This Presentation is all about business law, it's characteristics, types and so on. The difference between law and ethics are also given. Significance and Principles of business law is also described in brief.

1. Business Law:
Business Law governs the world of commerce. We call all these rules
as Mercantile Law or Commercial law. The Business Law governs all dealings of
businesses and the conduct of people associated with such businesses. In India,
some of the Business Laws followed are from the pre-independence era, however,
newer Business Laws are always being passed.
The business law is a branch of law which deals with the set of governance rules
related to certain business transactions and relations between business
representatives, dealers, customers, and suppliers.
Commercial suit it refers to the suit between bankers, merchants, and traders
relating to mercantile transactions.

2. Characteristics of Business law:
• Defining general rules of commerce;
• Protecting business ideas and business assets;
• Providing mechanisms that allow business people to determine how
they will participate in business ventures and how much risk they will
bear;
• Ensuring that losses are borne by those responsible for causing them;
and
• Facilitating planning by ensuring that commitments are honored.

3. Sources of Business Law
Indian mercantile law is based largely upon the English mercantile law. 1) English mercantile law
a) Common law b) Equity c) Statute law d) Case Law e) Merchant law 2) Customs and usages 3)
Statute law 4) Case laws
1) English Mercantile Law:
The English law is the most important source of Indian mercantile law. Many rules of English
law have been incorporated into Indian law through statutes and judicial decisions. The sources
of English law are:
A. Common Law
This law is known as judge made law. It is based upon customs and practices handed down from
generation to generation. It is the oldest unwritten law. The English Courts developed these over
centuries.
B. Equity:
Equity is also unwritten law. It is based upon concepts of justice developed by the judges whose
decisions become precedents. It grew as a system of law supplementary to the common law and
covered the deficiencies of the common law. Its rules were applied in cases where the rules of
common law were considered harsh and oppressive.

4. C. Statute Law
Statute law is one, which is laid down in the Acts of Parliament. Hence, it acts as the most
superior and powerful source of law. It overrides any rule of common law or Equity.
D. Case Law
This is also an important source of the English mercantile law. It is built upon the decisions of
the Judges. It is based on the principle that what has been decided in earlier case is binding in
similar future case also unless that there is a change in the circumstances of the case.
E. Law Merchant
It is also one of the important sources of English mercantile law. It was that branch of law which
was based on customs and usages prevalent amongst merchants and traders. It developed during
fourteenth and fifteenth centuries and was recognized.
2. Statute Law
The Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Companies Act, 1956 are some
of the examples of the statute law. The law making power in India is vested in Parliament and
the state legislature.

5. 3. Judicial Decisions
Judicial decisions are also called as case laws. This is a source of law based upon
previous judicial decisions which have to be followed in similar future cases.
The Courts in deciding cases involving similar points of law also follow them.
4. Customs and Usage
Customs and usage plays an important role in regulating business transactions.
Most of the business customs and usage have been already codified and given
legal sanctions in India. Some of them have been ratified by the decisions of the
competent Courts of law. When a custom is accepted by a court and is
incorporated in a judicial decision, it becomes a legally recognized custom.

6. Types of Business Law
1.Contract Law
A contract is any document that creates a sort of legal obligation between the parties
that sign it. Contracts refer to those employee contracts, sale of goods contracts, lease
contracts, etc.
2.Employment Law
Employment law is where it is imperative for business and law to meet. These laws
enforce the rules and regulations that govern employee-employer relationships. These
cover when, how and for how much and how long employees should work.
3.Labour Law
Labour law also indicates the appropriate relationship between employee and
employer, and also pay grades and the like. However, an additional element to labour
laws is the relationship of the union with the employer and employee.

7. 4.Intellectual Property Law
Intellectual property refers to the intangible products of the working of the human
mind or intellect, which are under the sole ownership of a single entity, such as an
individual or company. The validation of this ownership is provided by intellectual
property law, which incorporates trademarks, patents, trade secrets, and copyrights.
5.Securities Law
Securities refer to assets like shares in the stock market and other sources of capital
growth and accumulation. Securities law prohibits businesspersons from conducting
fraudulent activities taking place in the securities market. This is the business law
section that penalizes securities fraud, such as insider trading. It is, thus, also called
Capital Markets Law.
6.Tax Law
In terms of business law, taxation refers to taxes charged upon companies in the
commercial sector. It is the obligation of all companies (except a few tax-exempt
small-time companies) to pay their taxes on time, failure to follow through which will
be a violation of corporate tax laws.

8. Difference Between Law and Ethics:
Definition of Law
The law is described as the set of rules and regulation, created by the government
to govern the whole society. The law is universally accepted, recognized and
enforced. It is created with the purpose of maintaining social order, peace, justice in
the society and to provide protection to the general public and safeguard their
interest. It is made after considering ethical principles and moral values.
Definition of Ethics
By ethics, we mean that branch of moral philosophy that guides people about what
is good or bad. It is a collection of fundamental concepts and principles of an ideal
human character. The principles help us in making decisions regarding, what is
right or wrong. It informs us about how to act in a particular situation and make a
judgment to make better choices for ourselves.

10. BASIS FOR
COMPARISON
LAW ETHICS
Meaning The law refers to a systematic body of
rules that governs the whole society and
the actions of its individual members.
Ethics is a branch of moral
philosophy that guides people
about the basic human conduct.
What is it? Set of rules and regulations Set of guidelines
Governed By Government Individual, Legal and
Professional norms
Expression Expressed and published in writing. They are abstract.
Violation Violation of law is not permissible
which may result in punishment like
imprisonment or fine or both.
There is no punishment for
violation of ethics.
Objective Law is created with an intent to maintain
social order and peace in the society and
provide protection to all the citizens.
Ethics are made to help people
to decide what is right or
wrong and how to act.
Binding Law has a legal binding. Ethics do not have a binding
nature.

11. Key Differences Between Law and Ethics
The major differences between law and ethics are mentioned below:
1.The law is defined as the systematic body of rules that governs the whole society
and the actions of its individual members. Ethics means the science of a standard
human conduct.
2.The law consists of a set of rules and regulations, whereas Ethics comprises of
guidelines and principles that inform people about how to live or how to behave in
a particular situation.
3.The law is created by the Government, which may be local, regional, national or
international. On the other hand, ethics are governed by an individual, legal or
professional norms, i.e. workplace ethics, environmental ethics and so on.

12. 4. The law is expressed in the constitution in a written form. As
opposed to ethics, it cannot be found in writing form.
5. The breach of law may result in punishment or penalty, or both
which is not in the case of breach of ethics.
6. The objective of the law is to maintain social order and peace within
the nation and protection to all the citizens. Unlike, ethics that are the
code of conduct that helps a person to decide what is right or wrong
and how to act.
7. The law creates a legal binding, but ethics has no such binding on
the people.

13. Significance of Business Law
Business law is an important aspect of law in general
because, without the same, the corporate sector,
manufacturing sector, and retail sector would be in
tyranny. The aim of putting business and law together is
to maintain safe and functional working spaces for all
individuals involved in the business, whether they’re
running it or working for the people running it.

14. Significance of Business Law:
1. Legal Agreements and Contracts
Legal contracts are necessary for a firm to operate smoothly. It’s critical to respect legal restrictions. Professionals
with a thorough understanding of this subject assist the organization in drafting legal agreements that are more useful
and free from flaws. Every company has an internal legal team, and one can join the team by understanding this.
2. Understanding of Business Rules
One can manage the business more effectively by avoiding unneeded legal troubles by being aware of business laws
and regulations. With this understanding, it would be simpler to comprehend any organization’s legal terms and
conditions. A degree in business law will assist you in running your company legally if you own your own business.
With the correct information, handling any legal scenario will also be simple.
3. Take Charge of Your Own
With an understanding of business law, you can manage your company and develop ideas while staying within the
law without constantly communicating with the legal team. Developing better business strategies, staff policies, and
decision-making abilities is possible. Better business and staff policies, financial strategies, and decision-making
abilities can all be developed. To manage its finances and position in the market, a firm must make numerous legal
judgments. This enables one to make the best choices.

15. 4. Compensation Concerns
It is crucial to managing various compensation concerns in an organization. Companies can get
assistance from a qualified business attorney in Santa Rosa in resolving disputes with pay and
salary administration. The attorney has to take all reasonable steps to prevent any violations of
the compensation and benefits laws by the client. If there are any differences, the results could be
deadly.
5. Protect Shareholder Rights
When it comes to defending the rights of a company’s shareholders, business law is essential. Its
experts can handle conflicts involving minority shareholders, constitutional provisions,
arbitration settlements, and other matters.
6. Business Formation
The law of business serves as the cornerstone for each enterprise. Numerous legal procedures,
leases, and permits are involved in starting a business. A business law attorney is knowledgeable
about all the pertinent laws and can assist the company in successfully establishing its
operations.

16. Case precedent: Meaning of plaintiff, Defendant, petitioner, respondents, public prosecutors, advocate
General, Solicitor general of India, Judicial Magistrate of First class, civil Judge, Sessions (criminal court
judge), Metropolitan magistrate, economic offences
General Principles of Precedents:
The High Courts in India are bound by the law declared by the Supreme Court. The decisions of
a High Court are binding on all the courts below it within its jurisdiction. The judgment of a
particular High Court, is not binding on other High Courts. The High Courts are the courts of
co-ordinate jurisdiction. Therefore, the decision of one High Court is only of persuasive value
for other High Courts. In High Courts generally appeals are heard by a Single Judge, some
appeals such as murder, specials appeals etc. are heard by two judges. Different High Courts
have their different rules in this respect. When an appeal involves some important and
complicated point of law, it is referred to a Larger Bench. A Bench of two judges is called the
Division Bench. Three or more judges constitute a Full Bench. The decisions of a larger bench
are binding on a smaller bench. A bench is not bound by the decisions of another bench of equal
authority.

17. Plaintiff
A plaintiff is a person who files a lawsuit. Anyone can be a plaintiff. It doesn’t matter that the person has
to be the victim. Oftentimes, the plaintiff and the victim are mixed together. It is up to the court to decide
who is the victim and who is entitled to something. Plaintiff can be an individual, group of people or
association. In divorce cases, the person filing the case is called Petitioner. In the case of Bankruptcy
cases, both of these terms aren’t used. The person who files the case is called The Debtor and the person
against whom the bankruptcy case is filed is called The Creditor. This is an exception.
But in criminal cases, the person who files a case is called a complainant. Some of the civil cases involve
personal injury cases, breach of contract, fraud, divorce, child support cases, etc. Some of the criminal
cases are murder, assault, sexual assault, identity theft, etc.
Defendant
A defendant is a person who is the party either accused of committing a crime in criminal prosecution or
against whom some type of civil relief is being sought in a civil case.
Terminology varies from one jurisdiction to another. In Scots law, the terms “accused” or “panel” are used
instead in criminal proceedings and “defender” in civil proceedings. Another term in use is “respondent”.

18. Petitioner
A petitioner is a person who pleads with governmental institution for a legal remedy or a redress
of grievances, through use of a petition. The petitioner may seek a legal remedy if the state or
another private person has acted unlawfully. In this case, the petitioner, often called a plaintiff,
will submit a plea to a court to resolve the dispute. A petitioner need not seek a change to an
existing law. Often, petitioners speak against (or in support of) legislative proposals as this
progress.
Respondents
A respondent is a person who is called upon to issue a response to a communication made by
another. The term is used in legal contexts, in survey methodology, and in psychological
conditioning. In legal usage, this specifically refers to the defendant in a legal proceeding
commenced by a petition, or to an appellate, or the opposing party, in an appeal of a decision by
an initial fact-finder.

19. Public prosecutors
A Public Prosecutor is considered as the agent of the state to represent the interest
of common people in the criminal justice system. The prosecution of the accused is
the duty of the state but not individually the duty of the aggrieved party. They are
appointed in almost all countries. The Public Prosecutor is defined in Section 24 of
Cr.P.C. They serve as the basic principle of Rule of Law i.e. auld alteram partem
(no person shall be condemned unheard).
Advocate General
In India, an advocate general is a legal advisor to a state government. The post is
created by the Constitution of India and corresponds to that of Attorney General for
India at the union government level. The Governor of each state shall appoint a
person who is qualified to be appointed as judge of High Court as the Advocate
General.

20. Solicitor general of India
The Solicitor General of India is subordinate to the Attorney General for India. They are the
second law officer of the country, assists the Attorney General, and is assisted by Additional
Solicitors General for India. Currently, the Solicitor General of India is Tushar Mehta. Like the
Attorney General for India, the Solicitor General and the Additional Solicitors General advise
the Government and appear on behalf of the Union of India in terms of the Law Officers (Terms
and Conditions) Rules, 1972. However, unlike the post of Attorney General for India, which is a
Constitutional post under Article 76 of the Constitution of India, the posts of the Solicitor
General and the Additional Solicitors General are merely statutory. Appointments Committee of
the Cabinet(ACC) recommends the appointment and president officially appoints the Solicitor
General. The proposal for appointment of Solicitor General, Additional Solicitor General is
generally moved at the level of Joint secretary/Law Secretary in the Department of Legal Affairs
and after obtaining the approval of the Minister of Law & Justice, the proposal goes to the ACC
and then to the president.

21. Judicial Magistrate of First class
Courts of Judicial Magistrate of First Class are at the second lowest level of the Criminal Court structure in India. According to the
Section 11 of the Criminal Procedure Code, 1973 (CrPc), a Court of Judicial Magistrate of First Class may be established by the
State Government in consultation with the High Court of the respective state at such places in the district and in any number by a
notification.
According to Section 15 of the CrPc, a judicial magistrate is under the general control of the Sessions Judge and is subordinate to
the Chief Judicial Magistrate.
According to Section 29 of the CrPc., a Judicial Magistrate of First Class may pass a sentence of imprisonment for a term not
exceeding three years, or of fine not exceeding ten thousand rupees or of both.
Civil Judge
The may by general or special order invest any Civil Judge within such local limits and subject to such pecuniary limitation as may
be prescribed in such order, with all or any of the powers of a District Judge or a District Court as the case may be under any
special law.
Every order of the District Judge passed on appeal under subsection (2) from the order of a Civil Judge shall be subject to an
appeal to the High Court under the rules contained in the Code of Civil Procedure applicable to appeals from appellate decrees.
The Judges of such Subordinate Courts shall be appointed by the Government and shall be called Civil Judges.

22. Sessions (criminal court judge)
Sessions court has the power to impose the full range of penalties for criminal acts, including the death penalty.
Originally, the Sessions Courts heard each case continuously in sessions and delivered judgements immediately on
completion of arguments. Hence the name ‘Sessions Court’ meant that the cases would be disposed off expeditiously. One
of the important reasons for delays in the Indian and Pakistani Judicial System, is that the concept of ‘Sessions’ is observed
only in breach due to repeated adjournments, loop holes in the case papers and backlog of cases. The Government of India
has not found a solution to this endemic problem.
Sections 225 to 237 of The Code of Criminal Procedure deal with the procedure in trials before a Court of Sessions. In case
the office of the Sessions Judge is vacant, the High Court can make necessary arrangements for any urgent matter or
application that is pending before the court mentioned above to be dealt with by an Additional or an Assistant Sessions
Judge or in their absence, by a Chief Judicial Magistrate (CJM).
Metropolitan magistrate
The High court appoints Chief Metropolitan Magistrate for every metropolitan court. The High court may also appoint
Additional Chief Metropolitan Magistrate for an area, with all or any of the powers of a Chief Metropolitan Magistrate, as
may be directed by the High Court. Other than Chief Metropolitan Magistrate and Additional Chief Metropolitan
Magistrate, there are also Metropolitan Magistrates also known as Magistrate of the first class who work as subordinates of
Chief Metropolitan Magistrate. Any two or more metropolitan magistrates may, subject to the rules made by the CMM, sit
together as a bench. All metropolitan magistrates including the ACMMs and benches of general magistrates are subordinate

23. Economic offences
The term economic offences define those crimes which are of an economic nature. These offences are committed
while in the course of some kind of economic or business activity. Although in some parts of the world, like the
United States, the term economic offences have been defined, a rigorous definition of this term is still lacking in
India. This is the reason why it is difficult to pinpoint the kinds of crimes that come under the term of economic
offences in India.
Some forms and examples of economic crime are as follows:
(1) disregard of employment protection;
(2) unfair trading practices;
(3) economic fraud; and
(4) unjustified commercialization of medical treatment.
The National Crimes Report Bureau of India still classifies only specified acts under the term economic offences.
Activities like company frauds, counterfeiting of coins, and some of the terrorist activities even come under the
term Economic offences in the Indian context provided by the NCRB. While certain explanations are provided for
this term it still lacks a proper definition which is not vague or ambiguous in nature.

24. Types of Economic Crimes
Economic offences in India can be classified into three categories.
These categories of economic offences are:
 Emerging technological economic crimes that include credit card
frauds, counterfeiting, cyber crimes etc.
 Traditional economic crime which includes corruption, smuggling,
bogus imports etc.
 Crimes through which proceeds of transnational organized crime are
transmitted abroad like money laundering.

25. Constitutional provisional relating to business affairs(State List, Concurrent list and
Union list)
In India, the Constitution divides legislative powers between the central government and the
state governments. The legislative powers are distributed among the three lists mentioned in the
Seventh Schedule of the Indian Constitution, namely, the Union List, the State List, and the
Concurrent List. Here are some of the constitutional provisions relating to business affairs in the
different lists:
1. Union List: This list consists of subjects on which the central government has exclusive
power to legislate. Some of the entries in this list relating to business affairs are:
 Banking
 Insurance
 Corporations, Companies, and Associations
 Regulation of Foreign Trade
• Inter-State Trade and Comme

26. 2. State List: This list consists of subjects on which the state governments have exclusive power
to legislate. Some of the entries in this list relating to business affairs are:
 Industries
 Trade and Commerce within the State
 Markets and Fairs
 Money-lending and Money-lenders
3. Concurrent List: This list consists of subjects on which both the central and state
governments can legislate. Some of the entries in this list relating to business affairs are:
 Contracts
 Economic and Social Planning
 Price Control and Costing
 Trade Unions
 Labour Welfare

27. There are four major provisions of the Indian constitution relating to the business.
 The Preamble to the Constitution of India sets out the aims and objectives of the Constitution, which include
securing to all citizens of India justice, liberty, equality, and fraternity. While the Preamble does not specifically
mention business affairs, there are several provisions in the Constitution that relate to business activities and
economic development in India. Some of the key provisions in the Constitution of India that relate to business
affairs include:
1. Article 19(1)(g): This provision guarantees the right to practice any profession, or to carry on any occupation,
trade or business, subject to reasonable restrictions that may be imposed by the State.
2. Article 38: This provision directs the State to strive to promote the welfare of the people by securing a social
order in which economic and social justice prevails.
3. Article 39: This provision directs the State to ensure that the ownership and control of material resources of the
community are so distributed as to best serve the common good.
4. Article 43: This provision directs the State to ensure that workers, both men and women, receive a living wage
and work in conditions that are safe and healthy.
5. Article 48: This provision directs the State to take steps to organize agriculture and animal husbandry on modern
and scientific lines and to improve the breeds of cattle and other animals.
6. Article 51A: This provision imposes a fundamental duty on every citizen of India to promote harmony and the
spirit of common brotherhood amongst all the people of India, transcending religious, linguistic and regional or
sectional diversities.

28.  Fundamental Rights are a set of constitutional rights guaranteed to all citizens of India, which are considered
essential for their individual development, dignity, and well-being. While there is no specific Fundamental Right
that deals exclusively with business affairs, several Fundamental Rights are relevant to businesses operating in
India.
1. Right to Equality: Article 14 of the Constitution of India guarantees the right to equality before the law and equal
protection of the laws. This means that businesses must treat all individuals equally and without discrimination on
the basis of caste, religion, gender, or other grounds.
2. Right to Freedom of Speech and Expression: Article 19(1)(a) guarantees the right to freedom of speech and
expression, which includes the right to carry on any trade or business. However, this right is subject to reasonable
restrictions imposed by the State in the interest of public order, morality, or national security.
3. Right to Life and Personal Liberty: Article 21 of the Constitution of India guarantees the right to life and personal
liberty to all citizens. This includes the right to work and earn a livelihood, which is essential for businesses to
operate freely and contribute to the economy.
4. Right to Constitutional Remedies: Article 32 of the Constitution of India guarantees the right to move the
Supreme Court for the enforcement of Fundamental Rights. This right allows citizens and businesses to seek legal
recourse in case their rights are violated.

29.  The Directive Principles of State Policy (DPSP) in India provide guidelines to the government on how to
establish a just and equitable society. While the DPSP are not legally enforceable, they serve as a moral compass
for the government to shape its policies and programs. Many of the DPSP are relevant to businesses operating in
India, as they reflect the government's priorities for social and economic development. Here are some of the ways
in which the DPSP are relevant to businesses:
1. Promotion of social justice: Article 38 of the DPSP directs the government to promote the welfare of the people by
securing a social order in which economic and social justice prevails. This principle aims to create an environment
where all citizens have access to opportunities and resources, which is essential for businesses to operate
effectively.
2. Distribution of resources: Article 39 of the DPSP directs the government to ensure that the ownership and control
of material resources are distributed to serve the common good. This principle aims to prevent the concentration of
wealth and resources in the hands of a few, which can hinder the growth of small and medium-sized businesses.
3. Living wage and safe working conditions: Article 43 of the DPSP directs the government to ensure that workers
receive a living wage and work in conditions that are safe and healthy. This principle aims to protect the interests
of workers, who are essential for the growth of businesses.
4. Protection of the environment: Article 48 of the DPSP directs the government to take steps to organize agriculture
and animal husbandry on modern and scientific lines, and to improve the breeds of cattle and other animals. This
principle aims to promote sustainable development and protect the environment, which is essential for the long-
term growth of businesses.

30.  The Constitution of India contains several provisions related to trade, commerce, and
intercourse within the territory of India.
These provisions are listed under Part XIII of the Constitution, which deals with trade,
commerce, and inter-state relations.
Here are some of the key provisions related to trade, commerce, and intercourse within the
territory of India:
1. Freedom of trade, commerce, and intercourse: Article 301 of the Constitution provides for the
freedom of trade, commerce, and intercourse throughout the territory of India. This means
that trade, commerce, and intercourse cannot be restricted by any law that is passed by the
central or state governments.
2. Power of Parliament to regulate trade, commerce, and intercourse: Article 302 of the
Constitution gives the Parliament the power to regulate trade, commerce, and intercourse
within the territory of India. This power can be exercised in the public interest, or to protect
the interests of any particular state or region.

31. 3. Power of the state governments to impose taxes on goods and passengers: Article 303
of the Constitution prohibits the state governments from imposing any tax on the
movement of goods and passengers between different states. However, this prohibition
does not apply to taxes that are imposed for the maintenance of highways or other public
amenities.
4. Prohibition of discrimination in inter-state trade and commerce: Article 304 of the
Constitution prohibits the state governments from discriminating against goods and
services that originate from other states. However, this provision allows the state
governments to impose reasonable restrictions on the trade and commerce of certain
goods and services, if such restrictions are necessary for the public interest.
5. Appointment of an Inter-State Council: Article 263 of the Constitution provides for the
appointment of an Inter-State Council by the President of India. The Council is tasked
with investigating and discussing issues related to inter-state trade, commerce, and
intercourse, and making recommendations to the central and state governments.

32. Difference between Civil cases and Criminal cases
Civil Cases
In these cases, a person or an organization asks a judge to settle a civil problem, such as
 A problem concerning an inheritance,
 A problem involving a contract, or
 A family problem, such as divorce or custody of children.
Criminal Cases
The reason these cases come to court is always the same: a person is taken to court because she is accused of a crime.
The judge, and sometimes a jury, must consider the evidence presented during a trial to decide whether the accused is
guilty or innocent.
Most crimes and their punishments are described in the Criminal Code of Canada. Some crimes involve other people,
including
 Assault
 Murder
 Sexual assault
 Identity theft

33. Civil Cases Criminal Cases
The principle is always the same: A sues B for
causing damage to A or to something belonging
to A.
 The principle is always the same: a person is
accused of a crime (e.g., murder, assault,
identity theft).
How does a person cause damage? A person
causes damage, for example, by breaking a
contract, by breaking an object belonging to
someone, or by hurting someone.
 A crime can occur even if there is no
“immediate” victim (e.g., the crime of drug
possession).
 In India, people are considered innocent until
the evidence proves they are guilty.
Civil Law is a general law which solves
disputes between 2 organizations or
individuals. As per Civil Law the wrongdoer
will have to compensate the affected
organization or individual. Civil Law deals
with Property, Money, Housing, Divorce,
Criminal Law deals with offences that are
committed against the society. It meets out
varying degrees of punishment commensurate
with the crime committed. Criminal Law will
deal with serious crimes such as murder, rapes,
arson, robbery, assault etc.

34. The objective of Civil Law is to protect
the rights of an individual or
organization and make sure that he or
the concerned organization receives the
compensation for the wrongs that they
have suffered.
The purpose of Criminal Law is to
punish the wrongdoers and protect
society, maintain law and order.
In the case of Civil Law, the power of
the court is to pass judgement or injun
ction to compensate for damages
caused to the aggrieved party.
In the case of Criminal Law, the powers
of the court are charging a fine,
imprisonment to the guilty of a crime, or
discharge of the defendant.

35. ADALATH:
"Adalath" is a term used in some parts of India and other South Asian countries to refer to a court
of law or judiciary. The term is derived from the Arabic word "adalat," which means justice.
In India, there are different types of courts that fall under the adalath system, including the
Supreme Court, High Courts, District Courts, and various tribunals. The Supreme Court is the
highest court in India, while the High Courts have jurisdiction over multiple districts within a
state. The District Courts have jurisdiction over a particular district, while the tribunals are
specialized courts that deal with specific matters such as tax, labor disputes, and environmental
issues.
The adalath system in India is an integral part of the country's legal system and plays a crucial
role in upholding the rule of law and protecting the rights of citizens. The courts have the power
to interpret and enforce the Constitution and other laws, resolve disputes between individuals and
entities, and provide justice to victims of crime and human rights violations.

36. Lok Adalat (People’s Court) is one of the alternative dispute resolution mechanisms, where the cases or disputes
which are pending in a court or which are at pre-litigation stage are settled in an amicable manner. It is a statutory
body under the Legal Services Authorities Act, 1987. This system is based on Gandhian principles. Lok Adalats
serve very crucial functions in India due to many factors like pending cases, illiteracy, poverty, high vacancy in
courts etc.
Reason for establishment of Lok Adalats:
1. Equal justice and free legal aid: Article 39A of the Constitution states that citizens of India are entitled to equal
justice and free legal aid. Hence, the Parliament enacted the Legal Services Authorities Act, 1987 to create
national, state and district level authorities to establish Lok Adalats.
2. Speedy trial of the disputes: The basic features of Lok Adalat are the procedural flexibility and speedy trial of
the disputes. There is no strict application of procedural laws like the Civil Procedure Code and the Evidence Act
while assessing the claim by Lok Adalat.
3. Reducing backlog: The other reason was to clear the massive backlog of pending cases in the Indian judicial
system as well as to bring speedy justice to all. The matters in Lok Adalat do not linger on for years but are
settled within a day.

37. Role of Lok Adalats:
1. Dispute settlement: To hear and settle long pending cases, which are disposed through
compromise and settlement. It can hear both civil and criminal cases.
2. Justice: The aim of Lok Adalats is to bring justice to poor and underprivileged people of
India. It ensures that opportunities for securing justice are not denied to any citizen by reason
of economic or other disabilities.
3. Alternate dispute resolution: The system of Lok Adalat, which is an innovative mechanism
for alternate dispute resolution, has proved effective for resolving disputes in a spirit of
conciliation outside the courts.
4. Reducing litigation: It can take up pending cases as well as those that are in pre litigation
stage. The verdict given by the Lok Adalat is final and binding, and there is no provision for
appeal. But the party is free to initiate a new litigation in court.

38. Limitations of Lok Adalats:
1. Complexity: The biggest disadvantage with Lok Adalats is that repeated sittings at short intervals with the same
judge are almost not possible which breaks the continuity of the deliberations(negotiations).
2. Lack of confidentiality: Lok Adalat proceedings are held in the open court and any member of public may
witness these proceedings. Thus, the element of confidentiality is also lacking. This also impedes(delays) the
process of exploration of various resolution options and ultimately the success rate in matters where parties
desire confidentiality.
3. Forced injustice: Lok Adalats are fora where voluntary efforts intended to bring about settlement of disputes
between the parties are made through conciliatory and persuasive efforts. Many times victims are forced to settle
at lower compensation.
4. Diminished party autonomy: It cannot be said that the parties remain in absolute control of the proceedings in
contradistinction to what happens in mediation.
5. Needs consent of both the parties: The most important factor to be considered while deciding the cases at the
Lok Adalat is the consent of both the parties. It cannot be forced on any party that the matter has to be decided
by the Lok Adalat.