New Consumer Protection Bill 2019

For the first time in 32 years, the Ministry of Consumer Affairs and Food Distribution introduces a bill in Lok Sabha to replace the Consumer Protection Act, 1986.

Now Online retailers, celebrities can't fool the Consumers.
Source: #BrandEquity

A three-decade-old law is being changed to give more powers to the consumer. The Lok Sabha has passed the Consumer Protection Bill 2018 which will now go to the Rajya Sabha. The new law will replace the archaic Consumer Protection Act 1986.

The new law will revolutionise consumer rights in India by investing consumers and agencies with a lot more power than they currently have.

Below are the highlights from the Bill:

1. The Bill proposes an executive agency, the Central Consumer Protection Authority. The agency can intervene whenever it feels necessary to protect consumers from unfair trade practices. It can also launch class action against a company, besides ordering recall or refund of products. The agency is designed on the lines of highly effective US Federal Trade Commission. 

2. The Bill introduces a new concept of class action, which means the liability of manufacturers and service providers will not be limited to one or a group of consumers but towards all consumers. All affected consumers become beneficiaries in a class action suit. 

3. The manufacturer, producer and even the seller will be liable for any personal injury, death or damage resulting from defects in manufacture, construction, design, formula, preparation, assembly, testing, service, warning, instruction, marketing, packaging, or labelling of any product. 

4. The Bill proposes to remove the current structures for adjudicating consumer disputes at the district, state and national levels. It will only make them more powerful.

5. Consumer mediation cells will be attached to consumer commissions at all levels for resolution of disputes so that the commissions do not get bogged down in too many cases.

6. The Bill takes into account e-commerce too. Currently, a consumer can initiate legal action against a seller only at the place where transaction has taken place. In the new law, a consumers can file a complaint electronically or in the consumer court at his place of residence. This new law will simplify consumer disputes adjudication process for faster disposal of grievances through filing of complaints by a consumer from his place of residence, e-filing and video conferencing for hearing. 

The Bill introduces an additional consent layer requiring online marketplaces to add a tab on their platforms seeking express consent from customers at the time of checkout to be able to access and use their information.
E-commerce firms would have to disclose their business details and seller agreements, apart from also disclosing how they use consumer data. The Bill deems e-commerce platforms as service providers instead of only intermediaries, thus increasing their liability. 

7. The Bill also holds endorsers of products liable in addition to manufacturers. “Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of the consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend up to 10 lakh rupees,” the Bill says. Offences may lead to a jail term of 10 years and a fine of up to Rs 50 lakh. For celebrities involved in misleading advertisements, there will be penalties but no jail term. 

8. The Bill also addresses ‘composite supply’ or bundling of services, wherein platforms that offer travel services and bundle services such as hotel stays and airline tickets will also have to take liability for all the services. 

9. To discourage frivolous complaints, the Bill proposes a penalty from Rs 10,000 to Rs 50,000. 

Also see:
1. https://indiacorplaw.in/2018/12/consumer-protection-bill-2018-paradigm-shift.html?utm_source=dlvr.it&utm_medium=twitter

2. Changes In Consumer Protection Bill 2018 That You Should Know https://www.goodreturns.in/classroom/2018/12/changes-consumer-protection-bill-2018-that-you-should-know-805846.html?utm_source=article

3. https://www.inreportcard.in/news-list-detail.aspx?opedid=1547

Thugs of Hindustan - Criminal Tribes Act 1871 of British India

Criminal Tribes Act (CTA), India

In 1871 the British rulers  passed a law known as Criminal Tribes Act (CTA) branding scores of castes and communities steeped in grinding poverty in India, as ‘born criminals’. 

This barbaric law was first notified and enforced in northern India that was subsequently extended to Bengal and other provinces as well.  It notified 160 castes that constitute the core of present day ‘Dalit Samaj’ as hereditary criminals.

 As a community they were branded as criminals by birth, that receive training in professions like theft, burglary, house-breaking, robbery, dacoity, and counterfeiting from one generation to the next.  

The total head count of these criminal tribes was approximately 60 million constituting nearly 30% of the total population (according to 1871 census the total population of India was about 200 million). 

All the members of the so called ‘criminal-tribes’ were native Hindus. As such, with a single stroke of pen the British rulers declared 30% of the Hindu population as hereditary criminals, thereby condemning their unborn generations as ‘pariahs’ destined to work as hewers of wood and drawers of water.

It is important to note that the CTA made it lawful to perform genocide against a list of Indian tribes at different regions (Bhils, Kanjars, Sansis, Nats, Meenas, Charas, Satnamis, Gonds, Marias, Chenchus, etc., to name a few), deemed to be criminals by birth.  

Apparently, many of these tribes were deprived of basic human rights not because they were indulged in any criminal activity but because they were fighting against British destruction of their jungles and other habitats. 

Thugs were one such courageous tribe that valiantly fought against British rulers. As such, they were badly maligned via publicized atrocity literature and ‘Thug’ became a synonym for criminal in English language!  

Surprisingly, this distortion and misrepresentation of Indian history and traditions is being taught at major academic institutions both in India and the west, even today. This needs to be exposed and corrected by presenting the facts at appropriate academic forums.

Thus, the bill introduced in 1871 by the British Jurist, James Fitzjames Stephen (who authored Indian Evidence Act), deprived these communities elementary human rights and dignity, permanently arresting their socioeconomic growth by restricting their mobility. 

This draconian law was based on an irrational assumption that people in India have been pursuing the ‘caste-system-defined-job-positions’ like weaving, carpentry  that is passed on from one generation to the next, as a hereditary profession.  Therefore, there must have been hereditary criminals as well who followed their forefathers’ profession! 

Elaborating on this atrocious logic he commented “when we speak of professional criminals we mean a tribe whose ancestors from time immemorial destined by the usage of caste to commit crime, and whose descendants will be offenders against law, until the whole tribe is exterminated in the manner of thugs’.

 Thus, this draconian law was evidently based on an irrational assumption rather than on any empirical research data.  No attempt was made to investigate the causes that compelled these hapless tribes to take to crime for earning a livelihood-a phenomenon which apparently took shape during the long period of Islamic rule in India.  

Mercifully, British rulers did not follow this advice, namely the extermination of these hapless tribes, as suggested by Sir James Fitzjames Stephen, follower of Anglican Church turned lawmaker for India!

The people that praise British as just and egalitarian and blame high caste Hindus for social evils in India (Kancha Ilaiah) should answer as to why the British did not ban untouchability during their 200-years long rule of India? 

Also, these critics should recognize the fact that people who agitated for the abolition of untouchability and facilitated the untouchability prevention act of 1955, were mostly high caste Hindus.  

Consequently the Dalit Samaj of today holds deep grudge against the so-called ‘high castes’ and the caste warfare rhetoric goes on relentlessly, even after six decades after the  independence.  The leftist and pseudo-secular writers find no time to find the truth, and unfortunately, the vote-bank politics and caste warfare continue unabated.  

Source: https://www.myind.net/Home/viewArticle/scheduled-castes-and-tribes-fault-lines-created-british-raj

My Quora Answer about Action against Bank Officers

My Quora Answer to:

What sort of legal action can be taken against bank officers for continuously ignoring unfair trade practices complaints? What sort of legal action can be taken against bank corporate office for not taking any action against it's own officers?

If your bank does not address your complaint within a month, you can approach the banking ombudsman. This is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in banking services, as per its scheme introduced in 1995. All scheduled commercial banks, regional rural banks and scheduled primary cooperative banks are covered under the scheme. So far, there are 15 ombudsmen, whose offices are located mostly in state capitals. Their addresses and contact details are available on the RBI website. You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located. The grievances relating to credit cards and other types of services with centralised operations are to be filed with the ombudsman in whose territorial jurisdiction the billing address of the customer is located. You can put it down on a plain paper, send an e-mail, or fill the complaint form on the RBI website. There are no charges for filing a complaint.

Source: How to file a complaint against your bank

The Banking Ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. Presently the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017) is in operation. [1] The addresses of the Ombudsman are here : link . Before filing the complaint, have a look at the types of the cases handled by the Banking Ombudsman, listed here.

Hope this answers your question.

Footnotes

[1] Frequently Asked Questions

My Quora Answer to : Can an IA be filed while a court case is under CAV (i.e., judgement reserved)

My Quora Answer to : 

Can an IA be filed while a court case is under CAV (i.e., judgement reserved)

If only absolutely necessary, and is inevitable.

An Interim Application can be filed, when the case is reserved for passing Judgement, provided it is not amounting to abuse of process of the Court, and it is in the interest of justice.

Supreme Court J. P. Sathasivam, Jagdish Singh Khehar, have opined in their judgment in “M/S Bagai Construction Tr.Prop vs M/S Gupta Building Material Store on 22 February, 2013”:

“19. We may add a word of caution. The power under Section 151 or Order 18 Rule 17 of the Code is not intended to be used routinely, merely for the asking. If so used, it will defeat the very purpose of various amendments to the Code to expedite trials. But where the application is found to be bona fide and where the additional evidence, oral or documentary, will assist the court to clarify the evidence on the issues and will assist in rendering justice, and the court is satisfied that non-production earlier was for valid and sufficient reasons, the court may exercise its discretion to recall the witnesses or permit the fresh evidence. But if it does so, it should ensure that the process does not become a protracting tactic. The court should firstly award appropriate costs to the other party to compensate for the delay. Secondly, the court should take up and complete the case within a fixed time schedule so that the delay is avoided. Thirdly, if the application is found to be mischievous, or frivolous, or to cover up negligence or lacunae, it should be rejected with heavy costs.

12) After change of various provisions by way of amendment in the CPC, it is desirable that the recording of evidence should be continuous and followed by arguments and decision thereon within a reasonable time. This Court has repeatedly held that courts should constantly endeavour to follow such a time schedule. If the same is not followed, the purpose of amending several provisions in the Code would get defeated. In fact, applications for adjournments, reopening and recalling are interim measures, could be as far as possible avoided and only in compelling and acceptable reasons, those applications are to be considered. We are satisfied that the plaintiff has filed those two applications before the trial Court in order to overcome the lacunae in the plaint, pleadings and evidence. It is not the case of the plaintiff that it was not given adequate opportunity. In fact, the materials placed show that the plaintiff has filed both the applications after more than sufficient opportunity had been granted to it to prove its case. During the entire trial, those documents have remained in exclusive possession of the plaintiff, still plaintiff has not placed those bills on record. It further shows that final arguments were heard on number of times and judgment was reserved and only thereafter, in order to improve its case, the plaintiff came forward with such an application to avoid the final judgment against it. Such course is not permissible even with the aid of Section 151 CPC.[1]

Also, Karnataka HC - J. N Jain, V Sabhahit in “Rabiya Bi Kassim M. vs The Country Wide Consumer ... on 5 April, 2004” reported at ILR 2004 KAR 2215, and 2004 (4) KarLJ 189:

Even if we assume it for the sake of argument without accepting, in view of the amendment in CPC, as we find, the law relating to procedure in suits and civil proceedings are governed by CPC, The CPC has been amended from time to time.

Recently also, in order to cut short the delays at various levels in disposal of civil cases, CPC was amended by the Amendment Act of 1999 with effect from 1.7.2002.

In the facts of the given case, sufficient opportunity was given to the plaintiff to complete his evidence, but he has not availed the opportunity at appropriate time and thereafter his evidence was closed. The case was fixed for defendant's evidence and ultimately the case was heard and reserved for judgment on 20.6.2001.

In our view, if the matter is reserved for pronouncement of judgment, such an application is not maintainable as otherwise it will defeat the very object of amendment in speedy disposal of the cases.[2]

It is seen by all, and also observed by the Courts that one of the major causes of delay in decision of suit, is the practice of seeking and granting time, delaying in filing of written statements and objections, filing excessive number of Interim Applications, delaying leading of evidence, and seeking adjournments for frivolous reasons.

The Supreme Court in ARJUN SINGH v. MOHINDRA KUMAR, has held that once the matter has been finally heard and posted for judgment, the Court has only to pronouncement the judgment.

After the deletion of the Clause (4) of Order 18 Rule 2

it clearly shows that it is not the intention of the Legislature to permit filing of the interlocutory application, even after the arguments are heard and the matter is reserved for pronouncement of judgment, and therefore, such interlocutory applications cannot be entertained..[3]

Footnotes

[1] M/S Bagai Construction Tr.Prop vs M/S Gupta Building Material Store on 22 February, 2013

[2] Rabiya Bi Kassim M. vs The Country Wide Consumer ... on 5 April, 2004

[3] Arjun Singh vs Mohindra Kumar & Ors on 13 December, 1963

Prenuptial Agreements to be the Norm? - Business Standard

Prenuptial agreements in India might not be legally tenable but, increasingly, families are going for these contracts which state the assets of the bride and groom, and the compensation the woman will receive if the marriage turns sour and the couple legally part ways.

“Families are opting for prenuptial agreements to see the intentions of the parties involved, even though the contract is not legally binding,” says senior advocate Mrunalini Deshmukh, who handled divorce cases of many Bollywood celebrities including Aamir and Reena Khan and Karisma Kapoor. She adds that the document is used to tell the court the conditions that the couple had agreed upon when they got married.

It’s not only the wealthy that are drawing up these agreements. Advocate Vandana Shah recently got a couple who asked her to help them draft one such contract. They were both part of corporate world, working in middle management. When she told them it would not have any standing in a court, they said they were making it so that both were clear on the settlement terms if they part ways.

Prenuptials are popular in developed countries such as the US, Australia, France and Germany. But in India, there are Supreme Court rulings which say any contract which has marriage as an object is null and void.

Recently, Maneka Gandhi, minister for women and child development,  recommended to D V Sadananda Gowda, Minister for Law and Justice, to make Prenuptial Agreements mandatory before marriage.

The recommendation was made as many women from lower socio-economic backgrounds have to fight endless battles over alimony, marital ownership of property and assets during divorce.
Deshmukh says, on an average, divorce cases take four to five years to conclude; but many also drag on for over 15 years. She has a client, who is still fighting a legal battle since 1999.

The idea of legalising Prenuptial Agreements has many takers.

Lawyers say it will help reduce the burden of courts. It will also end husbands and wives taking undue advantage of each other and will keep their expectations in check. It will also help solve common reasons for fights or disputes, such as division of property.

Financial planners say it will be a good starting point in a marriage. When drawing a prenuptial agreement, the entire assets, liabilities, business ownerships, among other things, are listed out. This can make both parties aware of each other’s finances before tying the knot.

Even if a prenuptial agreement does not become legal in India, there are a few things every couple should follow while managing their family finances to ensure that things don’t go awry in case they part ways.

Suresh Sadagopan, a certified financial planner, says couples should keep their finances separate and contribute towards expenses in equal proportion. If the husband’s salary is Rs 1 lakh and wife’s is Rs 50,000. They can equally contribute 30 per cent of their income to family expenses.

Shah says couples should keep their bank accounts separate and all investments should be done through individual accounts. This will not only create a trail, but also make calculation of taxes easy.

When buying property, couples should also take the ownership in the asset in proportion to their contribution, Sadagopan says. If the husband is paying 70 per cent of the equated monthly instalment, he should list his share in that proportion.

Source - http://wap.business-standard.com/article/bs/prenuptial-agreements-likely-to-be-mandatory-116020400476_1.html

A Cyclists encounter with the Railway Police at Bangalore - The Logical Indian

From the #Facebook page #LogicalIndian:

#MyStory

“I have read of inhumane incidents happening in many parts of the country. But you won’t totally believe unless you encounter one. Now onward I can totally believe them.

I frequently travel to China for my official trips. One thing I always adored by Chinese people is their use of electrical or foldable bicycle which they carry with them in the subway.

This time, after coming to India I desperately started looking for such bicycle if available in India. At last, I found one BTWIN HOPTOWN bicycle at Decathlon. I immediately bought and started using it. Once I was carrying it with me on the train between the route KR PURAM to Bangalore Cantonment. I am proud of the fact that I am not the one contributing to the pollution in Bangalore.

On 9/2/2016, while exiting from Bangalore Cantonment railway station one ticket checking officer lady caught me and started demanding fine for carrying a bicycle with me. I tried to convince her, once folded it is not a bicycle at all, it weights hardly 14 kg and it is very much portable. But she insisted on asking for 6 times the fare of travel. I asked her for the railway rules regarding this and the receipt of the bill. She took my pass and made me wait for another 30 minutes and later came with an excuse that she doesn’t know the luggage rules. I was getting late and told her 6 times my fare of travel is 60 rupees and that she can have 100 rupees and let me go. But she demanded 300 rupees.

I told her even if it is 1000 rupees I will pay but I need the receipt. She presented the same excuse that she doesn’t know the luggage rules. At last, I lost my patience and started to call her corrupt. After which she slapped me, pushed me and called her police constable colleague to take me to the jail for misbehavior. He took me to the jail and started beating me. His other colleagues joined him, they undressed me and started beating me with hand, leg and sticks 5 people at a time. I was sure that I was going to die that day and only my body will be found next day. I begged them in all the possible way I can. At last, after an hour, one guy listened to my plea and asked me to pay 5000 rupees. He asked me to call any of my friends to come with 5000 rupees and then can take me back.

I called my manager Harish Haswani who came with two mutual colleagues of ours. All three had to plea to the railway police for more than an hour on my behalf as Railway police have threatened them that they will file a case against me of misbehaving with a lady officer and that I have tried to press her breast. I was very much shocked to see to what level character of a woman can fall. After too much of plea and the bribe from my colleagues they released me. The lady officer fined me 190Rs stating my bicycle weight is 40kg although it is 14kg only. Also, she fined me for ticket-less traveling though I was having the monthly pass. Also, the receipt she issued is of date 8/02/16 and not 9/02/16 on which date I travelled and the incident took place. We all were too much afraid and didn’t dare to ask her for the mistake in the receipt. All of our focus was just to save my life and get me out of there.

I am undergoing the treatment. My left hand is fractured. My friend Sarfaraz is taking care of me. I am determined never to travel by train in Bangalore again. My fold-able  BTWIN bicycle will never get used again. But at the same time, I have lost all the focus at my work. Fortunately, my mobile has done the voice recording of the entire incident. My mobile recording along CCTV camera recording at railway is enough to prove if I have done remotely any kind of misbehavior with the lady. I am determined to teach a lesson to these corrupt officials even if it cost me my life. I have written letters to all higher police authorities as well as human rights commission seeking action in this regards. They will respond but very unfortunatly as per indian goverment office time.”

And Comments thereon:


@drmsbc has replied to tweets on this issue saying that Railway police is state police and doesn’t come under railways.

https://twitter.com/drmsbc/status/698662569536417793

I will delete this post in some time since my suggestion is perhaps no longer relevant.

In the meanwhile, if you have any suggestions regarding how to approach this issue then let me know.

My original post:
-----------
The Logical Indian, could you please tweet this to @RailMinIndia
They are very prompt and they will take appropriate action.

Edit:
The summary of tweets made for this issue:
My tweet to @RailMinIndia:
https://twitter.com/amithbag/status/698599458020261888

Sidhharth (@siddhu_2011):
https://twitter.com/RailMinIndia/status/698595124578615296
(@RailMinIndia has replied to Siddharth’s tweet)

Avinash Surendran (@ashwin296):
https://twitter.com/ashwin296/status/698605652466405376

cibi s (@cibiindhu):
https://twitter.com/cibiindhu/status/698627271477870592

It looks like @drmsbc has replied to the tweets of Sidhharth, Avinash and cibi s:

“@cibiindhu @RailMinIndia @GMSWR @ashwin296 @siddhu_2011 Rly Police is state police, not under Rly. Clarification by @srdcmsbc.”
https://twitter.com/drmsbc/status/698662569536417793

So essentially it seems that they are saying that they can’t do much since Railway police is state police. Is that ticket checking lady also under Railway police and not Railway? Requesting Sidhharth, Avinash and cibi s to reply to @drmsbc and ask for clarification.
-----------

Comment #2:

Laws that were made to protect women are being used as a tool to extort money, take revenge, cry victim when a woman herself is the wrong doer and to teach a "lesson" to a man for being a man by the "empowered women". This is happening not only in metros but smallest areas around the country. While crime against Innocent and vulnerable women is happening everywhere, false accusations against innocent and vulnerable men and boys like one above is on a rise too. While there are stringent laws to take care of the former, there is little one can do in case of latter. Some time before everyone realizes the need to control this menace.

Comment #3:

#PMOIndia, Narendra Modi, Suresh Prabhu
After such incidents, do you still expect us to co-operate with the Police and have faith in these so called Law Enforcement forces in India?
Who gives them the right to even TOUCH US without any valid reason or proof? Are these people seriously the ones responsible for OUR SAFETY?
WE WILL NOT BE SUPPRESSED AND THIS NEEDS TO STOP. NOW.
#Shame

Comment #4:

Laws-

The Bangalore Metro Rail (Carriage and Ticket) Rules 2011 limit the weight of personal baggage to 15 kg. Rule 3 says: “No person shall, while travelling in metro railway, carry with him any goods other than a small baggage containing personal belongings not exceeding 60cm x 45cm x 25cm in size and 15kg in weight, except with the prior approval of the metro railway administration.” The rules also prohibit carrying explosive, inflammable, and poisonous substances.

The Metro Railway (Operation and Maintenance) Act, 2002, imposes fines and in some cases jail sentences for offences committed on the metro. Anyone indulging in sabotaging the train or maliciously hurting or attempting to hurt other passengers while travelling in the metro can face imprisonment up to 10 years. Pasting posters or drawing graffiti on the walls of stations or trains is punishable by a fine of ₹1,000 or imprisonment for up to 6 months. Travelling in an inebriated state or creating nuisance in the train is punishable by a ₹500 fine. Passengers are monitored at security checkpoints and those that are causing trouble, heavily drunk, or carrying forbidden items are not permitted to board. Spitting on the metro premises is punishable by a fine of ₹100.

Comment #5:

I hope you are innocent fight back and get back to work and train travel with your bicycle this time with any rule copy. If you are innocent nothing should stop you should fight back even if you dont have enough evidence . Expose them to society and put them to shame .believe your friends and family know your nature have confidence. We are all with you.

Reproduced here for Academic information.

Source : #Facebook #TheLogicalIndian

Car Insurance Fraud Alert

Earlier this month, the IRDA issued a caution note to the public warning against such calls, especially those that pretend to be from the authority. “IRDA does not involve itself, directly or through any representative, in sales of any kind of insurance or financial products and does not announce any bonus for policyholders or insurers,” the notice said.

A car company representative in charge of its insurance operations in the city said that the culprits get details of vehicle owners from Regional Transport Offices. They zero in on policies nearing renewal period and call posing as vehicle company representatives. “We advise customers not to divulge details of their policies to such callers. There have even been instances of fake receipts been given,” the representative said.

“Your vehicle insurance is due on XX date. If you apply for XXX insurance instead of the existing one by this weekend, you will get 60 per cent off on your premium. This company has a tie-up with us.”

If you receive calls like this and do not cross-check with your vehicle company, you may fall prey to what even the Insurance Regulatory and Development Authority (IRDA) has claimed is an increasing number of spurious calls making “fictitious and fraudulent offers”. And they do not spare anyone — not even a former Chief Minister.

One such customer recalled how he nearly fell prey to the call. “I had even readied a cheque, but the vehicle company called me in the nick of time. The caller also did not follow up because I chose to stay with the existing policy, not the one they were offering,” he said.

The IRDA has time and again urged the public to remain alert against frauds or scams perpetrated by those who claim to be employees of the authority or other insurance companies and lodge a police complaint if they come across such calls. 

Karnataka state Joint Commissioner of Police (Crime) Hemanth Nimbalkar said that the police had not come across any such complaint so far. 

Source - The Hindu

Facts about 0% EMI Finance Schemes | InvestmentYogiInvestmentYogi

Facts about 0% EMI Finance Schemes | InvestmentYogiInvestmentYogi:


This festival season you might have decided to upgrade your television set from LCD Flat Screen to LED Smart Television or purchase Samsung Note Book / Apple Iphone / Nokia Lumia replacing your old Android Mobile Handset, etc. Attractive promotional schemes from manufacturing companies and retail stores will roll out in the market from this week as Navratri – the first festival of the season is commencing from 5th Oct, 2013 followed by Dussehra, Diwali and Christmas. When we look at the statistics of last few years, purchase of consumer goods through 0% finance schemes has attracted many customers and sales through this scheme has contributed 20-30% to top-line for retailers in the market. However, before you take a decision to purchase consumer goods and get trapped in some promotional offers we recommend avoid 0% emi finance schemes offered by banks or credit cards because there are some hidden costs and disadvantages attached to it, which we will discuss in this article. Now, RBI has also stepped in from 24th Sep, 2013 to halt 0% finance schemes offered by banks to purchase consumer goods.

Disadvantages of purchasing consumer goods on 0% finance schemes are as follows:

1) Processing and documentation fees

Banks charge one time processing and documentation fees from customers, while purchase on 0% finance schemes. The fees vary from bank to bank, but will be in the range of Rs 500 to Rs 1,000. So, this will be additional cost on products you have purchased.

Take an example, Mr Abhishek opts to purchase 42 inch LED Smart Television Set which costs Rs 60,000 from store. Now, he applies for 0% finance scheme to pay monthly EMI on his purchase. To apply for the EMI schemes, he shells out additional cost of Rs 1,000 against processing and documentation charges. Now, his LED set would cost him for Rs. 61,000 (inclusive of processing charges).

2) Pay interest rates on your purchase

As per information gathered from various retail stores, it can be said that banks are charging hefty interest rates from customers while purchase on these finance schemes with 0% EMI. Interest rates vary for six months and nine months tenor among banks. These interest rates are as follows:

Banks                         6 months tenor     9 months tenor

State Bank of India  4.25%                     6.35%

HDFC Bank               5.2%                        7.25%

ICICI Bank               4%                            6-6.15%

Now, after RBI intervention in the 0 interest finance schemes to purchase consumer goods, banks such as SBI, Axis bank, Kotak Mahindra, etc have already withdrew zero percent facilities.

Taking forward Mr. Abhishek’s example, the cost price of Rs 60,000 for LED will have additional cost of interest expense over it. So, consider if he had opted to purchase LED with 6 months tenor (EMI instalments) from ICICI bank. The interest rate applicable will be 4% on his purchase. Now, EMI for 6 months will be Rs 10,117. So, at the end of 6 EMIs, total amount he pays off is Rs 60,702. So, purchase of RS 60,000 has now led him to pay additional cost Rs 1,702 (Rs 1,000 processing fee + Rs 702 interest cost).

3) Losing out on discount while shopping

Retail stores and shop dealers on roadside offer discount when you opt to purchase through cash or debit card. This discount varies on your negotiation skills and brand of the product you opt to purchase. I did a survey in few retail stores and dealer shops to understand cash discount they are ready to offer if shown interest to book the order immediately and pay full amount by debit card. Retail stores offered me cash discount in the range of 3-5% on purchase of LG, Panasonic, Toshiba, Onida, etc LED sets. On the other hand, dealer shops on roadside offer cash discounts between 5-10% while purchasing similar brands and models from them. But, getting a discount on Sony and Samsung LED’s is a difficult task as they are market leaders and have marginal operating price across all retail / dealer stores in India. However, it’s possible to get a price break or complementary gifts of Rs 2000 to Rs 2,500 on Sony and Samsung LEDs, but require smart negotiation skills to deal with the Store manager / Associates.

Next time, before stepping into a retail store to purchase any consumer good, get a best price for the same product from a nearby dealer store. Then, take a decision to purchase from a store which saves money from your pocket and gives better sales service.

Here, we can say Mr. Abhishek missed an opportunity to save Rs 3,000, assuming 5% cash discount on purchase of Rs 60,000 LED set. Instead, he paid Rs 61,702 for LED costing Rs 60,000 in the market.

Set your preferences before stepping out for shopping consumer goods

There are few questions which you require an answer to, before stepping out to purchase any consumer products in the market. There is a high probability you will be confused with various brands and features in the market. So, take an example of Mr. Abhishek, who decides to purchase LED television set. The points he would discuss with his family / wife will be:
Size of the LED set required to be installed in drawing room
Should we give preference to brand or additional features at best price?
Whether we want to buy from retail store or nearby dealer shop?
Payment option i.e. 0% emi finance scheme or cash (debit card)?
Set a budget price for consumer product you intend to purchase.

Based on a survey at few retail and dealer stores, I would like to share some insights as follows:
Associates at these stores tried to push products which have attractive features and gives them better commission (profit) on sales if you have not decided your preference before stepping out for shopping.
Associate gives demo of branded LEDs like Samsung and Sony on request but makes them inferior in features while compare to other brands like LG, Panasonic, Toshiba, etc. Also, prices of Samsung and Sony are much higher compared to other brands, so consumer easily gets diverted to other known brands while purchasing to get additional features at discounted price compared to branded market leaders. So, here if you have set your preference clearly, you will not fall in the trap of seller while shopping.

Conclusion

Let us calculate in table the total savings Mr. Abhishek will have from purchase of LED on cash with discount.

Particulars      Purchase on 0% finance schemes         Purchase on cash with discount
Cost price of LED (Rs)                 60,000                                             60,000
Add: Processing Fee (Rs)                  1,000                                             0
Add: Interest Payable (Rs)                 702                                                 0
Less: Cash Discount (@5%)                  0                                               3,000
Total Cost (Rs)                   61,702                                                         - 3,000
Total Savings (Rs)                4,702
Additional Expense Incurred (%) 8% (approx.) by opting for 6 months financing scheme


With purchase on cash, Mr. Abhishek has saved Rs 4,702 as computed above. This saving can be utilised for other expenses (shopping) or invest in short term FD to earn cumulative interest. So, for consumer benefit, RBI has also intervened and is now against 0% finance schemes on emi offered by banks at retail / dealer stores. They want shoppers (consumers) to do shopping on debit card/cash and get additional benefit of discount from stores. So, improve your negotiation skills to get the best price for consumer goods of your preference and enjoy your shopping in this festival season….!!!!!

The author has presented his personal views in this article through knowledge and interaction with people at few retail/dealer stores in Mumbai.

About the Author:

Hiral Thanawala is a PGDM (Finance) graduate and Certified Financial Planner with an experience of over 5 years in equity market and personal finance domain. He can be reached at expert@investmentyogi.com
'via Blog this'

Men harassed by women, raise voice against Anti-dowry law

Section 498 of the Indian Penal Code, Originally framed to shield women from dowry harassment now become a “tool of frame-up”, allegedly being used by women to extort alimony from husbands. At least that seems so from National Crime Record Bureau figures showing 1.65 lakh married men committed suicide between 2005 and 2007 as compared to 88,000 women.

Seeking equality for men, an NGO, ‘Save Indian Family Foundation’ (SIFF), while citing these figures, raised the issue of gender bias on the International Men’s Day today. The SIFF along with Parivar Raksha Samiti, Chandigarh, demanded institution of ‘men welfare ministry’, ‘national commission for men’, abolishment of (anti-male) gender biased laws and replacing the word wife in law with spouse.

Besides, the NGO also insisted on rationalising the working of the National Commission for Women (NCW) and holding it accountable for “false propagandas”, formation of an ombudsman to regulate the anti-male quotient in media, films and TV and generating awareness about health issues related to men like prostate cancer on the line of breast cancer, short life expectancy and high suicide rate.

Vikas Kapur, coordinator of SIFF, said over 22,000 Indian men had ended their life in reverse dowry harassment by their wives against 6,800 suicides by women harassed for dowry. In all the 6,800 suicides by women, their husbands had been sent to jail without any investigation. However, over 68 per cent of the men were later found to be innocent.

And in the 22,000 suicides by men, cases had been registered only in six incidents and not a single woman had been questioned as to why their husbands ended life, let alone any punishment.

The crime against men has increased at a rate of 42 per cent over the past five years. Not only in crime, in lifestyle, too, women are dominating men, said Kapur, citing statistics showing women's average annual earned income was US $1,471 in 2002, almost three times less than the average for income of men at US $4,723. Still, he said, shopping malls were dominated by women.

The representatives of the SIFF stated that though the government earned 82 per cent of taxes from men, it has not spent a single rupee for their welfare or enacted a single law to protect men. On the other hand, more than 98 per cent of men are in armed forces while less than 28 per cent serve in media industry.

The prostitution industry is dominated by 99.98 per cent women against 0.02 per cent of men while 70 per cent of women are employed in reception, office telecom, school, bank, etc, jobs, having ease of work with less burden.

Among the victims who shared their miseries on Thursday  were a former Lt Col from Pathankot, an elderly woman from Chandigarh whose husband died of mental trauma, a software engineer and a man who sought court’s permission to sell off his kidney to raise funds to pay maintenance to his estranged wife.

Source - Punjab News Line

Civil Nuke Liability Bill cleared for introduction

The Union Cabinet on Thursday cleared the Civil Nuclear Liability Bill. The proposed law will enable India to join the international convention on civilian liability in case of nuclear damage. The Bill will be introduced in the current session of Parliament. Although India has signed bilateral nuclear power agreements with countries like the United States, France, Russia and Kazakhstan, foreign companies would not be able to enter the Indian market in the absence of the liability law. The Bill proposes to cap the level of compensation at $450 million in the event of an accident at a nuclear facility. The responsibility for paying this compensation will rest on the operator and not the supplier or foreign companies building and installing reactors in India. The Bill will also allow monitoring by authorities for avoiding nuclear disasters. Multinational companies who are into nuclear power would never think of doing business without a legislation that limits the compensation and liability to the operator after the claims made in the Three Mile Island accident of 1979. The Three Mile Island plant operator and its insurers paid at least $82 million in publicly documented compensation to residents for loss of business revenue, evacuation expenses and health claims. Also, there were hundreds of out-of-court settlements that were subsequently reached with alleged victims of the fallout, with a total of $15 million paid out to parents of children born with birth defects. Source - Economic Times

LAW COMMISSION 230TH REPORT ON JUDICIARY REFORMS

REFORMS IN THE JUDICIARY - SOME SUGGESTIONS

1.1 The formation and functioning of the High Courts in India need drastic changes so that the people of the country may have fair and speedy justice and more faith in the system.

1.2 The post of the Judge of a High Court has importance under our Constitution and the incumbent is supposed to be not only fair, impartial and independent, but also intelligent and diligent. The general eligibility criterion is that a person should have put in ten years of practice/service in the legal/judicial field.

1.3 As a matter of practice, a person, who has worked as a District Judge or has practised in the High Court in a State, is appointed as a Judge of the High Court in the same State. Often we hear complaints about 'Uncle Judges'. If a person has practised in a High Court, say, for 20-25 years and is appointed a Judge in the same High Court, overnight change is not possible. He has his colleague advocates - both senior and junior - as well as his kith and kin, who had been practising with him.
Even wards of some District Judges, elevated to a High Court, are in practice in the same High Court. There are occasions, when advocate judges either settle their scores with the advocates, who have practised with them, or have soft corner for them. In any case, this affects their impartiality and justice is the loser. The equity demands that the justice shall not only be done but should also appear to have been done. In government services, particularly, Class II and upward, officers are not given posting in their home districts except for very special reasons. In any case, the judges, whose kith and kin are practising in a High Court, should not be posted in the same High Court. This will eliminate "Uncle Judges".

1.4 Sometimes it appears that this high office is patronized. A person, whose near relation or well-wisher is or had been a judge in the higher courts or is a senior advocate or is a political high-up, stands a better chance of elevation. It is not necessary that such a person must be competent because sometimes even less competent persons are inducted. There is no dearth of such examples. Such persons should not be
appointed and at least in the same High Court. If they are posted in other High Courts, it will test their calibre and eminence in the legal field.

1.5 The post of Chief Justice should not be transferable. This practice was introduced in our country after the 'Emergency' had been imposed. If we look back, we find that the High Courts earlier had better reputation than what they have at present. The Chief Justice, who comes on transfer for a short period of six months, one or two years, is a new man, rather alien for the place and passes his time anyhow. He has to depend on others for policy decisions in administrative matters. If the Chief Justice is from the same High Court, he will be in a better position to not only control the lower judiciary but also to assess the persons both from the bench and the bar for elevation to the High Court. This will also curtail the unnecessary delay in filling up the vacancies in the High Courts. If the functioning of the High Courts is to be improved, the policy of transferring the Chief Justices should be given up forthwith. When the policy of transfer of Chief Justices was finally upheld by the Hon'ble Supreme Court, an eminent jurist of the country commented that the judiciary had committed suicide. Now the time has come when this policy needs re-evaluation.

1.6 When we adopted and gave to ourselves the Constitution in 1949, the retirement age of Judges was fixed at 60 years for High Courts and 65 years for the Supreme Court. For the High Court Judges, 60 years was increased to 62 years in 1963. At that time the normal life expectancy was about 60 years. With the changes in social and financial set-up as well as medical facilities, the present normal life expectancy is about 70 years. Barring few exceptions, a person is fit and fine at the age of 62 or even 65 years. In our country, except for the judges, the retirement age in some quasi-judicial bodies has been increased. The retirement age in different tribunals has now been increased to 70 for chairmen and 65 for members. In the circumstances, the constitutional provisions need a change for enhancing the age of retirement of High Court and Supreme Court Judges at least by three years.

1.7 In almost every High Court, there is huge pendency of cases and the present strength of the judges can hardly be said to be sufficient to cope with the alarming situation. The institution of cases is much more than the disposal and it adds to arrears of cases. The litigating citizens have a fundamental right of life i.e. a tension-free life through speedy justice-delivery system. Now it has become essential that the present strength of the judges should be increased manifold according to the pendency, present and probable.

1.8 It is also necessary that the work of the High Courts is decentralized, that is, more Benches are established in all States. If there is manifold increase in the strength of the judges and the staff, all cannot be housed in one campus. Therefore, the establishment of new Benches is necessary. It is also in the interest of the litigants. The Benches should be so established that a litigant is not required to travel long.

1.9 It is true that the new establishments will require money, but it is necessary as a development measure, particularly, when efforts are being made for all-round development of the country. Therefore, the money should not be a problem. We have to watch and protect the interest of the litigants. We must always keep in mind that the existence of judges and advocates is because of the litigants and they are there to serve their cause only.

1.10 Sometimes, some advocates object to creation of new Benches and selection of new sites for construction of new buildings. But they raise objections in their personal, limited interest. Creation of new Benches is certainly beneficial for the litigants and the lawyers and a beginning has to be made somewhere.

1.11 There is huge pendency of cases in the apex court also. Now the time has come when not only the strength of the Hon'ble Judges in the Supreme Court should be increased and recommendations are made to fill up the vacancies soon but new Benches be also established in southern and eastern regions.

Number of working days and vacations

1.12 Considering the huge pendency of cases at all levels of judicial hierarchy, it has become necessary to increase the number of working days.

1.13 It has to be introduced at all levels of judicial hierarchy and must start from the apex court. With the increase in the salaries and perks of the Judges, it is their moral duty to respond commensurately. Opportunities to attend conferences/legal seminars in foreign countries should be given to all the Judges of the Supreme Court and Chief Justices of the High Court in turn. Frequent visits by the Judges to foreign countries at very high cost should be avoided in view of the austerity measures by the Government of India.

1.14 Of late, there has been a general erosion of work culture throughout the country. Government servants avoid discharging their duties and responsibilities. The Judiciary has also been affected by this evil.

1.15 It is high time when all the judges at different levels of judicial hierarchy must devote full time to judicial work and should not be under any misconception that they are Lords or above the society. Though this feeling should come from within, but some guidelines are necessary. Once judgments are reserved on constitutional matters by larger bench or otherwise, the judgments should be delivered within a reasonable time. There is long and inordinate delay in delivering judgments which should be avoided in public interest. If these suggestions are implemented, the functioning of the courts shall certainly improve.

Speedy justice

1.16 Speedy justice is the right of every litigating person. There is no denying the fact that delay frustrates justice. In the present set-up it often takes 10 - 20 - 30 or even more years before a matter is finally decided. In the recent past, litigation has increased immensely. The population growth, improved financial conditions, lack of tolerance and materialistic way of life may be some of the causes. But the delay in dispensation of justice has to be eliminated by taking effective steps otherwise the day is not far when the whole system will collapse. Recently, one Hon'ble Judge of Delhi High Court calculated that 464 years will be required to clear the arrears with the present strength of the judges in that High Court. The position may not be that gloomy but is still alarming.

1.17 In Allahabad High Court, more than eight and a half lacs of cases are pending. Criminal appeals of the year 1980-82, criminal revisions of the year 1990-95 are still pending. In second civil appeals and writ matters the position is almost same. The position is the same in all other High Courts. Institution of cases is much more than disposal and it adds to the arrears almost at all levels of judicial hierarchy. Even in subordinate courts, there is huge pendency of cases.

1.18 As stated above, in order to meet this contingency substantial increase in the number of judges and corresponding infrastructure is required at the earliest. Even if the judges and class III and IV employees are appointed, say, within three to six months basic infrastructure will need time. However, the money should be not a problem. It should be treated as a developmental work, a work to provide justice to all, a principle enshrined in the Preamble of our Constitution.

1.19 An effort has been made in Gujarat State and Delhi to have some evening courts. The same system can be introduced in other States as well.

1.20 The constitutional promise of securing to all its citizens justice, social, economic and political, as promised in the Preamble of the Constitution cannot be realized unless the three organs of the State i.e. legislature, executive and judiciary join together to find ways and means for providing to the Indian poor equal access to its justice system.

1.21 Speedy trial is guaranteed under article 21 of the Constitution of India. Any delay in expeditious disposal of criminal trial infringes the right to life and personal liberty guaranteed under article 21 of the Constitution. The debate on judicial arrears has thrown up number of ideas on how the judiciary can set its own house in order. Alarmed by the backlog of inordinate delay in disposal of cases, Fast Track Courts or Special Courts have to be constituted. Thus, Fast Track Courts are to tackle the section 138 Negotiable Instruments Act cases as the graph of such pendency is very high and alarming. It is high time to restore the confidence of people in the judiciary by providing speedy justice.

1.22 It is not uncommon for any criminal case to drag on for years. During this time, the accused travels from the zone of "anguish" to the zone of "sympathy". The witnesses are either won over by muscle or money power or they become sympathetic to the accused. As a result, they turn hostile and prosecution fails. In some cases, the recollection becomes fade or the witnesses die. Thus, long delay in courts causes great hardship not only to the accused but even to the victim and the State. The accused, who is not let out on bail, may sit in jail for number of months or even years awaiting conclusion of the trial. Thus, effort is required to be made to improve the management of prosecution in order to increase certainty of conviction and punishment for most serious offenders. It is experienced that there is increasing laxity in the court work by the police personnel, empowered to investigate the case.

1.23 Judiciary today is more deserving of public confidence than ever before. The judiciary has a special role to play in the task of achieving socio-economic goals enshrined in the Constitution while maintaining their aloofness and independence. Judges have to be aware of the social changes in the task of achieving socio-economic justice for the people.

Justice at easy reach

1.24 The Indian judicial system is constantly exposed to new challenges, new dimensions and new signals and has to survive in a world in which perhaps the only real certainty is that the circumstances of tomorrow will not be the same as those of today. The need of the hour is to erase misconception about the Judiciary by making it more accessible by utilizing the resources available to improve the service to the public, by reducing delays and making courts more efficient and less daunting.

1.25 Regarding decongestion, greater responsibility lies on the shoulders of the Governments of States or the Central Government. They are biggest litigants in the courts. They should approach the courts or contest cases only if necessary and not just to pass on the buck or contest for the sake of contesting. The time consumed in most of the cases by Courts of Sessions is somewhat under control and most of the cases are decided in a reasonable time-schedule. Main problem is about huge pendency in Magisterial Courts and the High Courts. It is absolutely essential to have additional courts for specifically trying the complaint cases filed under section 138 of the Negotiable Instruments Act. The present state of affairs defeats the very object with which the provision was inserted in the Negotiable Instruments Act. Further, large numbers of petty offence cases should be taken out of the normal court channel to be decided by the Special Magistrates by appointing retired officers as Special Magistrates.

1.26 A speedy trial is not only required to give quick justice but it is also an integral part of the fundamental right of life, personal liberty, as envisaged in article 21 of the Constitution. The Law Commission is putting forth few suggestions to identify and remedy the causes of such delays in this Report, of course, after identifying major hurdles and impediments which cause delay in the disposal of criminal cases.

1.27 The Law Commission of India is of the firm opinion that considering the alarming situation and the pendency of cases and the constitutional rights of a litigant for a speedy and fair trial, the Government of India should direct the State authorities to set up Fast Track Courts in the country, which alone, in the opinion of the Law Commission, will solve the perennial problem of pendency of cases.

Integrity, virtue and ethics

1.28 The term integrity when applied to human attributes refers to honesty, reliability, purity, trustworthiness, incorruptibility, sincerity, honour, decency, etc. Mahatma Gandhi at one time said that "purity of life is the highest and truest art".

1.29 And in the words of Marcus Aurelius, "a man should be upright, not be kept upright". A person of integrity will do the right thing even when nobody is watching. Mahatma Gandhi said that "the truest test of civilization, culture and dignity is character and not clothing".

Governance

1.30 The term 'governance' is derived from a Latin term that literally means steering. It refers to the processes and systems by which an organization or society operates; the processes by which decisions are made that define expectations, grant power, or verify performance.

1.31 The ideal concept of public officer, expressed by the words 'a public office is a public trust', signifies that the officer has been entrusted with public power by the people; that the officer holds this power in trust to be used only for their benefit and never for the benefit of himself or of a few; and that the officer must never conduct his own affairs so as to infringe the public trust.

1.32 Citizens have a legitimate expectation that the public servants will serve the public interest with fairness and manage public resources properly on a daily basis. The increased democratization and globalization has resulted in increased visibility of the public officials. Critical questions are nowadays asked about the way in which cases have been dealt with, the justice of the decisions, the exercise of discretions, and the morals of public servants. Leaders are increasingly being called upon to account for their actions by the communities affected by those actions.

Anti-corruption

1.33 Corruption in reference to public office has been defined as the abuse of power for purposes of private gain.

1.34 In public affairs, there often arises a conflict between private wealth and public power. This is often the result of selfishness and greed. Mahatma Gandhi said that the earth provides enough to satisfy every man's needs, but not enough to satisfy every man's greed. The conflict needs to be mediated upon. Institutions that fail to mediate between private wealth and public power run the risk of becoming dysfunctional and trapped by wealthy interests. Corruption is one symptom of such failure whereby personal interests overcome public goals.

1.35 Fighting corruption is one of the facets of promoting good governance. But governance issues are far much broader than anticorruption alone. For example, a public officer may be honest and yet inefficient or incompetent. Efforts to promote good governance must therefore be broader than anti-corruption campaigns.

1.36 Article 14 of the 'Basic Principles on the Role of Lawyers' adopted by the Eighth United Nations Congress on the Prevention of Crime and the Treatment of Offenders, Havana, Cuba, in 1990 states:
"Lawyers, in protecting the rights of their clients and in promoting the cause of justice, shall seek to uphold human rights and fundamental freedoms recognized by national and international law and shall at all time act freely and diligently in accordance with the law and recognized standards and ethics of the legal profession."

1.37 Continuing professional development is necessary for all legal practitioners, State law officers and judicial officers to improve and sustain their proficiency. There should be put in place mechanism for refresher courses and attendance at them as a pre-condition for renewal of practising certificates for advocates.

1.38 The Indian Constitution is the source of every law that was and is prevalent in our society. The Constitution guarantees to all Indian citizens equal protection of public as well as personal rights. But these rights are of no avail if an individual has no means to get them enforced. The enforcement of the rights has to be through the courts, but judicial procedure is very complex, costly and dilatory putting the poor at a distance from justice.

1.39 The Britishers established the current pattern of legal system present in India today, after the establishment of the English rule in the country. In the year 1857, the first step was taken in the direction of imparting formal legal education in the country. The Britishers began enacting statutes, after the revolt of 1857, which resulted in the introduction of a legal system that was moulded along the lines of the legal system then prevailing in the United Kingdom with an exception to laws pertaining to religious denominations in India.

Access to justice

1.40 Traditional concept of "access to justice" as understood by common man is access to courts of law. For a common man, a court is the place where justice is meted out to him/her. But since the laws enacted were in English and the proceedings of all the courts were highly complicated, confusing and expensive for the Indian public, the 'English' illiterate Indian public found it difficult to get access to the justice-delivery system. As a solution, the need to have lawyers was felt as an effective mediator between the legal world and the common man.

Therefore, we can see that a lawyer in addition to being champion at the various laws also has a social responsibility of helping the ignorant and the underprivileged to attain justice.

1.41 The State in contemporary scenario is welfare-oriented. It is one of the most important duties of a welfare state to provide judicial and non-judicial dispute resolution mechanisms to which all citizens have equal access, for the resolution of their legal disputes and enforcement of their constitutionally guaranteed fundamental rights. Poverty, ignorance or social inequalities should not become barriers to it.

1.42 Article 39A of the Constitution provides for equal justice and free legal aid. The said article obligates the State to promote justice on a basis of equal opportunity and, in particular, provide free legal aid by suitable legislation or schemes or in any other way, to ensure that opportunities for securing justices are not denied to any citizen by reason of economic or other disabilities.

1.43 Lok Adalats, Nyaya Panchayats, Legal Services Authorities are also part of the campaign to take justice to the people and ensure that all people have equal access to justice in spite of various barriers like social and economic backwardness.

1.44 Large population, more litigation and lack of adequate infrastructure are the major factors that hamper our justice system. Regular adjudication procedures through the constant efforts of Legal Services Authorities will act as catalysts in curing these maladies of our system.

1.45 Disposal of legal disputes at pre-litigative stage by permanent and continuous Lok Adalats would provide expense-free justice to the citizens of this country. It also saves the courts from additional and avoidable burden of petty cases enabling them to divert their court-time to more contentious and old matters. Legal literacy and legal awareness are the principal means to achieve the objective for ensuring equality before law for the citizens of our country.

1.46 Legal profession of the country, as we know it today, is more than two centuries old. We can legitimately expect that the future of this profession ought to be very bright, particularly in the context of the enormous strides our country is making in various fields and human rights awareness. Public interest has to be its motto and service in the cause of justice its creed. Mahatma Gandhi was a barrister who practised law without compromising truth. Abraham Lincoln said: "Discourage litigation, persuade your neighbours to compromise whenever you can. Point out to them how the nominal winner is often a real loser in fees, expenses and time".

1.47 A stark reality that stares at our face is the fact that more than 70% of the people of this country are illiterate. The noble objective flowing from the Preamble of the Constitution and the earnest wish and hopes expressed in the Directive Principles shall remain on paper unless the people in this country are educated.

Alternate Dispute Resolution

1.48 With the march of time, new demands emerge, which sometimes make the existing system outdated or non-functional, requiring it to be replaced by a new one. Law should also respond to the demands of the society. The alternate dispute resolution methods have evolved as a result of this vision.

1.49 The first avenue where the conciliation has been effectively introduced and recognized by law is labour law, namely, the Industrial Disputes Act, 1947. Conciliation has been statutorily recognized as an effective method of dispute resolution in relation to disputes between workers and management. The only field where the courts in India have recognized Alternate Dispute Resolution (ADR) is in the field of arbitration. Another area where ADR is recognized in India is family law. The legislation which emphasizes ADR is the Legal Services Authorities Act 1987.

1.50 Provisions have been made in the Legal Services Authorities Act for settling cases through Lok Adalats; a Lok Adalat generally comprises a judicial officer, serving or retired, a lawyer, and a person of a social welfare association, preferably, a woman. Power has been given to Lok Adalats to dispose of disputes referred to them by arriving at a compromise or settlement between the parties; awards of Lok Adalats are deemed to be decrees of civil courts or orders of other courts or tribunals; every award made by a Lok Adalat is treated as final and binding on all the parties to the dispute, and no appeal lies to any court against the award.

Advantages of ADR

1.51 Advantages of ADR are many - it is less expensive, less time consuming, free from technicalities vis-à-vis conducting of cases in law courts, parties involved are free to discuss their differences of opinion without any fear of disclosure before any law courts, and the last, but not the least, there is no winning or losing for any of the parties involved; so, their grievances are redressed without causing any damage to the relationship between them.

1.52 Another right and welcome step taken was the enactment of the Consumer Protection Act 1986 (CP Act) for settlement of consumer disputes and for matters connected therewith. The aim of the CP Act is to provide for an effective, inexpensive, simple and speedy redressal of consumer grievances, which civil courts are not able to provide.

1.53 The Family Courts Act 1984 (FC Act) was enacted to provide for the establishment of Family Courts with a view to promote conciliation in, and secure speedy settlement of, disputes relating to marriage and family affairs and for matters connected therewith.

1.54 The Law Commission of India in its 59th Report (1974) had also stressed that in dealing with disputes concerning the family, the court ought to adopt a humane approach different from that adopted in ordinary civil proceedings, and that it should make reasonable efforts at settlement before commencement of the trial.

Appointment of judges

1.55 In selecting persons for appointment as judges, every endeavour should be made to ensure that persons committed to the need to protect and preserve the institution of marriage and to promote the welfare of children and qualified by reason of their experience and expertise to promote settlement of disputes by conciliation and counselling are selected. Justice in all its facets - social, economic and political - is to be rendered to the masses of this country without any further loss of time -the need of the hour.

Three players in Judiciary

1.56 The first player is the Government. The Government is mostly at fault by not filling up vacancies which they know well in advance. The Government fails in appointing quality judges and providing proper infrastructure, including the basic things like a good library, typists, etc.

1.57 The second player is the lawyers. We should realize that adjournments, even if they are in favour of clients, are not in favour of the system. In a number of regulatory cases, there is no real need for appeals or adjournments. Given the huge backlog of cases, practical ways and means need to be thought of, to solve such problems. Ethics of lawyers has also become questionable. There is a Bar Council that has to look after ethics of lawyers, but it has rarely taken action against tainted lawyers. Everything becomes customary and loses meaning.

1.58 The third player, of course, is the judges. Unless they display work-ethics, no recommendations can be of use to them. Fairness, speed and quality should be key values for the judiciary, as for all other sectors.

1.59 The Judiciary is under great pressure. We have about 10-11 judges per million population right now. The Supreme Court has recently directed that we should have 5 times the number of judges we currently have. - All India Judges' Association v. Union of India, (2002) 4 SCC 247

Reforms

1.60 All reforms need to take place in an integrated manner. The police,prosecution, lawyers and courts, must be thought of as being cohesive. The topic of judicial reforms has of late become very important because the public has lost faith in the system. Judicial accountability is connected with the larger area of judicial reforms. Everyone is concerned about the large delays in disposal of cases, and the agenda for judicial reforms must first tackle the problem of this backlog. We have seen a lot of Law Commission Reports and various suggestions - one of which is
the formation of tribunals to take away some of the workload of High Courts, but still, High Courts are burdened with a large number of cases. Increasing the manpower in judiciary is the need of the hour. Also, the problem faced by the judiciary can be solved, if we have scientific data about the cases that clog the dockets.

Pendency

1.61 Pendency is a normal feature of any system but is assuming great proportions in courts. This will necessitate courts to prescribe time-limits for all cases. To deal with this, there can't be one prescribed limit, but the kinds of cases need to be identified and prioritized. So setting time standards is essential and it will vary for different cases, and also for different courts depending on their disposal-capacity. This will be necessary to assess the performance of the courts and judicial accountability.

Technology

1.62 We have modern technology, which facilitates us to collect a lot of information and making it available to Chief Justices, so that they are able to allocate their manpower efficiently. Digital techniques and tools are at our disposal, to collect information from an entire database from the time a case is instituted in a court of law to the final stages of appeal. Building up a judicial database will enable us to assess the performance of the courts as an institution, and the Chief Justices will be able to use it to assess the individual performance of judges. This will go a long way in identifying what the backlog is, what types of cases are clogging the dockets, etc.

1.63 As a part of digital resource management, we have home pages and websites, where judgments of courts can be instantly posted. At the moment, it takes a long time for courts to give copies of judgments; with being instantly posted on the home page, they will be easily and readily available to everyone. This is an important step for using the technology effectively, to expedite the process of judgments being accessible.

1.64 Now, digital technology offers us new packages like database, ERP tools, court management practices - these will help in increasing the productivity of courts; video-conferencing - through which we can record evidence. There is, therefore, vast technology available for the courtroom, for enhancing the quality of justice, and finding the truth - after all, justice is the finding of truth. Coming back to accountability, like any institution, judiciary is not devoid of vices, but still they are akin to temples of justice. But still, corruption cannot be acceptable. How does one deal with corruption? Impeachment was thought to be the remedy to deal with errant judges, but we found that it is not working well; we have to find some internal institutional mechanism, a sort of peer committee, enabling judges to deal with such issues. We are not very sure that increasing number of courts and judges will ameliorate the situation, unless there is a simultaneous productivity increase in courts! We feel strongly about the issue!

1.65 Judicial reform, as is being looked at, is essential for the country's overall development, not just economic; in India, the problem is more human than economic. Ninety per cent of the litigation is by rural people; parties are fighting for even half an acre of land; families are being ruined. Therefore, there has to be an overall solution.

Computerization of lower courts

1.66 The government has proposed to computerize the lower courts in future. A scheme for computerization of all the 13,000 district and subordinate courts, prepared in accordance with the National Policy and Action Plan, has been approved by the government on 8th February, 2007 with National Informatics Centre (NIC) as the implementing agency. The coverage of the project includes Information and communication Technology (ICT) enablement of all the district and subordinate courts and upgrading of the ICT infrastructure of the Supreme Court and all the High Courts.

1.67 The first phase of the project is being implemented in all the States and Union territories at an estimated cost of Rs.442 crores. All the lower courts in the country including the courts in the States of Chhattisgarh, Madhya Pradesh, Orissa and Uttar Pradesh have been taken up for computerization in the first phase.

1.68 Court records can be digitized to improve the productivity and efficiency of the courts. Computerization of the Registry of the Supreme Court has had its beneficial effects in slashing down arrears and facilitated scientific docket management.

1.69 E-filing and video-conferencing by dispensing with physical appearance saves precious time and resources and makes justice more easily accessible and a less expensive option.

Fast Track Courts

1.70 The government has already taken several initiatives on the path of judicial reforms. 1562 Fast Track Courts have been set up which have disposed of more than 18 lakh cases transferred to them. 190 Family Courts, established in various parts of the country, have speedily settled matrimonial disputes through reconciliation.

Reforms at the village level

1.71 The Gram Nyayalayas Bill has been enacted to set up more trial courts at the intermediate Panchayat level. The welcome feature is that the procedures have been kept simple and flexible so that cases can be heard and disposed of within six months. It is also envisaged that these courts will be mobile, to achieve the goal of bringing justice to people's doorsteps. Training and orientation of the judiciary, especially in frontier areas of knowledge, like bio-genetics, IPR and cyber laws, need attention.

1.72 The Constitutional promise of securing to all its citizens, justice, social, economic and political, as promised in the Preamble of the Constitution, cannot be realized, unless the three organs of the State i.e. legislature, executive and judiciary, join together to find ways and means for providing the Indian poor, equal access to its justice system.

1.73 However, we are of the view that not an inch of change can be brought about if the advocates do not work in accordance with the responsibility that is cast upon them by the Constitution. Every lawyer is vested with the responsibility to foster the rule of law and dominance of the Constitution.

1.74 Thus, it cannot be gainsaid that economic development and law go hand in hand. We can't think of economic progress, unless changing needs of the society are supported by appropriate law.

1.75 We need:

·Speedy justice

·Reduction in costs of litigation

·Systematic running of the courts

·Faith in the judicial system

1.76 The Indian Constitution provides a beautiful system of checks and balances under articles 124(2) and 217(1) for appointment of Judges of the Supreme Court and High Courts where both the executive and the judiciary have been given a balanced role. This delicate balance has been upset by the 2nd Judges' case (Supreme Court Advocates-on-Record Association v. Union of India)2 and the Opinion of the Supreme Court in the Presidential Reference (Special Reference No.1 of 1998) - 1998 (7) SCC 739. It is time the original balance of power is restored. The Law Commission has in its 214th Report (2008) recommended accordingly.

1.77 The above recommendation for the need for an urgent and immediate review of the present procedure for appointment of judges is further fortified by his forthright views expressed by Shri Justice J. S. Verma, a former Chief Justice of India, who had written the lead judgment in the 2nd Judges' case, expressed in an interview to the Frontline Magazine published in its issue of October 10, 2008. When asked: "You said in one of your speeches that judicial appointments have become judicial disappointments. Do you now regret your 1993 judgment?" Justice Verma responded: "My 1993 judgment, which holds the field, was very much misunderstood and misused. It was in that context I said the working of the judgment now for some time is raising
serious questions, which cannot be called unreasonable. Therefore, some kind of rethink is required. My judgment says the appointment process of High Court and Supreme Court Judges is basically a joint or participatory exercise between the executive and the judiciary, both taking part in it. Broadly, there are two distinct areas. One is the area of legal acumen of the candidates to adjudge their suitability and the other is their antecedents. It is the judiciary, that is, the Chief Justice of India and his colleagues or, in the case of the High Courts, the Chief Justice of
the High Court and his colleagues (who) are the best persons to adjudge the legal acumen. Their voice should be predominant. So far as the antecedents are concerned, the executive is better placed than the judiciary to know the antecedents of candidates. Therefore, my judgment said that in the area of legal acumen the judiciary's opinion should be dominant and in the area of antecedents the executive's opinion should be dominant. Together, the two should function to find out the most suitable (candidates) available for appointment."

1.78 The views of the Parliamentary Standing Committee on Law and Justice which has recommended scrapping of the present procedure for appointments and transfers of Supreme Court and High Court Judges are of great relevance in this context. The Hindustan Times of October 20, 2008 reported: 'The Law Ministry has agreed to review the 15-year-old system after the Parliamentary Standing Committee on Law and Justice recommended doing away with the committee of judges (collegium).

Presently, the collegium decides the appointments and transfer of judges. Interestingly, the recommendations come close on the heels of recent cases of corruption against judges of the top courts in the country. Law Minister H. R. Bhardwaj told Hindustan Times that the House Committee's recommendation had been accepted, and an action-taken report prepared by the Ministry would now be placed before Parliament. "Collegium system has failed. Its decisions on appointments and transfers lack transparency and we feel courts are not getting judges onmerit. (……) The government cannot be a silent spectator on such a serious issue", Bhardwaj said. The House Committee had said: "Through a Supreme Court judgment in 1993, the judiciary wrested the control of judges' appointments and transfers. The collegium system has been a disaster and needs to be done away with". H. R. Bhardwaj, Minister for Law and Justice, said "It is the right time to review this important matter". "There was no problem till 1993 when the judiciary tried to rewrite the Article of the Constitution dealing with appointments. They created a new law of collegium which was wrong. In a democracy, the primacy of Parliament cannot be challenged", he said.'

1.79 Dr. E. M. Sudarsana Natchiappan, Member of Parliament and the Chairman of the Department Related Parliament Standing Committee on Personnel, Public Grievances, Law and Justice, in its 28th Report presented to the Hon'ble Chairman of Rajya Sabha on 4th August, 2008, has stated thus:
"I would like to conclude by saying that the Government should expeditiously see to it that appointments of Judges in High Courts and Supreme Court are done in a transparent way. We have recommended in two ways: One is, we have to see to it that the collegium system has to be done away with. Instead we have suggested that an Empowered Committee, which comprises representatives of the Judiciary, the Executive and Parliament, should be set up. That was our recommendation in the Judges(Inquiry) Bill. And, subsequently, since appointments will be delayed, we have said that from the very beginning of identifying the eligible persons, the various places of recommendations, be it at the level of the High Courts, or, at the Governor's level or at the level of the Departments, and finally be the Supreme Court, should be transparent, and this should be put up in the web site then and there so that the person, who is going to occupy the Constitutional place, is known to the public, and their background should be allowed to be discussed by the public and, finally, it has to go through the process of issuing warrant by the President of India.

But, what is happening presently is that from the day one of identifying the person till the issuance of the warrant, nothing is known to anybody except to the persons who are involved in it. Even the persons, who are identified and who are going to be made as judges of the High Court or of the Supreme Court, may not know about it. This type of secrecy is not good for democracy."

1.80 It may be noted in this context that in every High Court the Chief Justice is from outside the State as per the policy of the Government. The senior-most Judges who form the collegium are also from outside the State. The resultant position is that the judges constituting the collegium are not conversant with the names and antecedents of the candidates and more often than not, appointments suffer from lack of adequate information.

1.81 As recommended in the Law Commission's 214th Report, two alternatives are available to the Government of the day. One is to seek a reconsideration of the three Judges' cases by the Hon'ble Supreme Court. The other alternative is to enact a law restoring the primacy of the Chief Justice of India and the power of the Executive in making the appointments.

II. RECOMMENDATIONS

2.1 Hon'ble Shri Justice Asok Kumar Ganguly, a Supreme Court Judge, in his article titled "Judicial Reforms" published in Halsbury's Law Monthly of November 2008 has suggested a few norms, which the judges and lawyers must agree to follow very rigorously, in order to liquidate the huge backlog. The suggestions are quoted below:

[1] There must be full utilization of the court working hours. The judges must be punctual and lawyers must not be asking for adjournments, unless it is absolutely necessary. Grant of adjournment must be guided strictly by the provisions of Order 17 of the Civil Procedure Code.

[2] Many cases are filed on similar points and one judgment can decide a large number of cases. Such cases should be clubbed with the help of technology and used to dispose other such cases on a priority basis; this will substantially reduce the arrears. Similarly, old cases, many of which have become infructuous, can be separated and listed for hearing and their disposal normally will not take much time. Same is true for many interlocutory applications filed even after the main cases are disposed of. Such cases can be traced with the help of technology and disposed of very quickly.

[3] Judges must deliver judgments within a reasonable time and in that matter, the guidelines given by the apex court in the case of Anil Rai v. State of Bihar, (2001) 7 SCC 318 must be scrupulously observed, both in civil and criminal cases.

[4] Considering the staggering arrears, vacations in the higher judiciary must be curtailed by at least 10 to 15 days and the court working hours should be extended by at least half-an-hour.

[5] Lawyers must curtail prolix and repetitive arguments and should supplement it by written notes. The length of the oral argument in any case should not exceed one hour and thirty minutes, unless the case involves complicated questions of law or interpretation of Constitution.

[6] Judgments must be clear and decisive and free from ambiguity, and should not generate further litigation. We must remember Lord Macaulay's statement made about 150 years ago.

"Our principle is simply this -

Uniformity when you can have it,

Diversity when you must have it,

In all cases, Certainty"

[7] Lawyers must not resort to strike under any circumstances and must follow the decision of the Constitution Bench of the Supreme Court in the case of Harish Uppal (Ex-Capt.) v. Union of India reported in (2003) 2 SCC 45.

Things I know are easier written, than done and for all these reforms, what is required is a lot of discipline and introspection and a realization that without these reforms, the present system is under threat. Both, judges and lawyers, have to change their mindsets. Unless our mental barriers to reforms are mellowed, all doses of external remedies are bound to fail. We must remember what Gandhiji said: "If you want to change anything, you be the change".'

2.2 We adopt the above suggestions and recommend accordingly.

(Dr Justice AR. Lakshmanan)

Chairman

(Prof. Dr Tahir Mahmood) (Dr Brahm A. Agrawal)

Member Member-Secretary

Source - Law Commission Web Site