Category: Legal awareness

ROC Delhi Adjudication Order for non compliances of Section 203 of CA 2013 (Delay in appointment of Company Secretary) in the case of Yamuna International Airport Pvt. Ltd.

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ROC Delhi Adjudication Order for non compliances of Section 203 of CA 2013 (Delay in appointment of Company Secretary) in the case of Yamuna International Airport Pvt. Ltd.

Order passed on 29th Dec 2021 imposing penalty on Company & Director.

👉 Violation of Section 203(4) of CA 2013

(4) If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of six months from the date of such vacancy.

Penalty imposed as per Section 203(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.

Year End Review: Legislative Department (Press release 04th Jan 2022)

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Various initiatives, Programmes, schemes and achievements of Legislative Department during 2021

Legislative Department acts mainly as a service provider in so far as the legislative business of the Union Government is concerned. It ensures timely processing of legislative proposals of various Ministries/Departments. In this context, Legislative Department plays an important role in assisting the Ministries/Departments of the Government to achieve the policy objectives through legislation. Legislative Department provides assistance to State Governments in translation of Central Laws into the languages mention in the Eighth Schedule to the Constitution.

Important Tasks Undertaken by the Department

During the period from 1st January, 2021 to 22nd December, 2021, this Department has examined 84 Notes for the Cabinet/new legislative proposals and after consulting the concerned Ministries/ Departments, drafted/prepared the draft Bills/Ordinances. After approval of the Cabinet, 50 Bills were forwarded to Parliament for introduction during this period. Bills which were already pending before Parliament and those introduced during the period from 1st January, 2021 to 22nd December, 2021, 46 Bills have been enacted into Acts including the Constitution (One Hundred and Twenty-seventh Amendment Bill, 2021 (As the Constitution 105th Amendment Act, 2021). Total 10 Ordinances have been promulgated by the President under article 123 of the Constitution during the aforesaid period. Further, 1977 statutory rules, regulations, orders and notifications were also scrutinized and vetted by this Department during this period.

Election Laws and Electoral Reforms

To amend the Representation of the People Act, 1950 and the Representation of the People Act, 1951, the Election Laws (Amendment) Bill, 2021 has been passed by Parliament on 21.12.2021. The said Bill envisages the following:

  1. Linking of Electoral Roll with Aadhaar System will curb the menace of multiple enrolment of the same person in different places; Multiple qualifying dates for enrolment in the electoral roll will expand the voter base and consequently greater participation of eligible voters in the electoral process;
  2. Making the statutes gender neutral in line with the avowed policy of gender equality and inclusiveness vis-à-vis conduct of our elections; and
  3. Streamlining the process of conduct of elections with reference to requisition of staff or premises, etc.

Institute of Legislative Drafting and Research (ILI)R)

Legislative drafting is a specialised job which involves drafting skills and expertise. Apart from in-depth knowledge of laws and their regular updation, continuous and sustainable efforts are required to enhance the skills of legislative drafting. The Officers of the Central Government, State Governments and Union territory Administrations dealing with legislative proposals and the students of law need training and orientation to develop the aptitude and the skills in legislative drafting.

2.In January, 1989, with a view to increase the availability of trained officers to deal with legislative proposals as also trained Legislative Counsel in the country, the Institute of Legislative Drafting and Research (ILDR) was established as a Wing of the Legislative Department, Ministry of Law and Justice.

3. The ILDR conducts one Basic Course and one Appreciation Course in Legislative Drafting every year which are as follows:

  1. The Basic Course is of three months’ duration and meant for the middle level officers of the State Governments/Union territories.
  2. The Appreciation Course is of fifteen days’ duration for middle level officers of Central Government Ministries/Departments/Attached/Subordinate Offices and Central Public Sector Undertakings.
  3. There is Voluntary Internship Scheme for students of law. This Scheme is intended to motivate students in creating interest in legislative drafting skills and secure knowledge about the nature and working of the Legislative Department. The Voluntary Internship Scheme has beendevised for Law students who are studying in Third Year of Three Year LLB Course or Fourth or Fifth year of Five year LLB course, with duration from four to six weeks. The said scheme has been started from the year 2013. Due to the Covid — 19 pandemic and social distancing norms the Voluntary Internship Scheme has been temporarily suspended.
  4. An online Capsule course on legislative drafting was organised for three days from 23rd June, 2021 to 25th June, 2021 for middle level officers of Central Government Ministries/Departments/Attached/Subordinate Offices and 29 participants attended the course.
  5. One month online training in legislative drafting was organised from 8th November, 2021 to 10th December, 2021 for all the officers of State Government/State Legislative Assemblies and 40 participants were benefitted by the training.

India Code Information System (ICIS)

Each year number of legislations (both principal Acts and Amending Acts) are passed by the legislature and it is difficult for judiciary, lawyers as well as citizens to refer relevant and up to date Acts when required. Keeping all these aspects in view, India Code Information System (ICIS), a one stop digital repository of all the Central and State Legislation including their respective subordinate legislations has been developed with the help of NIC under the guidance of Ministry of Law and Justice (Legislative Department). It is an important step in ensuing legal empowerment of all citizens as well as the object of ONE NATION — ONE PLATFORM. Till date, Central Acts from theyears 1838 to 2021 total 823 Central Acts have been updated and uploaded (in ICIS) for general public.

Official Language Wing has published the Constitution of India (5 th diglot pocket edition), which was released by Hon’ble Miniser of Law & Justice Shri Kiren Rijiju during the function held at Dr. B. R. Ambedkar Auditorium on 25/11/2021. In this edition, the text of the Constitution of India has been brought up-to-date by incorporating therein all the amendments up the Constitutional (One Hundred and Fifth Amendment) Act, 2021.

Centre notifies the Consumer Protection (Direct Selling) Rules, 2021

Posted on by Business So Simple in Consumer Protection, Legal awareness, Public Affairs

Ministry of Consumer Affairs, Food & Public Distribution Press Release dated 28th Dec 2021

Centre notifies the Consumer Protection (Direct Selling) Rules, 2021.


Existing Direct Selling entities to comply these rules within ninety days.

Both Direct sellers as well as the direct selling entities using e-commerce platforms for sale shall comply with the requirements of the Consumer Protection (e-Commerce) Rules, 2020.

Both Direct selling entity and direct sellers are prohibited from promoting Pyramid Scheme or money circulation scheme.

State Government to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entity.

Well laid down duties and obligations for both direct selling entities and direct sellers to safeguard the interests of consumers.

Direct selling entities to be liable for the grievances arising out of the sale of goods or services by its direct sellers.

Central Government in exercise of the powers conferred by clause (zg) of sub-section (2) of section 101 read with section 94 of the Consumer Protection Act, 2019 has notified  the Consumer Protection (Direct Selling) Rules, 2021.

These Rules shall apply to all goods and services bought or sold through direct selling, all models of direct selling, all direct selling entities offering goods and services to consumers in India, all forms of unfair trade practices across all models of direct selling and also to also to a direct selling entity which is not established in India, but offers goods or services to consumers in India.

Existing direct selling entities need to comply of these rules within ninety days from the date of publication of these rules in the Official Gazette.

The direct sellers as well as the direct selling entities using e-commerce platforms for sale shall comply with the requirements of the Consumer Protection (e-Commerce) Rules, 2020.

Direct selling entity and direct sellers are prohibited from:

(i)         Promoting a Pyramid Scheme or enroll any person to such scheme or participate in such arrangement in any manner whatsoever in the garb of doing direct selling business;

(ii)        Participate in money circulation scheme in the garb of doing direct selling business.

Rules provide for Monitoring by State Government.–– For ensuring compliance of these rules by direct selling entity and direct sellers, every State Government to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entity.

The Rules provide for certain obligation upon Direct Selling Entities which inter alia include :-

(i)         incorporation under the Companies Act, 2013 or if a partnership firm, be registered under the Partnership Act, 1932, or if a limited liability partnership, be registered under the Limited Liability Partnership Act, 2008;

(ii)        have a minimum of one physical location as its registered office within India

(iii)       make self-declaration to the effect that Direct Selling Entity has complied with the provisions of the Direct Selling  rules and is not involved in any Pyramid Scheme or money circulation scheme;

(iv)       have a prior written contract with its direct sellers in order to authorize them to sell or offer to sell its goods or services, and the terms of such agreement shall be just, fair and equitable;

(v)        ensure that all its direct sellers have verified identities and physical addresses and issue identity cards and documents only to such direct sellers;

(vi)       create adequate safeguards to ensure that goods and services offered by its direct sellers conform to applicable laws;

(vii)      be liable for the grievances arising out of the sale of goods or services by its direct sellers.

(viii)     every direct selling entity to provide the following information on its website in a clear and accessible manner

         registered name of the direct selling entity;

         registered address of the direct selling entity and of its branches;

         contact details, including e-mail address, fax, land line and mobile numbers of its customer care and grievance redressal officers;

         a ticket number for each complaint lodged through which the complainant can track the status of the complaint;

         information relating to return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism and such other information which may be required by the consumers to make informed decisions;

         information on available payment methods, the security of those payment methods, the fees or charges payable by users, the procedure to cancel regular payments under those methods, charge-back options, if any, and the contact information of the relevant payment service provider;

         total price of any goods or service in single figure, along with its break-up price showing all compulsory and voluntary charges, including delivery charges, postage and handling charges, conveyance charges and the applicable tax;

         provide correct and complete information at pre-purchase stage to enable buyers to make informed purchase decisions,  No direct selling entity shall adopt any unfair trade practice in the course of its business or otherwise, and shall abide by the requirements specified in any law for the time being in force.

All products of a direct selling entity to comply with the declarations to be made under the Legal Metrology Act, 2009.

Every direct selling entity to establish an adequate grievance redressal mechanism and display the current and updated name, contact details including telephone number, email address and designation of such officer on its website, and the details of its website shall also be prominently printed on the product information sheet or pamphlet.

Grievance redressal officer to acknowledge the receipt of any consumer complaint within forty-eight working hours of receipt of such complaint and redresses the complaint normally within a period of one month from the date of receipt of the complaint and in case of delay of more than a month, reasons for the delay, and the actions taken on the complaint, are informed to the complainant in writing.

Every direct selling entity shall appoint a nodal officer who shall be responsible for ensuring compliance with the provisions of the Act and the rules made there under, and to ensure compliance with any order, or requisition, made in accordance with the provisions of any other law for the time being in force or the rules made thereunder.

Every direct selling entity shall establish a mechanism for filing of complaints by consumers through its offices or branches or direct sellers, either in person or through post, telephone, e-mail or website.

Every direct selling entity shall maintain a record of all its direct sellers, including their identity proof, address proof, e-mail and such other contact information.

Every direct selling entity shall, on the request in writing made by a consumer after the purchase of any goods or services, provide him with the information regarding any direct seller from whom such consumer has made a purchase, and such information shall include the name, address, e-mail, contact number and any other information which is necessary for making communication with such direct seller for effective dispute resolution.

Every direct selling entity shall ensure that the advertisements for marketing of goods or services are consistent with the actual characteristics, access and usage conditions of such goods or services.

 No direct selling entity shall, directly or indirectly, falsely represent itself as a consumer and post reviews about its goods or services or misrepresent the quality or features of any of its goods or services.

A direct selling entity which explicitly or implicitly vouches for the authenticity of the goods or services sold, or guarantees that such goods or services are authentic, shall bear the liability in any action related to the authenticity of such goods or services.

Notwithstanding the distribution system adopted by it, a direct selling entity shall monitor the practices adopted by its direct sellers and ensure compliance with these rules by means of legally binding contract with such direct sellers.

Every direct selling entity shall maintain a record of relevant information allowing for the identification of all direct sellers who have been delisted by the direct selling entity and such list shall be publicly shared on its website.

Every direct selling entity shall become a partner in the convergence process of the National Consumer Helpline of the Central Government.

The Rules provide for certain obligation upon Direct Sellers  which inter alia include :-

(i)         have a prior written contract with the direct selling entity for undertaking sale of, or offer to sell, any goods or services of such entity;

(ii)        at the initiation of any sale representation, truthfully and clearly identify himself, disclose the identity of the direct selling entity, the address of place of business, the nature of goods or services sold and the purpose of such solicitation to the prospect;

(iii)       make an offer to the prospect providing accurate and complete information, demonstration of goods and services, prices, credit terms, terms of payment, return, exchange, refund policy, return policy, terms of guarantee and after-sale service;

(iv)       provide an order form to the consumer at or prior to the time of the initial sale, which shall identify the direct selling entity and the direct seller and shall contain the name, address, registration number or enrollment number, identity proof and contact number of the direct seller, complete description of the goods or services to be supplied, the country of origin of the goods, the order date, the total amount to be paid by the consumer, the time and place for inspection of the sample and delivery of goods, consumer’s rights to cancel the order or to return the product in saleable condition and avail full refund on sums paid and complete details regarding the complaint redressal mechanism of the direct selling entity;

(v)        obtain goods and service tax registration, Permanent Account Number registration, all applicable trade registrations and licenses and comply with the requirements of applicable laws, rules and regulations for sale of a product;

(vi)       ensure that actual product delivered to the buyer matches with the description of the product given;

(vii)      take appropriate steps to ensure the protection of all sensitive personal information provided by the consumer in accordance with the applicable laws for the time being in force and ensure adequate safeguards to prevent access to, or misuse of, data by unauthorized persons.

(viii)     A direct seller shall not––

         visit a consumer’s premises without identity card and prior appointment or approval;

         provide any literature to a prospect, which has not been approved by the direct selling entity;

         require a prospect to purchase any literature or sales demonstration equipment;

         in pursuance of a sale, make any claim that is not consistent with claims authorized by the direct selling entity.

Every direct selling entity and every direct seller shall ensure that––

(i)         the terms of the offer are clear, so as to enable the consumer to know the exact nature of offer being made and the commitment involved in placing any order;.

(ii)        the presentations and other representations used in direct selling shall not contain any product description, claim, illustration or other element which, directly or by implication, is likely to mislead the consumer;.

(iii)       the explanation and demonstration of the goods or services offered are accurate and complete, particularly with regard to price and, if applicable, to credit conditions, terms of payment, cooling-off periods or right to return, terms of guarantee, after-sales service and delivery;

(iv)       the descriptions, claims, illustrations or other elements relating to verifiable facts are capable of substantiation

(v)        any misleading, deceptive or unfair trade practices are not used;

(vi)       direct selling is not represented to the consumer as being a form of market research;

(vii)      direct selling shall not state or imply that a guarantee, warranty or other expression having substantially the same meaning, offers to the consumer any rights in additional to those provided by law, when it does not;

(viii)     the remedial action open to the consumer shall be clearly set out in the order form or other accompanying literature provided with the goods or service

(ix)       the presentation of the offer does not contain or refer to any testimonial, endorsement or supportive documentation unless it is genuine, verifiable and relevant;

(x)        when after-sales service is offered, details of the service are included in the guarantee or stated elsewhere in the offer and if the consumer accepts the offer, information shall be given on how the consumer can activate the service and communicate with the service agent;

(xi)       unless otherwise stipulated in the offer, orders shall be fulfilled within the delivery date proposed to the consumer at the time of purchase and the consumer shall be informed of any undue delay as soon as it becomes apparent or comes within the knowledge of the direct selling entity or the concerned direct seller;

(xii)      in cases of delay  any request for cancellation of the order by the consumer shall be granted, irrespective of whether the consumer has been informed of the delay, and the deposit, if any, shall be refunded as per the cancellation terms proposed to the consumer at the time of purchase, and if it is not possible to prevent delivery, the consumer shall be informed of the right to return the product at the direct selling company’s or the direct seller’s cost as per the procedure for return of the goods proposed to the consumer at the time of purchase;

(xiii)       whether payment for the offer is on an immediate sale or installment basis, the price and terms of payment shall be clearly stated in the offer together with the nature of any additional charges such as postage, handling and taxes and, whenever possible, the amounts of such charges;

(xiv)     in the case of sales by installment, the credit terms, including the amount of any deposit or payment on account, the number, amount and periodicity of such installments and the total price compared with the immediate selling price, if any, shall be clearly shown in the offer;

(xv)      any information needed by the consumer to understand the cost, interest and terms of any other form of credit is provided either in the offer or when the credit is offered;

(xvi)     unless the duration of the offer and the price are clearly stated in the offer, prices shall be maintained for a reasonable period of time;

(xvii)      A direct selling entity or direct seller shall not––

         indulge in fraudulent activities or sales and shall take reasonable steps to ensure that participants do not indulge in false or misleading representations or any other form of fraud, coercion, harassment, or unconscionable or unlawful means;

         engage in, or cause or permit, any conduct that is misleading or likely to mislead with regard to any material particulars relating to its direct selling business, or to the goods or services being sold by itself or by the direct seller;

         indulge in mis-selling of products or services to consumers;

         use, or cause or permit to be used, any fraudulent, coercive, unconscionable or unlawful means, or cause harassment, for promoting its direct selling business, or for sale of its goods or services;

         refuse to take back spurious goods or deficient services and refund the consideration paid for goods and services provided;

         charge any entry fee or subscription fee.

(xviii)   direct selling entity and a direct seller shall not induce consumers to make a purchase based upon the representation that they can reduce or recover the price by referring prospective customers to the direct sellers for similar purchases.

256 Gram Nyayalayas operational in 10 States

Posted on by Business So Simple in Legal awareness

To provide access to justice to the citizen at their door steps, the Central Government has enacted the Gram Nyayalayas Act, 2008.  It provides for establishment of Gram Nyayalayas at intermediate panchayat level.  The State Governments are responsible for establishing Gram Nyayalayas in consultation with the respective High Courts. Department of Justice has not issued any directives to make it mandatory for new judicial officer to serve in these Gram Nyayalayas, as appointment of Nyayadhikari in Gram Nyayalayas falls within the domain of the State Government.

The Gram Nyayalayas scheme has been evaluated from time to time. The third party evaluation of the Scheme was done through NITI Aayog recently, which recommended continuance of the scheme. The Government has extended the above scheme for a further period of five years from 01.04.2021 to 31.03.2026, with a budgetary outlay of Rs.50 crores.

The Central Government has been encouraging the States to set up Gram Nyayalayas by providing financial assistance.  As per the scheme, the Central Government provides one-time assistance to States towards non-recurring expenses for setting up of Gram Nyayalayas subject to a ceiling of Rs. 18.00 lakhs per Gram Nyayalaya.  The Central Government also provides assistance towards recurring expenses for operating these Gram Nyayalayas subject to a ceiling of Rs. 3.20 lakhs per Gram Nyayalaya per year for the first three years.

The Central Government has been regularly following up with the State Governments and the High Courts for setting up of Gram Nyayalayas in the respective States.  During the current year, 05 (five) meetings have been held with the Registrar Generals of High Courts and Law / Home / Finance Secretaries of State Governments to expeditiously  set up Gram Nyayalayas and appoint Nyayadhikaris to enable rural population to get justice at the village level.

As per information made available by State Governments / High Courts, 476 Gram Nyayalayas have been notified so far by 15 States.  Out of these 256 are operational in 10 States at present.  State-wise details of the Gram Nyayalayas notified, operationalised by the State Governments and status of fund release by this Department is as under:

256 Gram Nyayalayas operational in 10 States

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1782616&RegID=3&LID=1

This information was given by Shri Kiren Rijiju, Union Minister of Law & Justice in Lok Sabha today.

National Litigation Policy (Press release dated 17th Dec 2021)

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With the objective to lay down guidelines for preventing, controlling and reducing litigation, keeping in view the policy & plans of the Government, in a cohesive and organized manner, Litigation Policy is under consideration.

Ministries and Departments like the Railways and Department of Revenue, involved in a high number of litigations have been taking several measures for reducing the number of Court cases.  Ministry of Railways have issued instructions for effective monitoring of Court cases at all levels.  Zonal Railways and Production Units have been asked to take effective steps to reduce the number of cases in which the Government is a party and reduce the burden of courts, expedite finalization of all the cases in all courts at the earliest and to cut down the expenditure in contesting court cases.  For achieving this, emphasis has been laid on effective monitoring of cases by having regular meetings with empanelled advocates, for briefing and necessary directions to be given at the highest level, besides ensuring timely submission of replies, Counter replies and necessary documents to the advocates.

The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) under the Department of Revenue, have issued a slew of instructions and brought in several measures, for reducing litigations and the resultant burden on Courts.  While the CBDT has issued circulars directing the field Officers that pending appeals before Income Tax Appellate Tribunals/High Courts/Supreme Court with tax effect below the specified limits may be withdrawn/not pressed, and in the process facilitating a better and concerted focus on high demand litigations.  CBDT has also clarified to the field officers that appeals should not be filed merely because the tax effect in a particular case exceeds the prescribed monetary limits and the filing of an appeal should be decided strictly on the merits of the case.

Similarly, the field formations under the CBIC have been instructed to withdraw appeals pending in High Courts/Customs Excise and Service Tax Appellate Tribunal, where the Supreme Court has decided on identical matter.  Besides, CBIC has also instructed its field formations not to contest further in appeal where the issue has been lost in two stages of appeals.  It has been decided, however, that in cases where it is felt that the issue is fit for further appeal, then on proper justification and approval of the Zonal Chief Commissioner, an appeal can be filed for the third time.  Also, the field formation have been instructed to forward only those SLP proposals where in the issue involves substantial question of law or gross perversity or illegality in the appreciation of evidence.                         

In this direction, both the CBDT and the CBIC have also enhanced the threshold monetary limit for filing appeals, the details of which are as follows:

CBDT:

For filing appeals

Monetary limit

Before Income Tax Appellate Tribunal

Rs. 50 lakhs

Before High Court

Rs.1 Crore

Before Supreme Court

Rs.2 Crore

CBIC:

Monetary limits for filing appeals in cases relating to Central Excise and Service Tax

Before CESTAT :Rs.50 lakhs

Before High Court :Rs.1 Crore

Before Supreme Court:Rs.2 Crore

Monetary limits for filing appeals in cases relating to Customs

Before CESTAT :Rs. 5 lakhs

Before High Court :Rs.10 lakhs

Before Supreme Court :Rs.25 lakhs

For the purpose of monitoring of litigation of Union of India, a web-platform namely, Legal Information Management & Briefing System (LIMBS) was created in the year 2016.  LIMBS Ver.2 has been launched in the year 2019 to overcome the then existing technological gaps in the application. The vision of LIMBS Ver.2 is ‘to be a single platform for Litigation of GoI along with establishment of a synchronized regime for monitoring of Litigation’ across all Ministries / Departments of Government of India. Presently, there are 7.78 lacs cases (including archive cases) including 5.78 lacs live/pending cases entered by 57 Ministries/Departments. It has a single database of 15881 officials/users and more than 20000 advocates. All the High Courts, except High Court of Delhi, have been integrated with LIMBS Ver.2 to facilitate monitoring of cases pending in these High Courts.  In addition, the linkage of database with the Hon’ble Supreme Court is envisaged as part of LIMBS implementation.  Law Secretary, vide DO letter dated 20.11.2020, followed by reminders dated 16.03.2021 and 09.07.2021 has taken up the case for grant permission for data of various Tribunals and with LIMBS Ver.2 through API with the Chairperson/President of the Tribunals and Secretaries of the respective Ministries/Departments. At present, Central Administrative Tribunal, The Telecom Dispute Settlement & Appellate Tribunal and Appellate Tribunal for Electricity have provided API linkage to their database with LIMBS Ver.2.  Further, the fast track integration of database of cases of Railway Claims Tribunal, Income Tax Appellate Tribunal, National Green Tribunal, National Company Law Tribunal and National Company Law Appellate Tribunal with LIMBS is envisioned. 

The alternative mechanism for the resolution of Inter-Ministerial/Departmental disputes also provide for an institutionalized mechanism for resolution of such disputes, namely, Administrative Mechanism for Resolution of Disputes (AMRD).  This was framed by the Department of Legal Affairs and circulated vide O.M. dated 31.03.2020. This mechanism, applicable to disputes other  than taxation disputes, will reduce litigations in courts and resolve the cases outside the court system, where both parties are Govt. Department or where one party is Govt. Department and other is its instrumentalities, (CPSEs/Boards/ Authorities, etc.).

To resolve the commercial disputes between Central Public Sector Enterprises inter-se and CentralPublic Sector Enterprises and Government Departments/ Organizations in place of the earlier ‘Permanent Machinery of Arbitration’, a new scheme, namely, “Administrative Mechanism for Resolution of CPSE Disputes (AMRCD)” evolved by Department of Public Enterprises has been brought into effect w.e.f. 22.05.2018.

The Commercial Courts Act, 2015 was amended in 2018 to inter-alia provide for Pre-Institution Mediation and Settlement (PIMS) mechanism. Under this mechanism a party which does not contemplate any urgent interim relief in a subject-matter of commercial dispute of specified value of Rs.3 lakh and above has to first exhaust the remedy of PIMS to be conducted by the authorities constituted under the Legal Services Authorities Act, 1987, before approaching the Court.

Further for facilitating quick disposal of disputes outside the court systems by way of alternate dispute redressal mechanism

of mediation, the Mediation Bill, 2021 is being introduced in the Parliament inter-alia providing for pre-litigation mediation by the parties.

This information was given by Shri Kiren Rijiju, Union Minister of Law & Justice in Lok Sabha today.

914 Fast Track Courts are functional for heinous crimes, crimes against women and children (Press release dated 17th Dec 2021)

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914 Fast Track Courts are functional for heinous crimes, crimes against women and children


Government has approved a scheme for setting up 1023 Fast Track Special Courts (FTSCs) across the country for expeditious disposal of pending cases of Rape under IPC and crimes under POCSO Act

The Central Government is fully committed to speedy disposal of all cases including cases involving offences against women in accordance with Article 21 of the Constitution and reducing pendency. The Government has taken several initiatives to provide an ecosystem for faster disposal of cases by the judiciary. The Fourteenth Finance Commission endorsed the proposal of the Government to strengthen the judicial system in States which included, inter-alia, establishing Fast Track Courts for cases of heinous crimes; cases involving senior citizens, women, children etc., and urged the State Governments to use the additional fiscal space provided in the form of enhanced tax devolution from 32% to 42% to meet such requirements. As on 31.10.2021, 914 Fast Track Courts are functional for heinous crimes, crimes against women and children etc. Further, Government has approved a scheme for setting up 1023 Fast Track Special Courts (FTSCs) across the country for expeditious disposal of pending cases of Rape under IPC and crimes under POCSO Act. As on date, 28 States/UTs have joined the scheme for setting up of 842 FTSCs including 363 ‘exclusive POCSO Courts’. Rs.140 crore was released in the financial year 2019-20 and Rs. 160.00 crore has been released during the financial year 2020-21 for the scheme. 681 FTSCs are presently functional including 381 exclusive POCSO Courts, which disposed 64217 cases as on 31.10.2021. The continuation of the Scheme of FTSC has been approved for another two years (2021-23) at a total outlay of Rs. 1572.86 crore, including Rs. 971.70 crore as Central share.

This information was given by Shri Kiren Rijiju, Union Minister of Law & Justice in Lok Sabha today.

Mediation Bill (Ministry of Law & Justice Press release 17th Dec 2021)

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The draft of the Mediation Bill, 2021 to strengthen and  promote Mediation as Alternative Dispute Redressal (ADR) mechanism and promote institutional mediation in the country has been placed in the public domain (on the website http://www.legalaffairs.gov.in) seeking comments of the public and all stakeholders, as a part of the pre-legislative consultation process.

Mediation as an Alternate Dispute Redressal (ADR) offers an informal, simple, non-adversarial approach to resolve several type of disputes including civil, commercial and family disputes etc.The proposed Bill seeks to promote mediation, online or otherwise as preferred process of dispute resolution, consolidate and amend the laws relating to domestic mediation and provide an enforcement mechanism for Mediated Settlement Agreement. 

This information was given by Shri Kiren Rijiju, Union Minister of Law & Justice in Lok Sabha today.

Judicial updates (Income tax) -15th Dec 2021

Posted on by Business So Simple in Income Tax, Legal awareness

Addition based on mere Third Party statement without granting Cross-Examination deleted

Vijayshree Food Products P. Ltd. Vs ACIT (ITAT Delhi) dated 06/12/2021

FIR can’t be registered against Income Tax officials for any act done in good faith

Director General of Income Tax Vs Deputy Commissioner of Police (Karnataka High Court) dated 25/11/2021

TDS not deductible if payees were not identified

Volvo India Pvt. Ltd. Vs ITO (TDS) (Karnataka High Court) dated 15/11/2021

Authorised officer conducting search & seizure cannot retain documents/ assets beyond 15 days

 Dr. R. P. Patel & Ors. Vs Asst. Director of Income Tax (Investigations) & Ors. (Kerala High Court) dated 30/07/2021

No extension of period to pass assessment order being time-barred under guise of special audit u/s 142(A)

Chet Ram Ravi Kumar Vs DCIT (ITAT Chandigarh) dated 04/10/2021

No Tax on Capital Gains on Sale of Agricultural Land which is not a capital asset

Dashratbhai Gopalbhai Patel Vs ITO (ITAT Ahmedabad) dated 31/08/2021

Order passed without issuing draft Assessment cannot be sustained

Golden Tobacco Limited Vs National Faceless Assessment Centre (Bombay High Court) dated 28/10/2021

CBDT notifications not empowers department to put into oblivion section 148A provisions

JSVM Plywood Industries Ltd Vs Union of India (Gauhati High Court) dated 08/12/2021

Regards

Bipul Kumar

Judicial Updates-11th Dec 2021

Posted on by Business So Simple in Company Law, Income Tax, Legal awareness

Bombay HC decodes Non Obstante Clause

Bombay high court in income tax matter in case of Small Industries Development Bank of India Vs Central Board of Direct Taxes (Bombay High Court) dated 02/12/2021 Explaining at length operative impact of non obstante clause A non-obstante clause is generally appended to a Section with a view to give the enacting part of the Section, in case of conflict, an overriding effect over the provision in the same or other Act mentioned in the non-obstante clause.

Small Industries Development Bank of India Vs Central Board of Direct Taxes (Bombay High Court) dated 02/12/2021

Authority of NCLAT Technical member for cancelling company’s license cannot be questioned

India Awake For Transparency Vs Union of India (Delhi High Court) dated 09/11/2021

Supreme Court directs Integration of Technology adopted to streamline, monitor all stages in Govt. Revenue Litigation, to ITAT, CESTAT, Other Tribunals

C.C.E. and S.T. Vs Bilfinder Neo Structo Contruction Ltd. (Supreme Court of India) dated 29 Nov 2021

Section 12 of IBC- Resolution process should complete within specified time limit – SC

Committee of Creditors of Amtek Auto Limited Vs Dinkar T. Venkatsubramanian (Supreme Court of India) dated 01 Dec 2021

Fine should adequately compensate the complainant S. 138, N.I. Act

 Yasir Amin Khan Vs Abdul Rashid Ganie (Jammu and Kashmir High Court) dated 22 Nov 2021

Section 48 of Arbitration Act not permits review on merits of dispute.

EIG (Mauritius) Limited Vs McNally Bharat Engineering Company Limited (Calcutta High Court) dated 10/11/2021

Collection of cash handling charges from stamp vendors by SBI is illegal

P. S. Shanmuga Sundaram Vs  Director Treasuries and Accounts Department (Madras High Court) dated 29/10/2021

Regards

Bipul Kumar