  Man is by nature a social being. He comes into contact with other individuals in different capacities. These contacts or associations are the inevitable consequence of modern civilization. In all these associations, he is expected to observe a Code of Conduct or a set of rules. The object of these set of rules is to  make human associations possible; and  ensure that members of the society may live ; and  work together in an orderly and peaceful manner.

 The word `law` is a general term and over a period of time attained different connotations to signify varied purposes.

 Clause 3 of Article 13 of the Constitution of India defines `law` as under (a) `law` includes any  Ordinance,  order,  bye-law,  rule,  regulation,  notification,  custom or usage having the force of law; An amendment to an existing law is also law. `Law` in the context of the provisions of the Constitution of India may also be defined as – ―It is an Act passed by the legislature and assented to by the President of India or Governor of a State.‖ [Arts 111 and 200 of the Constitution of India]. `Ignorntia juris non excusat` is a familiar maxim. This means `ignorance of law is no excuse`. Although it is not possible for a layman to be aware of every branch lf law, yet he must acquaint himself with the general principals of the law of the country.

 


 Article 245 of the Constitution of India empowers the Parliament and the Legislature of a State to make laws for the country and the State respectively.  Article 245, inter alia, stipulates as under: Article 245 Extent of laws made by Parliament and by the Legislatures of States  The Parliament may make laws for the whole or any part of the territory of India, and  The Legislature of a State may make laws for the whole or any part of the State.  The law made by Parliament may have extra-territorial operation.  The Constitution of India has put certain limitations on the legislative powers of the Parliament as well the State Assembly. 

Article 246 of the Constitution, inter alia, provides for the subject matter of laws to be made by Parliament and by the Legislatures of States. The subject matters have been specified in the Seventh Schedule to the Constitution.  Parliament - Exclusive power relating to any of the matters enumerated in List I. ("Union List"contains 97 Entries).  The State Legislature - Exclusive power relating any of the matters enumerated in List II. ('State List'contains 66 Entries).  Parliament besides the State Legislature – Empowered to make laws relating to matters enumerated in List III ("Concurrent List" – contains 47 Entries). Parliament has power to make laws with respect to any matter for any part of the territory of India not included in a State notwithstanding that such matter is a matter enumerated in the State List.



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List I – Union List. It has 97 entries. It contains those subjects which are of national interest or importance or which need national control and uniformity of policy throughout the country. Example: - Defence, Air Force, Atomic Energy, Foreign Affairs, Income Tax, CBI, Banking, Insurance, Reserve Bank of India, Incorporation, regulation and winding of up of corporations, Stock Exchange, Bills of exchange, Patents, Railways, Judges of Supreme Court and High Courts etc. List II – State List. It has 66 entries. It contains such subjects, which are of local (State) interest and on which the local control is more expedient. Example: - Public Order, Police, local Government, public health and sanitation, trade and commerce within the State, fairs, betting and gambling etc. List III – Concurrent List. It has 47 entries. It contains such subject, which though are of local importance yet need uniformity on national level or at least some parts of the country i.e. with respect to more than one State. Example: - Criminal Law, Education, Marriage and divorce, Transfer of Property, Contracts, Social Security etc.

Residuary Legislative Powers
 Article 248 of the Constitution further empowers the Parliament with the residuary powers of legislation to make any law with respect to any matter not enumerated in the Concurrent List or State List. Such power shall include the power of making any law imposing a tax not mentioned in either of those Lists.




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 

INTRODUCTION The Law of Contract deals with the law relating to the general principles of contract. It is the most important part of Mercantile Law. It affects every person in one way or the other, as all of us enter into some kind of contract everyday.
Since this law was not happily worded, two subsequent legislations namely Indian Sale of Goods Act – Sections 76 to 123 of the Indian Contract Act 1872 were repealed; and Partnership Act was also enacted and Sections 239 to 266 of the Contract Act were also repealed.

What is `Contract`
   The term `Contract` is defined in Section 2(h) of the Indian Contract Act, which reads as under ―An agreement enforceable by law is a contracts.‖ The analysis of this definition shows that a contract must have the following two elements: 1. An agreement, and 2. The agreement must be enforceable by law. In other words: Contract = An Agreement + Enforceability (by law)

Agreement (Section 2(e)
Every promise and every set of promises forming the consideration for each other is an agreement. Promise (Section 2(b)) A proposal when accepted becomes a promise.  Every agreement is not a contract. When an agreement creates some legal obligations and is enforceable by law, it is regarded as a contract.

1. 2. 3. 4. 5. 6. 7. 8. 9. Ex – Agreement Intention to create legal relationship Free and genuine consent. Parties competent to contract. Lawful consideration. Lawful object. Agreement not declared void or illegal. Certainty of meaning. Possibility of performance.

Where 'A' who owns 2 cars x and y wishes to sell car 'x' for Rs. 30,000. 'B', an acquaintance of 'A' does not know that' A' owns car 'x' also. He thinks that' A' owns only car 'y' and is offering to sell the same for the stated price. He gives his acceptance to buy the same. There is no contract because the contracting parties have not agreed on the same thing at the same time, 'A' offering to sell his car 'x' and 'B' agreeing to buy car or'. There is no consensus-adidem.




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CLASSIFICATION OF CONTRACTS 1. Classification according to validity or enforceability.
a) b) c) d) e)

Valid Voidable Void contracts or agreements Illegal. Unenforceable

2. Classification according to Mode of formation
(i) Express contract (ii) Implied contract

3. Classification according to Performance
(i) (ii) (iii) (iv)

Executed contract Executory contract. Unilateral Contract Bilateral Contract

OFFER AND ACCEPTANCE [Sections 3-9] OFFER What is `Offer/Proposal`
 A Proposal is defined as "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 to such act or abstinence, he is said to make a proposal." [Section 2(a)].

How an Offer is made?
 An offer can be made by (a) any act or
(b) omission of the party proposing by which he intends to communicate such proposal or which has the effect of communicating it to the other (Section 3).

CASE EXAMPLE In Carbolic Smoke Ball Co. 's case, the patent-medicine company advertised that it would give a reward of £100 to anyone who contracted influenza after using the smoke balls of the company for a certain period according to the printed directions. Mrs. Carlill purchased the advertised smoke ball and contracted influenza in spite of using the smoke ball according to the printed instructions. She claimed the reward of £100. The claim was resisted by the company on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. She filed a suit for the recovery of the reward. Held: She could recover the reward as she had accepted the offer by complying with the terms of the offer.)

 I. An offer must have certain essentials in order to constitute it a valid offer. These are: The offer must be made with a view to obtain acceptance.

2. The offer must be made with the intention of creating legal relations. [Balfour v. Balfour (1919) 2 K.B.57Il

Cross Offers  Where two parties make identical offers to each other.A enters into a bus for going to his destination and takes a seat. Offer vis-a-vis Invitation to offer  An offer must be distinguished from invitation to offer. It is express when the acceptance has been signified either in writing.A sends an offer to B through post in the usual course. TERMINATION OR LAPSE OF AN OFFER  An offer is made with a view to obtain assent thereto. the law will imply acceptance on the part of A. This is true of specific as sell as general offer.] In the case of a general offer. or if no mode is prescribed. the proposal is said to be accepted‖. In these cases. or by performance of some required act. LECTURES BY PROF. or by word of mouth. invites offers from the would-be-bidders. 5) An offer terminates by not being accepted in the mode prescribed. the offeree may reject the offer. or may be revoked. within a reasonable time. therefore. 5. The offer must not contain a term the non-compliance of which may be assumed to amount to acceptance. But before it is accepted. The assent may be express or implied. An offer must be distinguished from (a) a mere declaration of intention or (b) an invitation to offer or to treat. (7) Counter Offer ACCEPTANCE  Acceptance has been defined as "When the person to whom the proposal is made signifies his assent thereto. through post. 4) An offer terminates when revoked by the offeror before acceptance. The offer must be communicated to the offeree. B should make the acceptance in the "usual and reasonable manner" as no mode of acceptance is prescribed. An auctioneer. at the time of auction.IIPM 5 CH. An offer must be communicated to the offeree before it can be accepted. Ex. is an invitation to offer.  A prospectus issued by a company for subscription of its shares by the members of the public. 3) Acceptance must be according to the mode prescribed. of the circumstance. – 1 LAW & SOURCES 1. 3) An offer terminates when rejected by the offeree. Acceptance how made  The offeree is deemed to have given his acceptance when he gives his assent to the proposal. in the ordinary course. Also. it may lapse. 2) Acceptance must be communicated to the offeror. in some usual and reasonable manner.  ESSENTIALS OF A VALID ACCEPTANCE 1) Acceptance must be absolute and unqualified. He may accept the offer by sending a letter. 6) A conditional offer terminates when the condition is not accepted by the offeree. there is no contract. in ignorance of each other's offer. As soon as the offer is accepted it becomes a contract. 1) The offer lapses after stipulated or reasonable time 2) An offer lapses by the death or insanity of the offeror or the offeree before acceptance. The terms of offer must be definite. unambiguous and certain or capable of being made certain. vague or ambiguous. it can be accepted by anyone by complying with the terms of the offer. the offer will come to an end. From the very nature. A display of goods with a price on them in a shop window is construed an invitation to offer and not an offer to sell. the offers are known as cross-offers and neither of the two can be called an acceptance of the other and. He is not making a proposal. 6. Ex. 4. The terms of the offer must not be loose. S N GHOSH . The Letter of Offer issued by a company to its existing shareholders is an offer.

to sell a house to B at a certain price. by letter. when the telegram is dispatched. The revocation is complete as against A. CAPACITY TO CONTRACT (Sections 10-12) WHO ARE NOT COMPETENT TO CONTRACT  The following are considered as incompetent to contract. The communication of a revocation (of an offer or an acceptance) is complete: (1) as against the person who makes it. A minor cannot be a partner in a partnership firm. (ii) as against the acceptor. in the eye of law: - (A) LIVING PERSON (1) Minor: (i) (ii) (iii) (iv) (v) A contract with or by a minor is void and a minor. when the letter is posted by B. LECTURES BY PROF. so as to be out of the power of the acceptor. – 1 LAW & SOURCES (i) as against the proposer. (ii) as against B. (2) as against the person to whom it is made when it comes to his knowledge. bind himself by a contract. ExA proposes. but not afterwards. A minor's estate is liable to a person who supplies necessaries of life to a minor. when the letter is received by A. so as to be out of the power of the person who makes it. The communication of acceptance is complete: CH. but not afterwards. B accepts the proposal by a letter sent by post. and (ii) the acceptance must be communicated to the offeror. ExA revokes his proposal by telegram. by a letter sent by post. B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A. he cannot be asked to refund the same. when it is put into a course of transmission to the person to whom it is made.IIPM 6 COMMUNICATION OF OFFER. cannot. S N GHOSH . Revocation of proposal and acceptance:  A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer. therefore. to sell his house to B. when it is put into a course of transmission to him. A minor's agreement cannot be ratified by the minor on his attaining majority. (i) the offer must be communicated to the offeree. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance. B accepts A's proposal by a letter sent by post. ACCEPTANCE AND REVOCATION  As mentioned earlier that in order to be a valid offer and acceptance. but not afterwards. The communication of acceptance is complete: (i) as against A. ExA proposes. when B receives it. when it comes to the knowledge of the proposer. If a minor has received any benefit under a void contract. It is complete as against B.

The minor executed mortgage of property in favour of the lender. who is at intervals. a minor.000 out of which the lender paid the minor a sum of Rs. who is delirious from fever or who is so drunk that he cannot understand the terms of a contract or form a rational judgement as to its effect on his interest. if at the time when he makes it. 20. may make a contract when he is of sound mind. The Privy Council had to ascertain the validity of the mortgage. they are said to consent. may contract during those intervals. entered into a contract for borrowing a sum of Rs. The facts of the case were: Dharmodas Ghose. The mortgagee prayed for refund of Rs. Ex- A agrees to sell his Fiat Car 1983 model for Rs.30 Ca.000 by the minor. S N GHOSH . B agrees to buy the same. 539) held that in India minor's contracts are absolutely void and not merely voidable. A sane man.IIPM 7 CASE EXAMPLE CH. 80. he is incapable of understanding it. but occasionally of sound mind.A patient. in a lunatic asylum. The Privy Council decided that Sections 10 and 11 of the Indian Contract Act make the minor's contract void. (2) Mental Incompetence   A person is said to be of unsound mind for the purpose of making a contract. 8. 13-22) What is the meaning of `CONSENT` (SECTION 13)  When two or more persons agree upon the same thing in the same sense.000. Coercion Consequences Contract voidable LECTURES BY PROF. There is a valid contract since A and B have consented to the same subject matter. cannot contract whilst such delirium or drunkenness lasts. Dharmodas Ghose (190. any money advanced to a minor cannot be recovered. Under Section 7 of the Transfer of Property Act. The Privy Council further held that as a minor's contract is void. What is meant by `Free Consent`  Consent is said to be free when it is not caused by Causes affecting contract 1. Ex. and of forming a rational judgement as to its effect upon his interests. A person. every person competent to contract is competent to mortgage. who is usually of unsound mind. (3) Incompetence through Status (i) Alien Enemy (Political Status) (ii) Foreign Sovereigns and Ambassadors (iii) Company under the Companies Act or Statutory Corporation by passing Special Act of Parliament (Corporate status) (iv) Insolvent Persons (B) CORPORATE When under liquidation (under the supervision of the Court/Tribunal) FREE CONSENT (Sections 10. Subsequently. the minor sued for setting aside the mortgage. 8. of sound mind.000. – 1 LAW & SOURCES In 1903 the Privy Council in the leading case of Mohiri Bibi v.

The benefit so received and the loss. the promisee or any other person has done or abstained from doing." IMPORTANCE OF CONSIDERATION   A promise without consideration is purely gratuitous and. Executed or Present Executory or Future LEGALITY OF OBJECT (Sections 23. the consideration and the object of an agreement are unlawful in the following cases: What consideration and objects are unlawful – agreement VOID LECTURES BY PROF. however sacred and binding in honour it may be. or inconvenience that may have been occasioned to the other party in respect of the promise. Peek (1889) 14 A. The House of Lords held that the directors were not liable in fraud because they honestly believed what they said in the prospectus to be true. Fraud 4. Undue influence 1. Mistake – (i) of fact (a) Bilateral (b) Unilateral (ii) of Fact Void Generally not invalid Void Contract voidable Contract voidable Contract voidable CH. A person who makes a promise to do or abstain from doing something usually does so as a return or equivalent of some loss. S N GHOSH . 2.23-25. – 1 LAW & SOURCES Ex (i) A railway company refuses to deliver certain goods to the consignee. except upon the payment of an illegal charge for carriage. cannot create a legal obligation. it means 'something in return. According to Section 23 of the Act. damage. a shareholder sued the directors for damages for fraud. the Act incorporating the company provided that such power might be used with the sanction of the Board of Trade. P.C. 185] Definition  Consideration is what a promisor demands as the price for his promise. Misrepresentation 5. the Board of Trade refused to give permission and the company had to be wound up. (ii) The directors of a Tramway Co. 10. In simple words. damage or inconvenience so caused is regarded in law as the consideration for the promise. such act or abstinence or promise is called a consideration for the promise. 24)  An agreement will not be enforceable if its object or the consideration is unlawful. He is entitled to recover so much of the charge as was illegally excessive. CONSIDERATION [Sections 2(d). The consignee pays the sum charged in order to obtain the goods. 337]. [Derry v.'  Consideration has been defined as "When at the desire of the promisor. In fact. or promises to do or promises to abstain from doing something. But. 148.IIPM 8 2. or does or abstains from doing. KINDS OF CONSIDERATION  A consideration may be: 1. issued a prospectus stating that they had the right to run tramcars with steam power instead of with horses as before.

(ii) Agreements under a mutual mistake of fact material to the agreement. Siva Sooriam. at the option of the aggrieved party. S N GHOSH . If the Court regards it as immoral or opposed to public policy. ExA partnership entered into for the purpose of doing business in arrack (local alcoholic drink) on a licence granted only to one of the partners. (viii) Agreements void for uncertainty (Agreements. or capable of being made certain) (ix) Agreements by way of wager (a promise to give money or money's worth upon the determination or ascertainment of an uncertain event) (x) Agreements against Public Policy (xi) Agreements to do impossible act. which has been entered into by misrepresentation. 5. VOID and VOIDABLE Agreements (Sections 26-30) Void agreement 1.IIPM 9 If it is forbidden by law CH. collateral to such contract does or does not happen. if some event. (vi) Agreement in (absolute) restraint of trade (vii) Agreements in restrain of legal proceedings. 4. If it is of such a nature that if permitted. If it is fraudulent. An agreement with a view to defraud other is void. is void ab-initio whether the partnership was entered into before the licence was granted or afterwards as it involved a transfer of licence. coercion is voidable. which is forbidden and penalised by the Akbari Act and the rules thereunder [Velu Payaychi v. CONTINGENT CONTRACTS (SECTIONS 31-36)  A contingent contract is a contract to do or not to do something. (iii) Agreement with unlawful consideration. 987]. (Exception – if such an agreement is in writing and registered or for a past consideration) (v) Agreement in restraint of marriage. – 1 LAW & SOURCES 1. LECTURES BY PROF. the meaning of which is not certain. If the object of an agreement is to injure the person or property of another it is void. If it involves or implies injury to the person or property of another. If the event becomes impossible. When a contingent contract may be enforced  Contingent contracts may be enforced when that uncertain future event has happened. Voidable agreements  An agreement. (iv) Agreement without consideration. 1. AIR (1950) Mad. is void. 2. such contracts become void. it would defeat the provisions of any law. An agreement. fraud. The following are the additional grounds declaring agreements as void: (i) Agreements by person who are not competent to contract. whose object or consideration is immoral or is opposed to the public policy.

or thing delivered by mistake or under coercion Ex-  A.72]  The term `quasi contract` may be defined as a ` contract which resembles that created by a contract. is entitled to be reimbursed from B's property. Agent . Moreover. The even must be uncertain. 2. It must be made at proper time and place.    CONTRACTS. 3. CIRCUMSTANCES OF QUASI CONTRACTS Following are to be deemed Quasi-contracts. 4. S N GHOSH . It is an obligation. `quasi contract` is not a contract in the strict sense of the term. (iii) Responsibility of Finder of Goods (iv) Liability of person to whom money is paid. a lunatic. which the law creates in the absence of any agreement. rescinds it. (i) Claim for Necessaries Supplied to a person incapable of Contracting or on his account. The performance of the contract must be conditional. WHO MUST PERFORM Promisor . the promisor shall not be responsible for non-performance nor shall he lose his rights under the contract. If the person. If the promisee dispenses with or remits. Legal Representative . CH. – 1 LAW & SOURCES 1. QUASI CONTRACTS [SECTIONS 68. 5. because there is no real contract in existence. If the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise. WHICH NEED NOT BE PERFORMED I.IIPM 10 ESSENTIAL ELEMENTS OF A CONTINGENT CONTACT There must be a valid contract. 6. 1. It must be unconditional. 2. The event must be an act of the party. The event must be collateral to the contact.the promisor may employ a competent person to perform it.` as a matter of fact. and performed in the agreed manner. LECTURES BY PROF. (ii) Reimbursement of person paying money due by another in payment of which he is interested. Obligation of a person enjoying benefits of non-gratuitous act. the Legal representative must perform the promise unless a contrary intention appears from the contract. PERFORMANCE OF CONTRACTS [SECTIONS 37-67] Offer to perform or tender of performance  According to Section 38. or his agent or by his legal representative.In case of death of the promisor. at whose option the contract is voidable. there is no intention of the parties to enter into a contract. if a valid offer/tender is made and is not accepted by the promisee. who supplies the wife and children of B. with necessaries suitable to their conditions in life. The event should not be the discretion of the promisor. 4. A tender or offer of performance to be valid must satisfy the following conditions: 1.The promise may be performed by promisor himself. wholly or in part the performance of the promise made to him or extends the time for such performance or accepts any satisfaction for it. If the parties mutually agree to substitute the original contract by a new one or to rescind or alter it 2.

in transactions with third person. Alteration C. the manager of a theatre. By subsequent impossibility By operation of law By breach REMEDIES FOR BREACH OF CONTRACT (SECTIONS 73-75)  As soon as either party commits a breach of the contract. Novation (substitution) b. On the sixth night. a relation based upon an express or implied agreement whereby one person. – 1 LAW & SOURCES  The cases in which a contract is discharged may be classified as follows: A. the other party becomes entitled to any of the following reliefs: a) Recession of the contract b) Damages (monetary compensation) c) Specific performance d) Injunction e) Quantum meruit Ex – A. Recession (cancellation) c. is authorised to act for another. S N GHOSH . to sing at his theatre for two nights in every week during the next two months. a singer contracts with B.  Agency is therefore. In other words. The person for whom or on whose behalf he acts is called the Principal. 100 for each night’s performance. the agent.  By mutual consent A contract may terminate by mutual consent in any of the following ways: - a. his principal. an agent is a person who acts in place of another. E. CONTRACT OF AGENCY [SECTION 182 – 238] Who is an `Agent`  An agent is defined as a "person employed to do any act for another or to represent another in dealings with third person".IIPM 11 DISCHARGE OF CONTRACTS [Sections 73-75] CH. B is entitled to claim compensation for the damages for which he has sustained through the non-fulfilment of the contract. A wilfully absents herself from the theatre and B in consequence. rescinds the contract. D. By performance or tender B.  The function of an agent is to bring about contractual relations between the principal and third parties. WHO CAN EMPLOY AN AGENT LECTURES BY PROF. and B engages to pay her Rs.

IIPM 12 WHO MAY BE AN AGENT CH. 8. 1956]. and in seeking to obtain his instructions. (iii) The principal must make compensation to his agent in respect of injury caused to such agent by the principal's neglect or want of skill. except where the principal knows that the agent is wanting in skill. Right to remuneration 2. Right to compensation for injury caused by principal’s neglect PRINCIPAL'S DUTIES TO AGENT  A principal is: (i) bound to indemnify the agent against the consequences of all lawful acts done by such agent in exercise of the authority conferred upon him. Agent not entitled to remuneration for business misconducted. To conduct the business of agency according to the principal's directions 2. a minor or lunatic cannot contract through an agent since they cannot contract themselves personally either. 9. To render proper accounts. 4. The agent should conduct the business with the skill and diligence that is generally possessed by persons engaged in similar business. (ii) liable to indemnify an agent against the consequences of an act done in good faith. – 1 LAW & SOURCES  Any person. in communicating with his principal. Stephens (1920) AC. To use all reasonable diligence. 5. the relation between principal and agent).. Not to make any secret profits 6. the contractual capacity of the agent becomes important. Not to deal on his own account 7. When an agency is terminated by the principal dying or becoming of unsound mind. RIGHTS OF AN AGENT 1. TERMINATION OF AGENCY LECTURES BY PROF. HOW AGENCY IS CREATED  A contract of agency may be created by in any of the following three ways: (1) Express Agency (2) (3) (4) (5) (6) Implied Agency Agency by Estoppel Agency by Holding Out Agency of Necessity Agency By Ratification DUTIES OF AGENT 1. Right Of Retainer 1.  In considering the contract of agency itself (i. Thus.e. Right of Lien 4. An agent should not disclose confidential information supplied to him by the principal [Weld Blundell v. 3. Right of Indemnification 5. all reasonable steps for the protection and preservation of the interests entrusted to him. who is capable to contract may appoint as agent. the agent is bound to take on behalf of the representatives of his late principal. S N GHOSH .

sale takes place when there is a transfer of property in goods from the seller to the buyer. A sale is an executed contract. 1872. Insolvency of the principal. – 1 LAW & SOURCES 1. On the expiry of fixed period of time. 7.IIPM 13 CH. III of 1930. 2. not of the agent. 3. The same was repealed and re-enacted by the Sale of Goods Act. By revocation by the Principal. ESSENTIALS OF CONTRACT OF SALE From the above definition. FORMATION OF THE CONTRACT OF SALE Definition (Section 4) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for price". Thus. strictly speaking. 3. An agency shall also terminate in case subject matter is either destroyed or rendered unlawful. the law relating to sale of goods was contained in Chapter VII of the Indian Contract Act. `SALE` AND 'AGREEMENT TO SELL' DISTINGUISHED Sale:   It is a contract where the ownership in the goods is transferred by seller to the buyer immediately at the conclusion contract. CHAPTER 03 SALE OF GOODS ACT 1930  Originally. By renunciation of agency by the Agent. 4. Transfer or Agreement to transfer the ownership of goods. S N GHOSH . It must be noted here that the payment of price is immaterial to the transfer of property in goods. The subject matter of the contract must necessarily be 'goods'. A Contract of sale may be absolute or conditional 6. All other essentials of a valid contract must be present. the following essentials of a contract of sale may by noted: 1. terminates the agency. Insolvency of the Principal. There must be at least two parties 2. Ex LECTURES BY PROF. 4. 6. 5. 1. The consideration is Price. On the performance of the specific purpose. Insanity or Death of the principal or Agent.

In these circumstances. 3. 2. the buyer cannot claim the goods but only a rateable dividend for the money paid. It is an agreement to sell and it will become sale on 31st March when the car is registered in the name of B. the seller shall have to deliver the goods to the Official Assignee or Receiver except where he has a lien over the goods.e. in case of breach. It was agreed between themselves that the ownership of the car will transfer to B on 31st March 1998 when the car is got registered in B`s name. Agreement to sell:  It is a contract of sale where the transfer of property in goods is to take place at a future date or subject to some condition thereafter to be fulfilled. 10. since the property has passed to the buyer. Ex- (i) A agreed to buy from B a certain quantity of nitrate of soda. 3. unless the price was payable at a stated date. 3. – 1 LAW & SOURCES A sells his Yamaha Motor Bicycle to B for Rs. 60 RR 838] (ii) On 1st March 1998. Agreement to sell 1. the loss will fall on the buyer. In case of loss of goods. the seller can sue the buyer for the price of the goods. This is `an agreement to sale`.000. An agreement to sell creates a right in personam.000. the seller can only sue for damages. the buyer can claim the goods from the Official Receiver or Assignee. even though the goods are in the possession of the buyer. In case buyer pays the price and the seller thereafter becomes an insolvent. Other points of distinction between a sale and an agreement to sell are: Sale 1. An Agreement to sell is an executory contract. In a sale. The loss in this case shall be borne by the seller. 80. In this case. 6. 4. In these circumstances. A agreed to sell his car to B for Rs. even though the goods are in the possession of the seller. It is because 'Risk' is associated with ownership. the seller can refuse to deliver the goods to the Official Assignee or Receiver. S N GHOSH . the ownership having passed to the buyer. It is a sale since the ownership of the motorcycle has been transferred from A to B. the ownership of nitrate of soda is to be to transferred to A on the arrival of the ship containing the specified goods (i. If the buyer becomes an insolvent without paying the price. In an agreement to sell.IIPM 14 CH. Sale and Hire Purchase Agreement Hire Purchase Agreement LECTURES BY PROF. nitrate of soda) [Johnson V Mcdonald (1842) 9 M & W 600. 6. A sale creates a right in rem. A sale is an executed contract. 4. The ship carrying the nitrate of soda was yet to arrive. 5. 2.

and if he pays in that way for a fixed number of months. goods include every kind of moveable property other than actionable claim or money. usually by payment of all the instalments. e. the owner can terminate the contract and take away the goods. and electricity are all goods and may be the subject matter of a contract of sale. which are agreed to be severed before sale or under the contract of sale. 3. CLASSIFICATION OF GOODS Goods may be classified into: 1. the buyer is bound to pay reasonable price.3 PRICE   'Price' means the money consideration for sale of the goods. Contingent goods are a part of future goods. the whole contract is void ab-initio. copyright. Existing Goods . 5.Existing goods are those. water. The price may be fixed (I) by the contract or (II) may be agreed to be fixed in a manner provided by the contract.if the property on shifting its situation. under this agreement.goods arc goods indicated by description and not specifically identified. – 1 LAW & SOURCES  It is an agreement for hire.' does not result in passing of the property unless the option to purchase is exercised. 'Price' is an integral part of a contract of sale. Example goodwill. and things attached to or forming part of the land. which are owned or possessed by the seller at the time of the contract.4 CONDITIONS AND WARRANTIES [Sections 11-17] LECTURES BY PROF. grass. What is reasonable price will vary from case to case. it constitutes bailment. The TEST IS . trademark. 3. Future Goods . (IV) in case.IIPM 15 CH.Future goods" means goods to be manufactured or produced or acquired by the seller after making the contract of sale. 2. S N GHOSH . or (b) Generic and Unascertained .g. Sale   ln case of sale. Till such time. growing crops. if the hirer fails to pay any particular instalment. price is not capable of being fixed in any of the above ways. Contingent Goods . because the ownership continues to remain in the owner.  The hirer. with an option to purchase. regard shall have to be paid to the fact whether the hirer has merely an option to purchase.2 GOODS Definition of `GOODS` under the Act    'Goods' means every kind of moveable property and includes stock and shares. Existing goods may be either: (a) Specific and Ascertained goods identified and agreed upon at the time a contract of sale is made. or whether he has bought or agreed to buy the goods. In determining as to whether a particular contract belongs to one type or the other. patents. the hirer will become the owner of the goods on the payment of the last instalment. 3. A "Hire-purchase agreement" is distinct from "Sale" in which price is payable by instalments  A 'Hire-purchase agreement. Instances of sale of goods possessed but not owned by the sellers fire sales by agents and pledgees. the property passes as soon as sale is made though price has not been fully paid. does not lose its character. Thus. the said property shall be movable and fall within the definition of `Goods`.Contingent goods are the goods the acquisition of which by the seller depends upon a contingency which mayor may not happen.  But. gas. or (III) it may be determined by the course of dealings between the parties.. If it is not fixed or is not capable of being fixed. by a valuer. is required to pay every month a particular sum of money.

If the horse turns out to be vicious.. time of payment. the breach of which gives rise to a claim for damages but not to a right to reject the goods.A contract of sale is a contract for sale by sample where there is a term in the contract. The contract cannot be repudiated. the following are the implied conditions: 1. But if instead of buying a particular horse. 3. A breach of warranty cannot be treated as a breach of condition. the stipulation is a condition and the buyer can reject the horse. Thus. i. 2. the buyer's only remedy is to claim damages. Some of them may be intended by the parties to be of a fundamental nature. e. A breach of warranty gives only the right to sue for damages. stipulation collateral to the main purpose of the contract. ExA man buys a particular horse..e. parties make certain stipulations. e. Such stipulations are known as `Conditions`.. Compulsory treatment of breach of condition as breach of Warranty. A breach of condition gives the aggrieved party a right to sue for damages as well as the right to repudiate the contract. and LECTURES BY PROF. WHEN CONDITION TO BE TREATED AS WARRANTY [SECTION 13]  Under the following circumstances a breach of condition is to be treated as a breach of warranty.IIPM 16 CH. In contrast. The bulk shall correspond with the sample in quality. which is essential to the main purpose of the contract. – 1 LAW & SOURCES   In a contract of sale. Waiver of Condition 2. Here the stipulations are known as `warranties'. Warranty 1. DISTINCTION BETWEEN 'CONDITION' AND 'WARRANTY' Condition 1. (A) IMPLIED CONDITIONS  The following are the implied conditions (1) Condition as to Title (2) Sale by Description (3) Condition as to Quality or Fitness (4) Merchantable Quality Sale by sample . agree to certain terms.  3. to that effect. which is only collateral or subsidiary to the main purpose of the contract. the right to repudiate the contract is deemed to have been lost: 1.e. the breach of which gives rise to a right to treat the contract as repudiated. They are said to be "express" when the terms of the contract expressly provide for them. S N GHOSH .g. A condition is a stipulation (in a contract). A breach of condition may be treated as a breach of warranty in certain circumstances.. but of a subsidiary or inferior character. or keep the horse and claim damages. quality of the goods to be supplied. EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES  Conditions and Warranties may be either express or implied. 2. a man asks a dealer to supply him with a quiet horse and the horse turns out to be vicious. The stipulation essential to the main purpose of the contract. That the buyer shall have a reasonable opportunity of comparing the bulk with the sample. some may be intended by the parties to be binding. express or implied. 2. which is warranted quiet to ride and drive.  In a sale by sample.g. A warranty is a stipulation. i. They are said to be 'implied' when the law deems their existence in the contract even without their actually having been put in the contract.

there is implied condition as to their being of merchantable quality. Ex In Donoghue v. Hobbs 1878. which such examination ought to have revealed. Warranty of Quiet Possession 2. (ii) In a contract for the sale of brandy by sample. though the bulk corresponded with sample. The shoes were found to contain paper not discoverable by ordinary inspection. this condition of "merchantability" extends only to hidden or latent defects. It was held that A could recover damages from B amounting to the price paid and the cost of repair [Mason v. 4. the buyer was entitled to the refund of price plus damages. and the seller happens to be a person whose business is to sell goods of that description. That the goods shall be free from any defects rendering them unmerchantable. In case of sale by description. so that on a reasonable examination the same could not be discovered.e. since the defect could not have been located on reasonable examination of the sample [Mody v. [Goddard v. (B) IMPLIED WARRANTIES  There are two implied warranties. Warranty of Freedom from Encumbrances Ex – A purchased a second hand typewriter from B. the buyer was not bound by the contract. – 1 LAW & SOURCES 3. then there is an implied condition that the goods shall be reasonably fit for such purpose. the rule of Caveat Emptor will be applicable. Ex(i) Certain shoes were sold by sample for the French Army. The rule of "Caveat Emptor" will not apply and the buyer will be entitled to the goods according to that representation. Where the buyer makes known to the seller the purpose for which he is buying the goods. i. and these pigs.4Ex. i. 49. Cas. The defects. These are: 1. S N GHOSH . A used it for sometime and also spend some money on its repairs. Gregson (1868) L. It means "Caution Buyer". Where the seller actively conceals a defect in the goods.R. 4 App. Held. 13]. it was held that the seller was not bound to disclose that the pigs were unhealthy. Stevenson (the `snail in the ginger-beer `case) it was held that manufacturers owed a duty to the ultimate consumer to take care in making their goods where there is no likelihood of their being examined before they reach the ultimate consumer. Burmingham (1949) 2 KB 545] 3. 3. 2. caused typhoid to other healthy pigs of the buyer. Held.e.5 DOCTRINE OF CAVEAT EMPTOR   Caveat Emptor is a fundamental principle of the law of sale of goods. 3. if the buyer has examined the goods. ExPigs were sold "subject to all faults". being infected. the brandy that was supplied had been coloured with a dye. Exceptions 1. "Let the buyer beware".IIPM 17 CH. Where the seller makes a false representation and buyer relies on that representation. which would not be apparent on reasonable examination of the sample.. However. are not covered.6 TRANSFER OF TITLE BY NON-OWNERS LECTURES BY PROF. In other words. The rule of Caveat Emptor will not apply. The buyer must inspect the goods to find out if they will suit his purpose.]. The rule of the law being 'Caveat Emptor'. The typewriter turned out to be stolen one and as such A had to return it to the true owner. it is not the duty of the seller's duty to point out defects of his own goods.

Exceptions to the Rule 1. or delivery of the key of a warehouse. 3. b) Delivery and payment of price are concurrent conditions.bonafide and for value. c) The seller of goods has the duty of giving delivery according to the terms of the contract. DELIVERY  It has been defined as a voluntary transfer of possession from one person to another. i.  Delivery of the goods may.C. Sale by Mercantile Agent 2. No one can give a better title than he himself has. King (1902) A. 3.. though he may be a purchaser . Who is an unpaid seller  An unpaid seller of goods is a person who has not been paid the whole of the price or to whom the whole of the price has not been tendered.7 UNPAID SELLER AND HIS RIGHTS  A contract is comprised of reciprocal promises. Constructive Delivery or Attornment .only an acknowledgement by the person in possession that he holds them on behalf of another. Sale by a Person in Possession under a Voidable Contract 4.. Sale by an unpaid DUTIES OF THE SELLER AND BUYER Duty of the seller a) To deliver the goods. B can recover from that person. Sale by the Seller in Possession of Goods after Sale 3. In case buyer fails or refuses to pay. b) Accept delivery.  The seller of goods is deemed to be an "unpaid seller" if: LECTURES BY PROF.e. if seller is under an obligation to deliver goods. as an unpaid seller.). Physical or Actual Delivery 2. therefore. A finds a ring of B and sells it to a third person who purchases it for value and in good faith. buyer has to pay for it. the seller. delivery of a railway receipt properly endorsed. the buyer's title will be equally wanting or defective as the case may be. Duty of the buyer a) Pay for the goods. be: I. in a contract of sale. – 1 LAW & SOURCES   Ex- The general rule is that only the owner of goods can transfer a good title. The true owner. has no title. The term "seller" includes an agent of the seller. Symbolic Delivery . S N GHOSH . Sale by a Joint-owner 3. for A having no title could pass none the better. in accordance with the terms of the contract of sale. 323. and c) Pay compensation to the seller in case he wrongfully refuses to accept delivery. or a defective title..e.g. shall have certain rights. This rule is expressed by the maxim "Nemo dat quod non habet" which means "that no one can give what he himself has not" If the seller.IIPM 18 [Sections 27-30] CH. [Faruquaharson v.

bearer debentures. – 1 LAW & SOURCES (a) the whole of the price.A 'negotiable instrument' means a promissory note.Transferability may be by LECTURES BY PROF.Promissory notes. The term 'negotiable instrument' has been defined as . bills of exchange and cheques are negotiable instruments under the Negotiable Instruments Act. has not been paid or tendered. Rights against goods An unpaid seller has the following rights against the goods: (a) Lien on the goods (b) A right of stoppage in transit (c) A right of re-sale 2. bill of exchange or cheque payable either to order or to bearer. scripts and treasury bills  An instrument is to be called 'negotiable' if it possesses the following characteristic features: 1) Freely transferable . Rights Against the Buyer Personally  An unpaid seller. has the following rights against the buyer personally: (i) Right to sue for the price.01 DEFINITION OF A NEGOTIABLE INSTRUMENT [SECTION 13]  The word 'negotiable' means transferable from one person to another. and the term 'instrument' means 'any written document by which a right is created in favour of some person. and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise. the negotiable instrument is a document by which rights vested in a person can be transferred to another person in accordance with the provisions of the Negotiable Instruments Act.' Thus. bank drafts. besides his rights against goods. CHAPTER 04 NEGOTIABLE INSUTRUMENTS ACT 1881 4. dividend warrants. (b) when a bill of exchange or other negotiable instrument has been received as conditional payment. or (2) By usage ."  MAIN FEATURES OF A NEGOTIABLE INSTRUMENT  An instrument may be negotiable either by (1) Statute .Bank notes.IIPM 19 CH. 1881. share warrants. Rights of an unpaid seller   Rights of an unpaid seller may broadly be classified under two heads namely: 1. 1881. S N GHOSH . and (ii) the right to sue the buyer for damages for non-acceptance.

(I owe you) Rs. can sue on the instrument in his own name. or to the order of. provided he leaves me enough to pay that sum. The Holder can sue in his own Name . The Endorser .." (ii) "I promise to pay B Rs. 3. Holder's title free from defects: The holder (of the negotiable instrument) in due course acquires a good title not withstanding any defect in a previous holder's title. for value received." Parties to A Promissory Note 1.Another characteristic feature of a negotiable instrument.is either the original payee or any other person in whose favour the note been endorsed. I. 7) As to holder-in-due course 8) As to dishonour 4. – 1 LAW & SOURCES 2) 3) 4) 5) (a) delivery. LECTURES BY PROF. or (b) by endorsement and delivery. 2. signed by the maker to pay a certain sum of money to. can be transferred any number of times till its maturity. 4.U. 1000.the person who indorses the note in favour of another person. The Payee . A negotiable instrument is subject to certain presumptions. a certain person or to the bearer of the instrument Examples of Promissory Notes   ―A‖ signs instruments in the following terms: "I acknowledge myself to be indebted to 'B' in Rs. 500 seven days after my marriage with C.the person who makes the note promising 'to pay the amount stated therein.IIPM 20 CH.the person to whom the amount of the note is payable. i. S N GHOSH . B. (i) "Mr.02 PROMISSORY NOTE [Section 4] Definition  A promissory note is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking. The Maker . A holder in due course is one who receives the instrument for value and without any notice as to the defect in title of the transferor." Followings are Not Promissory Notes. is that its holder in due course.e. to be paid on demand. Presumptions as to negotiable instruments [Sections 118-119] 1) As to Consideration 2) As to date 3) As to Acceptance 4) As to Transfer 5) As to the order of 6) As to lost Instruments. 1500 on D's death. The Holder . A negotiable instrument can be transferred infinitum.O." (iii) "I promise to pay B Rs. 1000.

Thus. (5) Certain Parties . It must be in writing. directing a certain person to pay a certain sum of money only to or to the order of. If a promissory note does not bear a date. Promise to pay money only .It must contain an undertaking or promise to pay. (6) (7) Certain sum of money .. drawer. signed by the maker. or to the bearer of the instrument. containing an unconditional order. Essentials or Characteristics of a Promissory Note  From the definition. There must be three parties. date etc . it is clear that a promissory note must have the following essential elements.The instrument must point out with certainty the maker and the payee of the promissory note. a mere acknowledgement of indebtedness is not sufficient. Writing includes print and typewriting.03 BILL OF EXCHANGE [Section 5]  A 'bill of exchange' is defined by as an instrument in writing. (3) (4) Signed by the Maker – The promissory note must be signed by the maker. instruments payable on performance or non-performance of a particular act or on the happening or non-happening of an event are not promissory notes. it cannot be a promissory note. which is not so stamped. Unconditional . 4. 2.  Note that the use of the word `promise' is not essential to constitute an instrument as promissory note. is a nullity. It may be payable in installments (8) (9) (10) It may be payable on demand or after a definite period .The sum payable must be certain or capable of being made certain. drawee and payee. (1) In writing . viz.the person in whose favour the note is negotiated by indorsement. The parties must be certain. The order must be unconditional. A demand promissory note becomes time barred on expiry of 3 years from the date it bears.A promissory note must be in writing. (2) Promise to pay .IIPM 21 CH. The Endorsee . (11) It cannot be made payable to bearer on demand or even payable to bearer after a certain period (12) It must be duly stamped under the Indian Stamp Act . Characteristic Features of a Bill of Exchange 1. a certain person. 4. LECTURES BY PROF. A promissory note.If the instrument contains a promise to pay something in addition money.It means that the stamps of the requisite amount must have been affixed on the instrument and duly cancelled either before or at the time of its execution.The promise to pay must not be conditional. 3.These are usually found in a promissory note but are not essential in law. 4. Thus. – 1 LAW & SOURCES 4. it is deemed to have been made when it was delivered. Number. It must contain an order to pay and not a promise or request.Payable 'on demand' means payable immediately or any time till it becomes time-barred. place. otherwise it is of no effect. S N GHOSH .

is the person who endorses a bill. has to present the bill first to the drawee for payment and if it is also dishonoured for payment by the drawee and noted or protested as the case may be it should then be presented to the acceptor for honour for payment.  Thus. It must be duly stamped as per the Indian Stamp Act. and is generated. Presentment for acceptance Presentment for payment 4. PRESENTMENT  Presentment of a negotiable instrument is made for two purposes.   The Drawer . and (d) completed by delivery to the holder or by notice of acceptance to him or some person on his behalf [Jagjivan Mauji Vithlani v. (b) signed by the drawee or his agent.the person on whom the bill is drawn. viz.is the original payee but where the bill has been endorsed. – 1 LAW & SOURCES 4. the endorsee. Parties to a Bill of Exchange 1.the person who draws or makes the bill.04 CHEQUE [Section 6]  A cheque is defined as 'a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand’. CH. The endorsee . (c) on bill of exchange. 9.IIPM 22 It must be signed by the drawer. 3. LECTURES BY PROF. such person is called an acceptor for honour. 2. The order must be to pay money and money alone. Number. date and place are not essential. a cheque is a bill of exchange with two added features. S N GHOSH . 10. written and signed in a secure system ensuring the minimum safety standards with the use of digital signature (with or without biometrics signature) and asymmetric crypto system. 8. 1. 5. 4. 7. ACCEPTANCE The acceptance of a bill is the indication by the drawee of his assent to the order of the drawer.is the person to whom the bill is negotiated by endorsement. and  (ii) it is always payable on demand and not otherwise. 1945] Acceptance for Honour   When a bill of exchange has been noted or protested for non-acceptance or for better security and any person accepts it supra protest for honour of the drawer or of anyone of the endorsers. M/s Ranchahodas Meghaji. The endorser . 2. The Drawee . at the due date.the person to whom the amount of the bill is payable.: (i) it is always drawn on a specified banker. An acceptance to be valid must be (a) in writing. which contains the exact mirror image of a paper Cheque. A 'Cheque in the electronic form' means a Cheque. The Holder . 4. the payee. The sum payable must be certain or capable of being made certain. The Payee . After acceptance of the bill by the acceptor for honour.

implies the specification of the name of the banker on the face of the cheque  The object of special crossing is to direct the drawee banker to pay the cheque only if it is presented through the particular bank mentioned therein. Types of crossing  Crossing may be either (1) General . Crossing on a cheque is a direction to the paying banker by the drawer that payment should not be made across the counter. A cheque that is not crossed is called an `open cheque`. (iv) for a certain sum of money. Crossing of a cheque is effected by drawing two parallel transverse lines with or without the words 'and company' or any abbreviation thereof. and (ix) it is always payable on demand and not otherwise. (vi) amount must be written both in figures and words. between two parallel transverse lines or of two parallel transverse lines simply. Cheques in electronic form  In view of the banking transforming from traditional banking to e-banking. either by the clearing house or by the Bank whether paying or receiving payment. Crossing of cheques    Crossing is a unique feature associated with a cheque affecting to a certain extent the obligation of the paying banker and also its negotiable character. Significance of crossing  As payment cannot be claimed across the counter on a crossed cheque. – 1 LAW & SOURCES  A "truncated Cheque" means a Cheque which is truncated during the course of a clearing cycle. The payment on a crossed cheque can be collected only through a banker. the electronic form or electronic image of a Cheque as a valid Cheque has also now been recognized [Negotiable Instruments (Amendment) Act. Account Payee Crossing (A/c Payee Crossing)  An A/c payee crossing signifies that the drawer intends the payment to be credited only to the payee’s account and in none else.to mean as where a cheque bears across its face an addition of the words 'and company' or any abbreviation thereof.. (i) must be in writing. It is a peculiar method of modifying the instrument to the banker for payment of the cheque. Features of a Cheque  A Cheque is a bill of exchange with following features. immediately on generation of an electronic image for transmission. S N GHOSH . The addition of 'A/c payee' to a crossing has no legal sanctity and the paying banker may ignore such a direction without being liable for any damages. the transferee of a postdated cheque. 2002]. A post-dated cheque is as much negotiable as a cheque for which payment is due.IIPM 23 CH. viz.e. crossing of cheques serves as a measure of safety against theft or loss of cheques in transit. i. if he is a holder in due course. substituting the further physical movement of the cheque in writing. that addition shall be deemed a crossing and the cheque shall be deemed to be crossed generally (2) Special . either with or without the words 'not negotiable'. like that of the cheque on which payment is due. LECTURES BY PROF. Dating of cheques   The drawer of a Cheque is expected to date it before it leaves his hands. (ii) contain an unconditional order to pay (iii) drawn on a specified banker. (viii) it is always drawn on a specified banker. (vii) it must be dated. Thus. A cheque without a date is considered incomplete and is returned unpaid by the banks. (v) the payee must be a definite person. it makes the cheque system still safer.. acquires a better title than its transferor.

Bombay Bullion Association (1965)]. 4. S N GHOSH . in whose favour the cheque has been crossed specially. Lost or Stolen Instruments (Sec. a forged signature does not confer a good title.the amount stated in words shall be the amount undertaken or ordered to be paid.the holder may at his election treat it as either and the instrument shall be thenceforward treated accordingly. 3. where a person receives a negotiable instrument without consideration. that negotiable instrument is either wholly blank or having written thereon. [Sita Ram v.  Where one person signs and delivers to another person a duly stamped negotiable instruments and however.IIPM 24 CH. 4. Even a holder in due c 4. (Exception – when the later (finder) person is holder in due course). is a person who for consideration became the possessor of a negotiable instrument before the due date of payment of that instrument and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title. – 1 LAW & SOURCES Who can cross a cheque  A cheque may be crossed by any of the following: 1. the possessor or endorsee who has found or had obtained the instrument by fraud shall not be entitled to receive the amount due thereon from such maker of the lost instrument. A 'holder in-due-course'   A 'holder in-doe-course'.It means an instrument that is incomplete in certain respects. The holder of a cheque. Marking of cheques  Marking or certification is a method adopted when the paying banker verifies the customer's account and indicates thereon that there are enough funds in his account torn that cheque.As a general rule.05 HOLDER AND HOLDER-IN-DUE-COURSE [Section 8 & 9] Holder of negotiable instrument  A holder of a negotiable instrument is a person entitled in his own name to the possession of that negotiable instrument and to receive or recover the amount due thereon from the parties thereto. under Sec. Inchoate Instruments (Section 20) . 138. 58) . The drawer. (v) Forged Instruments . may be punished with imprisonment upto 2 LECTURES BY PROF. he may be a holder but will not be called as a holder in due course. Marking only certifies the genuineness of the drawer's signature and the sufficiency of funds. Where Amount is stated differently in Figures and Words (Section 18) . 2.In such instances.06 CERTAIN IMPORTANT CONCEPTS AND EXPLANATIONS Ambiguous Instrument (Section 17) . The drawer of a cheque.  The maker of the instrument has thereby prima facie authorises the holder thereof to make or complete.07 DISHONOUR OF A CHEQUE ON GROUNDS OF INSUFFICIENCY OF FUNDS [Sections 138 to 142]  Section 138 to 142 of the Negotiable Instruments Act provide for criminal penalties in the event of dishonour of cheques for insufficiency of funds. for any amount therein but not exceeding the amount covered by the stamp. The Banker. Thus. on the other hand. Such an instrument is thus incomplete (inchoate).

Payee to serve Default Notice. (iii) Cheque received back from the payee-bank with the remarks 'Account Closed' [G. manager. Anil Bhalla (2001).2. Insufficiency of funds  The Courts have held the following amounting to dishonour for insufficiency of funds: (i) Stop-payment instructions to the payee-bank [ET & TD Corpn. or (ii) where he had exercised all due diligence to prevent the commission of such offence. v. vs.Payment against an enforceable debt (3). (2). 1973. Every offence punishable under Negotiable Instruments Act shall be compoundable (Section 147) 4. consistent with the interests of justice. However. secretary or other officer of the company shall be liable to be proceeded against and punished accordingly in case the offence has been committed with the consent or connivance. C. Drawer liable upon failure to pay within 30 days` Upon failure Complaint in writing. Ltd. The trial shall. Nagarjuna Investments (1997) and N. v. Ltd.M. demanding payment within 30 days (5). In the case of summary trial. . or is attributable to any neglect on his part in this regard.IIPM 25 CH. It has been now provided that offences for dishonour of cheques shall be tried by a Judicial magistrate of the first class or by a Metropolitan Magistrate. – 1 LAW & SOURCES  years (earlier I year) or with a fine up to twice the amount of the cheque or with both. the maximum sentence that may be passed by the Magistrate shall be imprisonment for a term not exceeding one year and an amount of fine not exceeding five thousand rupees. Kuchil Kumar Nandi (1998)]. Cheque should be presented to the paying bank within the validity period (generally 6 months from the date on which it is drawn) (4).2003. (1999)].e. Micon Ltd. Mittal Stainless Steel vs.Rajneesh Aggarwal v. Id Technologies & Engross P. This is a cognizable offence and shall be tried by a Metropolitan Magistrate or a Judicial Magistrate of the First Class. The enhancement in the penal provisions was made by Negotiable Instruments (Amendment) Act 2002 w. be continued from day to day.08 IMPORTANT DISTINCTIONS LECTURES BY PROF. (1996)]. Magna Leasing Ltd.P. In order to attract the aforesaid penalties. (iii) where he is nominated as a Director of a company by the Central Government or State Government or financial institutions. POWER OF COURT TO TRY CASES SUMMARILY [SECTION 143]      This is a non-obstante clause.f. so far as practicable. Further. Offence triable by 1st Class Magistrate  The payee having failed to receive the payment within 30 days` of notice of dishonour of the cheuqe.E. It overrides the provisions contained in the Code of Criminal Procedure. a person will not be liable in a case. (i) where such person proves that the offence was committed without his knowledge. Offences by companies   A director. S N GHOSH . every trial shall be conducted as expeditiously as possible and an endeavour shall be made to conclude the trial within six months from the date of filing of the complaint. shall have to make a police complaint in this regard. (ii) Request to the payee not to present the cheque till further information [Modi Cement Ltd. 4. following conditions must be satisfied: (1).

4) The liability of the drawer is secondary and conditional upon non-payment by the drawee. S N GHOSH . Promissory Note 1) There are only two parties – the maker (debtor) and the payee (creditor).IIPM 26 Cheque CH. LECTURES BY PROF. specified time. 5) No notice of dishonour need be given. A party who does not receive a notice of dishonour can generally escape its liability thereon. 3) A usance (time) bill is entitled to three days of grace.although any two of these capacities may be filled by one and the same person. 2) A note contains an unconditional promise by the maker to pay the payee. the drawee and the payee. 6) The maker or drawer does not stand in immediate relation with the acceptor drawee. 5) Crossing of a bill of exchange is not possible. – 1 LAW & SOURCES Bill of Exchange 1) It can be drawn on any person including a banker. 2) It contains an unconditional order to the drawee to pay according to the drawer`s directors. 4) Acceptance is not needed. 7) A cheque is not to be noted or protested in case of dishonour. even if no notice of dishonour is given. 4) The liability of the maker or drawer is primary and absolute. 4) A bill payable after sight must be accepted. 8) No such protection is available in the case of bills. 8) The protection given to the paying banker in respect of crossed cheques is peculiar to this instrument. 3) No prior acceptance is needed. 5) A cheque can be crossed 6) Notice of dishonour is not necessary. 3) The cheque is not entitled to days of grace. 2) The amount may be payable on demand or after a. 3) A bill payable `after sight` must be accepted by the drawee or his agent before it is presented for payment. 5) Notice of dishonour must be given by the holder to the drawer and the intermediate endorsers to hold them liable thereon. 6) The maker of the note stands in immediate relation with the payee. 2) The amount is always payable on demand. 7) A bill is noted or protested to establish dishonour. The parties thereon remain liable. 1) It must be drawn only on a banker. 6) Notice of dishonour is necessary to hold the parties liable thereon. Bill of Exchange 1) There are three parties – the drawer.

a trader or the service provider. goods or services which will be hazardous to life and safety are being offered for sale to the public. The Act is in true essence public welfare legislation. 1986    SOME IMPORTANT DEFINITIONS [SECTION 2]  Complaint . displayed on the price list exhibited by him by (Ex – Petrol. the need for a more simpler and quicker access to redressal to consumer grievances was felt. has charged for the goods or for the services a price in excess of the price (a) (b) (c) (d) (v)  fixed by or under any law for the time being in force. (Ex – telephony rates fixed by TRAI) displayed on the goods or any package containing such goods. and the expeditious disposal of the consumer dispute within a time bound frame. The hall marks of that jurisdiction have rightly been highlighted as the simplicity and inexpensive nature thereof. This leaves the consumer in a difficult position with very few avenues for redressal. The onset on intense competition also made producers aware of the benefits of customer satisfaction and hence by and large. agreed between the parties (contracted price) . S N GHOSH . Nature of complaint (i) (ii) (iii) (iv) an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider the goods bought by complainant suffer from one or more defects. the Indian Standards Institution (Certification Marks) Act. the Sale of Goods Act.any allegation in writing made by a complainant with a view to obtaining any relief provided by or under this Act. The need to recognise and enforce the rights of consumers was recognised by the legislators for quite some time now. which involved lengthy legal process proving. Therefore. the Dangerous Drugs Act. However. the Agricultural Produce (Grading and Marketing) Act. to be too expensive and time consuming for lay consumers. The origin of this judicial principle lie in the fact that in today's mass production economy where there is little contact between the producer and consumer. which they do not intend to fulfill.IIPM 27 CHAPTER 05 CONSUMER PROTECTION ACT. or (ii) hires or avails of any services for a consideration. In India. Source of the Consumer Protection Act. Consumer . we have the Indian Contract Act. is entitled to expect that the goods and services are of a nature and quality promised to him by the seller. Only in 1932 it was firmly established by a House of Lords decision in Donoghue v. which he uses. Diesel prices by Petrol pumps). etc which to some extent protect consumer interests. 1986 CH. On April 9. LECTURES BY PROF. Stevenson (the `snail in the ginger-beer `case) that manufacturers owed a duty to the ultimate consumer to take care in making their goods where there is no likelihood of their being examined before they reach the ultimate consumer. adopted by consensus a set of guidelines on Consumer Protection serving as a vital lobbying tool both nationally and internationally. often sellers make exaggerated claims and advertisements. the Prevention of Food Adulteration Act. India being a constituent member of United Nations enacted the Consumer rd Protection Act 1986 on 23 May 1986. 1985 the UN General Assembly with due negotiations in the UN Economic and Social Council (ECOSOC). the services hired or availed of suffer from deficiency in any respect. the summary procedure provided for trials therein. these laws required the consumer to initiate action by way of a civil suit. the principle of " consumer is king" is now accepted – a transition from the principle of `Caveat emptor` to `Caveat vinditor`.any person who (i) buys any goods for a consideration. Any person paying for goods and services. – 1 LAW & SOURCES Transition from `Caveat emptor` to `Caveat vinditor`  A consumer is a user of goods and services.

5 – Trade & Farmers Repr. with consumer interests (iv) Registrar. CONSUMER PROTECTION COUNCILS  The objects of the Councils shall be to promote and protect the rights of the consumers including the right to consumer education. purity or standard. 1930. Composition  Chairman Minister in charge in the Cent. of Central Consumer Protection Council [SECTION 4] Central Government Classification Council Estab. S N GHOSH . potency.  which is required under any law to be maintained by or  under any contract. Govt. imperfection or shortcoming in the quality. Authority State Consumer Protection Council [SECTION 7] District Council [SECTION 8A] State Government State Govt.Consumer Orgns. The Act has not confined itself to the original hirer alone. for SC & ST. Repr.& Autonomous Org.-National Comm.goods as defined in the Sale of Goods Act. but equally extended it to the subsequent beneficiaries of the services as well.IIPM    28 CH. Of Cent. (ii) Secy. express or implied or  as is claimed by the trader in any manner whatsoever in relation to any goods. (iii) 20 – Repr.any fault. However. 3 years Delhi At least one meeting every year Minister in charge in the State Govt. Collector of the district  Other official non-official members. – 1 LAW & SOURCES   It must be noted that a person who buys goods or avails services for commercial purposes is not a consumer.P. National Consumer Disputes Redressal Commission (v) 35 . 1 – Persons for Consumer Interest. (vi) 10 – Women (vii) 20 – Trade & Industry (viii) 15 – Persons for Consumer Interest Member-secretary -Secretary incharge of Consumer Affairs in the Central Government. quantity. 5 – Women Repr. Govt. (As per respective State Rules) Generally 3 years Term Place of Council State capital At least two meetings in a year LECTURES BY PROF.—5 from LS. where a person buys goods or avails services exclusively for the purposes of earning his livelihood by means of self-employment is a consumer. or (i) 8 M. Defect . 3 from RS. Goods . (i) (ii) (iii) (iv) (v) 8 – 5 MLA & 3MLC 10 – State Govt.

CONSUMER DISPUTES REDRESSAL AGENCIES Appellate Authority National Consumer Disputes Redressal Commission [SECTION 20] State Commission [SECTION 16] District Forum [SECTION 10] Composition  President Judge of the Supreme Court to be appointed by the Cent. Tests) Imprisonment up to 3 years` with or without fine upto Rs. Govt. st Vested with powers of 1st Class Judicial Magistrate Enabled District HQ State Commission within 30 days` with 50% of award money or Rs. One Crore. if any. 10. Govt. claimed exceeds Rs. on the recommendation of a selection committee District Judge to be appointed by the State Govt. – 1 LAW & SOURCES Generally 3 years District HQ At least two meetings in a year. Circuit Bench Supreme Court within 30 days` with 50% of award money. on the recommendation of a selection committee. Judge of the High Court to be appointed by State Govt. claimed upto Rs. The concerned State within which either of parties actually and voluntarily resides or carries on business or has a branch office or personally works for gain. Complaints . 5 years or 67 years (whichever earlier).000 90 days` or 150 days` (in case of lab. 2 (1 Woman) – Appointed by State Govt. 20 lakhs upto Rs. if any. One crore and (ii) Appeals against the orders of any State Commission. Tests) Vested with powers of 1 Class Judicial Magistrate Enabled State Capital National Commission within 30 days` with 50% of award money or st  Members (persons of ability. S N GHOSH .000 90 days` or 150 days` (in case of lab.value of the goods or services and compensation. New Delhi. in consultation with the Chief Justice of India. on the recommendation of a selection committee 5 years or 65 years (whichever earlier). Tests) Vested with powers of 1 Class Judicial Magistrate Enabled. 5 years` or 70 years` (whichever earlier) (i) Complaints .IIPM Meetings 29 CH. Summary Trial Principal Bench Appellate Authority LECTURES BY PROF. 25. integrity and standing and have adequate knowledge or experience)  Term Jurisdiction Penalty Time limit for completion of hearing Judicial Relief Powers/Interim Imprisonment up to 3 years` with or without fine upto Rs. Complaints . claimed exceeds Rs. in consultation with the Chief Justice of State High Court.000 (whichever less). in consultation with Chief Justice of High Court. 10.value of the goods or services and compensation. Imprisonment up to 3 years` with or without fine upto Rs. 2 (1 Woman) – Appointed by State Govt. if any.value of the goods or services and compensation. 10.000 90 days` or 150 days` (in case of lab. 4 (1 Woman) – Appointed by Cent. 20 lakhs.

000 (whichever less).IIPM 30 Rs. 25. The services hired or availed of. 2 years` from the cause of action PROCEDURE OF FILLING COMPLAINT  Who can file a complaint? (i) A Consumer. Spring Meadows Hospital an unqualified nurse gave wrong intravenous injection to a minor child. but the other side i. due to which the minor child suffered irreparable brain damage.) Rashmi Feddaus] Stocks and shares are included in the definition of the goods. merchant or person.00 lakhs .       APPEAL/REVISION Any party aggrieved form the final order of District Forum may appeal to State Commission within 30 days. 1 crore . State Capital. – 1 LAW & SOURCES As arrears of Land & Revenue 2 years` from the cause of action Enforcement power Limitation period As arrears of Land & Revenue As arrears of Land & Revenue 2 years` from the cause of action. [Mumbai Grahad Panchayat Vs Dr (Mrs. SOME CASE EXAMPLES This Act is a one-way traffic. The anesthetists was not employed directly by the patient. Appeal may be preferred as per model form along with certified copy of order. (iii) The Central or State Government. S N GHOSH .  Where a complaint can be filed? If the cost of goods or service and compensation asked for is: up to Rs. In these circumstances the complaint in regard to the shares lies before the District Forum. The goods hazardous to life and safety are being offered for sale to public. In this case.00 lakhs and up to Rs. The goods purchased suffer from any defect. Any order. A model form has been provided for filing of the complaint for the convenience of the consumer. c. as the case may be. if any. Order passed by National Commission in complaint filed before it is appeal able in Supreme Court within 30 days. e. more than Rs. Their remedy is only in the ordinary court of civil jurisdiction (Tamil Nadu Housing Board Vs Tamil Nadu Housing Board Colony Maintenance and General Welfare Society) Privity of contract is not necessary. Consumer has suffered loss or damage as a result of any unfair Trade Practice. more than Rs. the complaint was lodged against anesthetists for negligence. b. d. 1 crore . (LC Chandgotya V. which is not final order. The complaint/reply should be supported with affidavit of party and witnesses. may be challenged in revision before higher respective Commission.e.  When a complaint can be filed? A complaint can be filed in writing if: a. The child now has to live LECTURES BY PROF. Circuit Bench at other cities. (ii) Any registered Voluntary Consumer Organization. The trader has charged a price in excess of the price displayed or fixed by any law for the time being in force. but was employed by the doctor who did the operation. (iv) One or more consumers on behalf of numerous consumers who are having the same interest.National Commission. who render service is not entitled to seek recourse to this Forum for realizing the prices of the goods sold or charges for the services rendered.State Commission. suffer from any deficiency. Northern Leqsing and Industries Ltd.) In Harjot Ahluwalia (Minor).District Forum. Similarly. any party aggrieved from the final order passed in original complaint decided by the State Commission may appeal to National Commission within 30 days. The consumer who purchase goods or hires services for consideration is entitled to seek redress before he Forums constituted under the Act and claim any of the reliefs mentioned in Section 14(1) of the Act. 35. CH. It was held that the complaint is maintainable. 25.

. she found that her suitcase was ransacked. State cannot avoid the constitutional obligation on account of financial restraints. SOUTHERN RAILWAY V.A.000 and costs to the complainant. papers were found strewn on the floor of the compartment and important documents and cash were missing. . Rejecting the railway's claim that by virtue of section 100 of the Railways Act. writ can be filed as High Courts can grant relief when there is violation of fundamental right].SHAMIM. with her a suitcase in which there were some study material. it was held that providing adequate medical facilities is an essential part of the obligations undertaken by Government in a welfare State. this judgment will not be useful in getting relief from Consumer Courts. to her dismay. the use is for `commercial purpose` and hence it is not a consumer. and in default was liable to pay compensation. When she woke up at about 2 a. In Paschim Banga Khet Mazdoor Samity v. (Cosmopolitan Hospitals v. . plus Rs 5. The State Commission. . .State cannot avoid its responsibility for denial of the constitutional right. which was the destination station. it was held that equipment bought by an educational institution for use by students cannot be said to be for commercial purpose even where certain amount of fees is charged to students for allowing use of equipment. -. Eventually she gave the first information to the police at Secunderabad.Hence.. Her complaint to the TIE that an a passenger without reservation had entered the compartment and despite protests from her and other co-passengers she continued to occupy the berth and the TIE did nothing to detrain her. Therefore. However. . a person who met with an accident was not given any treatment in a Government hospital as proper facilities were not available. The District Forum held that the railway was deficient in its service and awarded compensation of Rs. GENERAL MANAGER. Supreme Court also issued guidelines for providing proper medical facilities. FACTS: It was the case of the complainant that she boarded an express train in a station in Kerala to go to Hyderabad on professional work.Supreme Court held that there was breach of 'right of life' guaranteed under Article 21 of Constitution. . . [(2003) 3 CLD (Consumer Law Decisions 583 (NCDRC)]. he will not be eligible under CPA as person buying goods for resale or commercial purposes is not a consumer. (Medical Stores Vs R D Gupta) In Kalpavruksha Charitable Trust V Toshniwal Brothers it was held that a charitable trust is not a consumer. S N GHOSH . State was ordered to pay compensation. agreeing with the view of the District Forum dismissed the appeal filed by the railways.IIPM 31 CH. Legal heirs of a deceased person are 'consumer' as the legal heir stands in the shoes of the deceased as his representative to enforce any cause of action. 35 bibliographic cards and a sum of Rs..m.00 lakhs to the parent (for mental agony) were awarded.. Thus a person buying one truck or tempo or sewing machine or one computer will be eligible under this section. . Supreme Court has not held that the Government hospitals provide any 'service' to the injured. – 1 LAW & SOURCES vegetative and helpless life forever. [Note: In this case. Smt Vasantha P Nair.. However if a person buys two typewriters out of which one is used by a person employed by him. She further alleged that neither the TIE nor the Guard was willing to receive her complaint. Thus. State of West Bengal. Parent who brings the child to hospital is 'consumer'. The child. if it has purchased machinery for its diagnostic center. Interuniversity Consortium. Same view in Manjuben v. The doctor as well as the nurse was found to be negligent and compensation of Rs 12. Attitude of the staff was indifferent and callous. in the circumstances of the case the compensation was awarded. She was carrying. . . Thus. requiring lifelong care and attention. who is beneficiary of the services is also a consumer While dispensing medicines the attendants in the Medical Stores have to be very vigilant in supplying the medicines strictly according to the prescription. In Sarat Equipments v.50 lakhs to the child. the railway was responsible only in LECTURES BY PROF. 5800 in her hand bag...In this case. when only 10% patients are provided free service and changes are levied on remaining patients. LlC. 20. MRS.

the Supreme Court held: Decision and Reasons: Having regard to the facts and circumstances the appellant could not be said to be liable to pay the insurance amount in Pounds Sterling. in the various airfields in the country alleged inconvenience caused to passengers on account of the delay in operation of flights. From the correspondence between the parties it was evident that the consignee did not pay the value of the missing parcels to the respondent nor was there any evidence to show that the documents were endorsed in favour of the consignee and transferred to them. had sent two parcels of emeralds by registered post duly insured to a consignee in London but the parcels did not reach their destination. In appeal to the Supreme Court the respondent reiterated its claim that the insurance policy specifically stated that the amount was payable at London and that it should be paid only in Ponds Sterling at London and not in Indian rupees in India. Allowing the insurer's appeal. V... dealer in precious stones. had alleged lack of proper facilities such as landing aids etc. [Section 100 provides that the railway administration shall not be responsible for loss etc. – 1 LAW & SOURCES respect of luggage booked the National Commission held: DECISION & REASONS: If the reserved compartment was not protected from intruders and if the alarum chain did not work when pulled by the passenger it was clearly a case of deficiency in service on the part of the railway. the International Airport Authority of India.IIPM 32 CH. Under such circumstances the respondent was not entitled to receive the payment in Pounds Sterling. a registered consumer association had filed the petition through its Director on various grounds of grievance against the Indian Airlines. was due to the negligence or misconduct on its part or on the part of its servants. The insurer denied its liability to pay the amount in Pounds sterling on the ground that the title in the goods had not passed to the consignee and that it (the respondent) continued to be the owner of the goods and so the payment could be made only in Indian Rupees. relating to alleged lack of attention to the safety of aircraft and the passengers traveling by Indian Airlines. This clearly showed that the title had not passed to the consignee in London. delay in baggage clearance and unsatisfactory in-flight catering etc. omission to give timely information regarding delayed or cancelled fifths. The TIE who was present in the compartment when the train started and a complaint was made to him about presence of an unauthorised passenger in the reserved compartment. The title to the goods had not clearly passed to the consignee and the respondent consignor continued to be the owner having insurable interest in the goods. The investigators appointed by the insurer confirmed that the parcels were either lost in transit or were stolen. The right of the buyer to claim the policy amount would arise when he obtained title to the property and produced the documents of transfer. the National Airport Authority of India and the Director General of Civil Aviation. unless it is proved that National Insurance Co. But the respondents insisted that the payment of the insured amount be made in Pound Sterling in London. Ltd. The National Consumers Disputes Redressal Commission held that as the insurance policies clearly stated that the claim was payable at London and the insured value was in terms of Pounds Sterling the insurer should pay the amount in Pounds Sterling. LECTURES BY PROF. The insured agreed to settle the claim. Airport authorities etc. The petitioner – Common Cause. S N GHOSH . This was nothing but deficiency in service and negligence envisaged by section 100. Complaint against Airlines. the loss. The postal authorities admitted their liability and made payment of postal charges in respect of each parcel. The National Commission erred in stating that the insurance amount was payable at London. ignored the pleas of passengers and did not offer any help to passenger in distress. Facts: The respondent. Skygems [2002(1) SCALE 94].

(Common Cause Vs Indian Airlines) LECTURES BY PROF. Therefore. It was held that no relief could be grant on such a complaint based upon the version of third peon appearing in newspapers. would adequately go to rectify the grievances of the consumers and hence he did not wish to pursue that matter any further at this stage before the Commission. the complaint petition was disposed of accordingly.IIPM 33 CH. The complainant had not even filed an affidavit that the facts stated in the complaint were true to the personal knowledge of the complainant. The Complainant had not even give out the name of any of the passengers of that flight. The National Consumer Disputes recorded the assurances given to the Commission by the various authorities in their respective statements. `S` appearing on behalf of the complainant society. S N GHOSH . – 1 LAW & SOURCES The petitioner had also impleaded the State Governments and the local authorities that were statutorily obliged to take steps for avoidance of bird –menace near the various airfields in the country. The State Governments of West Bengal. The complaint was based upon a newspaper report which might or might not be correct. the danger to aircraft from birds hovering near the airports. Maharashtra and the Central Government had filed statements detailing the action that ha already been taken by them and the further chouse of action which would be adopted by them for eliminating. if duly carried out. very fairly had stated that steps already taken and the assurances. The New Delhi Municipal Committee and the Municipal Corporation of Pallavaram had also filed similar statement. for consideration paid or promised to be paid. No passenger who had boarded the flight in question had come forward to make a complaint nor there was any allegation in the present complaint that any such passenger had authorised the complainant to file any complaint before the Commission. In the light of the averments contain there detailing the steps already taken by the various authorities and the assurances contained in these statements. The Indian Airlines as well as International Airport Authority of India and the National Airport Authority of India had filed detailed statements setting out the various steps that they had already taken as well those which they propose to take in future for setting right whatever grievance that are actually found to exist in respect of the various matters pointed out by the Petitioner. Tat fact was clear from the averment in the complaint that the flight in question was commencing from Calcutta while in fact it commenced from Delhi. the maximum extent possible. In fact the complainant did not appear to be having any personal knowledge about the details relating to the fifth in question. The Act had been enacted to give redress to a consumer if there was a defect in the goods purchased or there was deficiency in the services hired.

The owner of IP can control and be rewarded for its use. Designs registered designs (which lasts upto 25 years) and unregistered design right protect the aesthetic appearance of articles. (Ex – HLL products manufactured by some other manufacturer) Trademarks as a series  Where the proprietor of a trademark claims to be entitled to the exclusive use of any part thereof separately. as such. (Ex. artists and composers against the unauthorised copyin of their works. they contribute to the development of the organisation as a whole. Registered users (Section 48)  A person other than the registered proprietor of a trademark may be registered in respect of any or all of the goods or services in respect of which the trademark is registered. 1999 What is `Trade Mark`  A `Trade Mark` is a distinguishing mark used in the course of trade of goods of one manufacturer or trader and. which last for upto 20 years. he may apply to register the whole and the part as separate trademarks. signatures or any combination thereof. 2. 3. Copyright unregistered protection for authors.goodwill. Patents: registered rights protecting industrial invention. Types of Intellectual Property   TRADEMARKS ACT. – 1 LAW & SOURCES Chapter 8 INTELLECTUAL PROPERTY LAWS WHAT IS `INTELLECTUAL PROPERTY`   Companies use their assets as part of the operations of their business and. it shall be deemed to be registered for all colours. Intangible assets . plant and machinery and tools and equipment.. There are four main types of IPRs:1. often known as IP. a key operational and strategic function. Trademark Owner or Proprietor  The person in whose name the Trade mark is registered and his name is so entered in the Register maintained by the Registrar Trademarks. When a trademark is registered without limitation of colour. letters numerals. trademarks and copyrights -Intellectual property rights (IPRs)  Intellectual property. (Ex – `Liberty` and `Ballerina` used for Ladies Sandals) Limitation as to Colour  A trademark may be limited wholly or in part to any combination of colours. 2. S N GHOSH . Trademarks registered rights for brand identity. and this encourages further innovation and creativity to the benefit of us all. Assets may be classified as: 1. Managing and protecting assets is. A trademark may consist of a device depicting the picture of animals. human beings. words. which lasts for the life of the author plus 70 years. designs. which can continue as long as the registration fees are paid.land and building. therefore. Tangible (or physical) assets . an independent trademark. patents. brand or design without the owner’s consent. etc. 4.Airtel – in Red and White colours) TYPES OF TRADEMARKS Classification Description LECTURES BY PROF. The first three categories are known as registered or monopoly rights as the process of registration effectively prevents others from exploiting an invention. allows people to own their creativity and innovation in the same way that they can own physical property. Each such separate trademark shall satisfy all the conditions applying to and have all the incidents of.IIPM 34 CH. it seeks to protect the interest of the consumer as well as the trader. therefore.

or  that the work or labor on the goods or services was performed by members of a union. (Ex. (Ex – Woolmark. Designs and Trademarks. LECTURES BY PROF. quality. Classification of goods and services  The Registrar shall classify goods and services. and to indicate the source of the services. by all the members of a cooperative. S N GHOSH . Ex . The Register may be kept wholly or partly in computer floppies diskettes or in any other electronic form subject to prescribed safeguards.Lal Quila Basmati Chawal (Rice) Ex . In that Register all registered trade marks with the names. addresses and description of the proprietors.  to certify regional or other geographic origin. (B) Certification mark (C) Collective mark (D) Well-known trademark A mark used in commerce with the owner’s permission by someone other than its owner.ORTEM Ex – Bikaneri bhujia Ex. Kolkata and Ahmedabad. would cause confusion in the minds of the users/beneficiaries of the goods or services.IIPM 35 Trade CH.Lijjat papad. in accordance with the International classification of goods services for the purposes of registration of trademarks. accuracy. conditions. sounds and colours Ex. FICCI) A mark.Hutch) (E) Service mark What can be registered as a trademark? Trading names Signatures Newly invented words Geographical names Distinctive packaging Smells. which has become so well known to the substantial segment of the public. as far as may be. The owner of that mark is called Registered Owner or Proprietor. to identify and distinguish the services of one provider from services provided by others. . the names. Chennai. addresses and descriptions of registered users. material.Cadbury’s bar of chocolate. limitations and such other matter relating to registered trademarks shall be entered. notifications of assignment and transmissions.Radial Tyres Ex – Zevit capsules from SKF Glaxo REGISTRATION OF TRADEMARK [SECTION 3 TO 8]] Registrar of Trademark  The Central Government has appointed Controller-General of Patents. in the same course of trade. (Ex. (Ex – Raxona chappals) A mark used in the course of trade. – 1 LAW & SOURCES (A) Registered Mark A trademark registered with the Registrar of Trade Marks in the name of a person.. an association etc. AGMARK) A trademark or service mark used in commerce. that the use of same trademark is used in relation to other goods or services. The Registrar may publish in the prescribed manner an alphabetical classification of goods and services. mode of manufacture. Delhi. The Register of Trademarks  The Register of Trade mark shall be kept at the head office. Trademarks Registry and offices thereof  The Trademarks Registry is located at Mumbai.

when proved. and such a mark is identical with. There shall be actual damage by such unauthorised use. It also brings the right to take legal action against others who might be infringing the invention to claim damages. After due compliance of related procedures. Duration. Patent right is assignable. Involve an inventive step Capable of Commercial Exploitation Be described. TRIP AGREEMENT Compliance of the TRIP Agreements LECTURES BY PROF. Passing Off  REDRESSAL MECHANISM [SECTIONS 83 TO 100]  The Central Government has notified the establishment of an Appellate Board known as the Intellectual Property Appellate Board to exercise the jurisdiction. OFFENCES AND PENALTIES [SECTIONS 103] Penalty for applying/selling false trademarks. PATENTS ACT. It constitutes an infringement.IIPM 36 CH. The benefits of patent protection  The patent gives the patent holder the right to stop others from using the invention concerned or to choose to let others use it under agreed terms. removal and restoration of registration  The registration of a trademark shall be for a period of 10 years may be renewed for further period of 10 years from time to time. Vice-Chairman and other Members (Judicial and Technical). S N GHOSH . powers and authority conferred on it. A single application may be made for registration of a trademark for different classes of goods. or deceptively similar to the registered trademark relation to goods or services in respect of which the trademark is registered and in such manner as to render the use of the mark likely to be taken as being used as a trademark. Patent Requirements     Be novel. Bar of jurisdiction of courts. TRADEMARK AGENTS Agents may present the applicant before Registrar (Section 145)  The Registrar may authroise the legal practioners or registered agents may be authorised to represent their principals. trade descriptions. – 1 LAW & SOURCES Registration of Trademark  Any person claiming to be the proprietor or a trademark used or proposed to used by him shall apply in writing to the Registrar in the prescribed manner for the registration of his trademark. 1970 What is `Patent`  Patent is a monopoly granted to the original inventor of a product or process that is capable of commercial exploitation. Infringement of registered trademarks  When a person other than the registered proprietor of permitted user uses a mark in the course of trade for which original owner is registered. `Pamolive`(infringement) It means when any person not authorised to use any registered trade uses the same in order to cause confusion or deception in the mind of the user or injure reputation of the registered owner. The Appellate Board shall consist of a Chairman.  An imprisonment upto three years and fine upto Rs. the Registrar may register with or without conditions. 2 Lakhs may be imposed on violation of the Act. etc. powers or authority in relation to the matters referred to in appeal.  No court or other authority shall have any jurisdiction. (Ex – `Palmolive` (registered mark). renewal. etc.

machine or apparatus. Contrary to law or morality or injurious to public heath. curative. inter-alia.Umbrella with fan) A method or a process for enhancing machine efficiency. S N GHOSH . International applications under PCT. (Ex -Scientific theory is a statement about the natural world.Use of Aspirin for cardio-vascular disease) A substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof (Ex – Alloy) The mere arrangement or re-arrangement or duplication of known devices (Ex .IIPM 37 CH. his assignee or legal representative or foreign national of a convention country on reciprocal basis. surgical. b. (Ex . The Patent Act 1970 has been amended in 1999.Process for testing of chlorine level in the water) A method of agriculture or horticulture (Ex . any person including Central Government in the public interest may make an application to the Controller for grant of compulsory licence on patent on specified grounds. (Ex. Secrecy direction of certain inventions  The Registrar while sealing a Patent may issue security directions for products or process for defence purposes.-Method for gambling) Mere discovery of a scientific principle or the formulation of an abstract theory. Types of Patent Applications a.treatment of malignant tumour cells) Inventions relating to Atomic energy [Section 4] Who may apply for Patent  An application for a patent may be made by the first inventor. REDRESSAL MECHANISM [SECTION 116] Appellate Board LECTURES BY PROF.A method for cultivation of an algae) Any process for the medicinal. the Central Government has been empowered to apply to the Controller for revocation of compulsory licence after 2 years from the grant of licence. Compulsory licences  Revocation of patents by the Controller for non-working  Where patented invention is not available to public at a reasonably affordable price. my grant compulsory licence.) The mere discovery of any new property or its use or of the mere use of a known process. INVENTIONS NOT PATENTABLE (SECTION 3 AND 4)           Frivolous or claims made are obvious or contrary to well established natural laws. The TRIPs Agreement requires member countries to align their legislations on intellectual property in conformity with their obligations under the TRIPs Agreement . namely. The WTO Agreement. (Ex . (Ex . the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs). The Controller on being satisfied with the expediency and urgency and public interest. – 1 LAW & SOURCES   India is a signatory to the agreement establishing the World Trade Organization (WTO). A patent may be revoked by the High Court on any of the specified grounds. At any time after 3 years from the date of the sealing of a patent. contains an agreement on intellectual property rights. prophylactic or other treatment of living animals to make them disease free. Patent applications under Patents Act 1970. Term of a patent  The term of every patent shall be 20 years from the date of filing application for patent. 2002 and 2005 so as to make Indian Patent Act fully compliant of the TRIP Agreement.

adoption or abridgement of a literary work the author of such work can stop others from exploiting it but he cannot himself exploit that work without the consent or license of the original work from which the work has been derived. INTERNATIONAL ARRANGEMENTS Notification as to convention countries (Section 133)  The Central Government may. on reciprocal basis. 1999 shall be the Appellate Board for the Patent Act also. on film. POWERS AND PROCEDURE [SECTIONS 11 TO 12] Constitution and composition of the Copyright Board   The Central Government has constituted a Copyright Board. To qualify for a copyright. the work must exist in some physical form. among others. Functions of the copyright Board Assignment of copyright   The owner of the copyright in an existing work may assign to any person the copyright either wholly or partially and either generally or subject to limitations and either for the whole term of the copyright or any part thereof. b) Where the work is first published outside India the author. for instance. such as a tape recording. – 1 LAW & SOURCES  The Appellate Board established under the Trade Marks Act. Settlement of disputes with regard to copy right. Copyright is a kind of intellectual property. dramatic or musical work. DVDs. infringement thereof. a) The work is first published in India. literary. S N GHOSH . video games.‖ A copyright does not cover an author’s ideas – which is why the work must be fixed in a tangible medium. at the date of publication must be a citizen of India. determination of royalties. the work must be ―fixed in a tangible medium of expression. LECTURES BY PROF. the work is located in India Conditions for qualifying as copyright COPYRIGHT BOARD. The Copyright Board shall be deemed to be a civil court and all proceedings shall be deemed to be judicial proceedings. In other words. THE COPYRIGHT ACT 1957 What is copyright    Copyrights generally protect works of art including poetry. photographs.IIPM 38 CH. musical works. The assignment shall be in writing and for a consideration. compulsory licence in public interest. declare and notify a country to be a convention country with a view to the fulfillment of a treaty. c) In the case of an architectural work of art. Copyright is not a positive right but a negative right that is the right to stop others from exploiting the work without the copyright owners consent or license. or even in an email. assignment. sculptures. movies. or architectural designs. the work is derived from some other work in which copyright subsists as in the case of translation. Thus where. on paper. and other matters incidental thereto. paints.

the publication in a collection. dramatic musical or artistic work. has provided copies of all covers or labels with which the sound recordings are to be sold. and has paid in the prescribed manner to the owner of rights in the work royalties in respect of all such sound recordings to be made by him. Performer's right . The broadcast reproduction right . the reading or recitation in public of any reasonable extract from a published literary or dramatic work. – 1 LAW & SOURCES Published literary. the making of sound recordings in respect of any literary. the doing of any act necessary to obtain information essential for operating inter-operability of an independently created computer programme. the reproduction.. if sound recordings of that work have been made by or with the licence or consent of the owner of the right in the work. bona fide intended for the use of educational institutions. musical and artistic works etc. S N GHOSH . the making of not more than three copies of a book. . for the purpose of research or private study.Lifetime of the author upto 60 years from the beginning of the calendar year next following the year in which the author dies. Upon a complaint made to the Copyright Board and on being satisfied in the public interest. the reproduction of a literary dramatic. mainly composed of non-copyright matter. or as part of the question to be answered in an examination. the person making the sound recordings has given a notice of his intention to make the sound recordings. at the rate fixed by the Copyright Board in this behalf. dramatic musical or artistic work by a teacher or a pupil in the course of instruction. LICENCES (Section 30) Licences by owners of copyright  The owner of the copyright in any existing work or the prospective owner of the copyright in any future work may grant any interest in the right by licence in writing signed by him or by his duly authorised agent. the Board may direct the Registrar to grant compulsory licence to the Complainant on such conditions as maybe prescribed. or in answers to such questions. dramatic.25 years from the beginning of the calendar year next following the year in which the broadcast is made.50 years from the beginning of the calendar year next following the year in which the performance is made.IIPM 39 TERM OF COPYRIGHT CH. the making of copies or adaptation of a computer programme by the lawful possessor. the reproduction of a literary. musical or artistic work for the purpose of a judicial proceeding. the causing of a recording to be heard in public by utilising it in an enclosed room or hall. STATUTORY EXCEPTIONS TO INFRINGEMENT (SECTION 52) Some of the exceptions provided under the Act are as follows: a fair dealing with a literary. dramatic or musical work. Compulsory licence in works withheld from public   (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (x) (xi) (xv) LECTURES BY PROF.

Accounts of profits. which may be a symbol. or owner of or other person interested in the copyright in any work. Criminal.2 lakhs. COPYRIGHT AND TRADEMARK PATENT Right Protected COPYRIGHT Original. 7 years and may be renewed dramatic. TRADEMARK To use a particular mark. COMPARITIVE ANALYSIS OF PATENT.IIPM 40 CH. word. – 1 LAW & SOURCES PENALTIES FOR INFRINGEMENT OF COPYRIGHT (SECTIONS 54 –62)  Imprisonment for a minimum period of 3 years and with fine upto Rs. partners of a Firm. The author or publisher of. cinematograph film and records. Lifetime plus 60 years for literary. 50 years from year of publication for records. device applied to articles of commerce to indicate the distinctiveness of goods. For any second and subsequent convictions imprisonment up to three years and the fine upto Rs. Corporation. A new invention to manufacture the product patented or use the process patented. musical and artistic works. Injunction. Damages. Government department or Trust. Proprietor of the trademark and application may be made in the name of an individual. Accounts of profits LECTURES BY PROF. musical and artistic from time to time. Who Can Register Actual inventor or an assignee of the right to make an application or legal representative of either. Remedy For Infringement Civil. Injunction. Damages. Commercial Use Assigning rights or licensing them to industrialists for a lump sum payment or royalty basis. By assigning or licensing the right to others on a royalty or lump sum basis. S N GHOSH . works. dramatic. Licensing the right by registration of the licensee as a registered user. 2 lakhs. literary. Administrative. Time Period 20 years and in case of food and drugs 5 or 7 years.

bio-medical waste. plants. Environment has been defined to include water. the Environment Protection Act.000 has been prescribed. which exists among and between water. (x) collection and dissemination of information in respect of matters relating to environmental pollution. The Central Govt. action taken or order or direction issued by the Central Government under this Act. India was a participant country. control and abatement of environmental pollution. Orders. S N GHOSH An umbrella Act    Power of Central Government to take measures to protect and improve environment [SECTION 3]   Establishment of Central Pollution Control Board. has been empowered to take following actions including issue of requisite Rules. (xii) such other matters as the Central Government deems necessary or expedient for the purpose of securing the effective implementation of the provisions of this Act. injurious to environment. control and abatement of environmental pollution. Directions (i) co-ordination of actions by the State Governments. (xi) preparation of manuals. materials and substances as are likely to cause environmental pollution. other living creatures. control and abatement of environmental pollution. industrial solid waste. The provisions of this Act shall have an overriding in so far as other Acts affecting any factory is concerned. One lakh For continuing contravention fine of Rs. hazardous chemicals. The civil court shall not have jurisdiction to entertain any suit or proceeding in respect of anything done. by order. (vi) examination of such manufacturing processes. operations or processes or class of industries. (vii) carrying out and sponsoring investigations and research relating to problems of environmental pollution. plant. or tend to be. operations or processes shall not be carried out or shall be carried out subject to certain safeguards. (v) laying down procedures and safeguards for the handling of hazardous substances. Environmental Laboratories Penalty for contravention [SECTION 15]  Bar of jurisdiction [SECTION 22]  Environmental clearance – a prerequisite   Other measures initiated by the Central Government . it was decided to take appropriate steps for the protection and improvement of human environment. Central Pollution Control Board.Environmental Clearance is mandatory for the expansion and modernization of any activity or new projects. Following Rules. (ii) planning and execution of a nation-wide programme for the prevention. air and land. water. soil or other substance respectively for the violation of the standards and rules relating to hazardous waste. 1986  The United Nations Conference on the Human Environment held at Stockholm in June 1972. microorganism and property. of such directions to such authorities. Imprisonment upto five years with or without fine upto Rs. equipment. The Central Government may appoint appropriate number of officers and entrust them powers and duties for the purpose of this Act. officers or persons as it may consider necessary to take steps for the prevention. and human beings. 5. 1986 was rd enacted on 23 May 1986. (viii) inspection of any premises. Orders. (iii) laying down standards for emission or discharge of environmental pollutants from various sources whatsoever: (iv) restriction of areas in which any industries. Pre. Environmental pollution means the presence in the environment of any solid. Thus for the purpose of implementing the said decision. Environmental laboratories have been established under the Act to issue directions to any industry or any local or other authority and analysis of samples of air. liquid or gaseous substance in such concentration as may be. Directions have been issued by the Central Government LECTURES BY PROF. codes or guides relating to the prevention. (ix) establishment or recognition of environmental laboratories and institutes to carry out the functions entrusted to such environmental laboratories and institutes under this Act. machinery. air and land and the interrelationship. officers and other authorities. municipal solid waste including plastic waste etc.IIPM 41 CHAPTER 7 ENVIRONMENTAL LAWS CH. materials or substances and giving. Notifications. – 1 LAW & SOURCES Source of The Environment Protection Act. manufacturing or other processes. This Act is an umbrella Act.

IIPM 42 CH. was the basis for the Freedom of Information Bill. United Nations Conference on Environment and Development held at Rio de Janeiro in June 1992 decided that the member countries to develop national laws regarding liability and compensation for the victims of pollution and other environmental damages. Chemical accidents. 2005 HISTORICAL BACK GROUND     Disclosure of Government Information in India is governed by a law enacted during the British Rule. the Supreme Court delivered a landmark judgment on the citizen's Right to Know PASSAGE OF A NATIONAL LEVEL LAW . 2002. never came into effective force. 1986 and for matters connected therewith or incidental thereto. Municipal waste. RIGHT TO INFORMATION ACT 2005 RTI Act 2005 . – 1 LAW & SOURCES (i) (ii) (iii) (iv) State Coastal Zone Management Authority Eco-marks Scheme Eco-sensitive Zones Hazardous Substances Management – batteries.doomed FoI Act led to sustained pressure for a better National RTI. The FoI Act. and contains provisions which prohibit disclosure of non.classified information. in an extremely diluted form. the National Environment Tribunal Act 1995 was enacted. 2000 which eventually became law under the Freedom of Information Act.FREEDOM OF INFORMATION ACT. (v) Noise Pollution (vi) Animal Welfare (vii) Public liability Insurance The National Environment Appellate Authority Act 1997  This Appellate Authority has been established to hear appeals with respect to restriction of areas in which any industries. The National Environment Tribunal Act 1995  Chapter 09 RIGHT TO INFORMATION ACT. Over large parts of India. however. This Act was severely criticised for permitting too many exemptions. not only under the standard grounds of national security and sovereignty. sovereignty of the country and friendly relations with foreign states. Given the experience of state governments in passing practicable legislation. Civil Service conduct rules and the Indian Evidence Act impose further restrictions on government officials' powers to disclose information to the public. proved to be a difficult task. operations or processes shall not be carried out or shall be carried out subject to certain safeguards under the Environment (Protection) Act. operations or processes or class of industries. the Official Secrets Act of 1889 which was amended in 1923. Accordingly. 2002      Passage of a national level law. Bio-medical waste etc. Recycle Plastic Manufacture and usage. There were no penalties for not complying with a request for information. In 1975. became effective from 13th Oct 2005 LECTURES BY PROF. the Central Government appointed a working group under H D Shourie and assigned it the task of drafting legislation. This law secures information related to security of the State. consequently. The Shourie draft. S N GHOSH . There was no upper limit on the charges that could be levied. but also for requests that would involve "disproportionate diversion of the resources of a public authority".

the security. contain corruption and hold Governments and their instrumentalities accountable to the governed (citizen) Secure access to information under control of public authorities. o most effective method of communication in that local area and the information o easily accessible EXEMPTION FROM DISCLOSURE   Information. papers. memos opinions. logbooks. o Press releases o Circulars. facilities available to citizens for obtaining information. o samples of material. orders.IIPM 43 CH.vital to democracy. o decision making process. LECTURES BY PROF.access to information and disclosure by authorities To provide effective framework for effectuating right to information . designations and particulars of Public Information Officers Information shall be disseminated – o in cost effective. of officers and employees. records. Definition • Information meanso any material in any form. o connected through a network all over the country on different systems to facilitate access to records. samples. strategic. contracts o Information relating to any private body that may be accessed by Public Authority  Right to information includes the right too inspection of work. o statement of categories of documents held under its control.failure to provide information Provisions to ensure -maximum disclosure and minimum exemptions. including channels of supervision and accountability. Preservation of confidentiality of sensitive information Likely to conflict with other public interests. o functions. scientific or economic" interests of the State. powers. consistent with the constitutional provisions. including working hours of library or reading room. Models. o local language. including o Records. documents. catalogued and indexed.recognized under Article 19 of the constitution of India. if any. o obtaining information in electronic mode or through printouts RESPONSIBILITIES OF PUBLIC AUTHORITY    Every public authority shall – o maintain computerised records. prejudicially affect the sovereignty and integrity of India. advices o e-mails o Reports. duties. extracts or certified copies of documents or records. relation with foreign State or lead to incitement of an offence. Effective mechanism . taking certified copies. documents. publish within 120 days :o particulars of its organisation. – 1 LAW & SOURCES Objective of the Act         Informed citizenry and transparency of information. o taking notes. harmonise Penal provisions . S N GHOSH . o names.

cabinet papers including records of deliberations of the Council of Ministers. cause a breach of privilege of Parliament or the State Legislature. Information concerning corruption and Human Rights violations . EXEMPTED PUBLIC AUTHORITY        Central Intelligence and Security agencies like IB. Central Bureau of Investigation (CBI). CISF. Narcotics Control Bureau. RAW. personal information the disclosure of which has no relationship to any public activity or interest. Information concerning life or liberty of any person . commercial confidence. trade secrets or intellectual property.PIO is expected to reply within 48 hours LECTURES BY PROF. The Crime Branch-CID-CB. If the request made to an APIO . Dadra and Nagar Haveli and Special Branch. Directorate of Revenue Intelligence. Lakshadweep Police.IIPM 44 CH. endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes. S N GHOSH . available to a person in his fiduciary relationship. unless the competent authority is satisfied that larger public interest warrants the disclosure of such information.35 days of receipt. Information relating to allegations of human rights violation could be given but only with the approval of the Central or State Information Commission PROCEDURE  Application o in writing or through electronic means in English or regional language along with prescribed fees to Public Information Officer o no fees from persons below poverty line o not required to give any reason for requesting information • TIME LIMIT FOR PROVIDING INFORMATION      If request made to PIO . BSF. If PIO transfers request to another public authority (better concerned with the information requested) . received in confidence from foreign Government. the disclosure of which would harm the competitive position of a third party.30 days of receipt. Special Frontier Force. or which would cause unwarranted invasion of the privacy of the individual (but it is also provided that the information which cannot be denied to the Parliament or a State Legislature shall not be denied by this exemption). Secretaries and other officers.45 days but with the prior approval of the Central Information Commission. Andaman and Nicobar.30 days but computed from day after it is received by PIO of the transferee authority. Special Branch (CID). impede the process of investigation or apprehension or prosecution of offenders. is not absolute These organizations have an obligation to provide information pertaining to allegations of corruption and human rights violations. Assam Rifles. unless the competent authority is satisfied that the larger public interest warrants the disclosure of such information. – 1 LAW & SOURCES          expressly forbidden to be published by any court of law or tribunal or the disclosure of which may constitute contempt of court. CRPF. Directorate of Enforcement. NSG. Special Service Bureau. The exclusion. Aviation Research Centre. ITBP. Central Economic Intelligence Bureau.

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