INTRODUCTION TO INDIAN

LEGAL SYSTEM
ANUPAM KISHORE SINHA

LEGAL ASPECTS OF BUSINESS

 RELEVANCE OF LAW TO MANAGERS

• Range of Laws – Very wide –Information Technology to

Insolvency to Income Tax to Insecticides to even the IIMs
• Even the best of lawyers and judges cannot claim that they
know everything in law.
• A good lawyer is one who knows where to find the law.
• Unfair to expect that Manager knows everything about every
thing.
 WHAT IS EXPECTED OF A MANAGER?

• He should be aware of basics;

• He should be in a position to broadly ascertain which are the
applicable laws;
• He should be in a position to articulate legal requirements and raise red
flags to his business team;
• He should convey business objectives to legal department / external
counsel
 APPLICABLE LAWS

;
• WHO CAN MAKE LAWS?

• WHAT ARE THE AVAILABLE FORMS /

AVATARS OF LAWS?
 KEY TO ANSWERS - CONSTITUTION

• Supreme Law of the Land. Prescribes rules of governance unlike laws

which provides rules of obedience.
• Scope of powers & limitations of legislature, executive & judiciary.
• A legal document which no law of the country can go against.
• Any law which does so, may be challenged and can be declared by the
Supreme Court / High Court as unconstitutional and thereby becomes
invalid. Examples:-instant talaq, adultery, section 377 of IPC.
• Quasi federal structure means that although India is Union of States,
however, states reserve their status as distinct power centres.
 WHO CAN MAKE LAWS?

LEGISLATURE JUDICIARY EXECUTIVE

• PARLIAMENT / STATE • SUPREME COURT / • CENTRAL
LEGISLATURE HIGH COURTS GOVERNMENT /
• DISTRICT COURTS & STATE GOVERNMENT
TRIBUNALS

• Makes laws • Implements

• Interprets laws laws
 WHO CAN MAKE LAWS? (contd)

• Executive only implements law is an incomplete / partially true notion.

• Time available with legislature is short.
• Complexities of techno / socio / economic / financial scenarios are
increasing by the day, which cannot be efficiently addressed given the
resource and time crunch of law making bodies.
• ANSWER – Delegated Legislation:- (a) Legislature lays down the policy and the
principle to afford guidance to executive for carrying out the said policy. (b) The task of
making subordinate legislation for implementing the purpose and objects of the
legislation is delegated to the executive
 EXAMPLE OF DELEGATED LEGISLATION

INFORMATION TECHNOLOGY ACT, 2000

• Legislative policy is to provide legal sanctity to electronic signature, amongst

others.
• Section 2 defines electronic signature to mean authentication of any electronic
record by a subscriber by means of electronic technique prescribed.
• Section 5 provides legal recognition to electronic signature by providing that
if any requires something to be signed, then the said requirement is satisfied if
it authenticated by way of an electronic signature.
 EXAMPLE OF DELEGATED
LEGISLATION(contd.)
• Section 10 of IT Act – an instance of delegation of legislative power
Power to make rules by Central Government in respect of electronic signature. -The Central Government
may, for the purposes of this Act, by rules, prescribe-
 the type of electronic signature;
the manner and format in which the electronic signature shall be affixed;
the manner or procedure which facilitates identification of the person affixing the electronic signature;
control processes and procedures to ensure adequate integrity, security and confidentiality of electronic records or
payments; and
 any other matter which is necessary to give legal effect to electronic signatures.
• What rule did the Central Government prescribe?
• Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2016 so as to achieve the
abovementioned objectives under the IT Act.
FORMS / MANIFESTATIONS OF LAW

CONSTITUTION

ACTS MADE BY ACTS MADE BY

PARLIAMENT STATE
LEGISLATURE

REGULATIONS
RULES MADE BY RULES MADE BY
MADE BY
CENTRAL THE STATE
REGULATORS
GOVERNMENT GOVERNMENT
 QUESTIONS / DISCUSSION

QUESTIONS / DISCUSSION

QUESTIONS / DISCUSSION