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 REFERENCE BOOKS
BUSINESS LAW AND
MODERN INDIAN COMPANY LAW
M.C.KUCHAL

VIKAS PUBLICATION

Business Law, S.S. Gulshan

Excel Books

Elements of Mercantile Law,

N. D. Kapoor
MEDIA & BUSINESS LAWS

UNIT-1
INTRODUCTION
 Why is law difficult to define?

Many senses:

• law of physics, mathematics, science;

• laws of the football or cricket or health.
What is law in its widest sense of the term?

• In its widest sense, law means any rule of

conduct, standard or pattern, to which actions
are required to conform; if not conformed,
sanctions are imposed.
• Examples: Moral rules or etiquettes – non-
observance leads public ridicule
• Law of the land – non-observance may lead to
arrest, imprisonment, fines, etc.
• International law – non-observance may lead to
social boycott, trade sanctions, cold war, hot
war, proxy war, etc.
 Definition of Law
• Oxford Dictionary: “The body of rules whether
proceeding from formal enactment or from custom,
which a particular State or community recognizes as
binding on its subjects or members.” Law may be
defined as a rule of conduct of persons (both natural and
artificial), imposed upon and enforced among the
members of a given state.

• Woodrow Wilson: “Law is that portion of the established

habit and thought of mankind which has gained distinct
and formal recognition in the shape of uniform rules
backed by the authority and power of the Government”.
 Characteristics of Law:
• 1. Law is a body of rules – these rules arise from
custom, precedent and legislation.
• 2. Law is for the guidance and conduct of persons – both
human and artificial.
• 3. Law is imposed – law is obligatory on the members of
the society to obey it.
• 4. Law is enforced by the executive. The force used by
the State to secure obedience to its laws is called
sanction.
• 5. Law presupposes a State.
• 6. Law is never static; it responds to public opinion and
changes.
• 7. Law has a purpose to serve – social, economic or
political.
• 8. Two ideas as the basis of law – i) to maintain some
form of social order in a group and (ii) to compel
members of the group to be within that order.
Three presumptions of Law applicable to the
Indian Contract Act.
• a) Ignorance of Law is no excuse “ignorantia
juris non-excusat” .
• b) Subject to certain limiting principles, there
shall be freedom of contract to the
contracting parties and the law shall enforce
only what the parties have agreed to be bound.
• c) Expectations created by promises of the
parties shall be fulfilled and their non-fulfilment
shall give rise to legal consequences.
 Classification of Law:
• 1. Public Law and Private Law.
• 2. Criminal Law and Civil Law.
• 3. Substantive Law and Procedural Law.
• 4. International Law and National Law.
• 5. Public International Law and Private
International Law.
 Public Law & Private Law
• Public law
• determines and regulates
the organization and
functioning of states
(countries); the relation of
the state with its subject.
• Examples: Constitutional
law, Administrative Law,
Criminal Law, Municipal
Law,International Law.
Criminal Law is enforced
on behalf of the State.
• Private Law
regulates the relations of citizens
with one another and are not of
public importance. State through its
judicial organs, adjudicates matters
in dispute between individuals and is
concerned with the rights and duties
of individuals.
• In private law, legal action is begun
by the private citizens to establish
their rights against another or group
of citizens.
• Examples: Law of contract, Law of
Tort, Law of Property, Law of
succession, Family Laws.
• The role of the State is merely to
recognize and enforce the relevant
law.
 Substantive Law & Procedural Law

• Substantive law defines, with regard to a specific

subject, the legal rights, obligations and
relationships of people with other people or as
between them and the state.
• IPC and Indian Contract Act are substantive laws.

• Procedural Law deals with methods and means, by

which the substantive law is enforced,
• How a right is enforced under civil law or a crime
prosecuted under criminal law.
 4. International Law and National Law.

• International law is a set of generally accepted rules and

regulations controlling the conduct of nations,
international organizations and individuals.
• International court of justice is charged with the
responsibility of adjudicating the controversies arising
under the international law.

• National law deals with the relationship between

individuals and their organizations within a state.

• While National law is applicable only within the state,

international law is common to all states.
 Public International Law

• Public international law (law of nations) is a body

of customary or conventional rules which are
considered legally binding by the civilized states
in their relation with each other and is solely
concerned with the rights and obligations of the
sovereign states.
 Private International Law
• Private international law is concerned with individuals and their
dealings; disputes are of a private character. Private international
law of every state is different. We have rules of private international
law in the fields of birth, marriage, divorce, insolvency, wills,
contracts, death, etc.

• Private international law forms part of municipal laws of a state and

is meant for deciding whether a case involving a “foreign” element
(a) shall be adjudicated upon by its own laws or by the laws of some
other state (b) shall be subject to its own courts’ jurisdiction or the
jurisdiction of some foreign court.

• Example: Two Englishmen make a contract in Portugal for the sale

of goods situated in Lisbon, payment to be made in London, an
English court would recognize and apply Portugese Law.
 Sources of Indian Law:

• Primary sources : Customs, judicial

precedents, statutes and Personal Law.

• Secondary Sources: English Law

(common law, Equity, Law merchant (lex
mercatoria), statute law), Justice, equity
and good conscience.
 Sources of Indian Business law:

• 1. English Mercantile Law

• 2. The Statute Law
• 3. Judicial Decisions or Case Law
Based on Justice equity and good
conscience
• 4. Customs and usages.
Case Study for class discussion
A Naked Image of
Criminal Justice Delivery System in India

Police refused to register a murder case