This document provides a summary of a Supreme Court of India case regarding whether two companies should be considered one establishment under the Employees Provident Funds and Miscellaneous Provisions Act of 1952. The Regional Provident Fund Commissioner had ruled the companies should be grouped as one establishment due to common management, finances, and workforce. The Appellate Tribunal overturned this, but the High Court and Supreme Court reinstated the Commissioner's order. The Supreme Court considered whether the two units should be regarded as one establishment for purposes of applying the Act.
Judgment - Appellate Tribunal for Foreign ExchangeGauravVarma27
1) The appellant company appealed an adjudication order that imposed penalties for alleged violations of FEMA regulations regarding the repatriation of foreign exchange.
2) The appellant had remitted $433,661.76 in advance to a Chinese supplier that later went bankrupt without notice. The RBI subsequently granted an exemption relieving the requirement to submit import documents.
3) The adjudicating authority still found a violation, but the appellant argued the RBI exemption eliminated any contravention, and precedent supported their view. The tribunal agreed and overturned the penalties.
The court document discusses a case regarding a letter of undertaking signed by the 1st Appellant agreeing to pay the Respondent RM20 million for services rendered to secure a bridge project from the Malaysian government. The 1st Appellant argued the agreement was void as the consideration was opposed to public policy under section 24(e) of the Contracts Act 1950. However, the trial court found the 1st Appellant did not provide evidence that the Respondent's services were injurious to public welfare or opposed to public interest. The trial court concluded it could not regard the consideration as opposed to public policy based on the facts and surrounding circumstances.
This document summarizes the background of a civil case between Madasama Goodway Sdn Bhd and Lim Eng Huat regarding the sale of a property. Key points:
- Lim Eng Huat had rented a property from Madasama and wanted to purchase it after a fire damaged the building. They signed an agreement on July 19, 2002 for RM270,000.
- Lim paid a deposit and took steps to obtain financing, but Madasama refused to complete the sale. Lim filed a lawsuit seeking specific performance of the agreement.
- The High Court ruled in Lim's favor, but Madasama appealed. The document outlines the claims and evidence presented by both sides regarding whether the agreement was
This document outlines the respondent's written submission in response to an appeal filed by the appellants against a High Court decision in favor of the respondent's winding up petition against the 1st appellant company. The respondent argues that the appeal is not valid for two reasons: 1) The company is already wound up so the 2nd appellant does not have authority to file the appeal on the company's behalf. 2) The appellants' affidavit in opposition to the winding up petition was filed late in contravention of mandatory timelines in the Companies Winding Up Rules, so it should be considered inadmissible. The respondent cites several court cases to support the argument that late filing of affidavits cannot be allowed as it violates mandatory requirements.
The document provides details from the weekly progress report of an internship at Amity University in Uttar Pradesh from May 28th to June 1st.
Over the course of the week, the intern researched the Negotiable Instruments Act and wrote about bills of exchange and cheques. They learned about parties to negotiable instruments, endorsement, dishonor of cheques, and the Trade Unions Act of 1926. The intern observed court cases, assisted their guide with case files, and researched assigned legal topics including the definition and registration of trade unions.
This document is an order from a court case involving winding up petitions filed against United Breweries (Holdings) Limited by various secured and unsecured creditors. It provides background details on the petitions, including that Kingfisher Airlines Limited was previously ordered to be wound up and Dr. Vijay Mallya, the former chairman of United Breweries, has left India and is being pursued by enforcement agencies. The order also notes that United Breweries claims negative net worth but is opposing the winding up petitions, and the matters will be dealt with in detail by the court.
SC Judgement - Appointment Of Third ArbitratorFlame Of Truth
The SC judgement by Justice S S Nijjar in the matter between Reliance Industries Ltd and others versus Union of India, arbitration petition filed by Reliance for appointment of the third and the presiding arbitrator.
Impact of legal factors on the business environmentSanjanaAvanthkar
This document discusses the legal environment of business in India. It defines the legal environment as the set of laws and regulations that influence business organizations and their operations. The key sources of law are customs, judicial precedents, and legislations. Some of the major acts influencing the Indian legal environment include the Indian Contract Act, Sale of Goods Act, Indian Partnership Act, Companies Act, and laws protecting consumers. The document also discusses intellectual property laws and provides a case study analyzing a ruling under the Consumer Protection Act.
Judgment - Appellate Tribunal for Foreign ExchangeGauravVarma27
1) The appellant company appealed an adjudication order that imposed penalties for alleged violations of FEMA regulations regarding the repatriation of foreign exchange.
2) The appellant had remitted $433,661.76 in advance to a Chinese supplier that later went bankrupt without notice. The RBI subsequently granted an exemption relieving the requirement to submit import documents.
3) The adjudicating authority still found a violation, but the appellant argued the RBI exemption eliminated any contravention, and precedent supported their view. The tribunal agreed and overturned the penalties.
The court document discusses a case regarding a letter of undertaking signed by the 1st Appellant agreeing to pay the Respondent RM20 million for services rendered to secure a bridge project from the Malaysian government. The 1st Appellant argued the agreement was void as the consideration was opposed to public policy under section 24(e) of the Contracts Act 1950. However, the trial court found the 1st Appellant did not provide evidence that the Respondent's services were injurious to public welfare or opposed to public interest. The trial court concluded it could not regard the consideration as opposed to public policy based on the facts and surrounding circumstances.
This document summarizes the background of a civil case between Madasama Goodway Sdn Bhd and Lim Eng Huat regarding the sale of a property. Key points:
- Lim Eng Huat had rented a property from Madasama and wanted to purchase it after a fire damaged the building. They signed an agreement on July 19, 2002 for RM270,000.
- Lim paid a deposit and took steps to obtain financing, but Madasama refused to complete the sale. Lim filed a lawsuit seeking specific performance of the agreement.
- The High Court ruled in Lim's favor, but Madasama appealed. The document outlines the claims and evidence presented by both sides regarding whether the agreement was
This document outlines the respondent's written submission in response to an appeal filed by the appellants against a High Court decision in favor of the respondent's winding up petition against the 1st appellant company. The respondent argues that the appeal is not valid for two reasons: 1) The company is already wound up so the 2nd appellant does not have authority to file the appeal on the company's behalf. 2) The appellants' affidavit in opposition to the winding up petition was filed late in contravention of mandatory timelines in the Companies Winding Up Rules, so it should be considered inadmissible. The respondent cites several court cases to support the argument that late filing of affidavits cannot be allowed as it violates mandatory requirements.
The document provides details from the weekly progress report of an internship at Amity University in Uttar Pradesh from May 28th to June 1st.
Over the course of the week, the intern researched the Negotiable Instruments Act and wrote about bills of exchange and cheques. They learned about parties to negotiable instruments, endorsement, dishonor of cheques, and the Trade Unions Act of 1926. The intern observed court cases, assisted their guide with case files, and researched assigned legal topics including the definition and registration of trade unions.
This document is an order from a court case involving winding up petitions filed against United Breweries (Holdings) Limited by various secured and unsecured creditors. It provides background details on the petitions, including that Kingfisher Airlines Limited was previously ordered to be wound up and Dr. Vijay Mallya, the former chairman of United Breweries, has left India and is being pursued by enforcement agencies. The order also notes that United Breweries claims negative net worth but is opposing the winding up petitions, and the matters will be dealt with in detail by the court.
SC Judgement - Appointment Of Third ArbitratorFlame Of Truth
The SC judgement by Justice S S Nijjar in the matter between Reliance Industries Ltd and others versus Union of India, arbitration petition filed by Reliance for appointment of the third and the presiding arbitrator.
Impact of legal factors on the business environmentSanjanaAvanthkar
This document discusses the legal environment of business in India. It defines the legal environment as the set of laws and regulations that influence business organizations and their operations. The key sources of law are customs, judicial precedents, and legislations. Some of the major acts influencing the Indian legal environment include the Indian Contract Act, Sale of Goods Act, Indian Partnership Act, Companies Act, and laws protecting consumers. The document also discusses intellectual property laws and provides a case study analyzing a ruling under the Consumer Protection Act.
1. The petitioner filed a criminal complaint regarding offenses allegedly committed by the directors, auditors and others related to First Leasing Company of India Limited.
2. An FIR was registered for offenses of cheating, criminal breach of trust, forgery, fraud and under the Companies Act based on the petitioner's allegations about the company's financial affairs and representations to investors.
3. The petition seeks a fair and impartial investigation into the FIR, alleging the accused persons misrepresented the company's financial position and performance to attract investors and raise funds.
This order addresses the plaintiffs' motion for a temporary restraining order against the defendant. The court finds that the plaintiffs have sufficiently shown they have a protected interest in trade secrets and confidential information. They have also shown irreparable harm if an injunction is not granted, as the defendant is allegedly using protected information to directly compete with the plaintiffs in violation of a non-compete agreement. Additionally, the plaintiffs have no adequate legal remedy and have raised fair questions that they will likely succeed on their claims of breach of contract, trade secret misappropriation, and trademark infringement. Therefore, the court will grant the plaintiffs' motion for a temporary restraining order to preserve the status quo until a hearing can be held on a preliminary injunction.
This document summarizes four writ petitions related to the enforcement of the Uttar Pradesh Apartment Act, 2010. The petitions involve disputes between developers/promoters and apartment owner associations regarding compliance with the Act, including issues around the formation of associations, management and ownership of common areas, and unauthorized amendments to approved building plans. The court heard arguments from both sides and reserved judgment on questions of law raised in the petitions concerning the interpretation and application of the UP Apartment Act.
This document outlines the terms and conditions of a personal loan agreement between Loantap Credit Products Pvt Ltd (the lender) and Parthiban M (the borrower). Key details include:
- Parthiban M has taken a loan not exceeding the amount specified in the schedule.
- The loan can be recalled by the lender at any time and is repayable on demand.
- Interest will be charged on the outstanding balance at the specified rate and is compounded monthly. Late payment fees may also apply.
- The borrower must repay the loan and interest through EMIs or as specified by the lender and provide post-dated cheques or other payment instruments.
- The agreement
This document is a court order from the High Court of Orissa regarding two recent incidents where sanitation workers died while manually cleaning sewers and septic tanks in Bhubaneswar and Cuttack, Odisha. The court notes that such deaths continue in violation of national laws banning manual scavenging. It orders compensation of Rs. 10 lakhs for the families of the deceased workers in both incidents. It also notices relevant state agencies to examine applying provisions of the SC/ST Prevention of Atrocities Act and to ensure all legal provisions and Supreme Court directives on safety equipment and working conditions for sanitation workers are properly implemented.
The BRAC Bank Ltd. had a long term tenancy contract for its Gulshan branch office with the landlord. When the bank received a notice to pay arrear revenue owed by the landlord, it paid on his behalf as he was unavailable. The bank then sought reimbursement from the landlord by deducting the amount from rent payments. The landlord refused, arguing the contract did not obligate such payment.
Though the tenancy contract was silent on this issue, quasi-contract principles apply as the bank paid to protect its interests from eviction. Section 69 of the Contract Act allows recovery from the landlord to prevent unjust enrichment. Therefore, BRAC Bank Ltd. can realize the money paid under quasi-contract rules.
1) Gas: CCI cleared the first Form II (long form) merger in a record time of 26 days, approving Gujarat state firm GSPC's acquisition of BG Group's majority stake in Gujarat Gas Co Ltd for over 24.6 billion rupees.
2) Real Estate: CCI modified the apartment buyers agreement in DLF housing projects in Gurgaon following an investigation that found DLF abusing its dominant position.
3) Entertainment: CCI dismissed charges of cartelization and abuse of dominance by multiplex operators, brought by film producers, finding no evidence of anti-competitive practices after an investigation.
This document provides an overview of lien of shares under company law based on case law and judicial decisions. It defines lien and explains that a company's right of lien must be provided in its articles of association. Key points covered include: the effect of exercising lien; circumstances where lien cannot be enforced; and the nature of a lien in terms of not being affected by limitation, being transferable, applying to joint shareholdings, and being capable of being waived or discharged. The document also discusses when a notice threatening sale would be invalid and circumstances where an illegal sale may still protect an innocent purchaser.
This document summarizes a law review article discussing the implications of the 2004 Consolidated Edison v. Northeast Utilities case. The case held that target company shareholders were not intended third-party beneficiaries of the merger agreement prior to the deal closing. As a result, target companies cannot recover shareholders' lost merger premium damages if a deal fails and may not be able to obtain specific performance. The article argues target companies should request provisions explicitly granting shareholders third-party beneficiary rights before closing and acknowledging the target's right to specific performance on shareholders' behalf. However, most public company merger agreements have not addressed the issues raised by the ConEd decision.
This document provides the grounds of judgment in a legal case between the plaintiffs (Tan Mei Li, Bluefire (M) Sdn Bhd, and Bluefire (KL) Sdn Bhd) and the defendant (Golden Regal Restaurant Sdn Bhd) regarding the use of the names "THE SOCIAL" and "SOCIAL @ KL" for restaurant businesses. The plaintiffs allege that the defendant's use of those names constitutes the tort of passing off. The defendant disputes the claim. The judgment examines whether the plaintiffs have sufficiently established the elements required for a passing off action, including goodwill in their marks and misrepresentation/likelihood of damage caused by the defendant.
This document compares labor law judgments from 1960-1990 to those from 2001 onwards in India. Some key differences noted include:
1) Absenteeism for long periods that was once tolerated is now seen as valid grounds for dismissal.
2) Theft or fraud that was once judged based on amount is now based on integrity, with termination now upheld regardless of amount.
3) Vulgar language once excused is now treated as serious misconduct warranting dismissal.
The document outlines several other areas where the judiciary now takes a stricter approach to issues like sleeping on duty, assaulting superiors, strikes, and back wages.
This document is a court document summarizing a case between Vinod Pathak and American Express Bank Ltd. Pathak filed a lawsuit seeking declarations, injunctions, and damages after claiming he was forced to resign from his job at the bank. The court notes that as a private employment, public policy principles do not apply. It also notes Pathak's employment contract allowed termination with one month's notice or pay. Therefore, even if wrongful termination was found, Pathak's maximum entitlement would be one month's salary as damages. The court finds Pathak's suit is not maintainable and denies the claims for reinstatement and ongoing salary/benefits.
The Supreme Court of the Philippines affirmed the Court of Appeals decision holding Lapulapu Foundation and Elias Tan jointly and solidarily liable for unpaid loans obtained from Allied Banking Corporation. The Court found that Allied Bank had made proper demand for payment through letters received by Lapulapu and Tan. It also rejected Tan's claim that the loans were only his personal obligation, finding the promissory notes clearly identified Lapulapu Foundation as a party. The Court upheld piercing the corporate veil to prevent Lapulapu from avoiding liability, as Tan had apparent authority to obtain loans on its behalf.
The document provides steps for creating a private or public company in India. It explains that a private company requires a minimum of 2 directors and 2 shareholders while a public company requires a minimum of 3 directors and 7 shareholders. It outlines the process which involves applying for director identification numbers and digital signature certificates, reserving a company name, drafting legal documents, filing forms electronically, paying fees, and receiving final approval and certificate of incorporation from the Registrar of Companies. A separate section provides details on incorporating a One Person Company which can only have one member and director.
The Hon'ble Tribunal dismissed the appeal filed by several appellants against penalties imposed by SEBI for failing to make proper disclosures regarding shareholding in a company. The Tribunal held that including a huge number of third party shares held on behalf of promoters in the promoter shareholding was a serious violation that could not be pardoned. It also found that penalties imposed by SEBI were justified given the nature of violations by the appellants in their respective roles and positions in the company.
The document discusses several miscellaneous applications filed by the assessee (Nosegay Kinder Garden and Nosegay Public School) regarding rectification of mistakes in the Tribunal's appellate order. The assessee argued that the Tribunal failed to dispose of grounds taken in the memo and consider arguments and judgments referred to. The Tribunal agreed that mistakes were apparent from the record, as it had not adjudicated on the assessee's status or considered a Supreme Court judgment. It recalled its order to rectify these mistakes and properly address the assessee's grounds regarding its status and the applicability of case law.
The Supreme Court of India had to determine (1) whether a clause in a memorandum of understanding referring disputes to the Chairman of IFCI constituted a valid arbitration agreement, and (2) whether a related civil suit filed by one party was an abuse of process. Regarding the first issue, the Court found that the intention was not for the Chairman to act as an arbitrator but rather as an expert, and so his decision was not a valid arbitration award. Regarding the second issue, the Court found the civil suit was only a valid independent challenge to the decision itself and not as an award, but was otherwise an abuse to the extent it duplicated the arbitration petition. The appeal was thus partly allowed.
The document summarizes two petitions filed by Dalbir seeking regular bail in two FIRs registered against him for speeches alleged to have objectionable content against the Chief Minister of Haryana. The court granted bail to Dalbir subject to furnishing a surety of Rs. 2 lakhs in each case, noting that freedom of speech is a fundamental right, the investigation in both cases is complete, and conclusion of trial will take time. However, the state can seek cancellation of bail if Dalbir is found to misuse the bail granted.
This document provides an overview of the Negotiable Instrument Act of 1881 through a presentation covering its objectives, introduction, and 6 case studies. The Act defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It establishes a legal framework for commercial transactions involving the use of such documents in place of cash. The case studies illustrate examples of bounced cheques and the rulings made by courts in accordance with the Act.
Business Law - Study of cases from High Court and Supreme CourtGurbaniLuthra
The report contains a study of three cases from either High Court or Supreme Court. The cases have been observed on the following aspects:
Parties of the case (Name you have to mention) and the name of the court
Case is related to which Act (i.e. for e.g. Contract Act, Consumer Protection Act, etc.)
Actual Issue related to the case
Facts of the case
Judgement given by honourable court.
The document summarizes a court case between Sahaini Social Service Society and the Additional Commissioner of Income Tax regarding the society's appeal of the refusal of registration under Section 12AA of the Income Tax Act of 1961. The court allowed the condonation of the delay in filing the appeal. It found that the Commissioner of Income Tax did not provide the society opportunity to confront a spot inquiry report before concluding the society had no independent status or genuine activities. The court set aside the registration refusal and directed the Commissioner to reconsider the application with input from the society on the report in line with principles of natural justice.
1. The petitioner filed a criminal complaint regarding offenses allegedly committed by the directors, auditors and others related to First Leasing Company of India Limited.
2. An FIR was registered for offenses of cheating, criminal breach of trust, forgery, fraud and under the Companies Act based on the petitioner's allegations about the company's financial affairs and representations to investors.
3. The petition seeks a fair and impartial investigation into the FIR, alleging the accused persons misrepresented the company's financial position and performance to attract investors and raise funds.
This order addresses the plaintiffs' motion for a temporary restraining order against the defendant. The court finds that the plaintiffs have sufficiently shown they have a protected interest in trade secrets and confidential information. They have also shown irreparable harm if an injunction is not granted, as the defendant is allegedly using protected information to directly compete with the plaintiffs in violation of a non-compete agreement. Additionally, the plaintiffs have no adequate legal remedy and have raised fair questions that they will likely succeed on their claims of breach of contract, trade secret misappropriation, and trademark infringement. Therefore, the court will grant the plaintiffs' motion for a temporary restraining order to preserve the status quo until a hearing can be held on a preliminary injunction.
This document summarizes four writ petitions related to the enforcement of the Uttar Pradesh Apartment Act, 2010. The petitions involve disputes between developers/promoters and apartment owner associations regarding compliance with the Act, including issues around the formation of associations, management and ownership of common areas, and unauthorized amendments to approved building plans. The court heard arguments from both sides and reserved judgment on questions of law raised in the petitions concerning the interpretation and application of the UP Apartment Act.
This document outlines the terms and conditions of a personal loan agreement between Loantap Credit Products Pvt Ltd (the lender) and Parthiban M (the borrower). Key details include:
- Parthiban M has taken a loan not exceeding the amount specified in the schedule.
- The loan can be recalled by the lender at any time and is repayable on demand.
- Interest will be charged on the outstanding balance at the specified rate and is compounded monthly. Late payment fees may also apply.
- The borrower must repay the loan and interest through EMIs or as specified by the lender and provide post-dated cheques or other payment instruments.
- The agreement
This document is a court order from the High Court of Orissa regarding two recent incidents where sanitation workers died while manually cleaning sewers and septic tanks in Bhubaneswar and Cuttack, Odisha. The court notes that such deaths continue in violation of national laws banning manual scavenging. It orders compensation of Rs. 10 lakhs for the families of the deceased workers in both incidents. It also notices relevant state agencies to examine applying provisions of the SC/ST Prevention of Atrocities Act and to ensure all legal provisions and Supreme Court directives on safety equipment and working conditions for sanitation workers are properly implemented.
The BRAC Bank Ltd. had a long term tenancy contract for its Gulshan branch office with the landlord. When the bank received a notice to pay arrear revenue owed by the landlord, it paid on his behalf as he was unavailable. The bank then sought reimbursement from the landlord by deducting the amount from rent payments. The landlord refused, arguing the contract did not obligate such payment.
Though the tenancy contract was silent on this issue, quasi-contract principles apply as the bank paid to protect its interests from eviction. Section 69 of the Contract Act allows recovery from the landlord to prevent unjust enrichment. Therefore, BRAC Bank Ltd. can realize the money paid under quasi-contract rules.
1) Gas: CCI cleared the first Form II (long form) merger in a record time of 26 days, approving Gujarat state firm GSPC's acquisition of BG Group's majority stake in Gujarat Gas Co Ltd for over 24.6 billion rupees.
2) Real Estate: CCI modified the apartment buyers agreement in DLF housing projects in Gurgaon following an investigation that found DLF abusing its dominant position.
3) Entertainment: CCI dismissed charges of cartelization and abuse of dominance by multiplex operators, brought by film producers, finding no evidence of anti-competitive practices after an investigation.
This document provides an overview of lien of shares under company law based on case law and judicial decisions. It defines lien and explains that a company's right of lien must be provided in its articles of association. Key points covered include: the effect of exercising lien; circumstances where lien cannot be enforced; and the nature of a lien in terms of not being affected by limitation, being transferable, applying to joint shareholdings, and being capable of being waived or discharged. The document also discusses when a notice threatening sale would be invalid and circumstances where an illegal sale may still protect an innocent purchaser.
This document summarizes a law review article discussing the implications of the 2004 Consolidated Edison v. Northeast Utilities case. The case held that target company shareholders were not intended third-party beneficiaries of the merger agreement prior to the deal closing. As a result, target companies cannot recover shareholders' lost merger premium damages if a deal fails and may not be able to obtain specific performance. The article argues target companies should request provisions explicitly granting shareholders third-party beneficiary rights before closing and acknowledging the target's right to specific performance on shareholders' behalf. However, most public company merger agreements have not addressed the issues raised by the ConEd decision.
This document provides the grounds of judgment in a legal case between the plaintiffs (Tan Mei Li, Bluefire (M) Sdn Bhd, and Bluefire (KL) Sdn Bhd) and the defendant (Golden Regal Restaurant Sdn Bhd) regarding the use of the names "THE SOCIAL" and "SOCIAL @ KL" for restaurant businesses. The plaintiffs allege that the defendant's use of those names constitutes the tort of passing off. The defendant disputes the claim. The judgment examines whether the plaintiffs have sufficiently established the elements required for a passing off action, including goodwill in their marks and misrepresentation/likelihood of damage caused by the defendant.
This document compares labor law judgments from 1960-1990 to those from 2001 onwards in India. Some key differences noted include:
1) Absenteeism for long periods that was once tolerated is now seen as valid grounds for dismissal.
2) Theft or fraud that was once judged based on amount is now based on integrity, with termination now upheld regardless of amount.
3) Vulgar language once excused is now treated as serious misconduct warranting dismissal.
The document outlines several other areas where the judiciary now takes a stricter approach to issues like sleeping on duty, assaulting superiors, strikes, and back wages.
This document is a court document summarizing a case between Vinod Pathak and American Express Bank Ltd. Pathak filed a lawsuit seeking declarations, injunctions, and damages after claiming he was forced to resign from his job at the bank. The court notes that as a private employment, public policy principles do not apply. It also notes Pathak's employment contract allowed termination with one month's notice or pay. Therefore, even if wrongful termination was found, Pathak's maximum entitlement would be one month's salary as damages. The court finds Pathak's suit is not maintainable and denies the claims for reinstatement and ongoing salary/benefits.
The Supreme Court of the Philippines affirmed the Court of Appeals decision holding Lapulapu Foundation and Elias Tan jointly and solidarily liable for unpaid loans obtained from Allied Banking Corporation. The Court found that Allied Bank had made proper demand for payment through letters received by Lapulapu and Tan. It also rejected Tan's claim that the loans were only his personal obligation, finding the promissory notes clearly identified Lapulapu Foundation as a party. The Court upheld piercing the corporate veil to prevent Lapulapu from avoiding liability, as Tan had apparent authority to obtain loans on its behalf.
The document provides steps for creating a private or public company in India. It explains that a private company requires a minimum of 2 directors and 2 shareholders while a public company requires a minimum of 3 directors and 7 shareholders. It outlines the process which involves applying for director identification numbers and digital signature certificates, reserving a company name, drafting legal documents, filing forms electronically, paying fees, and receiving final approval and certificate of incorporation from the Registrar of Companies. A separate section provides details on incorporating a One Person Company which can only have one member and director.
The Hon'ble Tribunal dismissed the appeal filed by several appellants against penalties imposed by SEBI for failing to make proper disclosures regarding shareholding in a company. The Tribunal held that including a huge number of third party shares held on behalf of promoters in the promoter shareholding was a serious violation that could not be pardoned. It also found that penalties imposed by SEBI were justified given the nature of violations by the appellants in their respective roles and positions in the company.
The document discusses several miscellaneous applications filed by the assessee (Nosegay Kinder Garden and Nosegay Public School) regarding rectification of mistakes in the Tribunal's appellate order. The assessee argued that the Tribunal failed to dispose of grounds taken in the memo and consider arguments and judgments referred to. The Tribunal agreed that mistakes were apparent from the record, as it had not adjudicated on the assessee's status or considered a Supreme Court judgment. It recalled its order to rectify these mistakes and properly address the assessee's grounds regarding its status and the applicability of case law.
The Supreme Court of India had to determine (1) whether a clause in a memorandum of understanding referring disputes to the Chairman of IFCI constituted a valid arbitration agreement, and (2) whether a related civil suit filed by one party was an abuse of process. Regarding the first issue, the Court found that the intention was not for the Chairman to act as an arbitrator but rather as an expert, and so his decision was not a valid arbitration award. Regarding the second issue, the Court found the civil suit was only a valid independent challenge to the decision itself and not as an award, but was otherwise an abuse to the extent it duplicated the arbitration petition. The appeal was thus partly allowed.
The document summarizes two petitions filed by Dalbir seeking regular bail in two FIRs registered against him for speeches alleged to have objectionable content against the Chief Minister of Haryana. The court granted bail to Dalbir subject to furnishing a surety of Rs. 2 lakhs in each case, noting that freedom of speech is a fundamental right, the investigation in both cases is complete, and conclusion of trial will take time. However, the state can seek cancellation of bail if Dalbir is found to misuse the bail granted.
This document provides an overview of the Negotiable Instrument Act of 1881 through a presentation covering its objectives, introduction, and 6 case studies. The Act defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It establishes a legal framework for commercial transactions involving the use of such documents in place of cash. The case studies illustrate examples of bounced cheques and the rulings made by courts in accordance with the Act.
Business Law - Study of cases from High Court and Supreme CourtGurbaniLuthra
The report contains a study of three cases from either High Court or Supreme Court. The cases have been observed on the following aspects:
Parties of the case (Name you have to mention) and the name of the court
Case is related to which Act (i.e. for e.g. Contract Act, Consumer Protection Act, etc.)
Actual Issue related to the case
Facts of the case
Judgement given by honourable court.
The document summarizes a court case between Sahaini Social Service Society and the Additional Commissioner of Income Tax regarding the society's appeal of the refusal of registration under Section 12AA of the Income Tax Act of 1961. The court allowed the condonation of the delay in filing the appeal. It found that the Commissioner of Income Tax did not provide the society opportunity to confront a spot inquiry report before concluding the society had no independent status or genuine activities. The court set aside the registration refusal and directed the Commissioner to reconsider the application with input from the society on the report in line with principles of natural justice.
Consortium & Determination of "International" Character of Arbitration in IndiaBadrinath Srinivasan
This paper critically evaluates the recent decision of the Supreme Court of India in Larsen and Toubro Limited Scomi Engineering BHD v. Mumbai Metropolitan Region Development Authority (2018) where the Court laid down tests to determine the international character of an agreement in which the contractor-consortium consisted of a non-Indian entity.
This document summarizes 10 legal cases related to company directors and amalgamation. The cases discuss issues such as the removal of directors for financial mismanagement, the liability of directors for failing to file required documents, the validity of appointing additional directors to constitute a board meeting quorum, and the tax consequences of asset transfers during amalgamation. The document provides an overview of different legal issues that can arise regarding company directors and the amalgamation process.
- The Consumer Protection Act was enacted to better protect consumer interests in India. It applies to all of India except Jammu and Kashmir. Different chapters of the Act came into force at different times between 1987-2003.
- A consumer is defined as any person who buys goods or avails services for consideration. Consideration can be fully paid, partially paid or promised to be paid. Legal heirs of a deceased consumer are also considered consumers.
- However, a person who buys goods or services for commercial purposes, like resale, is not considered a consumer. An exception is made for persons who buy goods for commercial use but through self-employment for their livelihood.
- The document
The document discusses key aspects of the Consumer Protection Act 1986 including:
- The Act was enacted to better protect consumer interests and applies across India except Jammu and Kashmir.
- A consumer is defined as any person who buys goods or avails services for consideration. Legal heirs are also considered consumers.
- The Act excludes those who buy goods or services for commercial resale purposes. However, those who buy for commercial use and livelihood are considered consumers.
- The hierarchy of consumer forums is District Forum, State Commission, National Commission and Supreme Court. Pecuniary and territorial jurisdiction rules are also outlined.
- The Consumer Protection Act was enacted to better protect consumer interests in India.
- It applies to all of India except Jammu and Kashmir. Different chapters came into force at different times between 1987-2003.
- A consumer is defined as any person who buys goods or avails services for consideration. Consideration can be fully paid, partially paid or promised to be paid.
- Commercial purchases of goods or services are excluded unless for livelihood through self-employment. Legal heirs of deceased consumers are also considered consumers.
- The hierarchy of consumer forums is District Forum, State Commission, National Commission and Supreme Court.
The document is a Supreme Court of India judgment regarding an appeal of a bail application. It summarizes that:
- The appellant Y.S. Jagan Mohan Reddy, a Member of Parliament, was accused in a CBI case involving allegations of amassing illegal wealth through various companies when his father was Chief Minister of Andhra Pradesh.
- The appellant has been in custody for nearly 1 year as his multiple applications for bail have been rejected by lower courts and the High Court.
- The CBI investigation is still ongoing on 7 major matters involving alleged economic offenses of hundreds of crores of rupees each.
- The appellant's counsel argued for bail after imposing conditions, while the
Law Society of Singapore v Tan Phuay Khiang [2007] SGHC 83surrenderyourthrone
This document summarizes a court case from 2007 regarding a lawyer, Tan Phuay Khiang, who was accused of misconduct in his representation of clients in the sale of their home. Specifically:
1) Tan represented clients in selling their home, but prepared documents authorizing distribution of sale proceeds to parties he had previous relationships with, including ones who referred clients to him, without properly advising the clients or protecting their interests.
2) A disciplinary committee found Tan guilty of failing to advance his clients' interests, but dismissed other charges regarding specific documents.
3) The court ultimately suspended Tan from practice for two years for his misconduct in handling conflicts of interest and not protecting his clients.
This document provides information about the Consumer Protection Act 1986. Some key points:
- The Act was enacted to better protect consumer interests and applies to all of India except Jammu and Kashmir.
- A consumer is defined as any person who buys goods or avails services for consideration. Consideration can be fully or partially paid or promised.
- Goods or services bought for resale or commercial purposes are excluded from the definition of a consumer.
- The hierarchy of consumer forums is District Forum, State Commission, National Commission, and Supreme Court.
- Jurisdiction is determined by where the opposite party resides or carries business, or where the cause of action arises.
- Timelines are
Action to Recover Solicitor's Fees - Locus Standi and Privity Hurdle: The cas...Acas Media
Under Nigerian law, one who practices a profession and renders his professional services to another at his request is entitled to receive remuneration or professional fees from the beneficiary of such services unless he voluntarily waives the payment . In the case of a legal practitioner, one of the options open to recover fees or costs due to him in his professional capacity is a right of action in court to recover such fees .
This document is a Supreme Court of India judgment regarding an appeal challenging a detention order issued under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA). The appellant argued that the detention order should be quashed due to a 60-day delay in considering his representation. The court examined whether there is a conflict between two previous constitutional bench judgments regarding whether the central government must wait for an advisory board's decision before ruling on a representation. The court also considered whether illegible documents provided to the appellant in Chinese were grounds for quashing the order.
This order from the Securities and Exchange Board of India (SEBI) concerns alleged violations of market manipulation regulations by Adani Exports Limited and its stock broker, Investmart Securities India Limited (IIL). SEBI investigated trades in Adani Exports' stock during 1999-2001 and alleged that IIL engaged in synchronized/structured trades and cross trades between entities of the Ketan Parekh Group to manipulate prices. IIL is also alleged to have made advance payments to clients before receiving payout from exchanges. The order details hearings provided to Jaydev Raja, a former non-executive director of IIL, to respond to the allegations. Raja denies knowledge of or involvement in the disputed trades.
This order from the Securities and Exchange Board of India (SEBI) concerns alleged violations of market manipulation regulations by Adani Exports Limited and its stock broker Investmart Securities India Limited (IIL). SEBI investigated trades in Adani Exports shares from 1999-2001 and alleged that IIL engaged in synchronized/structured trades and cross trades between entities of the Ketan Parekh Group to manipulate prices. IIL is also alleged to have made early spot payments of Rs. 57 crores to clients for share sales before receiving payment from exchanges. The order details hearings provided to Jaydev Raja, a former non-executive director of IIL, to respond to the allegations.
The Supreme Court of India heard appeals regarding the quashing of criminal proceedings against a director of a company related to the dishonor of a cheque. The High Court had quashed the criminal proceedings on the grounds that the company was not made an accused in the complaint and the complaint did not include necessary allegations regarding the director's responsibility for the company's conduct. The Supreme Court examined whether a director can be prosecuted without joining the company as an accused and whether the complaint was deficient. The Supreme Court considered previous judgments on these issues to determine if the High Court's quashing of the proceedings was correct.
Similar to Sc allows clubbing of two establishments as one (20)
The Government of Andhra Pradesh issued an order keeping in abeyance the revision of minimum wage rates payable to employees working in tobacco manufactories. This was done pending further review of the issue. The order refers to and keeps in abeyance a previous order issued on June 30, 2011 that revised the minimum wage rates for the tobacco industry in Andhra Pradesh as specified in the Schedule of the Minimum Wages Act, 1948.
This document outlines revisions made by the Government of Andhra Pradesh to minimum wage rates for employees in horticulture. It provides the revised minimum basic wage rates for 6 categories of horticulture employees, ranging from Rs. 5,649 to Rs. 8,494 per month. It also specifies that cost of living allowance will be added semi-annually based on changes to the consumer price index for agricultural workers. The new wage rates are effective from the date of publication in the state gazette.
1. The Government of Andhra Pradesh issued a notification amending Rule 61A of the Andhra Pradesh Factories Rules, 1950 regarding the qualifications, number, recruitment, conditions of service, and duties of Safety Officers in factories.
2. The amendment specifies the educational qualifications and experience required to be eligible for appointment as a Safety Officer. It also provides the minimum number of Safety Officers required based on the number of workers in a factory.
3. The recruitment and appointment of Safety Officers must be notified to the Chief Inspector of Factories, and the amendment details the terms and conditions of service for Safety Officers, including their status, pay and protection from unjust termination.
The government of Andhra Pradesh issued a final notification revising minimum wage rates for employees in oil mills. The Commissioner of Labour subsequently identified errors in the Telugu version of the notification regarding the basic wage rate and variable dearness allowance rate. The government orders the Commissioner of Printing to publish an errata in the extraordinary issue of the Andhra Pradesh Gazette correcting the errors in the Telugu, English, and Urdu versions.
1) The Government of Andhra Pradesh issued a final notification to amend Service Condition No. 12 of the Andhra Pradesh Contract Labour (Regulation & Abolition) Rules, 1971 regarding the revision of wages for contract labor.
2) The notification substitutes the text of Service Condition No. 12 to include provisions for determining wage rates, such as following statutory or collectively bargained rates if they are higher, continuing higher rates already paid, and ensuring piece rates result in wages no less than general workers.
3) A schedule is included outlining minimum wage rates for various skilled, semi-skilled, unskilled, and office staff categories, along with a cost of living allowance to be adjusted biann
This document announces the revision of minimum wage rates for employees in manufacturing processes carried out in factories in Andhra Pradesh. It revises the minimum basic wages for different employment categories such as highly skilled, skilled, semi-skilled, unskilled and office staff. The minimum wages are linked to the Consumer Price Index and will be adjusted every six months based on changes in the index. The notification provides definitions for employment categories and guidelines on wage payments.
The document is a notification from the Government of Andhra Pradesh fixing minimum wage rates for employees in spinning mills under the Minimum Wages Act of 1948. It outlines the minimum basic wages for different categories of employees like office staff, supervisory staff, skilled, semi-skilled, and unskilled labor. It also specifies how cost of living allowances will be calculated and paid every six months based on changes to the consumer price index. The new minimum wage rates will come into effect upon publication of this notification.
The Government of Andhra Pradesh issued a final notification adding "employment in spinning mills" to Part I of the Schedule to the Minimum Wages Act of 1948. This amendment was ordered based on a previous gazette notification from July 2011 and a letter received from the Commissioner of Labour in December 2011 requesting the addition. The Governor of Andhra Pradesh exercised powers under Section 27 of the Minimum Wages Act to make this amendment official.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Starting a business is like embarking on an unpredictable adventure. It’s a journey filled with highs and lows, victories and defeats. But what if I told you that those setbacks and failures could be the very stepping stones that lead you to fortune? Let’s explore how resilience, adaptability, and strategic thinking can transform adversity into opportunity.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
- Framework flexibility and automation.
- Enhanced alignment and strategic focus across the organization.
𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
1. REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (CIVIL) NO. 11230 OF 2008
M/s L.N. Gadodia & Sons & Anr. …Petitioner (s)
Versus
Regional Provident Fund Commissioner …Respondents (s)
JUDG EMENT
H.L. GOKHALE J.
This Special Leave Petition raises the question as to whether the
respondent herein had erred in clubbing the two appellant concerns for the
purposes of applying the provisions of the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 (hereinafter referred to as the Provident Funds
Act).
Facts leading to this Special Leave Petition -
2. The facts leading to this petition are this wise. The petitioner no.1
herein and petitioner no.2 (M/s Delhi Farming and Construction Pvt.
Ltd.) are sister concerns. The office of the respondent wrote to them
vide their letter dated 11.6.1990 calling upon them to comply with the
2. 2
provisions of the Provident Funds Act, failing which legal action would
be initiated against them. The petitioner filed an application, and
disputed clubbing of the two concerns for the purposes of their
coverage under the provisions of the said Act. The application was
accordingly heard by the Regional Provident Fund Commissioner
(Enforcement and Recovery) Delhi, under the provisions of section 7A
of the Provident Funds Act. He heard the legal advisor of the
petitioners as well as the enforcement officer representing the
provident fund department. It was submitted on behalf of the
petitioners that the second petitioner was incorporated in 1930 as the
Delhi Cattle Farming Private Limited, and in the year 1983 it’s name
was changed to the present name i.e. Delhi Farming and Construction
Private Limited (‘Delhi Company’ for short). The first petitioner was
incorporated as another Private Limited Company in the year 1941,
and there was no connection between the activities or business of the
two companies. They were different and separate legal entities, and
should not be clubbed into one establishment. It was pointed out that
the main business of the second petitioner i.e. the Delhi Company was
to acquire lands and farms for the purpose of cultivation and to
engage in other agricultural activities. After its land was acquired by
Delhi Administration in 1959 and after receiving compensation, the
second petitioner shifted its business to purchase of gas cylinders and
3. 3
giving
them on hire, supplying security equipments to the Government of
India, and supply of gray/processed fabrics to readymade garments
exports though this was only a side business. It was pointed out that
as far as the first petitioner is concerned, their business was only as a
selling agent of Calico Mills and Tata Mills, Ahmedabad. It was also
trading in whole-sale cloth business. It was not disputed that both the
companies have their registered office at 1112, Kucha Natwan,
Chandni Chowk, Delhi-6 but it was stated that the Delhi Company
carries its business and commercial activities at 116, Hans Bhawan,
Bahadur Shah Zafar Marg, New Delhi-110002. Shri R.G. Gadodia and
Shri T.P. Gadodia were no longer the Directors in either of the two
companies, and only Smt. Sudha Gadodia was Director in both the
companies.
3. On the other hand, the enforcement officer pointed out that
apart from the fact that the two companies had common registered
office, Shri R.G. Gadodia and Shri T.P. Gadodia were the common
Directors in both the units at the time of inspection and clubbing.
Apart from Smt. Sudha Gadodia being admittedly a Director in both the
units, Shri T.P. Gadodia was the Managing Director in both the units.
It was further pointed out that as per the Audited Report of the Delhi
Company dated 24.4.1988, it had given a loan of Rs.5 lakh to the first
petitioner. Two officers viz. Shri G. Ventakeshwaran and Shri S.K.
4. 4
Shome
were employed by both the units as Technical Manager and
Commercial Manager respectively. The two companies had the same
telephone nos. i.e. 2512890 and 2513009. Both the units were using
the same gram number which was ‘GadodiaSon’.
4. In rebuttal, the petitioners pointed out that the Delhi
Company had its own separate staff. The above referred two
telephone nos. were in the name of the first petitioner and the second
petitioner had another telephone no. i.e. 3318668. As far as the loan
aspect is concerned, it was pointed out that the loan of Rs.5 lakh was
just one loan to the first petitioner, and the Delhi Company had given
loans to the tune of about Rs. 27 lakhs to different entities. The
enforcement officer however pointed out that at the time of inspection
it was noticed that the employees were being swapped between the
two companies. Although the first petitioner had its branches at
Bombay, Amritsar, Ahmedabad and Kanpur, the number of employees
in the Delhi office of this company and the second petitioner were kept
below 20 to avoid coverage under the Provident Funds Act. Having
considered all these facts and the submissions by both the parties, the
Provident Fund Commissioner came to the conclusion that there was
an integrity in the management, finance and the workforce of the two
companies, and the entire business was being run by one family. The
management and the supervision was in the hands of the same
5. 5
Managing Director, and the finances of one company were being used
by the other. In view of this, he held that both the units belonged to
one establishment, and they have to be clubbed together for the
purposes of application of the Provident Funds Act. He therefore,
passed an order to proceed to determine the dues from the
petitioners, and directed that further proceedings in the enquiry be
taken up by the concerned Presiding Officer.
5. This order was challenged by the petitioners before the
Employees Provident Fund Appellate Tribunal by filing an appeal
No.ATA-167(4)/2000 under Section 7D of the Provident Funds Act.
The Tribunal accepted the submission of the petitioners that the two
units were separate private limited companies, and since a company is
a juristic person, merely because there is a common Managing
Director, the two units cannot be considered to be one establishment.
One company taking a loan of Rs.5 lakh from another, does not make
them financially integrated. He also observed that there was no
evidence to show that the two officers were mentioned as employed at
the same time in the two companies. He relied upon section 2A of the
Act, and submitted that considering different departments or branches
of an establishment as one establishment was one thing, and
considering different establishments as one establishment was
another. Merely because the departments or branches of an
6. 6
establishment are to be treated as a part of the establishment, two
establishments cannot be taken to be one. He, therefore, allowed the
appeal and held that clubbing was not possible in the facts of the case,
and set-aside the order of the first respondent.
6. Being aggrieved by that order, the respondent filed a
petition bearing No. W.P.(C) 5669/2001 in the High Court of Delhi. A
Single Judge of Delhi High Court who heard the matter examined the
material on record, and considered the authorities cited by both the
parties governing the legal position. Having considered all these
aspects, he held that the Tribunal was swayed by the fact that the two
companies are separate legal entities. He noted that the law laid
down by this Court on this aspect was clear. What is to be seen is the
proximity of the two units and common management. There was no
error in the order passed by the Provident Fund Commissioner. The
Appellate Tribunal had no reason to interfere therein. In his view, the
order of the Tribunal was perverse and contrary to law. He, therefore,
set-aside the same and allowed the petition.
7. The petitioners filed an appeal against the decision of the
Single Judge being LPA No.399/2007. After examining the
submissions of both the parties, the Division Bench came to the same
conclusion as the single Judge and dismissed the appeal by passing a
detailed judgment and order dated 20.12.2007.
7. 7
8.
The present Special Leave Petition has been filed to
challenge this judgment and order dated 20.12.2007. We have heard
Mr. S.K. Dholakia, Sr. Advocate for petitioners, and Ms. Shrabani
Chakrabarty for the respondent. We have noted the submissions
made by both the counsel, as well as the authorities relied upon by
them.
Consideration of the rival submissions -
9. As noted earlier, the main question in this appeal is whether the two
units are to be regarded as one establishment for the purposes of the Provident
Funds Act. Welfare economics, enlightened self interest and pressure of trade
unions led the larger factories and establishments to introduce the schemes of
provident fund for the benefit of their employees. But the employees of small
factories and establishments remained away from these benefits. With the increase
in the number of smaller factories and establishments, there was a need of a
beneficial enactment for the employees engaged therein. The Provident Funds Act,
is a welfare enactment brought into force for that purpose. The Parliament was
concerned with the issue of making an appropriate provision for the employees in
the factories and the establishments after their retirement, and for the benefit of
their dependents in case of early death of the employees. That is how the Provident
Funds Act came to be enacted in the year 1952, which requires a compulsory
contribution to the fund and which is independently managed by the Provident Fund
Commissioner. The employer and employees covered thereunder, both contribute
8. 8
towards this fund. As
per the present provision of section 6 of the Provident Funds Act, both of them have
to contribute to the fund an amount equivalent to 10% of the basic wage and
dearness allowance (and retaining allowance, if any) per month. The Central
Government has the power to raise this contribution to 12% after making an
appropriate enquiry. The contribution to fund earns an appropriate interest thereon.
As stated above, after the retirement of the employee or in the event of need of
finance for specified reasons, or in the event of his death prior thereto, the amount
becomes available.
10. In para 5 of Sayaji Mills Ltd. Vs. Regional Provident Fund
Commissioner reported in [AIR 1985 SC 323] this Court has explained as to
what should be the approach towards this legislation in the following words :-
“5. At the outset it has to be stated that the Act has been
brought into force in order to provide for the institution of
provident funds for the benefit of the employees in factories
and establishments. Article 43 of the Constitution requires the
State to endeavour to secure by suitable legislation or
economic organisation or in any other way to all workers,
agricultural, industrial or otherwise among others conditions
of work ensuring a decent standard of life and full enjoyment
of leisure. The provision of the provident fund scheme is
intended to encourage the habit of thrift amongst the
employees and to make available to them either at the time
of their retirement or earlier, if necessary, substantial
amounts for their use from out of the provident fund amount
standing to their credit which is made up of the contributions
made by the employers as well as the employees concerned.
Therefore, the Act should be construed so as to advance
the object with which it is passed. Any construction
which would facilitate evasion of the provisions of the
Act should as far as possible be avoided…….”
(emphasis supplied)
9. 9
The present
controversy with respect to the applicability of the Provident Funds Act has to be
approached with this perspective.
11. Now, on the question as to whether such two units should be
considered as one establishment or otherwise, there is no hard and fast rule.
However, guidelines have been laid down in two judgments of this Court rendered
way back in the years 1959-60 and they are followed from time to time. Thus, in
The Associated Cement Companies Ltd., Chaibasa Cement Works,
Jhinkpani Vs. Their Workmen reported in [AIR 1960 SC 56], a bench of three
judges was considering the question as to whether the factory and the limestone
quarry belonging to the appellant company should be considered as one
establishment for the purpose of Industrial Disputes Act, 1947. This Court observed
therein as follows:-
“11. …….. What then is ‘one establishment’ in the ordinary industrial
or business sense? ……. It is, perhaps, impossible to lay down any one test
as an absolute and invariable test for all cases. The real purpose of these
tests is to find out the true relation between the parts, branches, units etc. If
in their true relation they constitute one integrated whole, the establishment
is one; if on the contrary they do not constitute one integrated whole, each
unit is then a separate unit. How the relation between the units will be
judged must depend on the facts proved, having regard to the scheme and
object of the statute which gives the right of unemployment compensation
and also prescribes a disqualification therefor. Thus, in one case the unity of
ownership, management and control may be the important test; in another
case functional integrality or general unity may be the important test; and in
still another case, the important test may be the unity of employment.
Indeed, in a large number of cases several tests may fall for consideration at
the same. The difficulty of applying these tests arises because of the
complexities of modern industrial organization; many enterprises may have
functional integrality between factories which are separately owned; some
may be integrated in part with units or factories having the same ownership
and in part with factories or plants which are independently owned.”
10. 10
Later in
paragraph 5 of Management of Pratap Press, New Delhi Vs. Secretary, Delhi
Press Workers’ Union Delhi reported in [AIR 1960 SC 1213], another bench of
three judges explained the above proposition in Associated Cement Company
(supra) in the following words:-
“ ……While pointing out that it was impossible to lay down any
one test as an absolute and invariable test for all cases it observed that
the real purpose of these tests would be to find out the true relation
between the parts, branches, units etc. This court however mentioned
certain tests which might be useful in deciding whether two units form
part of the same establishment. Unity of ownership, unity of
management and control, unity of finance and unity of labour, unity of
employment and unity of functional “integrality” were the tests which
the Court applied in that case…….
12. Accordingly, depending upon the facts of the particular case, in some
cases the concerned units were held to the part of one establishment whereas, in
some other cases they were held not to be so. Regional Provident Fund
Commissioner Vs. Dharamsi Morarji Chemical Co. Ltd. reported in [1998 (2)
SCC 446] and Regional Provident Fund Commissioner Vs. Raj’s Continental
Export (P) Ltd. reported in [2007 (4) SCC 239] are cases where the two units
were held to be independent. In Dharamsi Morarji (supra), the appellant
company was running a factory manufacturing fertilizers at Ambarnath in Distt.
Thane, Maharashtra since 1921. The appellant established another factory at Roha
in the adjoining district in the year 1977 to manufacture organic chemicals with
separate set of workers, separate profit and loss account, separate works manager,
plant superintendents and separate registration under the Factories Act. The two
were held to be separate for the purposes of coverage under the Provident Funds
11. 11
Act. In Raj’s
Continental Export (supra), Dharamsi Morarji was followed since the two entities
had separate registration under the Factories Act, Central Sales Tax Act, 1956,
Income Tax Act, 1961, Employee State Insurance Act, separate balance sheets and
audited statements and separate employees working under them.
13. As against that in Rajasthan Prem Krishan Goods Transport Co.
Vs. Regional Provident Fund Commissioner, New Delhi reported in [1996
(9) SCC 454] and Regional Provident Fund Commissioner, Jaipur Vs.
Naraini Udyog and others reported in [1996 (5) SCC 522] the concerned units
were held to be the units of the same establishment. In Rajasthan Prem Kishan
Goods Transport Co. (supra) the trucks piled by the two entities were owned by
their partners, ten out of thirteen partners were common, the place of business was
common, the management was common, the letter-heads bore the same telephone
numbers. In Naraini Udyog (supra) the two entities were located within a
distance of three kilometers as separate small-scale industries but were represented
by the members of the same Hindu undivided family. They had a common head
office at New Delhi, common branch at Bombay and common telephone at Kota.
The accounts of the two entities were maintained by the same set of clerks.
Separate registration under the Factories Act, The Sales Tax Act and The ESIC Act
were held to be of no relevance and the two units were held to be one
establishment for the purpose of Provident Funds Act.
14. In the present case the Directors of the two petitioner companies
belong to the same family. The Managing Director is common. The two senior
12. 12
officers i.e
Commercial Manager and Technical Manager are common. At the time of
inspection, the Enforcement Officer noticed that the employees of the two
companies were being swapped. Both of them have same registered address and
common telephone numbers and a common gram number. The audited accounts
revealed that the second petitioner company had given a loan of Rs. 5 lakhs to the
first petitioner in the year 1988. The two companies are family concerns of the
Gadodia family. Hence, in the facts of the present case we have to hold that there
is an integrity of management, finance and the workforce in the two private limited
companies. The two companies have seen to it that on record each of the two
entities engage less than twenty employees, although the number of employees
engaged by them is more than twenty when taken together. The entire attempt of
the petitioners is to show that the two entities are separate units so that the
Provident Funds Act does not get attracted. The material on record however, leads
to only one pointer that the two entities are parts of the same establishment and in
which case they get covered under the Provident Funds Act.
15. As the preamble of the Provident Funds Act states, ‘it is an act to
provide for the institution of provident funds, pension fund and deposit-linked
insurance fund for employees in factories and other establishments’. The term
factory is defined under section 2 (g) of the Act, however, there is no definition of
an establishment or a commercial establishment in the statute. Inasmuch as the
petitioners are entities situated in Delhi, we may profitably rely upon the definition
of ‘establishment’ and ‘commercial establishment’ under the Delhi Shops and
13. 13
Establishments Act,
1954. The definition of establishment is available in section 2 (9) and that of
commercial establishment in section 2 (5) thereof. These two definitions read as
follows:-
“Section 2(9) Establishment-
“establishment” means a shop, a commercial establishment,
residential hotel, restaurant, eating house, theatre or other places
of public amusement or entertainment to which this Act applies
and includes such other establishments as Government may, by
notification in the Official Gazette, declare to be an establishment
for the purposes of this Act;
Section 2(5) Commercial establishment
2(5) “commercial establishment” means any premises wherein
any trade, business or profession or any work in connection with,
or incidental or ancillary thereto, is carried on and includes a
society registered under the Societies Registration Act 1860 (XXI of
1860) and charitable or other trust, whether registered or not,
which carries on any business, trade or profession or work in
connection with or incidental or ancillary thereto, journalistic and
printing establishments, contractors and auditors establishments
quarries, and mines not governed by the Mines Act, 1952 (XXXV of
1952), educational or other institution run for private gain and
premises in which business of banking, insurance, stocks and
shares, brokerage or produce exchange is carried on, but does not
include a shop or a factory registered under the Factories Act, 1948
(LXIII of 1948), or theatres, cinemas, restaurants, eating houses,
residential hotels, clubs or other places of public amusement or
entertainment;”
It cannot be denied that the two petitioners carry on a trade or business for private
gain from the premises wherein the two companies are situated. They would
therefore, fall within the definition of ‘commercial establishment’ and consequently,
under the definition of ‘establishment’. The only question is whether they are to be
treated as two separate establishments or one establishment for the purposes of
this act.
14. 14
16. The
petitioners have contended that the two entities are two separate establishments.
They have tried to draw support from section 2(A) of the Act which declares that
where an establishment consists of different departments or has branches whether
situated in the same place or in different places, all such departments or branches
shall be treated as parts of the same establishment. It was submitted that only
different departments or branches of an establishment can be clubbed together, but
not different establishments altogether. In this connection, what is to be noted is
that, this is an enabling provision in a welfare enactment. The two petitioners may
not be different departments of one establishment in the strict sense. However,
when we notice that they are run by the same family under a common management
with common workforce and with financial integrity, they are expected to be treated
as branches of one establishment for the purposes of Provident Funds Act. The
issue is with respect to the application of a welfare enactment and the approach has
to be as indicated by this Court in Sayaji Mills Ltd. (supra). The test has to be the
one as laid down in Associated Cement Company (supra) which has been
explained in Management of Pratap Press (supra).
17. The Provident Fund Department had issued notice to the petitioners on
11.6.1990 on the basis of their inspection. It had relied upon the 1988 Audit Report
of the petitioners. The petitioners had full opportunity to explain their position in
the inquiry before the Provident Fund Commissioner conducted under Section 7A of
the Provident Funds Act. The petitioners, however, confined themselves only to a
facile explanation. If according to them, the management, workforce and financial
15. 15
affairs of the two
companies were genuinely independent, they ought to have led the necessary
evidence, since they would be in the best know of it. When any fact is especially
within the knowledge of any person, the burden of proving that fact lies on him.
This rule (which is also embodied in section 106 of the Evidence Act) expects such a
party to produce the best evidence before the authority concerned, failing which the
authority cannot be faulted for drawing the necessary inference. In the facts and
circumstances of the present case, the Provident Fund Commissioner was therefore
justified in drawing the inference of integrity of finance, management and workforce
in the two petitioners on the basis of the material on record.
18. The Regional Provident Funds Commissioner was therefore, entirely
justified in taking the view that on the facts and law, the two petitioners had to be
clubbed together for the purposes of their coverage under the Provident Funds Act.
The Appellate Tribunal clearly erred in re-appreciating the facts on record and
applying wrong propositions of law thereto. The learned Single Judge was therefore
required to set-aside the order of the Appellate Tribunal in view of his conclusion
that the order was contrary to the facts and the law, and was perverse. The
Division Bench has rightly confirmed the order passed by the learned Single Judge.
19. In the circumstances, this petition is dismissed. The concerned officer
of respondent will now proceed for the determination and recovery of the provident
fund dues from the petitioners in accordance with law. There will be no order as to
the costs.
…………………………..J.
( J.M. Panchal )
16. 16
……………………………..J.
( H.L. Gokhale )
New Delhi
Dated : September 26, 2011