BUSSINESS ENVIRONMENT

I HEREBY CERTIFY THAT THE PROJECT REPORT SUBMITTED, ENTITLED

REPORT ON VARIOUSACTS IN INDIA

IT IS PREPARED BY MY OWN, IN REQUIREMENT TO SUBMIT THE ASSIGNMENT TO Mr.

CHRIS. FOR THIS REPORT I HAD TO TAKE MANY FACTS AND VARIOUS OTHER DATA FROM
DIFFERENT SOURCES. BUT I HAVE MENTIONED THE SOURCES OF THAT DATA IN
BIBIOGRAPHY.

BYDAMNEET KAUR
BBA- IVTH SEM

DATE-18-MAY-2014
PLACE- APG SHIMLA UNIVERSITY
SHIMLA HP

TABLE OF CONENT
S.NO
.
1

TOPICS
CERTIFICATE OF
ORIGINALITY

PAGE
NO.
2

ABSTRACT

ANALYSE

5-16

CONCLUSION

BIBLOGRAPHY

17

18

India maintains a common law legal system inherited from the colonial era and various legislations first
introduced by the British are still in effect in modified forms today. During the drafting of the Indian
Constitution. Indian laws also adhere to the United Nations guidelines on human rights law and
the environmental law.
Indian family law is fairly complex, with each religion adhering to its own specific laws. In most states,
registering of marriages and divorces is not compulsory.
Separate laws govern Hindus, Muslims, Christians, Sikhs, and followers of other religions. The exception to
this rule is in the state of Goa, where a uniform civil code is in place, in which all religions have a common
law regarding marriages, divorces, and adoption.
Ancient India represented a distinct tradition of law, and had a historically independent school of legal
theory and practice. Early in this period, which culminated in the creation of the Gupta Empire, relations
with ancient Greece and Rome were not infrequent. Inter-State relations in the pre-Islamic period resulted
in clear-cut rules of warfare of a high humanitarian standard, in rules of neutrality, of treaty law, of
customary law embodied in religious charters, in exchange of embassies of a temporary or semi permanent
character.
With the advent of the British raj, there was a break in tradition, and Hindu and Islamic law were abolished
in favour of British common law.
The Constitution of India, which came into effect on the 26th of January, 1950 is the lengthiest written
constitution in the world.
The constitution prescribes a federal structure of government, with a clearly defined separation of
legislative and executive powers between the Federation and the States. Each State Government has the
freedom to draft it own laws on subjects classified as state subjects 1. Laws passed by the Parliament of
India and other pre-existing central laws on subjects classified as central subjects are binding on all
citizens.
The Indian Penal Code formulated by the British during the British Raj in 1860, forms the backbone
of criminal law in India. The Code of Criminal Procedure, 1973 governs the procedural aspects of the
criminal law.
This report has detailed information about the following acts

Environment Protection Act 1986

Consumer Protection Act 1986
The Companies Act 1956
The Industries Development and Regulation Act 1951
Foreign Exchange Regulation Act 1973
Indian Contract Act 1872
The Monopolies and Restrictive Trade Practices Act 1969
Essential Commodities Act 1955

ENVIRONMENT PROTECTION ACT 1986

In the wake of the Bhopal Tragedy, the Government of India enacted the Environment Protection Act of
1986 under Article 253 of the Constitution. The purpose of the Act is to implement the decisions of the
United Nations Conference on the Human Environment of 1972, in so far as they relate to the protection
and improvement of the human environment t and the prevention of hazards to human beings, other living
creatures, plants and property. The Act is an umbrella legislation designed to provide a framework for
central government coordination of the activities of various central and state authorities established under
previous laws, such as the Water Act and the Air Act.
The concern over the state of environment has grown the world over since the sixties. The decline in
environmental quality has been evidenced by increasing pollution, loss of vegetal power and biological
diversity, excessive concentration of harmful chemicals in the ambient atmosphere and in food chains,
growing risks of environmental accidents and threat to life support systems.
From time to time various legislations relating to protection of environment from specific types of pollution
have been passed by the Indian legislature. However, the Environment (Protection) Act, 1986 is the most
comprehensive act on the Indian statute book relating to environment protection. It is a general legislation
for the protection of environment. It was enacted under Article 253 of the Constitution.
The Environment (Protection) Act was enacted in 1986 with the objective of providing for the protection and
improvement of the environment. It empowers the Central Government to establish authorities [under
section 3(3)] charged with the mandate of preventing environmental pollution in all its forms and to tackle
specific environmental problems that are peculiar to different parts of the country. The Act was last
amended in 1991.

Object and purpose of the Environmental Protection Act 1986

The Environment (Protection) Act, 1986 extends to the whole of India and it came into force on November
19, 1986.
After the enactment of Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and
Control of Pollution) Act, 1981, it was thought that there should be a general legislation for environmental
protection as well as for coordinating the activities of various regulatory agencies. Need was felt to create
authority with adequate power for environment protection, regulation of discharge, handling of hazardous
substances, speedy response to accidents threatening environment and deterrent punishment to those who
endanger human environment, safety and health.

Following are the objectives of EPA, 1986:

To implement the decisions made at the U.N. Conference on the Human Environment held at Stockholm
in June, 1972.
To co-ordinate activities of the various regulatory agencies under the existing laws and creation of an
authority or authorities for environment protection.
To provide for deterrent punishment to those who endanger human environment, safety and health.
To ensure sustainable development is also one of the goals of the EPA, 1986. If the act is not armed with
the powers to ensure sustainable development, it will become a barren shell.

 To enact general law on environmental protection which could cover uncovered gaps in the areas of major
environmental hazards as the existing laws generally focused on specific types of pollution or on specific
categories of hazardous substances and some major areas of environmental were not covered.
In short, the EPA, 1986 aims at protecting and improving the environment and prevention of hazards to
human beings, other living creatures, plant and property.

POWER OF THE CENTRAL GOVERNMENT TO TAKE MEASURES TO PROTECT AND

IMPROVE ENVIRONMENT:
The Central Government has the power to take all such measures as it deems necessary for the purpose of
protecting and improving the quality of environment and preventing, controlling and abating environmental
pollution. Such measures may include:

Co-ordination of actions by the State Government officers and other authorities under this act or
under any law.
Planning and execution of nation- wide programmes for the prevention, control and abatement of
environmental pollution.
Laying down standards for the quality of environment in the various aspects.
Laying down standards for the emission or discharge of environmental pollutants.
Restriction of areas in which any industry, operation or process shall be carried out.
Laying down procedures and safeguards for handling of hazardous substances.
Examination of manufacturing processes, materials and substances which are likely to cause
environmental protection.

Consumer Protection Act of 1986

Consumer protection means the protection of the consumers from their exploitation by the
unfair trade practices of the producers/sellers.
Consumer protection is a group of laws and organizations designed to ensure the rights of consumers as
well as fair trade competition and the free flow of truthful information in the marketplace.
The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining
an advantage over competitors; they may also provide additional protection for the weak and those unable
to take care of themselves. Consumer protection laws are a form of government regulation, which aim to
protect the rights of consumers.
Consumer interests can also be protected by promoting competition in the markets which directly and
indirectly serve consumers, consistent with economic efficiency, but this topic is treated in competition law.
Consumer protection can also be asserted via non-government organizations and individuals as consumer
activism.

Consumer law
Consumer protection covers a wide range of topics, including but not necessarily limited to product
liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business
interactions.

In India the consumer law implies

In India, the Consumer Protection Act of 1986 is the law governing consumer protection. Under this law,
Separate Consumer Dispute Redressal Fora have been set up throughout India in each and every district

in which a consumer [complaint can be filed by both the consumer of a goods as well as of the services]
can file his complaint on a simple paper with nominal court fees and his complaint will be decided by the
Presiding Officer of the District Level. Appeal could be filed to the State Consumer Disputes Redressal
Commissions and after that to the National Consumer Disputes Redressal Commission (NCDRC).

SALIENT FEATURES OF THE ACT - In this unit you will study the basic provisions of the Consumer Protection Act, 1986. The detailed rights of the consumers and
how those rights can be enforced (i.e., the various reliefs available to consumers) Salient features of the Act are:
1) The Act aims to provide better and all-round protection to consumers.
2) In terms of geographical application, it applies to the whole of India except the State of
Jammu and Kashmir.
3) It applies to all goods and services unless otherwise expressly notified by the Central Government.
4) It provides effective safeguards to the consumers against different types of exploitation
such as defective goods, unsatisfactory (or deficient) services and unfair trade practices.

Consumer Protection Act In India

In India, Central and State Governments have passed various legislative enactments
regarding Consumer Protection. Among them, main Acts are:
Drug and Cosmetics Act 1940
Industries Development and Regulation Act 1951
Indian Standards Institution (Certification Marks) Act 1952
Prevention of Food Adulteration Act 1954
Essential Commodities (Supply) Act 1955
The Trade and Merchandise Marks Act, 1958
Monopolies and Restrictive Trade Practices Act 1969
Packaged Commodities Regulation Order 1975
Standards of Weights and Measures Act 1976
Prevention of Black Marketing and Maintenance of Supplies of Essen
t i a l Commodities Act 1980
Standards of Weights and Measures (Enforcement) Act. 1985

The Companies Act, 1956

The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956, which
enabled companies to be formed by registration, and set out the responsibilities of companies,
their directors and secretaries.
The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate
Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board,
Director of Inspection, etc. The Registrar of Companies (ROC) handles incorporation of new companies
and the administration of running companies.

Since its commencement, it has been amended many times, in which amendment of 1988, 1990, 1996,
2000 and 2011 are notable.

Nature and Scope of the Act

Like most of Indian acts, it also extends to the whole India except State of Jammu and Kashmir (SECTION
3) .Notwithstanding anything contained in the Act every company, international or indigenous will work
under the provisions of the Act. This Act is general in nature and not subrogative. So if a special Legislation
applies on a Company, then the Company has to, in addition to Companies Act, must comply the special
Legislation. For example, all banking Companies in India has to comply Banking Regulation Act 1949, in
addition to the Companies Act 1956.

Act's Cessation and New Act's Important Provisions and Background

The Act has now been replaced by The Companies Act, 2013 after receiving the assent of the President of
India on Thursday, 29 August 2013. The Companies Act, 2013 is divided into 29 chapters containing 470
clauses as against 658 Sections in the Companies Act, 1956. The Central Government has appointed
Thursday, 12 September 2013 as the date on which some notified sections the Companies Act, 2013 shall
come into force. The Ministry of Corporate Affairs has notified 183 sections of the new Companies Act,
2013, which comes into effect from April 1, 2014. With this, 283 of 470 sections of the Act have got notified
in a phased manner.It provides for new concepts such as a one person company. Cap on number of
persons in a private company raised to 200. E-voting has been recognized.
This new Act is one of the major achievement in Indian Parliamentary History in recent past.

Objectives of Companies Act, 1956

These are some points of objectives of the Companies Act, 1956.
1. Management of the companies.
2. Control over companies.
3. Protection of Consumer's interest.
4. Inter-Corporate loans and investments.
5. Audit of Cost.
6. Investor's protection

SALIENT FEATURES OF THE COMPANIES ACT, 1956

Structure & Objectives of the Act

Strengthening Board Composition
Meetings of the Board & Shareholders
Stakeholders Interest Protection
Higher Auditor Accountability

Structure of the Companies Act, 2013

The Companies Act, 1956 had 658 sections (XIII parts) and 15 Schedules
The Companies Act, 2013 has 470 sections (XXIX Chapters) and 7 schedules
However, the new Act is in no way shorter or smaller

Huge delegated legislation

There are some 378 prescriptions
Several sections have been consolidated into single section

Guiding Principles in the making of Companies Act

o Adopting best global practices;
o Strengthening enforcement powers and prescribing stringent penalties;
o Segregating procedural aspects from substantive law
o Providing greater flexibility to bring changes in consonance with economic and technical
Environment.

The Industries Development and Regulation Act of India (1951)

The Industries (Development and Regulation) Act, (IDRA), came into force from 8th May 1952 under a
notification of the Central Government published in the Gazette of India.
Growth of the
industrial sector at a higher rate and on a sustained basis is a major determinant of a country's overall
economic development. In this regard, the Government of India has issued industrial policies, from time to
time, to facilitate and foster the growth of Indian industry and maintain its productivity and competitiveness
in the world market.
In order to provide the Central Government with the means to implement its industrial policies, several
legislations have been enacted and amended in response to the changing environment. The most
important being the Industries (Development and Regulation) Act, 1951 (IDRA) which was enacted in
pursuance of the Industrial Policy Resolution, 1948. The Act was formulated for the purpose of
development and regulation of industries in India by the Central Government

Objectives of the Act:

To Implement the Industrial Policy: The Act provides the necessary means to the Central
Government in order to implement its industrial policy.

Regulation and Development of Important Industries: The Act brings under the control of the
Central Government the development and regulation of a number of important industries listed m
the first schedule attached to the Act as the activities of such industries will affect the country as
awe and, therefore, the development of such important industries must be governed by the
economic factors of all India importance.

Planning and Future Development of New Undertakings: A system of licensing is introduced

under the Act to regulate planning and future development of new undertaking on sound and
balance lines and may be deemed expedient in the opinion of the Central Government.

Scope of the Act:

This Act applies to the whole of India including the State of Jammu & Kashmir, The provision of the Act
apply to industrial undertaking, manufacturing any of the articles mentioned in the first schedule. An
industrial undertaking (also called a factory) for the purpose of the Act is the one where manufacturing
process is being carried on :With the aid of power provided that fifty or more workers are working or were working on any day of the
preceding twelve months.
Without the aid of power provided that one hundred or more workers are working or were working on any
day of the preceding twelve months.
The Act applies only on industrial undertakings. Trading houses and financial institutions are outside the
purview of the Act.

Provisions of the Act:

The Act has 31 sections. All of them can be classified into three broad categories depending upon
the purposes they seek to serve:
A. Preventive Provisions:

Preventive provision provide for:

Registration and Licensing;

Investigation; and

Revocation of Licence.

B. Curative Provisions:
Curative provision includes the following:
(i) Taking over management or control; and
(ii) Control of supply, price and distribution of certain commodities

C. Creative Provisions:

The Creative provisions are positive in nature and involve co-operation between the Central Government,
industry, workers and consumers of goods produced by scheduled industries. Following are the specific
creative measures:
1 Constituting Development Councils.
2 Levy and Collection of Cess
3 Central Advisory Council
4 Other provision A) Power of the Central Government to provide relief to Certain Undertakings
B )Delegation of power by Central Government
C )Power to Make Rules.

D. Penalties:
The Act contains penalties for contravention of the provisions of the Act and for making false statement by
any person under the provisions of the Act. The penalty for contravention is imprisonment upto six months,
or a fine up to Rs. 5,000 or both.

Foreign Exchange Regulation Act 1973

The Foreign Exchange Regulation Act (FERA) was legislation passed by the Indian Parliament in 1973
by the government of Indira Gandhi and came into force with effect from January 1, 1974. FERA imposed
stringent regulations on certain kinds of payments, the dealings in foreign exchange and securities and the
transactions which had an indirect impact on the foreign exchange and the import and export of
currency. The bill was formulated with the aim of regulating payments and foreign exchange.
Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered the
company to turn over its secret formula for Coca-Cola and dilute its stake in its Indian unit as required by
the Foreign Exchange Regulation Act (FERA). In 1993, the company (along with PepsiCo) returned after
the introduction of India's Liberalization policy.

FERA :

Regulated in India by the Foreign Exchange Regulation Act (FERA), 1973.

Consisted of 81 sections.

FERA Emphasized strict exchange control.

Control everything that was specified, relating to foreign exchange.

Law violators were treated as criminal offenders.

Aimed at minimizing dealings in foreign exchange and foreign securities.

FERA was introduced at a time when foreign exchange (Forex) reserves of the country were low, Forex
being a scarce commodity. FERA therefore proceeded on the presumption that all foreign exchange earned
by Indian residents rightfully belonged to the Government of India and had to be collected and surrendered
to the Reserve bank of India (RBI). FERA primarily prohibited all transactions, except ones permitted by
RBI.

OBJECTIVES :

To regulate certain payments.

To regulate dealings in foreign exchange and securities.

To regulate transactions, indirectly affecting foreign exchange.

To regulate the import and export of currency.

To conserve precious foreign exchange.

The proper utilization of foreign exchange so as to promote the economic development of the
country.

Important features of FERA are as follows:

RBI can authorize a person / company to deal in foreign exchange.
RBI can authorize the dealers to do transact the Foreign Currencies, subject to review and RBI was
given power to revoke the authorization in case of non-compliancy.
RBI would authorize the persons as Money Changers who will convert the currency of one nation to
currency of their nation at rates "Determined by RBI".
NO person, other than "authorized dealer" would enter in any transaction of the foreign currency.
For whatever purpose Foreign exchange was required, it was to be used only for that purpose. If he
feels that he cannot use the currency of that particular purpose, he would sell it to a authorized
dealer within 30 days.
No person in India, without "permission from RBI" shall make payments to a person resident outside
India and receive any payment from a person from outside India.
No person shall draw issue or negotiate any bill of exchange in which a right to receive payment
outside India is created.
No person shall make any credit in an account of a person resident out of India. No person except
authorized by RBI shall send foreign currency out of India.
A person who has right to receive the foreign exchange would have not to delay the receipt of the
foreign exchange.

Indian Contract Act 1872

The law relating to contracts in India is contained in Indian Contract Act, 1872. The Act was passed
by British India and is based on the principles of English Common Law. It is applicable to all the states of
India except the state of Jammu and Kashmir. It determines the circumstances in which promises made by
the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday
knowingly or unknowingly. Each contract creates some rights and duties on the contracting parties. Hence
this legislation, Indian Contract Act of 1872, being of skeletal nature, deals with the enforcement of these
rights and duties on the parties in India.

Definition:

Offer(i.e. Proposal) [section 2(a)]:-When one person signifies to another his willingness to
do or to abstain from doing anything, with a view to obtaining the assent of that other person
either to such act or abstinence, he is said to make a proposal.

Acceptance 2(b):- When the person to whom the proposal is made, signifies his assent
there to, the proposal is said to be accepted.

Promise 2(b) :- A Proposal when accepted becomes a promise. In simple words, when an
offer is accepted it becomes promise.

Promisor and promisee 2(c) :- When the proposal is accepted, the person making the
proposal is called as promisor and the person accepting the proposal is called as promisee.

Consideration 2(d):- When at the desire of the promisor, the promisee or any other person
has done or abstained from doing something or does or abstains from doing something or
promises to do or abstain from doing something, such act or abstinence or promise is called
a consideration for the promise. Price paid by one party for the promise of the other
Technical word meaning QUID-PRO-QUO i.e. something in return.

Agreement 2(e) :- Every promise and set of promises forming the consideration for each
other. In short, agreement = offer + acceptance.

Contract 2(h) :- An agreement enforceable by Law is a contract. 8. Void agreement 2(g):An agreement not enforceable by law is void.

Voidable contract 2(i):- An agreement is a voidable contract if it is enforceable by Law at

the option of one or more of the parties there to (i.e. the aggrieved party), and it is not
enforceable by Law at the option of the other or others.

Void contract :- A contract which ceases to be enforceable by Law becomes void when it
ceases to be enforceable.

Types of Contract

On the basis of validity:

o

Valid contract: An agreement which has all the essential elements of a contract is called a
valid contract. A valid contract can be enforced by law.

Void contract[Section 2(g)]: A void contract is a contract which ceases to be enforceable by

law. A contract when originally entered into may be valid and binding on the parties. It may
subsequently become void. There are many judgments which have stated that where any

crime has been converted into a "Source of Profit" or if any act to be done under any
contract is opposed to "Public Policy" under any contractthan that contract itself cannot be
enforced under the lawo

Voidable contract[Section 2(i)]: An agreement which is enforceable by law at the option of

one or more of the parties thereto, but not at the option of other or others, is a voidable
contract. If the essential element of free consent is missing in a contract, the law confers
right on the aggrieved party either to reject the contract or to accept it. However, the contract
continues to be good and enforceable unless it is repudiated by the aggrieved party.

Illegal contract: A contract is illegal if it is forbidden by law; or is of such nature that, if

permitted, would defeat the provisions of any law or is fraudulent; or involves or implies
injury to a person or property of another, or court regards it as immoral or opposed to public
policy. These agreements are punishable by law. These are void-ab-initio.
All illegal agreements are void agreements but all void agreements are not illegal.

On the basis of performance:

o

Executed contract: An executed contract is one in which both the parties have performed
their respective obligation.

Executory contract: An executory contract is one where one or both the parties to the
contract have still to perform their obligations in future. Thus, a contract which is partially
performed or wholly unperformed is termed as executory contract.

Unilateral contract: A unilateral contract is one in which only one party has to perform his
obligation at the time of the formation of the contract, the other party having fulfilled his
obligation at the time of the contract or before the contract comes into existence.

Bilateral contract: A bilateral contract is one in which the obligation on both the parties to the
contract is outstanding at the time of the formation of the contract. Bilateral contracts are
also known as contracts with executory consideration.

Competent to contract

Section 11 of The Indian Contract Act specifies that every person is competent to contract provided:

He should not be a minor i.e. an individual who has not attained the age of majority i.e. 18
years in normal case and 21 years if guardian is appointed by the Court.

He should be of sound mind while making a contract. A person who is usually of unsound
mind, but occasionally of sound mind, can make a contract when he is of sound mind.
Similarly if a person is usually of sound mind, but occasionally of unsound mind, may not
make a valid contract when he is of unsound mind.

He is not a person who has been personally disqualified by law to which he is subject.

The Monopolies and Restrictive Trade Practices Act, 1969

The Monopolies and Restrictive Trade Practices Act, 1969, aims to prevent concentration of economic
power to the common detriment, provide for control of monopolies and probation of monopolistic, restrictive
and unfair trade practice, and protect consumer interest. The Monopolistic and Restrictive Trade Practices
Act, 1969, was enacted
To ensure that the operation of the economic system does not result in the concentration of
economic power in hands of few,
To provide for the control of monopolies, and
To prohibit monopolistic and restrictive trade practices.

Monopolistic trade practice:

Monopolistic trade practice is that which represents abuse of market power in the production and marketing
of goods and services by eliminating potential competitors from market and taking advantage of the control
over the market by charging unreasonably high prices, preventing or reducing competition, limiting
technical development, deteriorating product quality or by adopting unfair or deceptive trade practices.

A monopolistic trade practice is one, which has or is likely to have the effect of:

maintaining the prices of goods or charges for the services at an unreasonable level by limiting,
reducing or otherwise controlling the production, supply or distribution of goods or services;

unreasonably preventing or lessening competition in the production, supply or distribution of

any goods or services whether or not by adopting unfair method or fair or deceptive practices;

limiting technical development or capital investment to the common detriment;

deteriorating the quality of any goods produced, supplied or distribute; and

increasing unreasonably -

the cost of production of any good; or

charges for the provision, or maintenance, of any services; or

the prices for sale or resale of goods; or

the profits derived from the production, supply or distribution of any goods or services.

A monopolistic trade practice is deemed to be prejudicial to the public interest, unless it is expressly
authorized under any law or the Central Government permits to carry on any such practice

Unfair Trade Practice:

Misleading advertisement and False Representation

Falsely representing that goods and services are of a particular standard, quality, grade,
composition or style.

Falsely representing any second hand renovated or old goods as new.

Representing that goods or services, seller or supplier have a sponsorship, approval or affiliation
which they do not have.

Making a false or misleading representation concerning need for, or usefulness of goods or

services.

Giving to public any warranty, guarantee of performance that is not based on an adequate test or
making to public a representation which purports to be such a guarantee or warranty.

False and misleading claims with respect to the price of goods or services.

Giving false or misleading facts disparaging the goods, services or trade of another person or
concern.

Restrictive Trade Practice:

To maximise profits and market power, traders often attempt to indulge in certain trade practices which tend
to obstruct the flow of capital into the stream of production. It may also bring manipulation of prices or
conditions of delivery or affect the flow of supplies in the market so as to impose unjustified costs.
the Act provides that, restrictive trade practice means any trade practice which requires a consumer
to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying,
hiring or availing of other goods or services.
An analysis of above definition reveals that where sale or purchase of a product or service is made
conditional on the sale or purchase of one or more other products and services, it amounts to restrictive
trade practice.
Technically, this type of arrangement is called tie-up sales or tying arrangement. The effect of such an
arrangement is that a purchaser is forced to buy some goods or services which he may not require along
with the goods or services which he wants to buy. Thus where a buyer agrees to purchase product X upon
a condition that he will also purchase product Y from the seller, the sale of product Y (tied product) is tied
to the sale of product X (tying product).
The buyer has to forego his free choice between competing products. This results in neutralizing healthy
competition in the tied market.

Essential Commodities Act 1955

The Essential Commodities Act is an act of Parliament of India which was established to
ensure the delivery of certain commodities or products, the supply of which if obstructed owing

to hoarding or black marketing would affect the normal life of the people. This includes foodstuff,
drugs, fuel (petroleum products) etc.
The Essential Commodities Act, 1955 is a Central Act. It gives powers to control production,
supply, distribution etc. of commodities for maintaining or increasing supplies and for
securing their equitable distribution and availability at fair prices.
Under this Act, a number of Control Orders have been issued by the Govt. of India and State
Governments for regulating production, distribution, quality aspects, movement etc. pertaining to
the commodities such as food grains, edible oils, pulses, kerosene, sugar etc. which are
essential and administered by them. The Central Government monitors the action taken by the
State Governments to implement the Act.
The control Orders issued under this Act provide for action
(1) To confiscate the stock seized;
2) To suspend/cancel licences, if any
3) Impose punishments like imprisonment.
Definitions:

The classes of commodities declared as "essential commodities" are defined broadly.

They are:

(a)"essential commodity" means any of the following classes of commodities :o

cattle fodder, including oilcakes and other concentrates

coal including coke and other derivatives;

component parts and accessories of automobiles;

cotton and woollen textiles;

(iv a) drugs;

Explanation.In this sub-clause, drugs" has the meaning assigned to it in clause

(b) of section 3 of the Drugs and Cosmetics Act, 1940 (23 of 1940)
o

foodstuffs, including edible oilseeds and oils;

iron and steel, including manufactured products of iron and steel;

paper, including newsprint, paperboard and straw board;

petroleum and petroleum products;

raw cotton, whether ginned or unginned, and cotton seed;

raw jute;

The Central Government, under section 3, State Govt., / Central Govt., will issue orders for
maintaining or increasing supplies of any essential commodities or for securing their equitable
distribution and availability at fair prices, issue orders for regulating or production, supply and
distribution thereof.

The list of commodities under the Essential Commodities Act, 1955.

Declared under sub-clause (xi) of clause (a) of Section 2 of the Act
12. Jute textiles.
13. Fertilizers, whether inorganic, organic or mixed.
14. Yarn made wholly from cotton.
15. i) seeds of food crops and seeds of fruits and vegetables,
ii) seeds of cattle fodder and
iii) jute seeds.

The Indian Judiciary is partly a continuation of the British legal system established by the British in the mid19th century based on a typical hybrid legal system known as the Common Law System, in which customs,
precedents and legislative are all components of the law. The Constitution of India is the supreme legal
document of the country. There are various levels of judiciary in India different types of courts, each with
varying powers depending on the tier and jurisdiction bestowed upon them. They form a strict hierarchy of
importance, in line with the order of the courts in which they sit, with the Supreme Court of India at the top,
followed by High Courts of respective states with district judges sitting in District Courts and Magistrates of
Second Class and Civil Judge (Junior Division) at the bottom. Courts hear criminal and civil cases,
including disputes between individuals and the government. The Indian judiciary is independent of
the executive and legislative branches of government according to the Constitution.
Indian courts have large backlogs. For instance, the Delhi High Court has a backlog of 466 years according
to its chief justice. Rather the term "backlog" has been misused and the term "pendency" is the right word
for describing the large number of cases pending in the courts today. As could be understood, the largest
number of cases that are actually pending in the Indian Courts are that of minor Motor Vehicle Cases, petty
crimes such as stealing, abusing, insult, slap, etc.
Corruption is rampant in India's courts. According to Transparency International, judicial corruption in India
is attributable to factors such as "delays in the disposal of cases, shortage of judges and complex
procedures, all of which are exacerbated by a preponderance of new laws". Most disturbing is the fact that
corruption has reached the highest judicial forum i.e. Supreme Court of India. Some notable cases include:
Turning a blind eye to the injudicious conduct of a colleague
Hypocrisy
Secrecy

Plagiarism and prolixity

Self Arrogance
Professional arrogance
Nepotism

The jury found no place in the 1950 Indian Constitution, and it was ignored in many Indian states. The Law
Commission recommended its abolition in 1958 in its 14th Report. Jury trials were abolished in India by a
very discrete process during the 1960s, finishing with the 1973 Code of Criminal Procedure, which is still in
force today.
It has been argued that the 8:1 acquittal of Kawas Nanavati in K. M. Nanavati vs. State of Maharashtra,
which was overturned by higher courts on the grounds that the jury was misled by the presiding judge and
were susceptible to media and public influence, was the reason. A study by Elisabeth Kolsky argues that
many "perverse verdicts" were delivered by white juries in trial of "European British subjects" charged with
murder, assault, confinement of Indians

http://en.wikipedia.org/wiki/Environment_Protection_Act,_1986
http://thepeopleschronicle.in/?p=13832
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http://en.wikipedia.org/wiki/The_Companies_Act,_1956
http://www.yourarticlelibrary.com/business/the-industries-development-and-regulation-act-ofindia-1951-summary/23402/
http://en.wikipedia.org/wiki/Foreign_Exchange_Regulation_Act

http://www.gktoday.in/foreign-exchange-regulation-act-1973-fera/
http://en.wikipedia.org/wiki/Indian_Contract_Act_1872
http://www.consumergrievance.com/icrpc.org.mrtp.htm
http://haryanafood.nic.in/Acts_1_Brown.HTML