution of the Insurance contracts made between the parties.

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Introduction:

The banking system plays a very important role in maintaining the economy and financial strength of a country. In the time, where the world is dynamic in nature, the developing countries wants to become developed and already developed ones are eager to rise higher. It is important to note that for the overall growth of any country, a properly functioning banking system is a major requirement. The banking system becomes a pillar in the development of the nation and its economical position. Nonetheless, banks also play a role of financial supporter of the people of the country.

Insurance can be aptly defined as an armor to decrease or completely eliminate the risk attached to one’s life and property. Under the agreement of insurance, the insurer promises the insured to make up for the loss faced by the insured in exchange of an alleged premium fee. The risk against which a person can be insured includes the risk of death,fire,theft,damage etc. Any person can be protected against these risks on the payment of a premium proportionate with the risk involved. Insurance laws are those statutes which deals in policies and claims of insurance.

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Banking Laws in India:

In India, the laws for the administration and functioning of banks were formulated in the year 1949, two years after Independence. They enacted on 16th March,1949 and changed the whole banking system. Due to globalization and development of the businesses and trade, the banking institutions in India were becoming the main focus of the time.

In the British era, the most earlier improvement in the system took place with the foundation of Calcutta bank in 1806 followed by the Mumbai bank in 1867. Emperor bank came into existence in 1920, as a result of which the three banks were united with the position of President of Calcutta, Madison and Massa by the laws of the Bank of India.

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Insurance Laws in India:

In 1912, the very first statute to regulate the life insurance business came into being and was termed as the Indian Life Assurance Companies Act,1912. Then an act of wider scope formed which enacted for all types of insurance and to formulate strict rules for the insurance business.This was called the Insurance Act of 1938. Due to the Life Insurance Corporation Act,all the 245 insurance agencies working in India were converted into one entity in 1956 and called the Life Insurance Corporation of India. In the year 1972 every insurance company was merged into National Insurance, New India Assurance, Oriental Insurance and United India Insurance which had there headquaters in the metropolitan areas. Till the year 1999, no private insurance agency was left in India. The legislature formulated the Insurance Regulatory and Development Authority Act in 1999 which ultimately permitted the private businesses to carry on the insurance business. Further, the foreign investment was also permitted. The constraint to the FDI in the insurance sector was raised to 49% in the year 2015, subject to some conditions.

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Insurance Laws in UAE:

  • The nature of UAE in insurance market

In the Gulf Cooperation Council (GCC), the United Arab Emirates insurance market is the largest. In UAE there are three jurisdictions for insurance; namely the Onshore UAE market, the Abu Dhabi Global Market(ADGM) and the Dubai International Financial Centre(DIFC). In recent years, the Islamic insurance market is also growing within the UAE. The alternative system for cooperative islamic insurance is the Takaful Insurance that is also found there.

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  • The Insurance Regulator

The insurance market of UAE is regulated by the Insurance Authority(IA) which regulates the onshore insurance business. The IA was established in 2007 and the scope of its governance includes insurance and reinsurance companies, entities and intermediaries located in UAE. The UAE cabinet, recently passed an order in October,2020 for the IA to merge with the UAE Central bank. In January 2021, the Central Bank announced that it will take up the regulatory and supervisory responsibility of the insurance sector. Thus we can expect further changes and developments in the insurance sector of UAE in coming years.

Some important provisions of the Insurance law of UAE are worth mentioning-

  • Article 7 of the Insurance law talks about the responsibilities of the Insurance Authority.
  • Article 8 provides for the constitution of Insurance Authority and that it must include one board, director general and executive body.
  • Article 24 states the various forms of companies that are entitled to carry out insurance and reinsurance activities in the UAE.
  • Article 26 of the act talks about the limitations of the insurance companies. It protects the UAE properties from being insured outside the country.

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Conclusion:

In the era of development and globalization, banking and insurance is the basic need of every country around the world for carrying on its activities globally and develop with the competitor countries. As globalization is increasing with an increase in the technology across the globe, the frauds that are taking place has also raised in number especially those dealing with the banking and insurance industry. All people should deal carefully to avoid risks and get insured for any unforeseen event. Insurance can be aptly defined as an armor to decrease or completely eliminate the risk attached to one’s life and property. Also one must be aware of the laws governing the insurance and its policies before getting one from the provider in order to get the maximum benefit of it. Insurance and banking sectors have come a long way in India and provides ample services at convinient fee which is accessible by the middle class people of the nation. The comparison of Indian and UAE insurance laws shows that both countries have their own way of functioning but the aim is common of both the countries. Insurance sector has come a long way and it still has a long way to go in future.