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LEGAL ASPECTS
OF
BUSINESS
A P P L I C AT I O N O F VA R I O U S A C T S I N T H E
U P C O M I N G B U S I N E S S S C E N A R I O
TATA MOTORS
IN
TAXI AGGREGATOR
BUSINESS
PROGRAM OUTCOME COURSE OUTCOME
PROGRAM OUTCOMES
• To evaluate various acts applicable at CAB AGGREGATOR BUSINESS and how they are
are implemented in their business.
COURSE OUTCOMES:
• Describe the key terms involved in each act.
• Summarize the key legal provisions of each act.
• Illustrate the use of the acts in common business situations.
• The various acts involved in this interim report:
• Outline the various facts of basic case laws of each act from a legal and managerial
perspective.
ABOUT THE COMPANY
• Tata Group is an Indian multinational conglomerate holding company headquartered
in Mumbai, Maharashtra, India. Founded in 1868 by Jamsetji Tata.
• The company gained international recognition after purchasing several global
companies. One of India's largest conglomerates, Tata Group is owned by Tata Sons.
• Each Tata company operates independently under the guidance and supervision of its
own board of directors and shareholders.
• Significant Tata companies and subsidiaries include Tata Steel, Tata Motors, Jaguar
Land Rover, Tata Consultancy Services, Tata Advanced Systems Limited, Tata Power,
Tata Chemicals, Tata Global Beverages, Tata Coffee, Tata Teleservices, Titan, Voltas,
Tata Cliq, Tata Communications, and The Indian Hotels Company Limited (Taj Hotels),
TATA Autocomp Systems Ltd.
CAB AGGREGATOR
The term “Aggregator” is defined as a web site or computer software that aggregates a specific
type of information from multiple online sources.
For a company to be a Taxi aggregator the following conditions are relevant:
a) Aggregator should own and manage a web based software application.
b) It should enable a potential customer to connect with persons providing service of a
particular kind (cab service/rentals in our case).
c) Such connecting of service shall be by means of the web/mobile application and a
communication device (smartphone in our case).
d) The services should be provided under the brand name or trade name of the aggregator
(like Ola, Uber, Taxi for sure, etc.).
The prominent players operating in the organized taxi market in India are: Ola, Uber, Easy
Cabs, Jugnoo, Mega Cabs, Tab Cab, Meru, Taxi Pixi and Savaari and globally are: Lyft,
Didi, GrabTaxi, Gett, LeCab, Cabify, BiTaksi
PREFERENCE AMONG EXISTING TAXI
AGGREGATOR
LEGAL COMPLIANCES
COMPANIES ACT
(AMMENDMENT)
, 2015
MOTOR VEHICLE
ACT, 2019
INFORMATION
TECHNOLOGY
ACT, 2000
INDIAN
CONTRACT ACT,
1872
COMPANIES ACT (AMENDMENT), 2015
1.Reservation of Company Name
• Form No. INC-1. The fee for seeking a name approval is Rs.1000/-
• The name should not be undesirable i.e.; identical, resembling, restricted or prohibited.
2. Provision for Entrenchment under section 5(3)
• Form No. INC-7
• Form No. MGT-14 within 30 days from the date of incorporation.
3. Drafting of Memorandum and Articles of Association under section 4
4. Application for Incorporation of Companies
• Form No. INC-7 with (ROC) along with required information and prescribed fee.
5. Documents to be filed for Incorporation under Section-7
(1) MoA and AoA duly signed and verified.
(2) Declaration by Professionals INC-08.
(3) Declaration from Director, Manager or Secretary.
(4) Affidavit from each subscribers and first directors INC-09.
(5) The address for correspondence.
(6) Complete Details of Subscribers with proof of identity.
(7) Complete Details of first Directors with proof of identity.
(8) Particulars of interest of first directors in other firm/body corporate and NoC.
6. First Director
• Form DIR.2
• Form No.DIR.12
7. Notice of Situation of Registered Office
• Form No.INC-22.
8. Payment of Fee
While uploading various documents prescribed fee can be paid online including stamp
for MOA.
9.Certificate of incorporation
After the RoC is satisfied that all documents and information which is required has been
filed in the prescribed manner and along with prescribed fee, the Certificate of
Incorporation shall be issued by the Registrar in Form No. INC-11
MOTOR VEHICLES (AMENDMENT) BILL,
2019
(1A) “aggregator” means a digital intermediary or market place for a passenger to connect with a
driver for the purpose of transportation;
6. In section 93 of the principal Act, -
(i) for the marginal heading, the following marginal heading shall be substituted, namely:-
“Agent or canvasser or aggregator to obtain license.”;
(i) in sub-section (1), (a) after clause (ii), the following clause shall be inserted, namely:-
“(iii) as an aggregator,”;
(b) the following provisos shall be inserted, namely:- “Provided that while issuing the license to
an aggregator the State Government may follow such guidelines as may be issued by the Central
Government: Provided further that every aggregator shall comply with the provisions of The
Information Technology Act, 2000 and the rules and regulations made thereunder.”.
In the principal Act,
(A) in section 193, in the marginal heading, for the words "agents and canvassers", the words "agents,
canvassers and aggregators" shall be substituted;
(A) section 193 shall be numbered as sub-section (1) thereof, and— (i) in sub-section (1) as so numbered,
(a) for the words “which may extend to one thousand rupees”, the words “of one thousand rupees” shall
be substituted;
(b) for the words “which may extend to two thousand rupees”, the words “of two thousand rupees” shall
be substituted;
(ii) after sub-section (1) as so numbered, the following sub-sections shall be inserted, namely:
“(2) Whoever engages himself as an aggregator in contravention of the provisions of section 93 or of
any rules made thereunder shall be punishable with fine up to 1 lakh rupees but shall not be less than
25,000 rupees
.
(3) Whoever, while operating as an aggregator contravenes a condition of the license granted under
sub-section (1) of section 93, not designated by the State Government as a material condition, shall be
punishable with fine of 5000 rupees.”.
THE INFORMATION TECHNOLOGY ACT,
2000
The original Act contained 94 sections, divided into 13 chapters and
4 schedules. The laws apply to the whole of India. Persons of other
nationalities can also be indicted under the law, if the crime involves a
computer or network located in India.
The Act provides a legal framework for electronic governance by giving
recognition to electronic records and digital signatures. It also defines cyber-
crimes and prescribes penalties for them. The Act directed the formation of a
Controller of Certifying Authorities to regulate the issuance of digital
signatures. It also established a Cyber Appellate Tribunal to resolve disputes
rising from this new law.
SOME PENALTIES REGARDING CAB AGGREGATOR
AND CAB DRIVER.
Hacking with computer system
If a person with the intent to
cause or knowing that he is likely
to cause wrongful loss or
damage to the public or any
person destroys or deletes or
alters any information residing in
a computer resource or
diminishes its value or utility or
affects it injuriously by any
means, commits hack.
Imprisonment up to three years,
or/and with fine up to ₹500,000
Using password of another
person
A person fradulently uses the
password, digital signature or
other unique identification of
another person.
Imprisonment up to three years,
or/and with fine up to ₹100,000
Cheating using computer
resource
If a person cheats someone using
a computer resource or
communication.
Imprisonment up to three years,
or/and with fine up to ₹100,000
Acts of cyberterrorism
If a person denies access to
an authorized personnel to a
computer resource, accesses a
protected system or
introduces contaminant into a
system, with the intention of
threatening the unity, integrity,
sovereignty or security of
India, then he commits
cyberterrorism.
Imprisonment up to life.
Failure to maintain records
Persons deemed as
intermediatary (such as an
ISP) must maintain required
records for stipulated time.
Failure is an offence.
Imprisonment up to three
years, or/and with fine.
Failure/refusal to comply with
orders
The Controller may, by order,
direct a Certifying Authority or
any employee of such Authority
to take such measures or cease
carrying on such activities as
specified in the order if those
are necessary to ensure
compliance with the provisions
of this Act, rules or any
regulations made thereunder.
Any person who fails to comply
with any such order shall be
guilty of an offence.
Imprisonment up to three years,
or/and with fine up to ₹200,000
Misrepresentation
If anyone makes any
misrepresentation to, or
suppresses any material fact
from, the Controller or the
Certifying Authority for
obtaining any license or Digital
Signature Certificate.
Imprisonment up to three years,
or/and with fine up to ₹100,000
INDIAN CONTRACT ACT, 1872
The Indian Contract Act, 1872 prescribes the law relating to contracts in
India and is the key act regulating Indian contract law. It is applicable to all
the states of India. It determines the circumstances in which promises made
by the parties to a contract shall be legally binding. Under Section 2(h), the
Indian Contract Act defines a contract as an agreement which is enforceable
by law.
In accordance with the rules and regulations of INDIAN CONTRACT ACT,
1872, TATA MOTORS should do the contract with the CAB AGGREGATORS.
Valid Contract-Section 10 :
In accordance with this Act, “All agreements are contracts if they are made by the free
of the parties competent to contract, for a lawful consideration and with a lawful object and
are not expressly declared to be void”.
Essential Elements of Valid Contract:
 Offer and Acceptance
 Consent
 Capacity of the parties
 Consideration
 Not expressly declared to be void
Proposal/Offer-Section 2(a):
“A person is said to make a proposal when he signifies to another his willingness to do or
abstain from doing anything with a view to obtaining the assent of that other to such act or
abstinence”. It must be appreciated that ‘doing an act’ and ‘not doing an act’ both have the
same effect in the eyes of the law, though one is a positive act and the other is a negative
Hence there are 2 important ingredients to an offer.
 it must be expressions of willingness to do or to abstain from doing an act.
 The willingness must be expressed with a view to obtain the assent of the other party to
whom the offer is made.
What is invitation to offer?
An offer and invitation to offer are not one and the same. The difference between the two
must be appreciated. An offer is definite. It is an intention towards a contract. An invitation to
offer is an act precedent to making an offer. It is done with intent to generally to induce and
negotiate. An invitation to offer gives rise to an offer after due negotiation and it cannot be
per se accepted.
Acceptance -Section 2(b):
In terms of Section 2(b) of the Act, “A proposal or offer is said to have been accepted when
the person to whom the proposal is made signifies his assent to the proposal to do or not to
do something”. In short, act of acceptance lies in signifying one’s assent to the proposal.
SUBMITTED BY:-
CHARUL ARORA

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Legal Aspects PPT for TATA Motors in India

  • 1. LEGAL ASPECTS OF BUSINESS A P P L I C AT I O N O F VA R I O U S A C T S I N T H E U P C O M I N G B U S I N E S S S C E N A R I O
  • 3. PROGRAM OUTCOME COURSE OUTCOME PROGRAM OUTCOMES • To evaluate various acts applicable at CAB AGGREGATOR BUSINESS and how they are are implemented in their business. COURSE OUTCOMES: • Describe the key terms involved in each act. • Summarize the key legal provisions of each act. • Illustrate the use of the acts in common business situations. • The various acts involved in this interim report: • Outline the various facts of basic case laws of each act from a legal and managerial perspective.
  • 4. ABOUT THE COMPANY • Tata Group is an Indian multinational conglomerate holding company headquartered in Mumbai, Maharashtra, India. Founded in 1868 by Jamsetji Tata. • The company gained international recognition after purchasing several global companies. One of India's largest conglomerates, Tata Group is owned by Tata Sons. • Each Tata company operates independently under the guidance and supervision of its own board of directors and shareholders. • Significant Tata companies and subsidiaries include Tata Steel, Tata Motors, Jaguar Land Rover, Tata Consultancy Services, Tata Advanced Systems Limited, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Coffee, Tata Teleservices, Titan, Voltas, Tata Cliq, Tata Communications, and The Indian Hotels Company Limited (Taj Hotels), TATA Autocomp Systems Ltd.
  • 5. CAB AGGREGATOR The term “Aggregator” is defined as a web site or computer software that aggregates a specific type of information from multiple online sources. For a company to be a Taxi aggregator the following conditions are relevant: a) Aggregator should own and manage a web based software application. b) It should enable a potential customer to connect with persons providing service of a particular kind (cab service/rentals in our case). c) Such connecting of service shall be by means of the web/mobile application and a communication device (smartphone in our case). d) The services should be provided under the brand name or trade name of the aggregator (like Ola, Uber, Taxi for sure, etc.). The prominent players operating in the organized taxi market in India are: Ola, Uber, Easy Cabs, Jugnoo, Mega Cabs, Tab Cab, Meru, Taxi Pixi and Savaari and globally are: Lyft, Didi, GrabTaxi, Gett, LeCab, Cabify, BiTaksi
  • 6. PREFERENCE AMONG EXISTING TAXI AGGREGATOR
  • 7. LEGAL COMPLIANCES COMPANIES ACT (AMMENDMENT) , 2015 MOTOR VEHICLE ACT, 2019 INFORMATION TECHNOLOGY ACT, 2000 INDIAN CONTRACT ACT, 1872
  • 8. COMPANIES ACT (AMENDMENT), 2015 1.Reservation of Company Name • Form No. INC-1. The fee for seeking a name approval is Rs.1000/- • The name should not be undesirable i.e.; identical, resembling, restricted or prohibited. 2. Provision for Entrenchment under section 5(3) • Form No. INC-7 • Form No. MGT-14 within 30 days from the date of incorporation. 3. Drafting of Memorandum and Articles of Association under section 4 4. Application for Incorporation of Companies • Form No. INC-7 with (ROC) along with required information and prescribed fee.
  • 9. 5. Documents to be filed for Incorporation under Section-7 (1) MoA and AoA duly signed and verified. (2) Declaration by Professionals INC-08. (3) Declaration from Director, Manager or Secretary. (4) Affidavit from each subscribers and first directors INC-09. (5) The address for correspondence. (6) Complete Details of Subscribers with proof of identity. (7) Complete Details of first Directors with proof of identity. (8) Particulars of interest of first directors in other firm/body corporate and NoC. 6. First Director • Form DIR.2 • Form No.DIR.12 7. Notice of Situation of Registered Office • Form No.INC-22.
  • 10. 8. Payment of Fee While uploading various documents prescribed fee can be paid online including stamp for MOA. 9.Certificate of incorporation After the RoC is satisfied that all documents and information which is required has been filed in the prescribed manner and along with prescribed fee, the Certificate of Incorporation shall be issued by the Registrar in Form No. INC-11
  • 11. MOTOR VEHICLES (AMENDMENT) BILL, 2019 (1A) “aggregator” means a digital intermediary or market place for a passenger to connect with a driver for the purpose of transportation; 6. In section 93 of the principal Act, - (i) for the marginal heading, the following marginal heading shall be substituted, namely:- “Agent or canvasser or aggregator to obtain license.”; (i) in sub-section (1), (a) after clause (ii), the following clause shall be inserted, namely:- “(iii) as an aggregator,”; (b) the following provisos shall be inserted, namely:- “Provided that while issuing the license to an aggregator the State Government may follow such guidelines as may be issued by the Central Government: Provided further that every aggregator shall comply with the provisions of The Information Technology Act, 2000 and the rules and regulations made thereunder.”.
  • 12. In the principal Act, (A) in section 193, in the marginal heading, for the words "agents and canvassers", the words "agents, canvassers and aggregators" shall be substituted; (A) section 193 shall be numbered as sub-section (1) thereof, and— (i) in sub-section (1) as so numbered, (a) for the words “which may extend to one thousand rupees”, the words “of one thousand rupees” shall be substituted; (b) for the words “which may extend to two thousand rupees”, the words “of two thousand rupees” shall be substituted; (ii) after sub-section (1) as so numbered, the following sub-sections shall be inserted, namely: “(2) Whoever engages himself as an aggregator in contravention of the provisions of section 93 or of any rules made thereunder shall be punishable with fine up to 1 lakh rupees but shall not be less than 25,000 rupees . (3) Whoever, while operating as an aggregator contravenes a condition of the license granted under sub-section (1) of section 93, not designated by the State Government as a material condition, shall be punishable with fine of 5000 rupees.”.
  • 13. THE INFORMATION TECHNOLOGY ACT, 2000 The original Act contained 94 sections, divided into 13 chapters and 4 schedules. The laws apply to the whole of India. Persons of other nationalities can also be indicted under the law, if the crime involves a computer or network located in India. The Act provides a legal framework for electronic governance by giving recognition to electronic records and digital signatures. It also defines cyber- crimes and prescribes penalties for them. The Act directed the formation of a Controller of Certifying Authorities to regulate the issuance of digital signatures. It also established a Cyber Appellate Tribunal to resolve disputes rising from this new law.
  • 14. SOME PENALTIES REGARDING CAB AGGREGATOR AND CAB DRIVER. Hacking with computer system If a person with the intent to cause or knowing that he is likely to cause wrongful loss or damage to the public or any person destroys or deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means, commits hack. Imprisonment up to three years, or/and with fine up to ₹500,000 Using password of another person A person fradulently uses the password, digital signature or other unique identification of another person. Imprisonment up to three years, or/and with fine up to ₹100,000 Cheating using computer resource If a person cheats someone using a computer resource or communication. Imprisonment up to three years, or/and with fine up to ₹100,000
  • 15. Acts of cyberterrorism If a person denies access to an authorized personnel to a computer resource, accesses a protected system or introduces contaminant into a system, with the intention of threatening the unity, integrity, sovereignty or security of India, then he commits cyberterrorism. Imprisonment up to life. Failure to maintain records Persons deemed as intermediatary (such as an ISP) must maintain required records for stipulated time. Failure is an offence. Imprisonment up to three years, or/and with fine.
  • 16. Failure/refusal to comply with orders The Controller may, by order, direct a Certifying Authority or any employee of such Authority to take such measures or cease carrying on such activities as specified in the order if those are necessary to ensure compliance with the provisions of this Act, rules or any regulations made thereunder. Any person who fails to comply with any such order shall be guilty of an offence. Imprisonment up to three years, or/and with fine up to ₹200,000 Misrepresentation If anyone makes any misrepresentation to, or suppresses any material fact from, the Controller or the Certifying Authority for obtaining any license or Digital Signature Certificate. Imprisonment up to three years, or/and with fine up to ₹100,000
  • 17. INDIAN CONTRACT ACT, 1872 The Indian Contract Act, 1872 prescribes the law relating to contracts in India and is the key act regulating Indian contract law. It is applicable to all the states of India. It determines the circumstances in which promises made by the parties to a contract shall be legally binding. Under Section 2(h), the Indian Contract Act defines a contract as an agreement which is enforceable by law. In accordance with the rules and regulations of INDIAN CONTRACT ACT, 1872, TATA MOTORS should do the contract with the CAB AGGREGATORS.
  • 18. Valid Contract-Section 10 : In accordance with this Act, “All agreements are contracts if they are made by the free of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void”. Essential Elements of Valid Contract:  Offer and Acceptance  Consent  Capacity of the parties  Consideration  Not expressly declared to be void Proposal/Offer-Section 2(a): “A person is said to make a proposal when he signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence”. It must be appreciated that ‘doing an act’ and ‘not doing an act’ both have the same effect in the eyes of the law, though one is a positive act and the other is a negative
  • 19. Hence there are 2 important ingredients to an offer.  it must be expressions of willingness to do or to abstain from doing an act.  The willingness must be expressed with a view to obtain the assent of the other party to whom the offer is made. What is invitation to offer? An offer and invitation to offer are not one and the same. The difference between the two must be appreciated. An offer is definite. It is an intention towards a contract. An invitation to offer is an act precedent to making an offer. It is done with intent to generally to induce and negotiate. An invitation to offer gives rise to an offer after due negotiation and it cannot be per se accepted. Acceptance -Section 2(b): In terms of Section 2(b) of the Act, “A proposal or offer is said to have been accepted when the person to whom the proposal is made signifies his assent to the proposal to do or not to do something”. In short, act of acceptance lies in signifying one’s assent to the proposal.