By LE Desk
Ahmedabad, May 5: The Centre has told the Gujarat High Court that it is augmenting oxygen supply for COVID-19 patients from all available sources within India and also importing it from other countries through “diplomatic channels as well as the personal intervention of the political executive”.
In a report on the supply of medical oxygen submitted before the High Court on Monday, the Centre said a total allocation of 8,410 metric tonnes of oxygen has been made for 22 high burden states and Union Territories based on their demand, the Centre told the High Court on Tuesday, as reported by news agency PTI.
The states should also make an effort to manage their oxygen demand through rational usage of this “scarce and critical resource” by continuous and close monitoring of hospitals and stringent audit of the oxygen usage, it said
A division bench of Chief Justice Vikram Nath and Justice B D Karia had sought the Centre’s response while hearing a PIL taken up suo motu (on its own) on the COVID-19 situation.
The Union government said it is “augmenting oxygen supply from all available sources within India and also importing oxygen from other countries using not only the diplomatic channels but also personal intervention of the political executive.”
The process is going on at the national level and is also being undertaken at an international level, it stated.
Any deviation by any judicial order based upon fact, situation and considerations existing in one state will “completely frustrate the whole exercise and shall have a cascading effect”, the Centre said.
“It is submitted that while this exercise is primarily in the nature of managing the supply side of medical oxygen, it is imperative that there are simultaneous efforts to manage the demand side by all the states by focusing on rational usage of this scarce and critical resource in the present circumstances through continuous and close monitoring of all hospitals as well as stringent measures of oxygen usage audit,” the Centre said.
It said the supply of liquid medical oxygen (LMO) by the steel sector increased from 1,000 MT per day in the first week of April 2021 to around 2,600 MT on April 21.
From April 28 onwards, Gujarat was allocated 975 MT oxygen, it said.
Based on the projected requirements of these critically affected states, 4,880 MT, 5,619 MT and 6,593 MT were mapped for the supply of medical oxygen to 12 states with a high number of COVID-19 cases, to meet their projected demand as on April 20, April 25, and April 30, respectively, and duly approved, it said.
The initial demand for 15 states was revised to 5,619 MT from 4,880 MT as on April 20, with the requirement of Gujarat being at 1,000 MT, it said.
Against its production capacity of 847 MT as on April 28, Gujarat required 1,000 MT LMO, and was allocated 975 MT, out of which the state received 902 MT, the central government said.
“No stone is left unturned to ensure quickest possible transit of medical oxygen,” it said, adding that the defence aircraft and Indian navy ships are being used for the purpose.
By LE Desk
Mumbai, May 5: A man convicted of allegedly abetting his wife’s suicide has been set free by the Bombay High Court. Overturning the judgement passed by the Satara sessions court, the bench of Justice Bharati Dangre held that the findings of the lower court were grossly erroneous.
The Satara sessions court had disbelieved the woman’s dying declaration on the account that she had suffered 100 per cent burns and was not in a condition to record a statement.
Justice Dangre of the Bombay HC said the percentage and degree of burns are not a decisive factor that can determine the credibility of a person’s dying declaration, India Today reported.
Dhavalkumar Dombe married his wife Aruna in May 1992. Her family had opposed their love marriage.
A medical practitioner, Aruna had a clinic in Satara, while Dombe owned an oil business and a shop in Maharashtra’s Karad. The couple rented a home after getting married.
On August 14, 1992, Aruna died after suffering fatal burns. Her brother then registered a case against Dombe, alleging that Aruna set herself on fire because she was ill-treated and harassed by her husband for dowry.
A lower court, on the basis of the police chargesheet, sentenced Dombe to five years in prison.
Dombe then moved the Bombay High Court, challenging the sessions court judgement. In his plea, he claimed that his wife’s demise was a case of accidental death.
Aruna’s gown caught fire as she was cooking in front of a stove, claimed Dombe. He went further to state that he even tried to extinguish the fire and sustained injuries in the process. I was even admitted to the hospital to get my own burns treated, said Dombe.
Stating that the sessions court judge had erroneously disregarded Aruna’s dying declaration, Dombe told the HC that merely because the alleged commission of suicide was within 7 years of marriage, it would not lead to a presumption under Section 113-A of the Indian Evidence Act.
Section 113-A of the Indian Evidence Act talks about ‘presumption as to abetment of suicide by a married woman.
It says that when dealing with the question of whether a husband or any relative abetted the suicide of a married woman, the evidence must point to her being subjected to cruelty by said husband or relative within a period of seven years of marriage.
Justice Dangre of the Bombay HC observed that the case was peculiar in the sense that the husband is relying upon the dying declaration, unlike the regular circumstances of dowry cases where the defence attacks the dying declaration.
“In such a situation, the burden of the accused is much lighter and he has to only prove a reasonable probability,” Justice Dangre observed.
The high court noted that the prosecution had completely rejected the dying declaration and therefore, did not bring it on record nor did it examine the Magistrate, who recorded the said dying declaration, India Today reported.
However, the dying declaration of the deceased cannot be faulted on account of the admitted fact that the deceased had suffered 100 per cent burns or that the dying declaration did not bear the certificate of the doctor, particularly when he had stepped into the witness box, Justice Dangre noted.
The judge added that in the absence of a certificate from the doctor, when the Executive Magistrate himself deposed that the patient was conscious and oriented when he recorded the dying declaration, there is no reason to doubt his testimony.
Justice Dangre held that the sessions judge erred in relying upon witness deposition which had lapses while rejecting Aruna’s dying declaration to hold the appellant guilty of the offences.
“A judge does not sit on trial to see that no guilty escape from the clutches of law, but he must also see no innocent is punished,” Justice Dangre exclaimed.
By LE Desk
Mumbai, May 5: The Bombay High Court has upheld the conviction of a man charged with murdering three women in 2015 on the basis of circumstantial evidence. He has been given a life sentence.
The bench of Justice Sadhana S Jadhav and Justice N R Borkar said, “Witnesses may lie but circumstances speak for themselves,” India Today reported.
The bench was of the view that the cumulative effect of the circumstantial evidence negates the innocence of the accused in the case at hand. They concluded that the accused is the only perpetrator of the crime.
The complainant, a female resident of Pen in Raigad district of Maharashtra, had called up her mother who lived with her two younger sisters on February 12, 2015. However, her mother’s phone was switched off. She called up one of her younger sisters who said that their mother had gone to live with her brother a few days ago. The daughter called up all her relatives but was not able to trace her mother. She then called her sister again only to find that even her phone was switched off.
She learnt from her cousin that her younger sister had had a love affair with the accused Ashok Dhavale who was residing with his uncle Dhondiba in a village called Maldev. The villagers had opposed the love affair and a consequent quarrel with the villagers resulted in him leaving Maldev.
More than a month later, on March 27, the complainant received a phone call from her mother’s cell phone. An unknown person on the line informed her that her mother was in critical condition and her sister was on oxygen support. He told her that he would call again after half an hour but she received no call.
She had no idea where her mother was hospitalized or from where she had received the call. On April 1, she received another call from the same person. He asked her to come alone to a place if she wanted to meet her mother. Both these times, the woman did not get to speak to her mother.
The woman’s in-laws advised her to register a missing complaint with the Pen police. A fortnight later, a case was registered. On April 19, Dhavale was arrested as the woman expressed her apprehensions about him.
During investigation, the police found the mother’s phone on him. The police also tracked down three bodies, one of the mother and two of the sisters. Additionally, they found love letters exchanged between Dhavale and one of the sisters.
According to India Today, the prosecution told the court that Dhavale was in love with one of the sisters Manisha. Since the villagers did not approve of it and turned him out, he got agitated and hatched a plan to eliminate the family.
Accordingly, he called the three women to Raghuvir Ghat, killed them and threw the dead bodies in the valley. He even attempted to call the married daughter, the complainant in the case.
Forensic experts told the court that the three bodies were in an advanced stage of decomposition and hence, the cause of death could not be determined. However, all three were killed at the same time, the experts said.
The police told the court that the mother and two daughters went missing after visiting a village called Malshed on February 9, 2015.
Dhavale was convicted by Alibaug Sessions Court. He then approached the high court with the contention that the whole case against him rested on suspicion. He said there was no proof and that certain procedural lapses by the police had cast a reasonable doubt over the prosecution’s case.
From the evidence before it, the court concluded that the calls were made by Dhavale himself. The court also said that the discovery of the fact that the missing persons had died and the location of the decomposed bodies came from Dhavale. A few belongings of the accused were found at the crime scene.
There was no evidence to show that the police could have found the location of the bodies before Dhavale gave them that information.
The court said that “immaterial and irrelevant lacunae in investigation would not entitle an accused to benefit of doubt. A misplaced leniency would result in miscarriage of justice, especially in cases like the present one where a mother and daughter have died a homicidal death at the hands of the accused.”
Dismissing Dhavale’s appeal, the court directed the appellant to surrender before the Sessions Court within eight weeks if out on bail or parole.
By LE Desk
Hyderabad, May 5: The Telangana High Court has found fault with the Medak district collector and other officials in conducting a survey and inspection in the lands of Jamuna Hatcheries, which belongs to the family members of former minister Etela Rajender, without issuing notices or intimation to them. The court said that the action was a clear violation of Articles 14, 19, 21 and 300-A of the Constitution, and Section 153 of the Telangana State Land Revenue Act.
“There is no provision of law which is shown to the court under which the district collector has conducted a detailed survey and filed a report. The only reason shown is that a complaint was received against the petitioners stating that assigned lands have been encroached by the petitioners,” the high court said, as reported by the Deccan Chronicle.
These observations were made by Justice Tadakamalla Vinod Kumar on Tuesday while hearing a house motion petition filed by Jamuna Hatcheries Private Limited, represented by its director Etala Nithin and his mother E. Jamuna. The petition was against trespassing by the Medak district collector and other revenue officials into their lands in Hakimpet and Achampet villages of Medak district and conducting the survey without issuing notices to them.
The petitioners urged the court to direct the authorities to not take any coercive steps against them based on a report prepared by the officials, which stated that the petitioners had encroached on 66 acres of assigned land.
Responding to the officials’ hotfoot in preparing a report within 24 hours by conducting a survey and enquiry on allegations, Justice Tadakamalla Vinod Kumar wondered if the Chief Secretary, collectors and other officials showed similar quick response to all complaints, which came to their notice.
“If so, what the authorities have acted on the complaints about violations of GO111. Have the authorities never received complaints, which are grievous to it?” Justice Vinod Kumar asked.
Stating that prima facie there has been a serious violation of the principles of natural justice and also non-adherence of the provisions of the Telangana State Land Revenue Act, Justice Vinod Kumar suggested, “If the government finds any violations and illegalities of encroachment of assigned lands by Jamuna Hatcheries, then go ahead at the front gate, not go by the back gate by violating the rule of law and using the force,” Justice Vinod Kumar observed.
Amazed at the 42-page report submitted by the officials within 24 hours of an order for enquiry issued by the Chief Minister of Telangana, the judge said, “When the Chief Secretary has directed the collector to conduct an enquiry, vis-a-vis, when the collector had ordered a tahsildar to conduct survey and inspection? At what time, the tahsildar gave back the report by inspecting the site and conducting a survey? When did it reach the collector? Is it possible within one hour? What Mr Advocate General, in your long service, have you ever seen this swinging response from the state machinery,” Justice Vinod Kumar asked Advocate-General B.S Prasad, the Deccan Chronicle said.
Replying to the questions posed by the Judge, the advocate-general said the allegations were made against the minister. So an immediate report was asked.
The Advocate-General, however, said that it was a preliminary report and a summary report will be prepared by following the due process of law. Mr Prasad said there was no embargo in law or the Revenue Act, which restricts the collector or revenue officials of designated rank to enter into agriculture lands owned by individuals or the government to inspect.
Reacting sharply to the contentions of the A-G, the judge questioned as to which law empowers the collector or his officials to go directly into private properties to conduct inspections and to erect boards stating that the land belongs to the government, without hearing the affected parties.
“The Constitution ensures every citizen has something called freedom or fundamental rights, they cannot be breached by authorities. If so, how can it be tolerated,” Judge said.
While reading the report of the district collector, which says that a detailed and full survey has been conducted, the Judge wondered as to how could the District Collector conduct a detailed survey of 120-odd acres of land in a single day. “Even if it is a digital survey, a person has to go for the survey by holding a digital compass on the land,” the Judge asked.
Explaining that the experience of conducting a physical survey of 18 acres of land owned by him, the Judge said, “the report of the District Collector indicates that he might have conducted the survey by sitting in his car and going around the land and prepared an enquiry report while sitting in his room.”
Mr D. Prakash Reddy, senior counsel appearing for Jamuna Hatcheries, opposed the contention of the A-G, who informed the court that the report of the district collector is preliminary in nature. The senior counsel insisted that no law permits an official to hold a preliminary enquiry, without putting the petitioner on notice.
After lengthy arguments and considering oral undertaking by the Advocate-General that the officials would proceed further by following due process of law, the court directed the district collector, Medak, to follow the procedure of relevant laws on the complaints received against the lands pertaining to Jamuna Hatcheries in Hakimpet and Masaipet villages of Medak district.
The court has further directed the Director-General of Police, Director-General, Vigilance and Enforcement, ACB and Medak Superintendent of Police against taking any coercive steps against the petitioners.
The court also issued notices to the Chief Secretary, Medak District Collector, Toopran RDO, Masaipet mandal revenue officer directing them to file their responses to the contentions raised by Jamuna Hatcheries within four weeks and adjourned the hearing to July 6.
By LE Desk
Mumbai, May 5: The Bombay High Court has issued notice to the Maharashtra government to file a reply to the allegations made by Rona Wilson and Professor Shoma Sen, who are accused in the Elgar Parishad case. Labelled as Urban Naxals, the two are languishing in jail and have sought quashing of the FIR.
Additional Solicitor General Anil Singh appearing for the investigating agency said that NIA has filed an affidavit in reply to the petition filed by Wilson but needed time to file a reply to Sen’s petition, India Today reported.
Indira Jaising appearing for Wilson, however, asked a pertinent question during the hearing on Tuesday. Jaising said the petitions questioned the sanction granted by the Maharashtra government on November 14, 2018. “Either, he (Singh) speaks for the Maharashtra government as well or Maharashtra government will have to come before the court. We have made them party to the petition.”
Singh said, “We will certainly be defending the sanction as well. We will be arguing that as well.”
However, Jaising pressed that there are very serious allegations made against the investigating officer of Pune Police who had investigated the case between 2018 and 2020 before the case was transferred to the NIA by the petitioners.
Jaising pointed out that the allegation is that someone planted documents in his computer with the use of malware. “The forensic laboratory was asked this question and there is no reply to that question. There are very serious allegations of tampering of evidence and someone has to answer to that. The allegation is that the investigating officer suppressed information from the sanctioning authority,” said Jaising.
However, Jaising pressed that there are very serious allegations made against the investigating officer of Pune Police who had investigated the case between 2018 and 2020 before the case was transferred to the NIA by the petitioners.
Jaising pointed out that the allegation is that someone planted documents in his computer with the use of malware. “The forensic laboratory was asked this question and there is no reply to that question. There are very serious allegations of tampering of evidence and someone has to answer to that. The allegation is that the investigating officer suppressed information from the sanctioning authority,” said Jaising.
The court asked the Maharashtra government to reply to the allegations in the petition and kept the case for further hearing on June 16. Advocate Anand Grover appearing for Sen sought similar replies to be filed by the Maharashtra government to her petition too.
Before the hearing came to a close for the day, Jaising said that the court might also need the assistance of computer experts while hearing the case. She said, “It is for the first time that something like this, as to what is the meaning of secured electronic evidence will be coming up for hearing”, India Today reported.
Wilson had finished his M. Phil from JNU, Delhi and was in the process of pursuing a Ph.D. at the University of Surrey or the University of Leicester, England. Both universities had accepted his Ph.D. proposal, and he was in the process of applying for a scholarship in 2018 when he was arrested. Wilson has taken support of an American company’s report to say, “the incriminating documents relied upon by the prosecution have been planted in the petitioner’s electronic devices to incriminate him and the co-accused.”
Sen was a Senior Professor and the Head of the English Department at the Nagpur University, and just a few weeks away from retirement when she was arrested on June 6, 2018. Sen’s petition filed through advocate Rahul Arote says, “Not only did the Prosecution and the Forensic Sciences Laboratory in Pune fail to examine the electronic evidence adequately to establish authenticity and reliability, but the FSL report on the electronic evidence also did not contain any response to the direct question from the Investigating Officer (“IO”) on whether there was any indication of tampering with the evidence.”
By LE Desk
New Delhi, May 5: The Supreme Court today said it will decide the date of hearing a petition which seeks suspension of the construction work on the ambitious Central Vista project at a time the country is grappling with the deadly second wave of Covid which has killed thousands and crippled the healthcare system.
The opposition and activists have been hitting out hard at the government for persisting with this project despite the pandemic.
Senior advocate Sidharth Luthra, who represents two petitioners, had requested the Chief Justice of India to take up the plea after the Delhi High Court deferred the hearing of the request till May 17, NDTV reported.
Citing non-availability of judges at the moment, Chief Justice NV Ramana said, “…if a bench is available, let me see”.
The petitioners said they are concerned about the work going on along central Delhi’s Rajpath and around India Gate and not the construction of a new parliament building.
The construction of the ₹ 20,000 crore project in the heart of the national capital has been brought under the ambit of “essential services”, angering the opposition.
In Delhi, which is under a lockdown, construction work is permitted at construction sites where workers have been given on-site accommodation. But when NDTV did a spot check at the location last week, not many were found camping at the construction site. Most of the workers were found coming from a part of Delhi 16 kilometres away.
The grand makeover plan also recently received an environmental clearance, paving the way for a new home for the Prime Minister to be built by December 2022. The Vice President’s house is expected to be completed by May next year.
This redevelopment project envisages a new triangular parliament building, a common central secretariat and revamping of the three-kilometre-long Rajpath from Rashtrapati Bhavan to India Gate.
Sources said the government is determined that preparations for India’s 75th Independence Day must continue.
By LE Desk
New Delhi, May 5: Saying there were “far more important matters”, the Delhi High Court today adjourned the appeal filed by former Union minister M J Akbar against a trial court order acquitting journalist Priya Ramani in a defamation case filed by him after she accused him of sexual harassment.
“This is not special category matter. There are far more important matters… There is no urgency,” said Justice Mukta Gupta while adjourning the case to August 11, The Indian Express reported.
Akbar had filed a defamation case against Ramani in 2018 after she levelled sexual harassment allegations against him. The trial court had acquitted Ramani in the case on February 17.
Akbar, in the criminal defamation case against Ramani, had accused her of damaging his reputation by way of tweets and articles published in print media and online. Ramani had levelled allegations of sexual misconduct and harassment against Akbar during the time when the MeToo campaign had gained momentum in India.
By LE Desk
New Delhi, May 5: The Union government today moved the Supreme Court against a Delhi High Court order on oxygen availability in the national capital and the lower court’s threat to pursue contempt charges against officials for non-compliance.
The top court will hear the Centre’s plea today. Chief Justice India, NV Ramana, asked the court registry to place the papers on the matter before Justice Chandrachud’s bench for hearing, NDTV reported.
The Union government’s failure to implement a Delhi High Court order on immediate supply of the full quota of oxygen to Delhi “by whatever means” evoked the judges’ wrath yesterday. It asked the government to explain why a contempt case should not be initiated against it.
“Enough is enough. We will not take a ‘no’ regarding oxygen supply. There is no way that you will not supply 700 metric tonne oxygen immediately. We will not hear anything except compliance,” the Delhi High Court had said yesterday.
Despite the High Court’s repeated urging, the Centre has remained firm on its stance that the Arvind Kejriwal government had been allocated oxygen according to a calculation that applies to all states. The Delhi administration’s mismanagement is what has led to the crisis there, the Centre has held.
Over 40 people have died in the national capital as hospitals there have run out of oxygen and have been flagging the shortage every few hours.
“You can bury your head in sand like ostrich, we won’t…Are you living in an ivory tower?” the Delhi judges had said, pointing out that even the Supreme Court had ordered the Centre to provide 700 metric tonnes of oxygen to Delhi and not 490 metric tonnes.
By LE Desk
New Delhi, May 5: The Delhi high court has asked for the Centre’s response on a PIL that sought to strike down the Government of National Capital Territory of Delhi (GNCTD) Amendment Act, which hands the state Lieutenant Governor greater power, that was passed in Parliament in March, and was notified last week.
A bench of chief Justice DN Patel and Justice Jasmeet Singh issued notice to the Union ministries of Law, and Home Affairs, seeking their stand on the plea. Additional Solicitor General (ASG) Chetan Sharma and central government standing counsel Ajay Digpaul accepted the notice on behalf of the ministries.
The plea, by law student Shrikant Prasad, claimed that the Act, “redefines Delhi government as the Lt Governor” and curbs the Delhi Assembly’s power to conduct proceedings, the Hindustan Times reported.
“Further, the Act provides that the opinion of the L-G must be obtained before taking any executive action on decisions of the Delhi government, on such matters as may be specified by the L-G,” the petition has claimed.
Prasad contended that the provisions of the Act are in contrast with the Supreme Court’s July 2018 order on the powers of L-G and the Delhi government. The apex court said the L-G will be bound to follow the aid and advice of council of ministers except in matters of land, police and public order.
Prasad argued that the Act was only going to increase the suffering of the citizens of Delhi, who are already grappling with the Covid-19 pandemic and related problems of shortage of oxygen, essential medicines and beds.
The Delhi government did not respond to HT’s requests for comment.
By LE Desk
New Delhi, May 5: The Supreme Court today cancelled the reservation in government jobs and educational institutions for the Maratha community brought in by Maharashtra in 2018, saying it exceeded the 50 per cent cap imposed earlier.
A five-judge bench examining the constitutional validity of the 16 per cent reservation brought in by the earlier BJP government Maharashtra said the move violated equality. The bench comprised Justices Ashok Bhushan, L Nageswara Rao, S Abdul Nazeer, Hemant Gupta, and S Ravindra Bhat.
“States have no power to add any caste to socially economically backward caste list due to the amendment made by Parliament,” the Supreme Court observed, NDTV reported. “States can only identify the castes and suggest to the Centre…Only President can add the caste to SEBC list guided by the National Backward Classes Commission.”
It, however, said all admissions made to post-graduate medical courses and appointments already made under the new quota law shall not be disturbed by its ruling today.
The constitution bench also said there was no need to revisit the 50 per cent cap on reservation imposed by the Supreme Court in the 1992 Mandal judgment.
In 2018, the BJP government in Maharashtra had passed the Socially and Educationally Backward Classes (SEBC) Act that provided 16 per cent reservation to the Maratha community.
Hearing a petition that argued the Maharashtra government’s decision amounted to providing the Maratha community with “permanent crutches”, the Bombay High Court had upheld the quota in 2019. The Supreme Court had put the Bombay High Court judgment on hold last year.
The petitioners said the quota was unconstitutional because, with it, the state’s total reservation exceeded 50 per cent.
The Centre, which supports the Maratha quota, argued that states can grant reservation and that the decision is constitutional.
“If there is no 50 per cent or no limit, as you are suggesting, what is the concept of equality then. We will ultimately have to deal with it. What is your reflection on that…? What about the resultant inequality? How many generations will you continue?” In March this year, the bench told the Centre.
The court had reserved its verdict last month.
By LE Desk
Prayagraj, May 5: In a strong comment regarding the grim coronavirus disease situation in the country, the Allahabad high court has said that the loss of lives of Covid-19 patients due to non-supply of oxygen amounts to nothing short of a “criminal act” — a “genocide” — on part of those entrusted to ensure such supplies.
“We are at pain in observing that the death of Covid patients just for non supplying of oxygen to the hospitals is a criminal act and not less than a genocide by those who have been entrusted the task to ensure continuous procurement and supply chain of the liquid medical oxygen,” read an order passed yesterday by the Allahabad high court bench of Justice Ajit Kumar and Justice Siddhartha Varma, as reported by the Hindustan Times.
The Allahabad high court took stock of reports of shortage of medical oxygen due to rise in Covid-19 infections. It highlighted stories viral on social media of hapless citizens begging for an oxygen cylinder to save the life of their near and dear ones, both at the end of the district administration and the police administration. The bench also observed the rampant hoarding of oxygen cylinders and harassment of citizens who are desperately in need of them.
“The news was also viralled that five patients had died in ICU of a new trauma centre of Medical College, Meerut on Sunday last. Similarly, news were also being viralled that one Sun Hospital, Gomti Nagar, Lucknow and another private hospital at Meerut had taken their hands off the admitted Covid patients only for the reason that oxygen supply was not made even after demand. We find these news items showing a quite contrary picture to one claimed by the Government that there was sufficient supply of oxygen,” it pointed out.
The current state of affairs about the management of an online portal created by the government today casts a shadow upon Covid-19 hospital management, the high court said.
Time for judiciary to introspect and see what can be done to restore people’s faith – Justice Lokur
Justice Madan B Lokur, was a Supreme Court judge from June 2012 to December 2018. He is now a judge of the non-resident panel of the Supreme Court of Fiji. He spoke to LegitQuest on January 25, 2020.
Q: You were a Supreme Court judge for more than 6 years. Do SC judges have their own ups and downs, in the sense that do you have any frustrations about cases, things not working out, the kind of issues that come to you?
A: There are no ups and downs in that sense but sometimes you do get a little upset at the pace of justice delivery. I felt that there were occasions when justice could have been delivered much faster, a case could have been decided much faster than it actually was. (When there is) resistance in that regard normally from the state, from the establishment, then you kind of feel what’s happening, what can I do about it.
Q: So you have had the feeling that the establishment is trying to interfere in the matters?
A: No, not interfering in matters but not giving the necessary importance to some cases. So if something has to be done in four weeks, for example if reply has to be filed within four weeks and they don’t file it in four weeks just because they feel that it doesn’t matter, and it’s ok if we file it within six weeks how does it make a difference. But it does make a difference.
Q: Do you think this attitude is merely a lax attitude or is it an infrastructure related problem?
A: I don’t know. Sometimes on some issues the government or the establishment takes it easy. They don’t realise the urgency. So that’s one. Sometimes there are systemic issues, for example, you may have a case that takes much longer than anticipated and therefore you can’t take up some other case. Then that necessarily has to be adjourned. So these things have to be planned very carefully.
Q: Are there any cases that you have special memories of in terms of your personal experiences while dealing with the case? It might have moved you or it may have made you feel that this case is really important though it may not be considered important by the government or may have escaped the media glare?
A: All the cases that I did with regard to social justice, cases which concern social justice and which concern the environment, I think all of them were important. They gave me some satisfaction, some frustration also, in the sense of time, but I would certainly remember all these cases.
Q: Even though you were at the Supreme Court as a jurist, were there any learning experiences for you that may have surprised you?
A: There were learning experiences, yes. And plenty of them. Every case is a learning experience because you tend to look at the same case with two different perspectives. So every case is a great learning experience. You know how society functions, how the state functions, what is going on in the minds of the people, what is it that has prompted them to come the court. There is a great learning, not only in terms of people and institutions but also in terms of law.
Q: You are a Judge of the Supreme Court of Fiji, though a Non-Resident Judge. How different is it in comparison to being a Judge in India?
A: There are some procedural distinctions. For example, there is a great reliance in Fiji on written submissions and for the oral submissions they give 45 minutes to a side. So the case is over within 1 1/2 hours maximum. That’s not the situation here in India. The number of cases in Fiji are very few. Yes, it’s a small country, with a small number of cases. Cases are very few so it’s only when they have an adequate number of cases that they will have a session and as far as I am aware they do not have more than two or three sessions in a year and the session lasts for maybe about three weeks. So it’s not that the court sits every day or that I have to shift to Fiji. When it is necessary and there are a good number of cases then they will have a session, unlike here. It is then that I am required to go to Fiji for three weeks. The other difference is that in every case that comes to the (Fiji) Supreme Court, even if special leave is not granted, you have to give a detailed judgement which is not the practice here.
Q: There is a lot of backlog in the lower courts in India which creates a problem for the justice delivery system. One reason is definitely shortage of judges. What are the other reasons as to why there is so much backlog of cases in the trial courts?
A: I think case management is absolutely necessary and unless we introduce case management and alternative methods of dispute resolution, we will not be able to solve the problem. I will give you a very recent example about the Muzaffarpur children’s home case (in Bihar) where about 34 girls were systematically raped. There were about 17 or 18 accused persons but the entire trial finished within six months. Now that was only because of the management and the efforts of the trial judge and I think that needs to be studied how he could do it. If he could do such a complex case with so many eyewitnesses and so many accused persons in a short frame of time, I don’t see why other cases cannot be decided within a specified time frame. That’s case management. The second thing is so far as other methods of disposal of cases are concerned, we have had a very good experience in trial courts in Delhi where more than one lakh cases have been disposed of through mediation. So, mediation must be encouraged at the trial level because if you can dispose so many cases you can reduce the workload. For criminal cases, you have Plea Bargaining that has been introduced in 2009 but not put into practice. We did make an attempt in the Tis Hazari Courts. It worked to some extent but after that it fell into disuse. So, plea bargaining can take care of a lot of cases. And there will be certain categories of cases which we need to look at carefully. For example, you have cases of compoundable offences, you have cases where fine is the punishment and not necessarily imprisonment, or maybe it’s imprisonment say one month or two month’s imprisonment. Do we need to actually go through a regular trial for these kind of cases? Can they not be resolved or adjudicated through Plea Bargaining? This will help the system, it will help in Prison Reforms, (prevent) overcrowding in prisons. So there are a lot of avenues available for reducing the backlog. But I think an effort has to be made to resolve all that.
Q: Do you think there are any systemic flaws in the country’s justice system, or the way trial courts work?
A: I don’t think there are any major systemic flaws. It’s just that case management has not been given importance. If case management is given importance, then whatever systematic flaws are existing, they will certainly come down.
Q; And what about technology. Do you think technology can play a role in improving the functioning of the justice delivery system?
I think technology is very important. You are aware of the e-courts project. Now I have been told by many judges and many judicial academies that the e-courts project has brought about sort of a revolution in the trial courts. There is a lot of information that is available for the litigants, judges, lawyers and researchers and if it is put to optimum use or even semi optimum use, it can make a huge difference. Today there are many judges who are using technology and particularly the benefits of the e-courts project is an adjunct to their work. Some studies on how technology can be used or the e-courts project can be used to improve the system will make a huge difference.
Q: What kind of technology would you recommend that courts should have?
A: The work that was assigned to the e-committee I think has been taken care of, if not fully, then largely to the maximum possible extent. Now having done the work you have to try and take advantage of the work that’s been done, find out all the flaws and see how you can rectify it or remove those flaws. For example, we came across a case where 94 adjournments were given in a criminal case. Now why were 94 adjournments given? Somebody needs to study that, so that information is available. And unless you process that information, things will just continue, you will just be collecting information. So as far as I am concerned, the task of collecting information is over. We now need to improve information collection and process available information and that is something I think should be done.
Q: There is a debate going on about the rights of death row convicts. CJI Justice Bobde recently objected to death row convicts filing lot of petitions, making use of every legal remedy available to them. He said the rights of the victim should be given more importance over the rights of the accused. But a lot of legal experts have said that these remedies are available to correct the anomalies, if any, in the justice delivery. Even the Centre has urged the court to adopt a more victim-centric approach. What is your opinion on that?
You see so far as procedures are concerned, when a person knows that s/he is going to die in a few days or a few months, s/he will do everything possible to live. Now you can’t tell a person who has got terminal cancer that there is no point in undergoing chemotherapy because you are going to die anyway. A person is going to fight for her/his life to the maximum extent. So if a person is on death row s/he will do everything possible to survive. You have very exceptional people like Bhagat Singh who are ready to face (the gallows) but that’s why they are exceptional. So an ordinary person will do everything possible (to survive). So if the law permits them to do all this, they will do it.
Q: Do you think law should permit this to death row convicts?
A: That is for the Parliament to decide. The law is there, the Constitution is there. Now if the Parliament chooses not to enact a law which takes into consideration the rights of the victims and the people who are on death row, what can anyone do? You can’t tell a person on death row that listen, if you don’t file a review petition within one week, I will hang you. If you do not file a curative petition within three days, then I will hang you. You also have to look at the frame of mind of a person facing death. Victims certainly, but also the convict.
Q: From the point of jurisprudence, do you think death row convicts’ rights are essential? Or can their rights be done away with?
A: I don’t know you can take away the right of a person fighting for his life but you have to strike a balance somewhere. To say that you must file a review or curative or mercy petition in one week, it’s very difficult. You tell somebody else who is not on a death row that you can file a review petition within 30 days but a person who is on death row you tell him that I will give you only one week, it doesn’t make any sense to me. In fact it should probably be the other way round.
Q: What about capital punishment as a means of punishment itself?
A: There has been a lot of debate and discussion about capital punishment but I think that world over it has now been accepted, more or less, that death penalty has not served the purpose for which it was intended. So, there are very few countries that are executing people. The United States, Saudi Arabia, China, Pakistan also, but it hasn’t brought down the crime rate. And India has been very conservative in imposing the death penalty. I think the last 3-4 executions have happened for the persons who were terrorists. And apart from that there was one from Calcutta who was hanged for rape and murder. But the fact that he was hanged for rape and murder has not deterred people (from committing rape and murder). So the accepted view is that death penalty has not served the purpose. We certainly need to rethink the continuance of capital punishment. On the other hand, if capital punishment is abolished, there might be fake encounter killings or extra judicial killings.
Q: These days there is the psyche among people of ‘instant justice’, like we saw in the case of the Hyderabad vet who was raped and murdered. The four accused in the case were killed in an encounter and the public at large and even politicians hailed it as justice being delivery. Do you think this ‘lynch mob mentality’ reflects people’s lack of faith in the justice system?
A: I think in this particular case about what happened in Telangana, investigation was still going on. About what actually happened there, an enquiry is going on. So no definite conclusions have come out. According to the police these people tried to snatch weapons so they had to be shot. Now it is very difficult to believe, as far as I am concerned, that 10 armed policeman could not overpower four unarmed accused persons. This is very difficult to believe. And assuming one of them happened to have snatched a (cop’s) weapon, maybe he could have been incapacitated but why the other three? So there are a lot of questions that are unanswered. So far as the celebrations are concerned, the people who are celebrating, do they know for certain that they (those killed in the encounter) were the ones who did the crime? How can they be so sure about it? They were not eye witnesses. Even witnesses sometimes make mistakes. This is really not a cause for celebration. Certainly not.
Q: It seems some people are losing their faith in the country’s justice delivery system. How to repose people’s faith in the legal process?
A: You see we again come back to case management and speedy justice. Suppose the Nirbhaya case would have been decided within two or three years, would this (Telangana) incident have happened? One can’t say. The attack on Parliament case was decided in two or three years but that has not wiped out terrorism. There are a lot of factors that go into all this, so there is a need to find ways of improving justice delivery so that you don’t have any extremes – where a case takes 10 years or another extreme where there is instant justice. There has to be something in between, some balance has to be drawn. Now you have that case where Phoolan Devi was gangraped followed by the Behmai massacre. Now this is a case of 1981, it has been 40 years and the trial court has still not delivered a judgement. It’s due any day now, (but) whose fault is that. You have another case in Maharashtra that has been transferred to National Investigating Agency two years after the incident, the Bhima-Koregaon case. Investigation is supposedly not complete after two years also. Whose fault is that? So you have to look at the entire system in a holistic manner. There are many players – the investigation agency is one player, the prosecution is one player, the defence is one player, the justice delivery system is one player. So unless all of them are in a position to coordinate… you cannot blame only the justice delivery system. If the Telangana police was so sure that the persons they have caught are guilty, why did they not file the charge sheet immediately? If they were so sure the charge sheet should have been filed within one day. Why didn’t they do it?
Q: At the trial level, there are many instances of flaws in evidence collection. Do you think the police or whoever the investigators are, do they lack training?
A: Yes they do! The police lacks training. I think there is a recent report that has come out last week which says very few people (in the police) have been trained (to collect evidence).
Q: You think giving proper training to police to prepare a case will make a difference?
A: Yes, it will make a difference.
Q: You have a keen interest in juvenile justice. Unfortunately, a lot of heinous crimes are committed by juveniles. How can we correct that?
A: You see it depends upon what perspective we are looking at. Now these heinous crimes are committed by juveniles. Heinous crimes are committed by adults also, so why pick upon juveniles alone and say something should be done because juveniles are committing heinous crimes. Why is it that people are not saying that something should be done when adults are committing heinous crimes? That’s one perspective. There are a lot of heinous crimes that are committed against juveniles. The number of crimes committed against juveniles or children are much more than the crimes committed by juveniles. How come nobody is talking about that? And the people committing heinous crimes against children are adults. So is it okay to say that the State has imposed death penalty for an offence against the child? So that’s good enough, nothing more needs to be done? I don’t think that’s a valid answer. The establishment must keep in mind the fact that the number of heinous crimes against children are much more than those committed by juveniles. We must shift focus.
Q: Coming to NRC and CAA. Protests have been happening since December last year, the SC is waiting for the Centre’s reply, the Delhi HC has refused to directly intervene. Neither the protesters nor the government is budging. How do we achieve a breakthrough?
A: It is for the government to decide what they want to do. If the government says it is not going to budge, and the people say they are not going to budge, the stalemate could continue forever.
Q: Do you think the CAA and the NRC will have an impact on civil liberties, personal liberties and people’s rights?
A: Yes, and that is one of the reasons why there is protest all over the country. And people have realised that it is going to happen, it is going to have an impact on their lives, on their rights and that’s why they are protesting. So the answer to your question is yes.
Q: Across the world and in India, we are seeing an erosion of the value system upholding rights and liberties. How important is it for the healthy functioning of a country that social justice, people’s liberties, people’s rights are maintained?
A: I think social justice issues, fundamental rights are of prime importance in our country, in any democracy, and the preamble to our Constitution makes it absolutely clear and the judgement of the Supreme Court in Kesavananda Bharati and many other subsequent judgments also make it clear that you cannot change the basic structure of the Constitution. If you cannot do that then obviously you cannot take away some basic democratic rights like freedom of assembly, freedom of movement, you cannot take them away. So if you have to live in a democracy, we have to accept the fact that these rights cannot be taken away. Otherwise there are many countries where there is no democracy. I don’t know whether those people are happy or not happy.
Q: What will happen if in a democracy these rights are controlled by hook or by crook?
A: It depends upon how much they are controlled. If the control is excessive then that is wrong. The Constitution says there must be a reasonable restriction. So reasonable restriction by law is very important.
Q: The way in which the sexual harassment case against Justice Gogoi was handled was pretty controversial. The woman has now been reinstated in the Supreme Court as a staffer. Does this action of the Supreme Court sort of vindicate her?
A: I find this very confusing you know. There is an old joke among lawyers: Lawyer for the petitioner argued before the judge and the judge said you are right; then the lawyer for the respondent argued before the judge and the judge said you’re right; then a third person sitting over there says how can both of them be right and the judge says you’re also right. So this is what has happened in this case. It was found (by the SC committee) that what she said had no substance. And therefore, she was wrong and the accused was right. Now she has been reinstated with back wages and all. I don’t know, I find it very confusing.
Q: Do you think the retirement age of Supreme Court Judges should be raised to 70 years and there should be a fixed tenure?
A: I haven’t thought about it as yet. There are some advantages, there are some disadvantages. (When) You have extended age or life tenure as in the United States, and the Supreme Court has a particular point of view, it will continue for a long time. So in the United States you have liberal judges and conservative judges, so if the number of conservative judges is high then the court will always be conservative. If the number of liberal judges is high, the court will always be liberal. There is this disadvantage but there is also an advantage that if it’s a liberal court and if it is a liberal democracy then it will work for the benefit of the people. But I have not given any serious thought onthis.
Q: Is there any other thing you would like to say?
A: I think the time has come for the judiciary to sit down, introspect and see what can be done, because people have faith in the judiciary. A lot of that faith has been eroded in the last couple of years. So one has to restore that faith and then increase that faith. I think the judiciary definitely needs to introspect.
‘A major issue for startups, especially during fund raising, is their compliance with extant RBI foreign exchange regulations, pricing guidelines, and the Companies Act 2013.’- Aakash Parihar
Aakash Parihar is Partner at Triumvir Law, a firm specializing in M&A, PE/VC, startup advisory, international commercial arbitration, and corporate disputes. He is an alumnus of the National Law School of India University, Bangalore.
How did you come across law as a career? Tell us about what made you decide law as an option.
Growing up in a small town in Madhya Pradesh, wedid not have many options.There you either study to become a doctor or an engineer. As the sheep follows the herd, I too jumped into 11th grade with PCM (Physics, Chemistry and Mathematics).However, shortly after, I came across the Common Law Admission Test (CLAT) and the prospect of law as a career. Being a law aspirant without any background of legal field, I hardly knew anything about the legal profession leave alone the niche areas of corporate lawor dispute resolution. Thereafter, I interacted with students from various law schools in India to understand law as a career and I opted to sit for CLAT. Fortunately, my hard work paid off and I made it to the hallowed National Law School of India University, Bangalore (NSLIU). Joining NLSIU and moving to Bangalorewas an overwhelming experience. However, after a few months, I settled in and became accustomed to the rigorous academic curriculum. Needless to mention that it was an absolute pleasure to study with and from someof the brightest minds in legal academia. NLSIU, Bangalore broadened my perspective about law and provided me with a new set of lenses to comprehend the world around me. Through this newly acquired perspective and a great amount of hard work (which is of course irreplaceable), I was able to procure a job in my fourth year at law school and thus began my journey.
As a lawyer carving a niche for himself, tell us about your professional journey so far. What are the challenges that new lawyers face while starting out in the legal field?
I started my professional journey as an Associate at Samvad Partners, Bangalore, where I primarily worked in the corporate team. Prior to Samvad Partners, through my internship, I had developed an interest towards corporate law,especially the PE/VC and M&A practice area. In the initial years as an associate at Samvad Partners and later at AZB & Partners, Mumbai, I had the opportunity to work on various aspects of corporate law, i.e., from PE/VC and M&A with respect to listed as well as unlisted companies. My work experience at these firms equipped and provided me the know-how to deal with cutting edge transactional lawyering. At this point, it is important to mention that I always had aspirations to join and develop a boutique firm. While I was working at AZB, sometime around March 2019, I got a call from Anubhab, Founder of Triumvir Law, who told me about the great work Triumvir Law was doing in the start-up and emerging companies’ ecosystem in Bangalore. The ambition of the firm aligned with mine,so I took a leap of faith to move to Bangalore to join Triumvir Law.
Anyone who is a first-generation lawyer in the legal industry will agree with my statement that it is never easy to build a firm, that too so early in your career. However, that is precisely the notion that Triumvir Law wanted to disrupt. To provide quality corporate and dispute resolution advisory to clients across India and abroad at an affordable price point.
Once you start your professional journey, you need to apply everything that you learnt in law schoolwith a practical perspective. Therefore, in my opinion, in addition to learning the practical aspects of law, a young lawyer needs to be accustomed with various practices of law before choosing one specific field to practice.
India has been doing reallywell in the field of M&A and PE/VC. Since you specialize in M&A and PE/VC dealmaking, what according to you has been working well for the country in this sphere? What does the future look like?
India is a developing economy, andM&A and PE/VC transactions form the backbone of the same. Since liberalization, there has been an influx of foreign investment in India, and we have seen an exponential rise in PC/VA and M&A deals. Indian investment market growth especially M&A and PE/VC aspects can be attributed to the advent of startup culture in India. The increase in M&A and PE/VC deals require corporate lawyersto handle the legal aspects of these deals.
As a corporate lawyer working in M&A and PE/VC space, my work ranges from drafting term-sheets to the transaction documents (SPA, SSA, SHA, BTA, etc.). TheM&A and PE/VC deal space experienced a slump during the first few months of the pandemic, but since June 2021, there has been a significant growth in M&A and PE/VC deal space in India. The growth and consistence of the M&A and PE/VC deal space in India can be attributed to several factors such as foreign investment, uncapped demands in the Indian market and exceptional performance of Indian startups.
During the pandemic many businesses were shut down but surprisingly many new businesses started, which adapted to the challenges imposed by the pandemic. Since we are in the recovery mode, I think the M&A and PE/VC deal space will reach bigger heights in the comingyears. We as a firm look forward to being part of this recovery mode by being part of the more M&A and PE/VC deals in future.
You also advice start-ups. What are the legal issues or challenges that the start-ups usually face specifically in India? Do these issues/challenges have long-term consequences?
We do a considerable amount of work with startupswhich range from day-to-day legal advisory to transaction documentation during a funding round. In India, we have noticed that a sizeable amount of clientele approach counsels only when there is a default or breach, more often than not in a state of panic. The same principle applies to startups in India, they normally approach us at a stage when they are about to receive investment or are undergoing due diligence. At that point of time, we need to understand their legal issues as well as manage the demands of the investor’s legal team. The majornon-compliances by startups usually involve not maintaining proper agreements, delaying regulatory filings and secretarial compliances, and not focusing on proper corporate governance.
Another major issue for startups, especially during fund raising, is their compliance with extant RBI foreign exchange regulations, pricing guidelines, and the Companies Act 2013. Keeping up with these requirements can be time-consuming for even seasoned lawyers, and we can only imagine how difficult it would be for startups. Startups spend their initial years focusing on fund-raising, marketing, minimum viable products, and scaling their businesses. Legal advice does not usually factor in as a necessity. Our firm aims to help startups even before they get off the ground, and through their initial years of growth. We wanted to be the ones bringing in that change in the legal sector, and we hope to help many more such startups in the future.
In your opinion, are there any specific India-related problems that corporate/ commercial firms face as far as the company laws are concerned? Is there scope for improvement on this front?
The Indian legal system which corporate/commercial firms deal with is a living breathing organism, evolving each year. Due to this evolving nature, we lawyers are always on our toes.From a minor amendment to the Companies Act to the overhaul of the foreign exchange regime by the Reserve Bank of India, each of these changes affect the compliance and regulatory regime of corporates. For instance, when India changed the investment route for countries sharing land border with India,whereby any country sharing land border with India including Hong Kong cannot invest in India without approval of the RBI in consultation with the central government,it impacted a lot of ongoing transactions and we as lawyers had to be the first ones to inform our clients about such a change in the country’s foreign investment policy. In my opinion, there is huge scope of improvement in legal regime in India, I think a stable regulatory and tax regime is the need for the hour so far as the Indian system is concerned. The biggest example of such a market with stable regulatory and tax regime is Singapore, and we must work towards emulating the same.
Your boutique law firm has offices in three different cities — Delhi NCR, Mumbai and Bangalore. Have the Covid-induced restrictions such as WFH affected your firm’s operations? How has your firm adapted to the professional challenges imposed by the pandemic-related lifestyle changes?
We have offices in New Delhi NCR and Mumbai, and our main office is in Bangalore. Before the pandemic, our work schedule involved a fair bit of travelling across these cities. But post the lockdowns we shifted to a hybrid model, and unless absolutely necessary, we usually work from home.
In relation to the professional challenges during the pandemic, I think it was a difficult time for most young professionals. We do acknowledge the fact that our firm survived the pandemic. Our work as lawyers/ law firms also involves client outreach and getting new clients, which was difficult during the lockdowns. We expanded our client outreach through digital means and by conducting webinars, including one with King’s College London on International Treaty Arbitration. Further, we also focused on client outreach and knowledge management during the pandemic to educate and create legal awareness among our clients.
‘It’s a myth that good legal advice comes at prohibitive costs. A lot of heartburn can be avoided if documents are entered into with proper legal advice and with due negotiations.’ – Archana Balasubramanian
Archana Balasubramanian is the founding partner of Agama Law Associates, a Mumbai-based corporate law firm which she started in 2014. She specialises in general corporate commercial transaction and advisory as well as deep sectoral expertise across manufacturing, logistics, media, pharmaceuticals, financial services, shipping, real estate, technology, engineering, infrastructure and health.
August 13, 2021:
Lawyers see companies ill-prepared for conflict, often, in India. When large corporates take a remedial instead of mitigative approach to legal issues – an approach utterly incoherent to both their size and the compliance ecosystem in their sector – it is there where the concept of costs on legal becomes problematic. Pre-dispute management strategy is much more rationalized on the business’ pocket than the costs of going in the red on conflict and compliances.
Corporates often focus on business and let go of backend maintenance of paperwork, raising issues as and when they arise and resolving conflicts / client queries in a manner that will promote dispute avoidance.
Corporate risk and compliance management is yet another elephant in India, which in addition to commercial disputes can be a drain on a company’s resources. It can be clubbed under four major heads – labour, industrial, financial and corporate laws. There are around 20 Central Acts and then specific state-laws by which corporates are governed under these four categories.
Risk and compliance management is also significantly dependent on the sector, size, scale and nature of the business and the activities being carried out.
The woes of a large number of promoters from the ecommerce ecosystem are to do with streamlining systems to navigate legal. India has certain heavily regulated sectors and, like I mentioned earlier, an intricate web of corporate risk and compliance legislation that can result in prohibitive costs in the remedial phase. To tackle the web in the preventive or mitigative phase, start-ups end up lacking the arsenal due to sheer intimidation from legal. Promoters face sectoral risks in sectors which are heavily regulated, risks of heavy penalties and fines under company law or foreign exchange laws, if fund raise is not done in a compliant manner.
It is a myth that good legal advice comes at prohibitive costs. Promoters are quick to sign on the dotted line and approach lawyers with a tick the box approach. A lot of heartburn can be avoided if documents are entered into with proper legal advice and with due negotiations.
Investment contracts, large celebrity endorsement contracts and CXO contracts are some key areas where legal advice should be obtained. Online contracts is also emerging as an important area of concern.
When we talk of scope, arbitration is pretty much a default mechanism at this stage for adjudicating commercial disputes in India, especially given the fixation of timelines for closure of arbitration proceedings in India. The autonomy it allows the parties in dispute to pick a neutral and flexible forum for resolution is substantial. Lower courts being what they are in India, arbitration emerges as the only viable mode of dispute resolution in the Indian commercial context.
The arbitrability of disputes has evolved significantly in the last 10 years. The courts are essentially pro-arbitration when it comes to judging the arbitrability of subject matter and sending matters to arbitration quickly.
The Supreme Court’s ruling in the Vidya Drolia case has significantly clarified the position in respect of tenancy disputes, frauds and consumer disputes. It reflects upon the progressive approach of the court and aims to enable an efficient, autonomous and effective arbitration environment in India.
Law firms stand for ensuring that the law works for business and not against it. Whatever the scope of our mandate, the bottom line is to ensure a risk-free, conflict-free, compliant and prepared enterprise for our client, in a manner that does not intimidate the client or bog them down, regardless of the intricacy of the legal and regulatory web it takes to navigate to get to that end result. Lawyers need to dissect the business of law from the work.
This really involves meticulous, detail-oriented, sheer hard work on the facts, figures, dates and all other countless coordinates of each mandate, repetitively and even to a, so-called, “dull” routine rhythm – with consistent single-mindedness and unflinching resolve.
As a firm, multiply that effort into volumes, most of it against-the-clock given the compliance heavy ecosystem often riddled with uncertainties in a number of jurisdictions. So the same meticulous streamlining of mandate deliverables has to be extrapolated by the management of the firm to the junior most staff.
Further, the process of streamlining itself has to be more dynamic than ever now given the pace at which the new economy, tech-ecosystem, business climate as well as business development processes turn a new leaf.
Finally, but above all, we need to find a way to feel happy, positive and energized together as a team while chasing all of the aforesaid dreams. The competitive timelines and volumes at which a law firm works, this too is a real challenge. But we are happy to face it and evolve as we grow.
We always as a firm operated on the work from anywhere principle. We believed in it and inculcated this through document management processes to the last trainee. This helped us shut shop one day and continue from wherever we are operating.
The team has been regularly meeting online (at least once a day). We have been able to channel the time spent in travelling to and attending meetings in developing our internal knowledge banks further, streamline our processes, and work on integrating various tech to make the practice more cost-effective for our clients.
Right to Disclosure – Importance & Challenges in Criminal Justice System – By Manu Sharma
Personal liberty is the most cherished value of human life which thrives on the anvil of Articles 14 and 21 of the Constitution of India (“the Constitution”). Once a person is named an accused, he faces the spectre of deprivation of his personal liberty and criminal trial. This threat is balanced by Constitutional safeguards which mandate adherence to the rule of law by the investigating agencies as well as the Court. Thus, any procedure which seeks to impinge on personal liberty must also be fair and reasonable. The right to life and personal liberty enshrined under article 21 of the Constitution, expanded in scope post Maneka Gandhi[1], yields the right to a fair trial and fair investigation. Fairness demands disclosure of anything relevant that may be of benefit to an accused. Further, the all-pervading principles of natural justice envisage the right to a fair hearing, which entails the right to a full defence. The right to a fair defence stems from full disclosure. Therefore, the right of an accused to disclosure emanates from this Constitutional philosophy embellished by the principles of natural justice and is codified under the Code of Criminal Procedure, 1973 (“Code”).
Under English jurisprudence, the duty of disclosure is delineated in the Criminal Procedure and Investigations Act, 1996, which provides that the prosecutor must disclose to the accused any prosecution material which has not previously been disclosed to the accused and which might reasonably be considered capable of undermining the case for the prosecution against the accused or of assisting the case for the accused, except if such disclosure undermines public interest.[2] Fairness ordinarily requires that any material held by the prosecution which weakens its case or strengthens that of the defendant, if not relied on as part of its formal case against the defendant, should be disclosed to the defence.[3] The duty of disclosure under common law contemplates disclosure of anything which might assist the defence[4], even if such material was not to be used as evidence[5]. Under Indian criminal jurisprudence, which has borrowed liberally from common law, the duty of disclosure is embodied in sections 170(2), 173, 207 and 208 of the Code, which entail the forwarding of material to the Court and supply of copies thereof to the accused, subject to statutory exceptions.
II. Challenges in Enforcement
The right to disclosure is a salient feature of criminal justice, but its provenance and significance appear to be lost on the Indian criminal justice system. The woes of investigative bias and prosecutorial misconduct threaten to render this right otiose. That is not to say that the right of an accused to disclosure is indefeasible, as certain exceptions are cast in the Code itself, chief among them being public interest immunity under section 173(6). However, it is the mischief of the concept of ‘relied upon’ emerging from section 173(5) of the Code, which is wreaking havoc on the right to disclosure and is the central focus of this article. The rampant misuse of the words “on which the prosecution proposes to rely’ appearing in section 173(5) of the Code, to suppress material favourable to the accused or unfavourable to the prosecution in the garb of ‘un-relied documents’ has clogged criminal courts with avoidable litigation at the very nascent stage of supply of copies of documents under section 207 of the Code. The erosion of the right of an accused to disclosure through such subterfuge is exacerbated by the limited and restrictive validation of this right by criminal Courts. The dominant issues highlighted in the article, which stifle the right to disclosure are; tainted investigation, unscrupulous withholding of material beneficial to the accused by the prosecution, narrow interpretation by Courts of section 207 of the Code, and denial of the right to an accused to bring material on record in the pre-charge stage.
A. Tainted Investigation
Fair investigation is concomitant to the preservation of the right to fair disclosure and fair trial. It envisages collection of all material, irrespective of its inculpatory or exculpatory nature. However, investigation is often vitiated by the tendencies of overzealous investigating officers who detract from the ultimate objective of unearthing truth, with the aim of establishing guilt. Such proclivities result in collecting only incriminating material during investigation or ignoring the material favourable to the accused. This leads to suppression of material and scuttles the right of the accused to disclosure at the very inception. A tainted investigation leads to miscarriage of justice. Fortunately, the Courts are not bereft of power to supervise investigation and ensure that the right of an accused to fair disclosure remains protected. The Magistrate is conferred with wide amplitude of powers under section 156(3) of the Code to monitor investigation, and inheres all such powers which are incidental or implied to ensure proper investigation. This power can be exercised suo moto by the Magistrate at all stages of a criminal proceeding prior to the commencement of trial, so that an innocent person is not wrongly arraigned or a prima facie guilty person is not left out.[6]
B. Suppression of Material
Indian courts commonly witness that the prosecution is partisan while conducting the trial and is invariably driven by the lust for concluding in conviction. Such predisposition impels the prosecution to take advantage by selectively picking up words from the Code and excluding material favouring the accused or negating the prosecution case, with the aid of the concept of ‘relied upon’ within section 173(5) of the Code. However, the power of the prosecution to withhold material is not unbridled as the Constitutional mandate and statutory rights given to an accused place an implied obligation on the prosecution to make fair disclosure.[7] If the prosecution withholds vital evidence from the Court, it is liable to adverse inference flowing from section 114 of the Indian Evidence Act, 1872 (“Evidence Act). The prosecutor is expected to be guided by the Bar Council of India Rules which prescribe that an advocate appearing for the prosecution of a criminal trial shall so conduct the prosecution that it does not lead to conviction of the innocent. The suppression of material capable of establishment of the innocence of the accused shall be scrupulously avoided. [8]
C. Scope of S. 207
The scope of disclosure under section 207 has been the subject of fierce challenge in Indian Courts on account of the prosecution selectively supplying documents under the garb of ‘relied upon’ documents, to the prejudice of the defence of an accused. The earlier judicial trend had been to limit the supply of documents under section 207 of the Code to only those documents which were proposed to be relied upon by the prosecution. This view acquiesced the exclusion of documents which were seized during investigation, but not filed before the Court along with the charge sheet, rendering the right to disclosure a farce. This restrictive sweep fails to reconcile with the objective of a fair trial viz. discovery of truth. The scheme of the code discloses that Courts have been vested with extensive powers inter alia under sections 91, 156(3) and 311 to elicit the truth. Towards the same end, Courts are also empowered under Section 165 of the Evidence Act. Thus, the principle of harmonious construction warrants a more purposive interpretation of section 207 of the code. The Hon’ble Supreme Court expounded on the scope of Section 207 of the Code in the case of Manu Sharma[9] and held that documents submitted to the Magistrate under section 173(5) would deem to include the documents which have to be sent to the magistrate during the course of investigation under section 170(2). A document which has been obtained bona fide and has a bearing on the case of the prosecution should be disclosed to the accused and furnished to him to enable him to prepare a fair defence, particularly when non production or disclosure would affect administration of justice or prejudice the defence of the accused. It is not for the prosecution or the court to comprehend the prejudice that is likely to be caused to the accused. The perception of prejudice is for the accused to develop on reasonable basis.[10] Manu Sharma’s [supra] case has been relied upon in Sasikala [11] wherein it was held that the Court must concede a right to the accused to have access to the documents which were forwarded to the Court but not exhibited by the prosecution as they favoured the accused. These judgments seem more in consonance with the true spirit of fair disclosure and fair trial. However, despite such clear statements of law, courts are grappling with the judicial propensity of deviating from this expansive interpretation and regressing to the concept of relied upon. The same is evident from a recent pronouncement of the Delhi High Court where the ratios laid down in Manu Sharma & Sasikala [supra] were not followed by erroneously distinguishing from those cases.[12] Such “per incuriam” aberrations by High Court not only undermine the supremacy of the Apex Court, but also adversely impact the functioning of the district courts over which they exercise supervisory jurisdiction. Hopefully in future Judges shall be more circumspect and strictly follow the law declared by the Apex Court.
D. Pre-Charge Embargo
Another obstacle encountered in the enforcement of the right to disclosure is the earlier judicial approach to stave off production or consideration of any additional documents not filed alongwith the charge sheet at the pre-charge stage, as the right to file such material was available to the accused only upon the commencement of trial after framing of charge.[13] At the pre-charge stage, Court could not direct the prosecution to furnish copies of other documents[14] It was for the accused to do so during trial or at the time of entering his defence. However, the evolution of law has seen that at the stage of framing charge, Courts can rely upon the material which has been withheld by the prosecutor, even if such material is not part of the charge sheet, but is of such sterling quality demolishing the case of the prosecution.[15] Courts are not handicapped to consider relevant material at the stage of framing charge, which is not relied upon by the prosecution. It is no argument that the accused can ask for the documents withheld at the time of entering his defence.[16] The framing of charge is a serious matter in a criminal trial as it ordains an accused to face a long and arduous trial affecting his liberty. Therefore, the Court must have all relevant material before the stage of framing charge to ascertain if grave suspicion is made out or not. Full disclosure at the stage of section 207 of the code, which immediately precedes discharging or charging an accused, enables an accused to seek a discharge, if the documents, including those not relied upon by the prosecution, create an equally possible view in favour of the accused.[17] On the other hand, delaying the reception of documents postpones the vindication of the accused in an unworthy trial and causes injustice by subjecting him to the trauma of trial. There is no gainsaying that justice delayed is justice denied, therefore, such an approach ought not to receive judicial consent. A timely discharge also travels a long way in saving precious time of the judiciary, which is already overburdened by the burgeoning pendency of cases. Thus, delayed or piecemeal disclosure not only prejudices the defence of the accused, but also protracts the trial and occasions travesty of justice.
III. Duties of the stakeholders in criminal justice system
The foregoing analysis reveals that participation of the investigating agency, the prosecution and the Court is inextricably linked to the enforcement of the right to disclosure. The duties cast on these three stakeholders in the criminal justice system, are critical to the protection of this right. It is incumbent upon the investigating agencies to investigate cases fairly and to place on record all the material irrespective of its implication on the case of prosecution case. Investigation must be carried out with equal alacrity and fairness irrespective of status of accused or complainant.[18] An onerous duty is cast on the prosecution as an independent statutory officer, to conduct the trial with the objective of determination of truth and to ensure that material favourable to the defence is supplied to the accused. Ultimately, it is the overarching duty of the Court to ensure a fair trial towards the administration of justice for all parties. The principles of fair trial require the Court to strike a delicate balance between competing interests in a system of adversarial advocacy. Therefore, the court ought to exercise its power under section 156(3) of the Code to monitor investigation and ensure that all material, including that which enures to the benefit of the accused, is brought on record. Even at the stage of supply of copies of police report and documents under section 207 of the Code, it is the duty of the Court to give effect to the law laid down by the Hon’ble Supreme Court in Manu Sharma (supra) and Sasikala (supra), and ensure that all such material is supplied to the accused irrespective of whether it is “relied upon” by the prosecution or not.
IV. Alternate Remedy
The conundrum of supply of copies under section 207 of the code abounds criminal trials. Fairness is an evolving concept. There is no doubt that disclosure of all material which goes to establish the innocence of an accused is the sine qua non of a fair trial.[19] Effort is evidently underway to expand the concept in alignment with English jurisprudence. In the meanwhile, does the right of an accused to disclosure have another limb to stand on? Section 91 of the Code comes to the rescue of an accused, which confers wide discretionary powers on the Court, independent of section 173 of the Code, to summon the production of things or documents, relevant for the just adjudication of the case. In case the Court is of the opinion that the prosecution has withheld vital, relevant and admissible evidence from the Court, it can legitimately use its power under section 91 of the Code to discover the truth and to do complete justice to the accused.[20]
V. Conclusion
A society’s progress and advancement are judged on many parameters, an important one among them being the manner in which it administers criminal justice. Conversely, the ironic sacrilege of the core virtues of criminal jurisprudence in the temples of justice evinces social decadence. The Indian legislature of the twenty first century has given birth to several draconian statutes which place iron shackles on personal liberty, evoking widespread fear of police abuses and malicious prosecution. These statutes not only entail presumptions which reverse the burden of proof, but also include impediments to the grant of bail. Thus, a very heavy burden to dislodge the prosecution case is imposed on the accused, rendering the right to disclosure of paramount importance. It is the duty of the Court to keep vigil over this Constitutional and statutory right conferred on an accused by repudiating any procedure which prejudices his defence. Notable advancement has been made by the Apex Court in interpreting section 207 of the Code in conformity with the Constitutional mandate, including the right to disclosure. Strict adherence to the afore-noted principles will go a long way in ensuring real and substantial justice. Any departure will not only lead to judicial anarchy, but also further diminish the already dwindling faith of the public in the justice delivery system.
**
Advocate Manu Sharma has been practising at the bar for over sixteen years. He specialises in Criminal Defence. Some of the high profile cases he has represented are – the 2G scam case for former Union minister A Raja; the Religare/Fortis case for Malvinder Singh; Peter Mukerjee in the P Chidambaram/ INX Media case; Devas Multimedia in ISRO corruption act case; Om Prakash Chautala in PMLA case; Aditya Talwar in the aviation scam case; Dilip Ray, former Coal Minister in one of the coal scam cases; Suhaib Illyasi case.
**
Disclaimer: The views or opinions expressed are solely of the author.
[1] Maneka Gandhi and Another v. Union of India, (1978) 1 SCC 248
[2] S. 3 of the Criminal Procedure and Investigations Act, 1996
[3] R v. H and R v. C, 2004 (1) ALL ER 1269
[4] R v. Ward (Judith), (1993) 1 WLR 619 : (1993) 2 ALL ER 577 (CA)
[5] R v. Preston, (1994) 2 AC 130 : (1993) 3 WLR 891 : (1993) 4 ALL ER 638 (HL), R v. Stinchcome,
(1991), 68 C.C.C. (3d) 1 (S.C.C.)
[6] Vinubhai Haribhai Malaviya and Others v. State of Gujarat and Another, 2019 SCC Online SC 1346
[7] Sidhartha Vashishth alias Manu Sharma v. State (NCT of Delhi), (2010) 6 SCC 1
[8] R. 16, part II, Ch. VI of the Bar Council of India Rules
[9] Manu Sharma, (2010) 6 SCC 1
[10] V.K. Sasikala v. State, (2012) 9 SCC 771 : AIR 2013 SC 613
[11] Sasikala, (2012) 9 SCC 771 : AIR 2013 SC 613
[12] Sala Gupta and Another v. Directorate of Enforcement, (2019) 262 DLT 661
[13] State of Orissa v. Debendra Nath Padhi¸(2005) 1 SCC 568
[14] Dharambir v. Central Bureau of Investigation, ILR (2008) 2 Del 842 : (2008) 148 DLT 289
[15] Nitya Dharmananda alias K. Lenin and Another v. Gopal Sheelum Reddy, (2018) 2 SCC 93
[16] Neelesh Jain v. State of Rajasthan, 2006 Cri LJ 2151
[17] Dilwar Balu Kurane v. State of Maharashtra, (2002) 2 SCC 135, Yogesh alias Sachin Jagdish Joshi v. State of Maharashtra, (2008) 10 SCC 394
[18] Karan Singh v. State of Haryana, (2013) 12 SCC 529
[19] Kanwar Jagat Singh v. Directorate of Enforcement & Anr, (2007) 142 DLT 49
[20] Neelesh, 2006 Cri LJ 2151
Disclaimer: The views or opinions expressed are solely of the author.
Validity & Existence of an Arbitration Clause in an Unstamped Agreement
By Kunal Kumar
January 8, 2024
In a recent ruling, a seven-judge bench of the Supreme Court of India in its judgment in re: Interplay between arbitration agreements under the Arbitration & Conciliation Act 1996 and the Indian Stamp Act 1899, overruled the constitutional bench decision of the Supreme Court of India in N. N. Mercantile Private Limited v. Indo Unique Flame Ltd. & Ors. and has settled the issue concerning the validity and existence of an arbitration clause in an unstamped agreement. (‘N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – III’)
Background to N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – III
One of the first instances concerning the issue of the validity of an unstamped agreement arose in the case of SMS Tea Estate Pvt. Ltd. v. Chandmari Tea Company Pvt. Ltd. In this case, the Hon’ble Apex Court held that if an instrument/document lacks proper stamping, the exercising Court must preclude itself from acting upon it, including the arbitration clause. It further emphasized that it is imperative for the Court to impound such documents/instruments and must accordingly adhere to the prescribed procedure outlined in the Indian Stamp Act 1899.
With the introduction of the 2015 Amendment, Section 11(6A) was inserted in the Arbitration & Conciliation Act 1996 (A&C Act) which stated whilst appointing an arbitrator under the A&C Act, the Court must confine itself to the examination of the existence of an arbitration agreement.
In the case of M/s Duro Felguera S.A. v. M/s Gangavaram Port Limited, the Supreme Court of India made a noteworthy observation, affirming that the legislative intent behind the 2015 Amendment to the A&C Act was necessitated to minimise the Court's involvement during the stage of appointing an arbitrator and that the purpose embodied in Section 11(6A) of A&C Act, deserves due acknowledgement & respect.
In the case of Garware Wall Ropes Ltd. v. Cosatal Marine Constructions & Engineering Ltd., a divisional bench of the Apex Court reaffirmed its previous decision held in SMS Tea Estates (supra) and concluded that the inclusion of an arbitration clause in a contract assumes significance, emphasizing that the agreement transforms into a contract only when it holds legal enforceability. The Apex Court observed that an agreement fails to attain the status of a contract and would not be legally enforceable unless it bears the requisite stamp as mandated under the Indian Stamp Act 1899. Accordingly, the Court concluded that Section 11(6A) read in conjunction with Section 7(2) of the A&C Act and Section 2(h) of the Indian Contract Act 1872, clarified that the existence of an arbitration clause within an agreement is contingent on its legal enforceability and that the 2015 Amendment of the A&C Act to Section 11(6A) had not altered the principles laid out in SMS Tea Estates (supra).
Brief Factual Matrix – N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd.
Indo Unique Flame Ltd. (‘Indo Unique’) was awarded a contract for a coal beneficiation/washing project with Karnataka Power Corporation Ltd. (‘KPCL’). In the course of the project, Indo Unique entered into a subcontract in the form of a Work Order with N.N. Global Mercantile Pvt. Ltd. (‘N.N. Global’) for coal transportation, coal handling and loading. Subsequently, certain disputes arose with KPCL, leading to KPCL invoking Bank Guarantees of Indo Unique under the main contract, after which Indo Unique invoked the Bank Guarantee of N. N. Global as supplied under the Work Order.
Top of FormS
Subsequently, N.N. Global initiated legal proceedings against the cashing of the Bank Guarantee in a Commercial Court. In response thereto, Indo Unique moved an application under Section 8 of the A&C Act, requesting that the Parties to the dispute be referred for arbitration. The Commercial Court dismissed the Section 8 application, citing the unstamped status of the Work Order as one of the grounds. Dissatisfied with the Commercial Court's decision on 18 January 2018, Indo Unique filed a Writ Petition before the High Court of Bombay seeking that the Order passed by the Commercial Court be quashed or set aside. The Hon’ble Bombay High Court on 30 September 2020 allowed the Writ Petition filed by Indo Unique, aggrieved by which, N.N. Global filed a Special Leave Petition before the Supreme Court of India.
N. N. Global Mercantile Pvt. Ltd. v. Indo Unique Flame Ltd. – I
The issue in the matter of M/s N.N. Global Mercantile Pvt. Ltd. v. M/s Indo Unqiue Flame Ltd. & Ors. came up before a three-bench of the Supreme Court of India i.e. in a situation when an underlying contract is not stamped or is insufficiently stamped, as required under the Indian Stamp Act 1899, would that also render the arbitration clause as non-existent and/or unenforceable (‘N.N. Global Mercantile Pvt. Ltd. v. Indo Flame Ltd. – I’).
The Hon’ble Supreme Court of India whilst emphasizing the 'Doctrine of Separability' of an arbitration agreement held that the non-payment of stamp duty on the commercial contract would not invalidate, vitiate, or render the arbitration clause as unenforceable, because the arbitration agreement is considered an independent contract from the main contract, and the existence and/or validity of an arbitration clause is not conditional on the stamping of a contract. The Hon’ble Supreme Court further held that deficiency in stamp duty of a contract is a curable defect and that the deficiency in stamp duty on the work order, would not affect the validity and/or enforceability of the arbitration clause, thus applying the Doctrine of Separability. The arbitration agreement remains valid and enforceable even if the main contract, within which it is embedded, is not admissible in evidence owing to lack of stamping.
The Hon’ble Apex Court, however, considered it appropriate to refer the issue i.e. whether unstamped instrument/document, would also render an arbitration clause as non-existent, unenforceable, to a constitutional bench of five-bench of the Supreme Court.
N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – II
On 25 April 2023, a five-judge bench of the Hon’ble Supreme Court of India in the matter of N. N. Mercantile Private Limited v. Indo Unique Flame Ltd. & Ors. held that (1) An unstamped instrument containing an arbitration agreement cannot be said to be a contract which is enforceable in law within the meaning of Section 2(h) of the Indian Contract Act 1872 and would be void under Section 2(g) of the Indian Contract Act 1872, (2) an unstamped instrument which is not a contract nor enforceable cannot be acted upon unless it is duly stamped, and would not otherwise exist in the eyes of the law, (3) the certified copy of the arbitration agreement produced before a Court, must clearly indicate the stamp duty paid on the instrument, (4) the Court exercising its power in appointing an arbitration under Section 11 of the A&C Act, is required to act in terms of Section 33 and Section 35 of the Indian Stamp Act 1899 (N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – II).
N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – III
A seven-judge bench of the Supreme Court of India on 13 December 2023 in its recent judgment in re: Interplay between arbitration agreements under the Arbitration & Conciliation Act 1996 and the Indian Stamp Act 1899, (1) Agreements lacking proper stamping or inadequately stamped are deemed inadmissible as evidence under Section 35 of the Stamp Act. However, such agreements are not automatically rendered void or unenforceable ab initio; (2) non-stamping or insufficient stamping of a contract is a curable defect, (2) the issue of stamping is not subject to determination under Sections 8 or 11 of the A&C Act by a Court. The concerned Court is only required to assess the prima facie existence of the arbitration agreement, separate from concerns related to stamping, and (3) any objections pertaining to the stamping of the agreement would fall within the jurisdiction of the arbitral tribunal. Accordingly, the decision in N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – II and SMS Tea (supra) was overruled, by the seven-judge bench of the Supreme Court of India.
Kunal is a qualified lawyer with more than nine years of experience and has completed his LL.M. in Dispute Resolution (specialisation in International Commercial Arbitration) from Straus Institute for Dispute Resolution, Pepperdine University, California.
Kunal currently has his own independent practice and specializes in commercial/construction arbitration as well as civil litigation. He has handled several matters relating to Civil Law and arbitrations (both domestic and international) and has appeared before the Supreme Court of India, High Court of Delhi, District Courts of Delhi and various other tribunals.
No Safe Harbour For Google On Trademark Infringement
By Mayank Grover & Pratibha Vyas
October 9, 2023
Innovation, patience, dedication and uniqueness culminate in establishing a distinct identity. A trademark aids in identifying the source and quality, shaping perceptions about the identity's essence. When values accompany a product or service's trademark, safeguarding against misuse and infringement becomes crucial. A recent pronouncement of a Division Bench of the Delhi High Court dated August 10, 2023 in Google LLC v. DRS Logistics (P) Ltd. & Ors. and Google India Private Limited v. DRS Logistics (P) Ltd. & Ors. directed that Google’s use of trademarks as keywords for its Google Ads Programme does amount to ‘use’ in advertising under the Trademarks Act and the benefit of safe harbour would not be available to Google if such keywords infringe on the concerned trademark.
Factual Background
Google LLC manages and operates the Google Search Engine and Ads Programme, while, Google India Private Limited is a subsidiary of Google that has been appointed as a non-exclusive reseller of the Ads Programme in India. The Respondents, DRS Logistics and Agarwal Packers and Movers Pvt. Ltd. are leading packaging, moving and logistics service providers in India.
On 22.12.2011, DRS filed a suit against Google and Just Dial Ltd. under provisions of the Trademarks Act, 1999 (‘TM Act’) inter alia seeking a permanent injunction against Google from permitting third parties from infringing, passing off etc. the relevant trademarks of DRS. The core of the dispute revolved around Google’s Ads Programme. DRS claimed that its trade name 'AGARWAL PACKERS AND MOVERS' is widely recognized and a 'well-known' trademark. Use of DRS’s trademark as a keyword diverts internet traffic from its website to that of its competitors and they were entitled to seek restraint against Google for permitting third parties who are not authorized to use the said trademark. DRS further argued that Google benefits from these trademark infringements. This practice involved charging a higher amount for displaying these ads, constituting an infringement of their trademarks. Whereas, Google contended that the use of the keyword in the Ads Programme does not amount to ‘use’ under the TM Act notwithstanding that the keyword is/or similar to a trademark. Thus, the use of a term as a keyword cannot be construed as an infringement of a trademark under the TM Act, and being an intermediary, it claimed a safe harbour under Section 79 of the Information Technology Act, 2000. (‘IT Act’).
In essence, the dispute between the parties was rooted in DRS’s grievance concerning the Ads Programme. The Learned Single Judge vide judgment dated 30.10.2021interpreted relevant provisions of the TM Act and drew on multiple legal precedents to arrive at the decision that DRS can seek protection of its trademarks which were registered under Section 28 of the TM Act and issued directions to investigate complaints alleging the use of trademark and/or to ascertain whether a sponsored result has an effect of infringing a trademark or passing off.
Being aggrieved, Google LLC and Google Pvt. Ltd. filed appeals before the Division Bench. Google LLC argued that the Single Judge’s findings were erroneous and the directions issued were liable to be set aside. Google India claimed that it doesn’t control and operate the Search Engine and the Ads Programme making it unable to comply with the directions passed in the impugned judgment.
Analysis & Decision of Court
The Division Bench found Single Judge’s rationale for assessing trademark infringement through keywords and meta-tags valid. Meta-tags are a list of words/code in a website, not readily visible to the naked eye. It serves as a tool for indexing the website by a search engine. If a trademark of a third party is used as a meta-tag, the same would serve as identifying the website as relevant to the search query that includes the trademark as a search term. The use of keywords in the Ads Programme also serves similar purpose. The Division Bench was unable to accept that using a trademark as a keyword, even if not visible, would not be considered trademark use under the TM Act.
Google placed heavy reliance on the decisions rendered by Courts across jurisdictions of United Kingdom, United States of America, European Union, Australia, New Zealand, Russia, South Africa, Canada, Spain, Italy, Japan and China; in the cases of Google France SARL and Google Inc. v. Louis Vitton SA & Ors.[1], Interflora Inc. v. Marks & Spencer Plc.[2], and L’Oreal SA v. eBay International AG[3] in support of the contention that the use of trade marks is by the advertiser and not by Google. However, the Division Bench rejected Google’s passive role; highlighting its active involvement in recommending and promoting trademark keywords for higher clicks in its Ads Programme. Division Bench referred to a few judicial decisions rendered in the United States of America that captured the essence of the controversy for perspective, concluding that Google actively promotes and encourages trademarks associated with major goods and services, rather than having a passive role.
It was held that the contention that the use of trademarks as keywords, per se constitutes an infringement of the trademark is unmerited; the assumption that an internet user is merely searching the address of the proprietor of the trademark when he feeds in a search query that may contain a trademark, is erroneous.
The Doctrine of 'Initial Interest Confusion' addresses trademark infringement based on pre-purchase confusion. The doctrine is applied when meta-tags, keywords, or domain names cause initial confusion similar to a registered trademark. If users are misled to access unrelated websites, trademark use in internet advertising may be actionable and reliance was placed on US precedents. Referring to Section 29 of the TM Act, it was directed that Section 29 does not specify the duration for which the confusion lasts but, even if the confusion is for a short duration and an internet user is able to recover from the same, the trade mark would be infringed and would offend Section 29(2) of the TM Act.
It was held that the Ads Programme is a platform for displaying advertisements. Google, being an architect and operator of its own programme makes it an active participant in the use of trademarks and determining the advertisements displayed on search pages. Their use of proprietary software makes them utilize trademarks and control the distribution of information related to potentially infringing links, ultimately leading to revenue maximization. Hence, a substantial link exists between Google LLC and Google India, rendering it impossible for Google India to deny its role in operating the Ads Programme. It was further held that Google sells trademarks as keywords to advertisers and encourages users to use trademarks as keywords for ads. It is contradictory for Google to encourage trademark use while claiming data belongs to third parties for exemption. After 2004, Google changed policies to boost revenue and subsequently, introduced a tool that searches effective terms, including trademarks. Google's active involvement in its advertising business and online nature does not necessarily qualify it for benefits under Section 79 of the IT Act. The Division Bench agreed with the view of the Single Judge that Google would not be eligible for protection of safe harbour under Section 79(1) of the IT Act, if its alleged activities infringe trademarks.
Conclusion
This is a seminal decision governing (and rather, restricting) the operations of intermediaries and redefining the jurisprudence of safe harbour under the IT Act. The decision is well-reasoned and establishes a significant precedent for safeguarding trademarks by uniquely holding Google accountable under its Ads Programme. The same will prevent usage of tradenames as a third-party trademark in keyword search or metatags by advertisers on Google’s search engine. While keywords and meta-tags have different levels of visibility, their purpose is similar i.e. advertising and attracting internet traffic. The use of trademarks as meta-tags by a person who is neither a proprietor of the trademark nor permitted to use the same leads to confusion amongst public at large due to the automated processes of search engines and consequently, constitutes trademark infringement.
About the Authors: Mayank Grover is a Partner and Pratibha Vyas is an Associate at Seraphic Advisors, Advocates & Solicitors
[1] C-236/08 to C-238/08 (2010) [2011] All ER (EC) 41
[2] [2014] EWCA Civ 1403
[3] 2C- 324/09 (2010)
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