tag:blogger.com,1999:blog-6412205989058498652024-03-13T21:00:06.385+05:30The LawgicalInquisitive Minds Working OvertimeUnknownnoreply@blogger.comBlogger13125tag:blogger.com,1999:blog-641220598905849865.post-11767038510943512182015-05-10T16:37:00.004+05:302015-05-10T16:37:57.477+05:30Internet Censorship in India: Section 66A of the IT Act, 2000.<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-jwERGk2pzck5YqB7HEpHGyXdO4C3RLVgifI_u2w0Fb0pvSrilOJ2XhLbr49sqwYFMszYR1q5SMwrrbrGbQz9dOsNk8-QjA3uwaAYaR8CeoIO7rG0DenlIjspVPveZAcCI1XzmgFrobc/s1600/internet-censorship-1-728.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-jwERGk2pzck5YqB7HEpHGyXdO4C3RLVgifI_u2w0Fb0pvSrilOJ2XhLbr49sqwYFMszYR1q5SMwrrbrGbQz9dOsNk8-QjA3uwaAYaR8CeoIO7rG0DenlIjspVPveZAcCI1XzmgFrobc/s320/internet-censorship-1-728.jpg" width="320" /></a></div>
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<i><span style="font-family: "Times New Roman",serif;"><span style="font-size: xx-small;">(Picture source: </span></span></i><span style="text-align: left;"><span style="font-family: Times New Roman, serif; font-size: xx-small;"><i>http://www.slideshare.net/qwsny/internet-censorship)</i></span></span></div>
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<i><span style="font-family: "Times New Roman",serif;">The
Supreme Court's decision on internet censorship will impact the way in which
people communicate over the internet and will also immensely affect the manner
in which intermediaries deal with take down requests. In this bulletin we
examine the Supreme Court decision of Shreya Singhal v Union of India and
analyze the consequences of this decision. <o:p></o:p></span></i></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">On 24 March 2015, a two judge bench of the Supreme
Court of India (<b>Supreme Court)</b> ruled
on the constitutional validity of Section 66A, 69A and 79 of the Information
Technology Act, 2000 (<b>IT Act)</b>.
Shreya Singhal, the petitioner, challenged the constitutional validity of these
provisions on the grounds that it violates the freedom of speech and expression
under Article 19 of the Constitution of India and that the provisions suffer
from vagueness.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Section 66A: Unconstitutional<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;"><br /></span></u></b></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">As per Section 66A of the IT Act, a person shall be
punishable with imprisonment and fine for sending by means of a computer
resource or communication device (1) any information which is grossly offensive
or has a menacing character; (2) any information which he knows to be false,
but is sent for the purpose of causing annoyance, inconvenience, danger,
obstruction, insult, injury, criminal intimidation, enmity, hatred or ill will;
and (3) any electronic mail or electronic mail massage for the purpose of
causing annoyance or inconvenience or to deceive or to mislead the addressee or
recipient about the origin of such messages. This provision of the IT Act was
struck down by the Supreme Court of India for being in violation of the
fundamental right of freedom of speech and expression under the Constitution of
India and for being vague and open-ended. <o:p></o:p></span></div>
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<i><span style="font-family: "Times New Roman",serif;">Freedom
of Speech and Expression<o:p></o:p></span></i></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">The regulation of freedom of speech and expression
is based on three important concepts; discussion; advocacy and incitement.
Discussion and advocacy forms the essence of this freedom. It is only when such
discussion or advocacy reaches the level of incitement will it need to be
curtailed. Section 66A of the IT Act, imposes an embargo on the discussion and
advocacy of information itself. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">The Court observed that Section 66A puts "all
information" disseminated over the internet through the tests of its sub-clauses.
It would therefore suggest that, all kinds of information, whether scientific
or artistic may be roped in and tried against the tests laid down under the
provision. By putting all information through the test of its sub-clauses,
Section 66A does not differentiate between mere discussion and advocacy of a
point of view and incitement. This according to the Court, goes against the
spirit of 'freedom of speech and expression' and hinders the free flow of
opinions and ideas essential to sustain collective life of the citizenry.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">The Court negated the contention of the Government
of India and held that Section 66A cannot be justified on grounds mentioned
under Article 19(2) such as of public order, defamation, and incitement to an
offence, decency and morality. Article 19 can be curtailed only when the
message transmitted has the 'tendency' to disrupt public order. Secondly, Section
66A cannot be equated to defamation, because under Section 499 of the Indian
Penal Code for a message to be defamatory there must be injury to reputation.
Section 66A does not concern itself with injury to reputation, as it only deals
with the transmission of grossly offensive and annoying messages without
affecting the reputation of another. The same applies for decency and morality,
as what appears to be offensive and annoying may not be obscene or immoral. Lastly,
Section 66A, does not have a proximate relation with 'inciting an offence' as
it does not expressly use that term in the provision. <o:p></o:p></span></div>
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<i><span style="font-family: "Times New Roman",serif;">Vagueness<o:p></o:p></span></i></div>
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<span style="background: white; font-family: 'Times New Roman', serif;">Elaborating the grounds for holding Section 66A
of the IT Act as 'unconstitutional', the Court said terms used in the provision
are vague, undefined and open-ended., Terms like 'annoying', 'inconvenience'
and 'grossly offensive', used in the provision are vague and does not point
towards a specific offence. </span><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Striking down vague and open-ended provisions of Section
66A is a welcome move by the Supreme Court of India. This provision was viewed
as a menace by the society as it deterred free flow of ideas and thoughts. This
decision will immensely benefit social networking websites like Twitter and
Facebook as users will now resort to such mediums to express their ideas
without the fear of being prosecuted. The legislative intent behind introducing
Section 66A appears to be curbing 'incitement of an offence' and 'protecting
public order.' However the Legislature has gravely erred, in drafting it and
also failed to notice that adequate safeguards are available under other
provisions of the IT Act and the Indian Penal Code. </span><span style="background: white; font-family: 'Times New Roman', serif;"><o:p></o:p></span></div>
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<b><u><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Section 69A and Information Technology (Procedure and Safeguards for
Blocking for Access of Information by Public) Rules, 2009: Constitutional<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;"><br /></span></u></b></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Section 69A of the IT Act, empowers the Central
Government, in the interest of sovereignty and integrity of India, defense of
India, security of the state, friendly relations with foreign states or public
order or for preventing incitement to the commission of a cognizable offence,
to order any agency of the Government or intermediary to block access by the
public any information that is stored, generated, transmitted, received or
hosted in any computer resource. The procedural safeguards for such blocking of
access by the public must be carried on in accordance with the Information
Technology (Procedure and Safeguards for Blocking for Access of Information by
Public) Rules, 2009 (<b>Blocking Rules</b>).<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Section 69A of the IT Act and the Blocking Rules
were challenged on the grounds that it does not provide the facility of pre
decisional hearing and that it does not provide procedural safeguards such as
issuance of a warrant for search and an application to the High Court or other
Court to set aside the decision of blocking. The Court correctly identified
that unlike Section 66A, Section 69A is narrowly drawn with several safeguards.
Further, blocking can be resorted to only when the Central Government is satisfied
and it falls squarely within the reasonable restrictions to freedom of speech
and expression under Article 19(2). Lastly, the court recognized the
possibility of hearing before the decision of blocking is finalized under the
Blocking Rules and stated that failure to provide additional safeguards cannot
be a ground for unconstitutionality. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">This decision of the Supreme Court does not
specifically alter the current position of law, however it has brought about
some clarity. First, there is clarity on the point that there appears to be a
co-relation with the conditions provided under Section 69A and Article 19(2) of
the Constitution of India. This would suggest that the threshold of Article
19(2) must be satisfied before a takedown is affected. Secondly, there is more
clarity on the point of hearing as the Supreme Court reinforces and clarifies that
the Blocking Rules guarantee pre decisional hearing. Therefore any violation of
this safeguard can give rise to a cause of action under Article 226 of the Constitution
of India.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Section 79 and the Information Technology (Intermediary Guidelines)
Rules, 2011: Constitutional, with caveats.<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;"><br /></span></u></b></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Section 79 of the IT Act provides for the
conditions which exempt intermediaries from liability. It provides that an
intermediary shall be exempt from liability if it observes the due diligence
requirements under the Information Technology (Intermediary Guidelines) Rules,
2011 (<b>Intermediary Guidelines</b>),
along with other conditions under the provision. It also provides that an intermediary
shall not be exempt it fails to remove or disable content which furthers 'unlawful
acts' after it has been brought to its knowledge. It is important to note that
Rule 3(2) of the Intermediary Guidelines lays the obligation on an intermediary
to inform third parties to not host, transmit, display, upload, publish, modify
or share certain kind of content on its interface. Further, as per Rule 3(4) of
the Intermediary Guidelines an intermediary must disable content which
contravenes Rule 3(2) upon obtaining knowledge by itself or after it is brought
to its actual knowledge by an affected person.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">It was contended that the Intermediary Guidelines
and Section 79 are open ended and vague as intermediaries are only persons who
offer a neutral platform through which persons may interact with each other,
and requiring them to exercise their own judgement in disabling content defeats
the purpose of being an 'intermediary'. The Court saved the provision from
being struck down by providing two very important caveats while reading this
provision. First, an intermediary can remove content only after receiving a
court order directing it to do so. It is only if it fails to follow this court
order will it not be exempt under Section 79. For this purpose it clarified
that Rule 3(4) of the Intermediary Guidelines must be read down in the same
manner as Section 79(3)(b). This would suggest that the Rule 3(4) appears to be
redundant, as only matters which fall within the ambit of 'unlawful acts' under
Section 79(3)(b) can be taken down. On the same point the court then clarified
the ambit of 'unlawful act' and stated that it encompasses only the
restrictions under Article 19(2) and nothing more. This would mean that the
offences such as hosting content which impersonates another would therefore not
be subject to take down. The Court understood that most services agreements
contain what is provided in Rule 3(2) and therefore restricted take down to
only 'unlawful acts' which is nothing but Article 19(2) of the Constitution of
India. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">This decision of the Supreme Court of India
immensely affects intermediaries. This decision paves the way for companies
like Google and Facebook etc. to function without takedown hassles on the basis
of a mere user complaint. Up till now intermediaries constantly had to deal
with several complaints and also had to justify which takedown request was
rejected. By having the judiciary determine takedown requests, companies need
not take into consideration complaints that are made directly to them. What is
pertinent to note here is that intermediaries now need to entertain only court
takedown orders or executive takedown orders which are in line with Article
19(2) of the Constitution of India as any other form of takedown will impair
the freedom of speech and expression. This would mean that an intermediary
liability exemption is only restricted to ensuring the due diligence
requirements under the Intermediary Guidelines and taking down content pursuant
to court orders and executive action which can only be on the basis of Article
19(2) and not on the basis of Rule 3(4) of the Intermediary Guidelines.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;">Conclusion<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman",serif; mso-bidi-font-style: italic;"><br /></span></b></div>
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<span style="font-family: "Times New Roman",serif;">The
draconian section 66A which was originally m</span><span style="font-family: 'Times New Roman', serif;">eant to tackle spam and cyber
stalking was gravely misused by the executive, especially by the Government in
power. This crackdown of online dissent and criticism most definitely shunned
people for using social media as means of disseminating information and voicing
opinions. By declaring Section 66A unconstitutional, the Supreme Court has
opened India to move online and engage in public dialogue and revived the
freedom of bloggers. This will benefit social networking websites like Facebook
and Twitter as they will now become important interfaces for information
dissemination. The constitutionality of Section 69A was upheld primarily
because there appears to be no procedural lacuna in the provision. This
provision will continue to hold true in the light of internet censorship.
Lastly, Section 79 of the IT Act along with the Intermediary guidelines were
tested on the grounds of constitutionality. The interpretation accorded by the
Supreme Court while limiting to take down of only court sanctioned requests has
lifted a huge burden off intermediaries. Further, it has also given more light
to the nature of 'unlawful acts' that may be subject to take down by limiting it
only to the restrictions provided under Article 19(2).</span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-52564054090318642352014-11-05T16:36:00.001+05:302014-11-05T16:37:19.359+05:30Right to be forgotten: When privacy trumps freedom of speech<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKyM7SFTXp3hBh6Xm5d5J52aSFPFtXMVfNQrlJur6-WLveOQ7McIiWKG3NSKowoBGgIlbRGXIOueMOxwj093_G3KGWFWGMFHqfdMGYhfMm8E1H4bv83OcMPDXVO8-YKnTNR5l3XFF2_0s/s1600/Forgotten-Questions2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKyM7SFTXp3hBh6Xm5d5J52aSFPFtXMVfNQrlJur6-WLveOQ7McIiWKG3NSKowoBGgIlbRGXIOueMOxwj093_G3KGWFWGMFHqfdMGYhfMm8E1H4bv83OcMPDXVO8-YKnTNR5l3XFF2_0s/s1600/Forgotten-Questions2.jpg" height="111" width="200" /></a></div>
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<span style="font-family: 'Times New Roman', serif;"><span style="font-size: xx-small;">Source: mashable.com</span></span></div>
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<span style="font-family: 'Times New Roman', serif;">In the EU, a citizen has the right to be
forgotten. This right basically gives you the right to withdraw personal data.
Very recently the EU extended this right against search engines like Google. So
if your personal data is up on Google, you can ask them to disable links to
such information, of course subject to a few conditions.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">The European Court of
Justice recently read the right to be forgotten within the realm of the 1995
Data Protection Directive. This case has gained immense popularity as it directed
the search engine, Google, to remove links which impinged on the complainant's
right to privacy.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">Before we discuss the
case, it is pertinent to understand, very briefly the data protection law that
exists in the European Union (<b>EU</b>). The EU in its Data Protection
Directive, 1995 expressly protects an individual's right to privacy with
respect to processing of personal data. This directive is considered a
milestone in the field of privacy laws. The growing dependency on technology
and uneven enforcement of the directives forced the EU commission to formulate
a new privacy law. Thus, in the year 2012, the commission proposed the new data
protection regulation which aims at being a one stop shop for all matters
concerning the protection of private data.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">The commission's
proposal seeks to modernize the 1995 directives such that the right to personal
data is protected in the future. They focus on: reinforcing individuals’
rights; strengthening the EU internal market; ensuring high level of data
protection in all areas, including police and criminal justice cooperation;
ensuring proper enforcement of the rules; and setting global data-protection
standards.<a href="https://www.blogger.com/null" name="_ftnref1"></a><a href="file:///C:/Users/goele/Desktop/right%20to%20be%20forgotten.docx#_ftn1" title=""><span style="color: blue;">[1]</span></a> These
regulations basically aim at empowering individuals to take control over their
data and ensure that their personal data is protected. The European
Commission will also strengthen individuals’ right to be forgotten.<o:p></o:p></span></div>
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<br /></div>
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<u><span style="font-family: 'Times New Roman', serif;">EU decision on the right
to be forgotten</span></u><span style="font-family: 'Times New Roman', serif;"><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">A Spanish citizen,
Mario, lodged a complaint against a daily newspaper and Google Spain. Mario in
his complaint urged the court to order Google to remove a link of a newspaper
article concerning the public auction of his repossessed home. He contended
that as this news is old and does not pertain to his current status in society,
it infringed his right to privacy. It is relevant to note here, that Mario did
not contend that the information is untrue or inaccurate, he merely stated that
as the auction notice has no relevance to his present state of affairs and the
continued existence of such information violated his right to privacy. He also
urged the Court to order the newspaper to no longer keep within its possession
such information. The Court recognized the right to be forgotten and ordered
Google to deactivate links regarding the auction notice. However the Court
struck a balance between the right to privacy and freedom of the media. While
the Court ordered Google to delete access to the information deemed irrelevant
but it did not rule that the underlying newspaper archive needs to be changed
in the name of data protection.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">The EU directives impose
an obligation on 'controllers' to ensure protection of personal data and also
undertake erasure of irrelevant and infringing data. A controller has been
defined under the directives to mean a natural or legal person, public
authority, agency or any other body which alone or jointly with others
determines the purposes and means of processing personal data. The following
paragraphs will highlight how the court equated Google to be a controller.<o:p></o:p></span></div>
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<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";">Applicability
of EU directives to search engines</span></b><span style="font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";">: The
court ruled that Google is a controller as it performs the function of
processing personal data. Processing of personal data has been defined to
mean any operation or set of operations which is performed upon personal
data such as collection, recording, organisation, storage, adaption or
alteration, retrieval, consultation, use, disclosure by transmission,
dissemination or otherwise making available, alignment or combination,
blocking, erasure or destruction. A search engine, like Google,
processes personal data as it collects data which it subsequently
retrieves, records and organizes within the framework of its indexing
programmes, stores on its servers and, as the case may be discloses and
makes available to its users in the form of lists of search results. <o:p></o:p></span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo2; tab-stops: list .5in;"><b><span style="font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";">Right
to be forgotten under the 1995 Directives:</span></b><span style="font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";"> While
reading into an individual's right under Article 12 of the directives, the
Court held that individuals have the right to ask search engines to remove
links which are inaccurate, inadequate, irrelevant or excessive. The court
held that a case by case assessment must be made and the economic
interests of the search engine must be weighed vis-a-vis the complainant's
right to be forgotten. The court also clarified that this right is not an
absolute right and will have to be balanced with other fundamental rights,
such as the freedom of media.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 9.0pt; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">The judgment does not clarify how search engines should implement
this ruling, which has left Google in a fix. However, Google has introduced
erasure forms. Complaints received by them are processed and the appropriate
action will be taken. Google has indicated that it received over 12,000 removal
requests on day one and over 41,000 requests by day four. Other search engines
are also closely monitoring these developments and making the required changes
to their privacy policy in order to implement this judgment.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<b><span style="font-family: 'Times New Roman', serif;">Indian Legal System:</span></b><span style="font-family: 'Times New Roman', serif;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<span style="font-family: 'Times New Roman', serif;">The
right to privacy in India is protected under Article 21 of the Constitution of
India. This right is not an absolute right and is subject to reasonable
procedures established by law. There are no precedents which have interpreted
the right to be forgotten as a subset of the right to privacy. Indian law only
address direct infringement of privacy and does not give people the right to
remove irrelevant and unnecessary information without approaching a court or
tribunal. The right of erasure arises only once it is established that the
material impinges upon the right to privacy by the relevant court of law.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<span style="font-family: 'Times New Roman', serif;">The
Information Technology Act, 2000 and the rules thereunder also do not expressly
provide for the right to be forgotten. The only provision which can be read to
include the right to be forgotten is the intermediary's duty to remove content
which is infringing in nature<a href="https://www.blogger.com/null" name="_ftnref2"></a><a href="file:///C:/Users/goele/Desktop/right%20to%20be%20forgotten.docx#_ftn2" title=""><span style="color: blue;">[2]</span></a>.
This can be read broadly to include the right to be forgotten as the aggrieved
can approach the intermediary and prove how the data is infringing in nature.
The final decision rests with the intermediary. The other data protection rules
merely provide the right to review information given and request for amendments
and alterations. These rules do not expressly guarantee the right to be forgotten.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<span style="font-family: 'Times New Roman', serif;">The
Shah Committee Report, 2012 proposed that the new privacy law in India must
give more powers to individuals. In one of its recommendations it proposed that
individuals should have the right to be forgotten. The Report suggested that
access to personal information held by a data controller; should be able to
seek correction, amendments, or deletion such information where it is
inaccurate; be able to confirm that a data controller holds or is processing
information about them; be able to obtain from the data controller a copy of
the personal data. The leaked privacy bill 2014 bill is very similar to the EU
directive and extends the right to privacy to all residents of India. It
imposes obligations on persons in control of data to ensure that privacy of
data is maintained and also extends the right to erasure of data on residents.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; vertical-align: baseline;">
<span style="font-family: 'Times New Roman', serif;">It
will be interesting to see how this right will be read in the Indian context.<o:p></o:p></span></div>
<br />
<div>
<!--[if !supportFootnotes]--><br clear="all" />
<hr align="left" size="1" width="33%" />
<!--[endif]-->
<br />
<div id="ftn1">
<div class="MsoFootnoteText">
<span style="font-size: x-small;"><a href="file:///C:/Users/goele/Desktop/right%20to%20be%20forgotten.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-family: Calibri, sans-serif; line-height: 107%;">[1]</span></span><!--[endif]--></span></a> http://ec.europa.eu/justice/data-protection/document/review2012/factsheets/1_en.pdf<o:p></o:p></span></div>
</div>
<div id="ftn2">
<div class="MsoFootnoteText">
<span style="font-size: x-small;"><a href="file:///C:/Users/goele/Desktop/right%20to%20be%20forgotten.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-family: Calibri, sans-serif; line-height: 107%;">[2]</span></span><!--[endif]--></span></a>
Rule 3, Information Technology (Intermediaries Guidelines) Rules, 2011</span><o:p></o:p></div>
</div>
</div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-86947378850234844622014-09-10T11:04:00.000+05:302014-09-10T11:08:41.733+05:30Death penalty: Hearing at review stage, permitted!<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";">"<i>The magic of the spoken word, the power of
the Socratic process and the instant clarity of the bar-Bench dialogue are too
precious to be parted with</i>" - Krishna Iyer., J<o:p></o:p></span><br />
<span style="font-family: "Times New Roman","serif";"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoAr8MMai6dgON5Tj66PThzRp5FpeaF4_ZdeQS9ufzjxwkDex4OHACyIn93uG6zK2IbeEjSBttv05WJtMaqHqkiPti72rLNgCcDnDd4ksuuXdX6rvhmYawiO1WoOfOuvQM5-nkSoebK5k/s1600/hanging_rope-300x278.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoAr8MMai6dgON5Tj66PThzRp5FpeaF4_ZdeQS9ufzjxwkDex4OHACyIn93uG6zK2IbeEjSBttv05WJtMaqHqkiPti72rLNgCcDnDd4ksuuXdX6rvhmYawiO1WoOfOuvQM5-nkSoebK5k/s1600/hanging_rope-300x278.jpg" height="185" width="200" /></a></div>
<div style="text-align: center;">
<span style="font-family: Times New Roman, serif; font-size: xx-small;">Picture Source: Dominica Weekly</span></div>
</div>
<div class="MsoNormal" style="text-align: justify;">
<div style="text-align: center;">
<span style="font-family: "Times New Roman","serif";"><br /></span></div>
</div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><a href="http://supremecourtofindia.nic.in/outtoday/WR7711.pdf" target="_blank">TheHon'ble Supreme Court of India</a> upheld the right of a death penalty convict to a
hearing at the review stage before the Supreme Court of India. The
constitutionality of Order XXXVIII of the 1950 Supreme Court Rules read with
Order XI Rule 1 was discussed. These rules state that all review cases should
be heard by a bench of at least three learned Judges. This was reduced by the
Supreme Court Rules 1966 to two Judges by Order VII Rule 1. Further, in 1978 a
new sub-rule (3) was added to Order XL of the Supreme Court Rules providing
that all review applications could now be disposed of and heard by circulation
- that is without oral argument.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">The
petitioners urged that the impugned order of the Supreme Court Rules, 1996 be
declared unconstitutional inasmuch as persons on death row are denied an oral
hearing. It was further contended that the hearing of cases in which death
sentence has been awarded should be by a bench of atleast 5 Supreme Court
judges. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">The
respondents echoed the judgment of the Constitutional bench in Eshwara Iyer and
stated that judges apply their mind while disposing review petitions in their
chambers. It was further contended that the judiciary is overburdened and other
jurisdictions also don't provide for hearings at the review stage.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">The
decision of the Court rests on the principles of Article 21 of the Constitution
of India. It aims at upholding the right to life which is the spirit behind
this provision of the Constitution. The Court by providing a dynamic interpretation
of its decision in Eshwar Iyer held that death penalty convicts form a separate
class of convicts. The Court went on to state that that death penalty is
awarded in rarest of rare cases and two differently trained judicial minds may
apply a different set of rules while determining the case which can seriously
impact the convicts right to life under Article 21 of the Constitution of
India. Therefore in cases of death penalty, limited oral hearing must be made a
precondition at the review stage. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">The
Court further clarified that the right to limited hearing will be applicable in
pending review petitions and future petitions. It will also apply where a
review petition is already dismissed but the death sentence is not executed so
far. In such cases, the petitioners can apply for the reopening of their review
petition within one month from the date of this judgment. However, in those
cases where even a curative petition is dismissed, it would not be proper to
reopen such matters.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">On
the point of the number of judges hearing the petition where death penalty is
awarded the Court held that in all cases in which death sentence has been awarded
by the High Court in appeals pending before the Supreme Court, only a bench of
three Hon’ble Judges will hear the same. This is for the reason that at least three
judicially trained minds need to apply their minds at the final stage of the
journey of a convict on death row, given the vagaries of the sentencing procedure
outlined above. At present, the Court is not persuaded to have a minimum of 5
learned Judges to hear all death sentence cases.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">However
in the dissenting judgment Chelameswar., J stated that it has never been held, either
in this country or elsewhere, that the rule of <i>audi alteram partem</i> takes within its sweep the right to make oral submissions
in every case. It all depends upon the demands of justice in a given case.
Eswara Iyer’s case clearly held that review applications in this Court form a
class where an oral hearing could be eliminated without violating any
constitutional provision. Therefore no separate oral hearing needs to be
provided at the state of review. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;">This is an excellent example of how the judiciary
has carved a niche exception to an already established rule. The majority very
clearly extends this privilege to death penalty convicts only, whose right to
life is protected under the Constitution of India. It is an established norm
that this punishment is provided in rarest of rare cases and a rock solid
reason must exist for this punishment to stand ground. Hence, in order to
remove all possibilities of error this decision of the Supreme Court reinforces
the convicts right to life and hearing.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="background: white;"><span style="font-family: Times, Times New Roman, serif;">Surinder Koli, the Nathiri killer, will be the first to enjoy
the benefits of this judgment as he has filed for a review and his will be the
first petition to heard in open court.</span></span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-641220598905849865.post-14069928555838138992014-08-26T16:27:00.000+05:302014-08-26T16:27:50.796+05:30STOP: Mirror Mirror on the wall, who's the fairest of them all!?<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";">A
father who is struggling financially is saddened to have a dark skinned
daughter instead of a son. The depressed girl upon using the fairness cream
gets a job as a flight attendant and has changed the tide for her father. The
Ministry of Information pulled down this ad as it promoted discrimination on
the basis of colour. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";">This
aim of the ministry has been codified by the Advertising Standards Council of
India by through the '<a href="http://www.ascionline.org/images/pdf/fairness-advertising-code-for-wide-circulation-aug-14-2014.pdf" target="_blank">Advertising for Skin Lightening or Fairness Improvement Products Guidelines, 2014</a>'. These guidelines emphasize that advertisements
should not deride race, caste, colour, creed or nationality. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";">The
guidelines state that no advertisement of a fairness product shall reinforce
negative social stereotyping on the basis of skin colour. Specifically,
advertising should not directly or implicitly show people with darker skin, in
a way which is widely seen as, unattractive, unhappy, depressed or concerned.
These ads should not portray people with darker skin, in a way which is widely
seen as, at a disadvantage of any kind, or inferior, or unsuccessful in any
aspect of life particularly in relation to being attractive to the opposite sex,
matrimony, job placement, promotions and other prospects. It also provides that
the ad mustn't associate darker or lighter colour skin with any particular socio-economic
strata, caste, community, religion, profession or ethnicity. Further the ad should
not perpetuate gender based discrimination because of skin colour.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjb2O_KrtSepAfyH9zk2IKH6Ho3AP1KEiPQBwv-HxPrRsEpSuW6-OZw7Q_8OKUJ3yE2nrwynkBYp1JZ8FwvrtnLEk02u96tiVLnuP-VrZmR0QfTBa1SGXUbza8JykggoDU_NeEdQq5g1xI/s1600/respectwomen.co_.in_DarkIsbeautiful.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjb2O_KrtSepAfyH9zk2IKH6Ho3AP1KEiPQBwv-HxPrRsEpSuW6-OZw7Q_8OKUJ3yE2nrwynkBYp1JZ8FwvrtnLEk02u96tiVLnuP-VrZmR0QfTBa1SGXUbza8JykggoDU_NeEdQq5g1xI/s1600/respectwomen.co_.in_DarkIsbeautiful.jpg" height="118" width="320" /></a></div>
<div class="MsoNormal" style="text-align: center;">
<span style="font-family: Times New Roman, serif; font-size: xx-small;">PC: www.respectwomen.co.in</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";"><br /></span></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";">These
guidelines not only promote equality but attempt to uproot racism which runs
deep in India's history. <o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-35649023450876947462014-08-25T13:59:00.000+05:302014-08-26T12:29:41.274+05:30Fixing Indian Arbitration<div dir="ltr" style="text-align: left;" trbidi="on">
<div align="center" class="MsoNormal" style="margin-left: 2.0in; text-align: center; text-indent: -2.0in;">
<b style="text-indent: -2in;"><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The
Law Commission of India’s Troubleshooter Report</span></b></div>
<div align="center" class="MsoNormal" style="margin-left: 2.0in; text-align: center; text-indent: -2.0in;">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">It is no secret that for all
the international jurisprudence establishing arbitration as an effective, cost
efficient, prompt and necessarily independent system of resolving a wide range
of disputes, the Indian experience has been rather different. Even after the
Supreme Court’s decision in <i>BALCO, </i>India
remains a jurisdiction where the Courts routinely read down the sacrosanct bar
on judicial intervention, parties almost without exception challenge awards
with significant success, high arbitrator fees and courts stifle arbitration
and fairly non-committal towards institutional arbitration. In its 2<a href="http://lawcommissionofindia.nic.in/reports/Report246.pdf" target="_blank">46th Report the LawCommission of India</a> has recommended amendments to the Arbitration and
Conciliation Act 1996 (‘Act’) to address some of the concerns plaguing the law
governing arbitration in India. In this post we discuss some of the salient
suggestions. In the interest of brevity we have dispensed with a comprehensive section-by-section
analysis.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: Times, Times New Roman, serif;"><b><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;">I.<span style="font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Boost
for Institutional Arbitration<o:p></o:p></span></b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">In an attempt to boost institutional
arbitration the Commission has recommended addition of Explanation 2 to Section
11(6A) to lay down a general mandate for Courts should encourage the adjudication
of disputes by reference to institutionalized arbitration. In view of certain
institutional rules such as those contained in Rule 26 and Schedule I the SIAC
Rules 2013, the Commission has recommended widening of the definition of
‘arbitral tribunal’ to also include emergency arbitrator. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: Times, Times New Roman, serif;"><b><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;">II.<span style="font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Section
2 <o:p></o:p></span></b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">In another suggestion the
Commission ,in complete endorsement of the decision in <i>Chloro Controls (I)
P. Ltd<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[1]</span></b></span><!--[endif]--></span></a>
</i>in addition to its proposed amendment to Section 8, has recommended that
all reference to ‘party ’ in the Act also includes persons who derives his
interest from such party. Several other changes have been recommended to
Section 2 in order to capture the import of the judgement in <i>BALCO</i>.<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn2" name="_ftnref2" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-size: 12pt; line-height: 115%;">[2]</span></span><!--[endif]--></span></a>
Further, in what is set to be a point of great debate the Law Commission on
page 39 of its report recommends:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="Default" style="line-height: 115%; margin-left: .5in; text-align: justify;">
<i><span style="font-family: Times, Times New Roman, serif;">“Also
insert the following proviso [after subsection 2(2)] “Provided that, subject to an express agreement to the contrary,
the provisions of sections 9, 27, 37 (1)(a) and 37 (3) shall also apply to
international commercial arbitration even if the seat of arbitration is outside
India, if an award made, or that which might be made, in such place would be
enforceable and recognized under Part II of this Act.” <o:p></o:p></span></i></div>
<div class="Default" style="line-height: 115%; margin-left: .5in; text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Article 1(2) of the UNCITRAL
Model Law which provides that “<i>The provisions of this Law, except articles 8, 9, 35 and 36, apply
only if the place of arbitration
is in the territory of this State.</i>" It would be over optimistic to
expect that this will indeed clarify the law. With interim measures of foreign
seated arbitrations back in the domain of the Indian Courts, albeit
non-exclusively, the core issue of judicial overreach is likely to remain.<b><o:p></o:p></b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Interim
Orders by a Foreign Court supervising Arbitration<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><span style="font-size: 12.0pt; line-height: 115%;">The Commission could have
tried to resolve the problem which exists insofar as there is no clarity as to
the exact mode of enforcement of interim orders passed by a foreign court
having supervisory jurisdiction over arbitration. Since an interim order is by
nature not final and conclusive, lawyers have for long struggled to find a
method of enforcing an interim measure issued by a foreign court in relation to
an arbitration initiated under its jurisdiction. Any attempt to enforce such an
interim order will fall foul of Section 44A of the CPC since the order will not
qualify as a ‘judgement’ or ‘decree’. The other roundabout method for a party
is to initiate contempt proceedings in the foreign court on the ground of non
adherence to the initial interim order and subsequently attempt to enforce the
judgement (not the underlying order but
the subsequent judgement holding contempt) under Section 13 and Section
44 of the CPC. Clearly, both these avenues are ineffective. While the
Commission recognizes this problem, a clear remedy seems to have been left out.
The Commission might have benefited by giving the issue more attention.</span><span style="font-size: 11.5pt; line-height: 115%;"> <o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: Times, Times New Roman, serif;"><b><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;">III.<span style="font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;"> Delay in the Arbitral Process<o:p></o:p></span></b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">In its report the Commission
seems to be generally concerned in Court based delays in arbitration matters,
while particularly disturbed with the effect the decision by the Tribunal in <i>White Industries</i><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn3" name="_ftnref3" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-size: 12pt; line-height: 115%;">[3]</span></span><!--[endif]--></span></a>
which exposed the far reaching consequences of inordinate delays in a
jurisdiction with over 70 BITs most of which impose obligations of some variant
of access to effective and prompt judicial process for investors. The Commission
has therefore recommended some novel changes. In its opinion, restricting
relevant ‘Court’ in case of international commercial arbitration involving
foreign parties would be desirable owing to the expectation that commercially
oriented judges would hear the matter expeditiously. This would reduce what has been christened
the “Investment Treaty risk.” While the concern is properly guided, there is no
clarity as to how a change in the Court of supervision would directly reduce
timelines in the backdrop of reports where where High Courts routinely perform
below expectation due to a large number of pending cases. Policy measures such
as training of judges to act with a heightened level of commercial orientation
would perhaps be more effective. The Commission has however recognized that
this suggested change cannot be a standalone remedy to counter the seemingly
inherent malaise of delay so inherent in the current judicial process relating
to arbitration. It has recommended that there is an urgent need to increase the
threshold for judicial at both the pre and post award stage. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"> A. Pre
Judicial Intervention</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">In a concise manner the
Commission expresses its disappointment that while the Supreme Court had the
opportunity to clearly answer the question as to the scope and nature of
permissible pre-arbitral judicial intervention, keeping in mind the bar under
Section 5 of the Act, it framed the question in rather ineffective and
infructuous manner focusing rather on the orthodox distinction between
‘judicial’ and ‘administrative’ power under Section 11 referring to a series of
judgement culminating in <i>SBP v. Patel
Engineering<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn4" name="_ftnref4" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[4]</span></b></span><!--[endif]--></span></a>
</i>and the consequent clarification in <i> National Insurance Co. LTd v. Boghara Polyfab
Pvt Ltd.<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn5" name="_ftnref5" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[5]</span></b></span><!--[endif]--></span></a>
</i>which divided this controversial matrix of precedent and laid down that the
law in three distinct buckets, if you may. First, the category of issues which
the CJI is obligated to decide. Under this category enquiry must be conducted
as to whether the appropriate High Courts has been approached, whether there is
an arbitration agreement and whether the party approaching the Court under
Section 11 is party to such an agreement.
The second category includes issues such as whether the claim is a live
claim and whether the parties concluded the transaction by satisfaction of
rights and obligations. These issues in the second category are those over
which the CJI/ designate <i>may decide. </i>The
third category are those which must necessarily be left for the Tribunal to
decide. These include questions of whether a claim is covered by an arbitration
clause, and the merit of such claims.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The Commission simplistically
refers to the desirability of extending these tests to Section 8 and Section 45
instead of restricting it only to Section 11. The Commission deserves merit to
have pointed out that there exists no logical rationale to suggest that the
scope and nature of judicial intervention on pre award stage should change on
the fact that a party, which may intend to defeat the arbitration agreement
refuses to appoint an arbitrator in terms of the agreement (covered by Section)
or moves a proceeding before a judicial authority in spite of existence of such
an arbitration agreement. (<i>typically such
cases in appear in relation to Section </i>). For a party intending to defeat
the arbitration agreement, both the refusal to appoint arbitrator or initiation
proceedings in Court serve the same purpose and therefore should not be subject
to varying levels of judicial intervention. Therefore the Commission has
recommended that Section 8 and Section 11 <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Section
8 and Section 11 <o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The bar against bifurcation of
claims under arbitration agreements so widely encompassed in <i> Sukanya Holdings<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn6" name="_ftnref6" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[6]</span></b></span><!--[endif]--></span></a>
</i>and so artfully skirted in <i>Chloro
Control</i> is a valid subject of concern for the commission. To narrow down
the effect of <i>Sukanya Holding </i>which
stated that where all parties to a dispute are not parties to arbitration, the
reference to the arbitration must be rejected. The Commission suggests adding
of proviso to Section 8 stating that reference in such cases may only be
rejected where all the parties are “necessary parties” to the action. The term “necessary parties” has however not
been defined. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The Commission also addresses
the core question as to the depth of permissible judicial enquiry into the validity
of the arbitration agreement. It recommends that if the authority is of the
opinion that there is a <i>prima facie </i>arbitration
agreement then it should refer the matter to the Tribunal and if the authority
concludes that a valid agreement does not exist, such determination would be
final and not <i>prima facie. </i>Similar
amendments are proposed in Section 11 as well. <i> <o:p></o:p></i></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><i><br /></i></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Section
9 and Section 17<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Perhaps the vehicle of abuse
in many contracts containing arbitration, Section 9 of the Act per the
recommendation of the Commission must be amended to have a 60 day limit to
initiate arbitration proceedings where a party has obtained an injunction over
subject matter covered by the arbitration agreement. Evidently, this is a
legislative counter to the tendency of parties to obtain a Section 9 injunction
and continue to take benefit of the same perpetually, without taking any steps
taken to proceed with arbitration. However, the Commission is rather vague
insofar as it recommends that the following clause be included<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<i><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">“(2)
Where, before the arbitral proceedings, a Court grants any interim measure of
protection under sub-section (1), the arbitral proceedings <u>shall be
commenced within 60 days from the date of such grant or within such shorter or
further time as indicated by the Court, failing which the interim measure of
protection shall cease to operate. <o:p></o:p></u></span></i></div>
<div class="MsoNormal" style="text-align: justify;">
<i><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><u><br /></u></span></i></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The provision dilutes the
efficacy of what could have been a strict legislative deadline for commencement
of proceedings and retains judicial discretion, which if routinely exercised in
the proper manner in the first place would have not given rise to the problem
in the first place.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The Commission has also
recognized in relation to Section 17, that in India interim orders of the
Tribunal are routinely rendered ineffective. The proposed amendment would give
the tribunal the same powers as a civil court in relation to the interim
measures. Read with the amendment in
Section 9, parties would be left with no option but to approach only the
tribunal once the tribunal is constituted. The proposed amendment would also
grant the tribunal the authority to grant interim relief even after the award
has been rendered.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"> B. Post
Award Judicial Intervention</span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Section
34 (Setting aside of an award)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The Commission recommends to
resolve the seemingly age-old problem of the interpretation of the grounds
stated in Section34 for the setting aside of an award. It recommends amendments to counter the
widening of the words “morality or justice” used in the otherwise clear
judgement in <i>Renusagar </i>by replacing
it with a higher threshold of the award
being in “in conflict with the most basic notions of morality or justice” In an
additional explanation suggested the commission seeks to bar erroneous
application of law and re-appreciation of evidence as grounds for setting aside
of awards. These were the grounds used in <i>Saw
Pipes<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn7" name="_ftnref7" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[7]</span></b></span><!--[endif]--></span></a>
</i> to successfully set aside an award<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Section
36 (Enforcement of Award)<o:p></o:p></span></b></div>
<div class="MsoNoSpacing" style="line-height: 115%; text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman";">The Commission took a cue for the Apex
Courts observations in <i>National Aluminium
Company Ltd v. Pressteel & Fabrications (P) Ltd and Anr<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn8" name="_ftnref8" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[8]</span></b></span><!--[endif]--></span></a> </i>where
the Court stated that amendments to Section 36 was necessary to ensure that parties
intending to defeat the arbitration do not get an automatic stay on enforcement
by the mere filing an application of Section 36. <o:p></o:p></span></div>
<div class="MsoNoSpacing" style="line-height: 115%; tab-stops: 297.0pt; text-align: justify;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Section 37 <o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">There exists a bar on second
appeal from orders appealed under Section 37. However, inconsistencies in
relation to parties succeeding in filing letters patent appeal where the
Letters Patent Act of various high courts have not been suitably amended to
conform with the provision in Section 37. The Commission has therefore
recommended that Section 37 be amended to also bar letters patent appeals in
addition to ordinary second appeals.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: Times, Times New Roman, serif;"><b><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;">IV.<span style="font-size: 7pt; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-size: 12.0pt; line-height: 115%;">Other Salient
Recommendation of the Law Commission <o:p></o:p></span></b></span></div>
<div class="MsoNormal">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">The Law commission has recommended a variety of other changes
some of which are as follows:</span></div>
<div class="MsoNormal">
<span style="font-family: Times, Times New Roman, serif; font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal">
</div>
<ol style="text-align: left;">
<li><span style="font-family: Times, Times New Roman, serif;"><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">Amendment
to Section 16 in order to counter the effect of the Apex Court’s decision in </span><i style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">N Radhakrishnan v. Maestro Engineers<a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftn9" name="_ftnref9" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b><span style="font-size: 12pt; line-height: 115%;">[9]</span></b></span></span></a>
</i><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;"> </span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">which restricted the authority of
the tribunal to rule on questions of fraud, corruption etc.</span></span></li>
<li><span style="font-family: Times, Times New Roman, serif;"><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;"><span style="font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">Amendment
to Section 20 to provide for parties to agree to the seat and venue of
arbitration instead of the ambiguous “place of arbitration” The amendment would
recognize the distinction between the legal seat of arbitration and the venue
of arbitration.</span></span></li>
<li><span style="font-family: Times, Times New Roman, serif;"><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">Amendment
to</span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;"> </span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">Section 23, by addition of </span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;"> </span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">an Explanation which clarifies that the
defence may set up a counter claim and such will be heard by the arbitral
tribunal even if exceeds the terms of reference to the Tribunal as long as the
claim is covered within the scope of the arbitration agreement.</span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;"> </span><span style="font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">The rationale for such a suggestion is self
evident.</span></span></li>
<li><span style="font-family: Times, Times New Roman, serif; font-size: 12pt; line-height: 115%; text-align: justify; text-indent: -0.25in;">Amendment
in Section 24 requiring that hearings and presentation of evidence be done on
continuous days to avoid parties seeking unnecessary adjournments which drive
up the cost of arbitration.</span></li>
</ol>
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">A significant and perhaps
underestimated change suggested by the Commission is the addition of Section 6A
which would lay down a regime for costs with a higher than expected adherence
to the ‘<i>costs follow the event’ </i>regime.
The effect of this clause is most likely to invisible since the purport of this
amendment would lie in its significant effect on legal strategy by parties,
many of whom have until now benefited without consequence from tactics which
inflate the costs of arbitration. If the
amendment is actually made, a significant decline in the filing of frivolous
claims may also be expected. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: 12.0pt; line-height: 115%;">Having delved into the
recommendations of the Commission, one can only hope that at the least, the
significant suggestions be adopted by means of relevant amendment to the Act. <o:p></o:p></span></div>
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<br />
<div>
<!--[if !supportFootnotes]--><span style="font-family: Times, Times New Roman, serif;"><br clear="all" /></span>
<br />
<hr align="left" size="1" width="33%" />
<!--[endif]-->
<br />
<div id="ftn1" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[1]</span></span><!--[endif]--></span></a> <i>Chloro Controls (I) P. Ltd.v.
Severn Trent Water Purification Inc. and Ors., </i>(2013) 1 SCC 641<o:p></o:p></span></div>
</div>
<div id="ftn2" style="text-align: left;">
<div class="MsoNormal">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><span style="line-height: 115%;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[2]</span></span><!--[endif]--></span></span></a><span style="line-height: 115%;">
<i>Bharat Aluminium Company and Ors. etc. v. Kaiser Aluminium Technical
Service, Inc. and Ors. etc</i>., (2012) 9 SCC 552]</span></span></div>
</div>
<div id="ftn3" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref3" name="_ftn3" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[3]</span></span><!--[endif]--></span></a> White Industries Australia Ltd
v. Republic of India, UNCITRAL, Final Award (November 30,2011) <o:p></o:p></span></div>
</div>
<div id="ftn4" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref4" name="_ftn4" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[4]</span></span><!--[endif]--></span></a> (2005) 8 SCC 618<o:p></o:p></span></div>
</div>
<div id="ftn5" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref5" name="_ftn5" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[5]</span></span><!--[endif]--></span></a> (2009) 1 SCC 267<o:p></o:p></span></div>
</div>
<div id="ftn6" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref6" name="_ftn6" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[6]</span></span><!--[endif]--></span></a> <i>Sukanya Holdings Pvt. Ltd. v.
Jayesh H. Pandya and Anr.</i>, (2003) 5 SCC 531<o:p></o:p></span></div>
</div>
<div id="ftn7" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref7" name="_ftn7" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[7]</span></span><!--[endif]--></span></a> <i>ONGC Ltd. v. Saw Pipes Ltd., </i>(2003)
5 SCC 705<o:p></o:p></span></div>
</div>
<div id="ftn8" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref8" name="_ftn8" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[8]</span></span><!--[endif]--></span></a> (2004) 1 SCC 540<o:p></o:p></span></div>
</div>
<div id="ftn9" style="text-align: left;">
<div class="MsoFootnoteText" style="line-height: 115%;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/goele/Downloads/Arb%20Blog.docx#_ftnref9" name="_ftn9" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[9]</span></span><!--[endif]--></span></a> (2010) 1 SCC 72)</span><span style="font-family: Times New Roman, serif;"><o:p></o:p></span></div>
</div>
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</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-66555720197872138332014-07-25T18:32:00.000+05:302014-08-26T13:44:07.364+05:30The Curious Case of Bitcoins - Part II<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background: white; font-size: 11pt;">In our<span class="apple-converted-space"> </span></span><span style="font-size: 11pt;"><a href="http://thelawgical.blogspot.in/2014/03/thecurious-case-of-bitcoins-part-i.html" target="_blank"><span style="background: white;">previous
pos</span></a><span style="background: white;">t, we have highlighted the
negative attitude of the Reserve Bank of India towards the use of BITCOINS.
However it is important to note that BITCOINS are not illegal per se. There is
tremendous scope for these trading units to be legalized in India. In this post
we seek to highlight the possible ways in which these units can be legalized.</span><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<b><u><span style="font-size: 11pt;"><br />
CURRENCY</span></u></b><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;"> 'Currency'
is defined as<span class="apple-converted-space"> </span><i>"<span class="apple-converted-space"> </span></i>currency notes, postal notes,
postal orders, money orders, cheques, drafts, travelers cheques, letters of
credit, bills of exchange and promissory notes, credit cards or <strong><span style="font-weight: normal;">such other similar instruments</span></strong>, as
may be notified by the Reserve Bank.<a href="file:///C:/Users/goele/Desktop/The%20Curious%20Case%20of%20BITCOINS.docx#_ftn1" name="_ftnref1">[1]</a>"
The definition gives the government wide powers to expand the scope of the
definition. This power can be used to include BITCOINS as a currency. However
as of now, a BITCOIN is not a currency as it does not satisfy the requirement
mentioned in the definition.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;"><br /></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<b><u><span style="font-size: 11pt;">SECURITY</span></u></b><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;">The
Securities Contracts (Regulation) Act, 1955 defines securities to include<a href="file:///C:/Users/goele/Desktop/The%20Curious%20Case%20of%20BITCOINS.docx#_ftn2" name="_ftnref2">[2]</a><span class="apple-converted-space"> </span>-<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;"><br /></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;">"(i)
shares, scrips, stocks, bonds, debentures, debenture stock or other marketable
securities of a like nature in or of any incorporated company or other body
corporate; (ia) derivative; (ib) units or any other instrument issued by any
collective investment scheme to the investors in such schemes; (ic) security
receipt as defined in clause (zg) of section 2 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002; (id) units or any other such instrument issued to the investors under any
mutual fund scheme; (ii) Government securities; (iia)<span class="apple-converted-space"> </span><i><u>such other instruments as may be
declared by the Central Government to be securities</u></i>; and (iii) rights
or interest in securities;”<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;"><br /></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;">The law
again gives the power to the government to include<span class="apple-converted-space"> </span><u>'such other instruments'</u><span class="apple-converted-space"> </span>as securities. Therefore there is
scope for bitcoins to be termed as securities. If the government does take this
decision to qualify BITCOINS as a security, it would give birth to a plethora
of regulations and guidelines issued by SEBI.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; mso-line-height-alt: 0pt; text-align: justify; vertical-align: baseline;">
<span style="font-size: 11pt;">However
currently BITCOINS doesn't qualify as a security as it doesn't fall under any
of the permissible heads mentioned in the definition.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b><u><span style="font-size: 11pt;">COMPUTER PROGRAMME</span></u></b><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<span style="background: white; font-size: 11pt;">The Indian Copyright Act,
1957, defines the term "computer programme<a href="file:///C:/Users/goele/Desktop/The%20Curious%20Case%20of%20BITCOINS.docx#_ftn3" name="_ftnref3">[3]</a>"
as "a set of instructions expressed in words, codes, schemes or in any
other form, including a machine readable medium, capable of causing a computer
to perform a particular task or achieve a particular result<i>.</i>"
BITCOIN is a code which facilitates the transfer of bitcoin currency from one
account to the other. Therefore BITCOINS can be regulated as a computer
programme under the existing legal regime. As computer programmes are movable
goods, therefore BITCOINS can also be categorized as a movable good.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<span style="background: white; font-size: 11pt;">Keeping in mind the
growing popularity of BITCOINS across the globe, it will be interesting to see
how the Government of India will regulate these virtual currencies in India.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
<u1:p></u1:p>
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<br />
<div>
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<br />
<hr align="left" size="1" width="33%" />
<!--[endif]-->
<br />
<div id="ftn1">
<div class="MsoFootnoteText" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/goele/Desktop/The%20Curious%20Case%20of%20BITCOINS.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 107%;">[1]</span></span><!--[endif]--></span></a> S <span style="background: white;">2(h) of the Foreign Exchange Management Act, 1999<span class="apple-converted-space"> </span></span><o:p></o:p></i></span></div>
</div>
<div id="ftn2">
<div class="MsoFootnoteText" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/goele/Desktop/The%20Curious%20Case%20of%20BITCOINS.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 107%;">[2]</span></span><!--[endif]--></span></a> S. <span style="background: white;">2(h) of the Securities Contracts (Regulation) Act, 1955</span><o:p></o:p></i></span></div>
</div>
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<div class="MsoFootnoteText" style="text-align: justify;">
<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/goele/Desktop/The%20Curious%20Case%20of%20BITCOINS.docx#_ftnref3" name="_ftn3" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 107%;">[3]</span></span><!--[endif]--></span></a>S. 2(ffc) of Indian Copyright
Act, 1957</i></span><o:p></o:p></div>
</div>
</div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-33552614384856865692014-06-22T18:05:00.000+05:302014-08-26T13:45:58.161+05:30Crowdfunding<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Times New Roman', serif;">Crowdfunding is a method of raising funds from
multiple investors over the web for a specific project, business venture or a
social cause. The United States of America and the United Kingdom are seen as
dominant players in this kind of funding. Crowdfunding has developed as an
alternative means of raising funds, especially for start-ups and SMEs. Another
reason for the popularity of this form of fund generation is the financial
crisis in 2008 which resulted in restricted fund allocation by banks thereby
giving rise to the need for an alternative method of funding.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<br /></div>
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<span style="font-family: 'Times New Roman', serif;">Funding through this
method has grown exponentially especially with innovative start-up companies.
Max Gunawan’s startup managed to raise close to $600,000 in a span of 30 days
through the process of crowdfunding. Julie Urman, a video game developer,
raised close to $9 Million within a span of 30 days.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">There are multiple types
of crowdfunding:<o:p></o:p></span></div>
<ol start="1" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="margin-bottom: 0.0001pt;"><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">Donation
crowdfunding: As the name suggests it involves generation of funds for
charity and philanthropic purposes.<o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 0.0001pt;"><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";"> Reward
crowdfunding: A form of funding which is dependent on a future of existing
reward as consideration.<o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 0.0001pt;"><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">Peer-to-Peer
lending: Is an online platform where lenders and borrows are matched for
unsecured loans and the interest rate is determined or set by this
platform.<o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 0.0001pt;"><span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">Equity
Crowdfunding: As the name suggests, funds are generated with equity of the
funded company as consideration.<o:p></o:p></span></li>
</ol>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">The United States and
the United Kingdom have regulations on crowdfunding. India has seen the growth
of this kind of funding, but it still stands unregulated. Recently SEBI
released a <a href="http://www.sebi.gov.in/cms/sebi_data/attachdocs/1403005615257.pdf"><span style="color: blue;">consultation paper</span></a> on crowdfunding which
discusses the methods, risks and advantages of this form of funding. It
provides a comprehensive note on the regulations in other countries and
pinpoints the regulations which can affect crowdfunding in India. The
provisions of the Companies Act, 2013 and various SEBI Regulations such as ICDR
has been discussed.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">Crowdfunding can be
categorized as a form of private placement, therefore the provisions of the
Companies Act, 2013 are attracted. Advertisements by companies raising money
through private placements is prohibited and securities cannot be issued to
more than 200 persons. However, QIBs and employees availing the employee stock
option by companies are excluded. Further such offers can be made only to such
persons whose names are recorded by the company prior to the invitation to
subscribe.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">However, as mentioned
above, Companies Act, 2013 provides a window for making private placement
offers to Qualified Institutional Buyers (QIBs) and the 'limit of 200' is not
applicable to such QIBs. QIBs are the entities such as a MF, Foreign Portfolio
Investor (FPI), AIF, Scheduled Commercial Bank, IRDA registered Insurance
company etc. as defined in SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2009. This exception can therefore be exploited in order to
generate funds under crowdfunding. <o:p></o:p></span></div>
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<br /></div>
<br />
<div class="MsoNormal" style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; mso-line-height-alt: 0pt; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">Given
the high-level of risks associated with this new way of fund-raising activity,
SEBI has proposed that only '<i>accredited investors</i>' be allowed to
participate in crowdfunding activities. Such investors would include
institutional investors, companies, HNIs and financially-secure retail
investors advised by investment advisors or portfolio managers. SEBI
has clarified that no regulations are under construction and this consultation
paper is merely a medium to understand and garner public opinion on crowdfunding. <o:p></o:p></span></div>
</div>
</div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-641220598905849865.post-56769157634510204452014-04-17T13:40:00.001+05:302014-08-26T13:48:31.443+05:30Transgender, a New Gender: Recognizing the T in LGBT<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Times New Roman', serif;"><a href="http://judis.nic.in/supremecourt/imgs1.aspx?filename=41411"><span style="color: blue;">On 15th April 2014 the Supreme Court of India</span></a> gifted
India with the recognition of a new gender – Transgender. By allowing the
petition filed by National legal Services Authority, the Court held that
trans-genders have the right to equality under Article 14 and the right to live
with dignity under Article 21.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">The Court defined
Transgender to mean a person whose gender identity, gender expression
or behavior does not conform to their biological sex.
Transgender are persons who do not identify with their sex assigned at birth,
which include Hijras/Eunuchs and they do not identify themselves as either male
or female. Hijras are not men by virtue of anatomy appearance and
psychologically, they are also not women, though they are like women with no female
reproduction organ and no menstruation. Since Hijras do not have reproduction
capacities as either men or women, they are neither men nor women and claim to
be an institutional “third gender”. Among Hijras, there are emasculated
(castrated, nirvana) men, non-emasculated men (not castrated/akva/akka) and
inter-sexed persons (hermaphrodites). Transgenders also include persons who
intend to undergo Sex Re-Assignment Surgery (SRS) or have undergone SRS to
align their biological sex with their gender identity in order to become male
or female. Further, there are persons who like to cross-dress in clothing of
opposite gender, i.e transvestites.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: 'Times New Roman', serif;">Gender Identity and
Sexual Orientation</span></b><span style="font-family: 'Times New Roman', serif;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">The Court differentiated
between gender identity and sexual orientation. Gender identity refers to each
person’s deeply felt internal and individual experience of gender, which may or
may not correspond with the sex assigned at birth, including the personal sense
of the body which may involve a freely chosen, modification of bodily
appearance or functions by medical, surgical or other means and other
expressions of gender, including dress, speech and mannerisms. Gender identity,
therefore, refers to an individual’s self-identification as a man, woman,
transgender or other identified category. While sexual orientation refers to an
individual’s enduring physical, romantic and/or emotional attraction to another
person. It includes within its ambit transgender and gender-variant people with
heavy sexual orientation and their sexual orientation may or may not change
during or after gender transmission which also includes homosexuals etc.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">By keeping in mind the
above difference and identifying the need to adhere to international
obligations under the UDHR, ICESCR, ICCPR and Yogakarta Principles the Supreme
Court of India recognized the need to protect the rights of transgenders.
Due to the absence of suitable legislation protecting the rights of the
members of the transgender community, they are facing discrimination in various
areas and hence the necessity to follow the International Conventions to which
India is a party and to give due respect to other non-binding International
Conventions and principles. Constitution makers could not have envisaged that
each and every human activity be guided, controlled, recognized or safeguarded
by laws made by the legislature the Court relied on the following points while
guaranteeing the much needed rights:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: 'Times New Roman', serif;">Article 14:</span></b><span style="font-family: 'Times New Roman', serif;"> Article 14 of the Constitution of India ensures equal
protection and therefore imposes a positive obligation on the states to ensure
the same. Article 14 does not restrict the word ‘person’ and its application
only to male or female. Hijras/transgender persons who are neither male/female
fall within the expression ‘person’ and, hence, entitled to legal protection of
laws in all spheres of State activity, including employment, healthcare,
education as well as equal civil and citizenship rights, as enjoyed by any
other citizen of this country.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: 'Times New Roman', serif;">Article 15 & 16</span></b><span style="font-family: 'Times New Roman', serif;">: prohibit discrimination against any citizen on certain
enumerated grounds, including the ground of ‘sex’. In fact, both the Articles
prohibit all forms of gender bias and gender based discrimination. Both gender
and biological attributes constitute distinct components of sex. The
discrimination on the ground of ‘sex’ under Articles 15 and 16, therefore,
includes discrimination on the ground of gender identity. The expression ‘sex’
used in Articles 15 and 16 is not just limited to biological sex of male or
female, but intended to include people who consider themselves to be neither
male or female.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;"> <b>Article 19</b>:
Provides that all persons have the freedom of speech and expression. Therefore
no restriction can be put on the basis of appearance, dressing, words or any
other form. However this is subject to Article 19(2). Gender identity lies at
the core of one’s personal identity, gender expression and presentation and,
therefore, it will have to be protected under Article 19(1)(a) of the
Constitution of India.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif;">Article 21:</span></b><span style="font-family: 'Times New Roman', serif;"> Article 21 protects the dignity of human life, one’s
personal autonomy, one’s right to privacy, etc. Right to dignity has been
recognized to be an essential part of the right to life and accrues to all
persons on account of being humans. Recognition of gender forms the essence of
human dignity. Legal recognition of gender identity is, therefore, part of
right to dignity and freedom guaranteed under our Constitution.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">Keeping in mind the
above points the Supreme Court held that Hijras, Eunuchs, be treated as “third
gender” for the purpose of safeguarding their rights under Part III of
Constitution of India. The Court directed the Central and State Governments to
recognize this new gender identity, treat them as socially and educationally
backward classes of citizens and extend all kinds of reservation in cases of
admission in educational institutions and for public appointments. Further
steps must be taken operate separate HIV Sero-survellance Centres since Hijras/
Transgenders face several sexual health issues and steps must be taken to
address the problems being faced by Hijras/Transgenders such as fear, shame,
gender dysphoria, social pressure, depression, suicidal tendencies, social
stigma, etc. and any insistence for SRS for declaring one’s gender is immoral
and illegal. Lastly, the Court insisted on proper steps should be taken
measures to provide medical care to Transgenders in the hospitals and also
provide them separate public toilets and other facilities.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif;">In our opinion this is a
remarkable judgment and addresses the need of the hour – recognition of
alternate genders. This judgement, understandably contains a disclaimer stating
that the issue of constitutionality of Section 377 of IPC is finally settled in <i>NAZ
foundation</i> and therefore reserves its opinion on the same.<i> </i>It
is interesting to note that the Supreme Court in its judgement in <i>NAZ</i> relied
on a binary understanding of the term ‘gender’
while categorizing homosexual intercourse as “against the order of
nature”. This presumption of the existence of only two genders must affect
the understanding of the Court as to the true meaning of the “order of nature”.<o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-32108439663526180552014-04-02T21:52:00.000+05:302014-08-26T14:34:05.866+05:30The Securities Laws (Amendment) Ordinance, 2014: Re - Promulgated<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-align: justify;">The President of India re - promulgated </span><a href="http://www.slideshare.net/slideshow/embed_code/32973717" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-align: justify;" target="_blank">The Securities Law Ordinance 2014</a><span style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-align: justify;">. SEBI has been given the power to rely on
telephone records for the purposes of investigation and evidence collection.
The following post will discuss the powers of SEBI under the ordinance.</span></div>
</div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">The Securities and Exchange Board of India Act,
1992 was enacted to provide for the establishment of a board to protect the
interests of investors in securities and to promote, develop and regulate the
securities market<a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="background-position: initial initial; background-repeat: initial initial; color: black; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">[1]</span></span><!--[endif]--></span></a>. Under the ordinance, SEBI
is empowered to call for information, conduct investigations, inquiries and
audits.<a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn2" name="_ftnref2" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="background-position: initial initial; background-repeat: initial initial; color: black; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">[2]</span></span><!--[endif]--></span></a>
It can call for relevant information and records from any person including any
bank and any other authority, board or corporation established or constituted
by or under the Central or State Acts.<span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="background-position: initial initial; background-repeat: initial initial; color: black; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn3" name="_ftnref3" title="">[3]</a></span></span><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn3" name="_ftnref3" title=""><!--[endif]--></a></span>
<o:p></o:p></span></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><br /></span></span></span></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">The Board is empowered to investigate, if it has
reasonable grounds to believe that the securities transaction is detrimental to
investors or the securities market and if any person has violated the
provisions of the Act.<a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn4" name="_ftnref4" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="background-position: initial initial; background-repeat: initial initial; color: black; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">[4]</span></span><!--[endif]--></span></a>
The Investigating authority, appointed by the Board, is empowered to do the
following:<o:p></o:p></span></div>
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<span style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-indent: -18pt;"> 1. Require any intermediary or person to furnish such information, produce
records, books, registers or other documents before it</span><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn5" name="_ftnref5" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-indent: -18pt;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-US" style="color: black; font-size: 12pt; line-height: 115%;">[5]</span></span></span></a><span style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-indent: -18pt;">.
The Authority will be permitted to keep such records for a period of six months
only</span><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn6" name="_ftnref6" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-indent: -18pt;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-US" style="color: black; font-size: 12pt; line-height: 115%;">[6]</span></span></span></a><span style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-indent: -18pt;">.</span></div>
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<span lang="EN-US" style="text-indent: -18pt;"><span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"><br /></span></span></div>
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<span lang="EN-US" style="text-indent: -18pt;"><span style="font-family: Times New Roman, serif;"><span style="background-color: white; line-height: 24px;">2. </span></span><span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span lang="EN-US" style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%; text-indent: -18pt;">If the Investigating Authority has reason to believe that any person or
enterprise to whom a notice has been issued or might be issued, (1) has omitted
or failed to provide the information; (2) would not provide the information and
not produce the required documents or, (3) would destroy, mutilate, alter,
falsify or secrete the information or documents, then the Chairman may
authorize the Investigating Authority to do any of the following<a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn7" name="_ftnref7" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN-US" style="color: black; font-size: 12pt; line-height: 115%;">[7]</span></span></span></a>:</span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-left: 72.0pt; mso-add-space: auto; mso-list: l0 level2 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">a.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Enter and search the building, place, vessel, vehicle or aircraft where
the information is expected to be kept.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-left: 72.0pt; mso-add-space: auto; mso-list: l0 level2 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">b.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Break open the lock of any door, box, locker, safe almariah where the
keys are not available.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">c.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Search any person.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-left: 72.0pt; mso-add-space: auto; mso-list: l0 level2 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">d.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Require any person who is found to be in possession or control of any
books of accounts or documents which are maintained in electronic form to
provide the facility to investigate such books and documents. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-left: 72.0pt; mso-add-space: auto; mso-list: l0 level2 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">e.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Seize any books and documents.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-left: 72.0pt; mso-add-space: auto; mso-list: l0 level2 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">f.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Place identification marks and extract copies of books and documents.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-left: 72.0pt; mso-add-space: auto; mso-list: l0 level2 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">g.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Record on oath the statement of any person in possession or in control
of such books and documents.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18.0pt;">
<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> 3. The Board must make regulations in relation to search and seizure. The
regulations must provide the procedure to be followed by Authorized Officers
for obtaining ingress into any building, place, vessel, vehicle or aircraft. It
must also provide the procedure for ensuring safe custody of any books,
documents or assets seized.<a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn8" name="_ftnref8" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="background-position: initial initial; background-repeat: initial initial; color: black; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">[8]</span></span><!--[endif]--></span></a>
The books and documents seized under the Act must be returned after the
conclusion of the investigation.<span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="background-position: initial initial; background-repeat: initial initial; color: black; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn9" name="_ftnref9" title="">[9]</a></span></span></span></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-size: 11.0pt;"><br /></span></div>
<div class="MsoListParagraphCxSpLast" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18.0pt;">
<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"><span class="MsoFootnoteReference"><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftn9" name="_ftnref9" title=""><!--[endif]--></a></span><o:p></o:p></span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-size: 11.0pt;"> The re - promulgated ordinance is in
almost all respects identical to the earlier issued ordinance. However it does
contain some significant changes. One of the most significant of them compared
to the earlier ordinance is the provision providing SEBI with the power to supersede an order
issued by an adjudicating officer where <i>it
considers </i>”<i> </i>that the order is
erroneous to the extent that it is <i>not in
the interest of the securities market.</i>” <i>[New
provision Section 15-I (3)]</i> However the power of the SEBI extends only to
increasing the quantum of penalty. This presents a difficult situation, where
the adjudicating officer under the act being under an implied obligation to act
fairly may be overruled on the point of amount of compensation by one of the
parties appearing before the Officer. This, in addition to the fact that the
Adjudicating Officer is appointed from the ranks of SEBI under Section 15-I is
a matter of concern in assessing the independence of the adjudicating officer.
Given that the already existing remedy to approach the SAT remains unscathed
the overriding powers of the SEBI represents an additional adjudication stage.
One must however note that the overriding powers of the SEBI are restricted to
enhancement of the penalty and does not extend to overruling questions of
whether or not a violation has occurred. <o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-size: 11.0pt;"><br /></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-size: 11.0pt;">The other significant change is the fact
that a safeguard has been put in place vide an amendment in Section 11C (8) requiring
written reasons for authorizing a search and seizure operation. <o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-size: 11.0pt;"><br /></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-size: 11.0pt;">In addition to addressing the
investigative powers of SEBI relating to offences under the SEBI Act the
ordinance covers provisions for settlement of administrative and civil
proceedings as well as establishment of special courts as amendments to the
SEBI Act, 1992. The ordinance also contains amendments to the Securities
Contract Regulation (Regulation) Act, 1956 and Depositories Act, 1996 which
enable SEBI to exercise similar investigative powers offences prescribed the
respective acts.<o:p></o:p></span></div>
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<!--[if !supportFootnotes]--><br clear="all" />
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[1]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Preamble, Securities and Exchange Board of India Act, 1992<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[2]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Section 11(2)(i), Securities and Exchange Board of India Act, 1992<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref3" name="_ftn3" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[3]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Section 11(2)(ia), The Securities (Amendment) Second Ordinance,
2013<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref4" name="_ftn4" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[4]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Section 11C, Securities and Exchange Board of India Act, 1992<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref5" name="_ftn5" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[5]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Section 11C(3), Securities and Exchange Board of India Act, 1992<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref6" name="_ftn6" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[6]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Section 11C(4), Securities and Exchange Board of India Act, 1992<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref7" name="_ftn7" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[7]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> Section 11C(8), Inserted vide The Securities Laws (Amendment)
Second Ordinance, 2013<o:p></o:p></span></i></span></div>
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Second Ordinance, 2013<o:p></o:p></span></i></span></div>
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<a href="file:///C:/Users/Esha/Downloads/Blog.docx#_ftnref9" name="_ftn9" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="line-height: 115%;">[9]</span></span><!--[endif]--></i></span></span></a><span lang="EN-US"><span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i> Regulation 11C(10), Securities and Exchange Board of India, 1992
(Refer: The Securities Laws (Amendment) Second Ordinance, 2013.</i></span><o:p></o:p></span></div>
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Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-641220598905849865.post-30257676994612999832014-03-23T13:14:00.000+05:302014-08-26T14:39:43.516+05:30Electronic Surveillance and Right to Privacy: Stuck between a Rock and a Hard Place.<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-align: justify;">Big
brother surveillance techniques have sparked much debate on the conflict that
exists between the right to privacy and the duty to protect security of state. The
conflicting judgments of two US courts on the constitutionality of NSA’s bulk
surveillance programme is interesting to note. This post highlights the
conflict and also gives a brief overview of the Big brother surveillance
techniques that exist in India.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">On
June 6, 2013 the plaintiffs brought the <a href="http://sensenbrenner.house.gov/uploadedfiles/klayman_v._obama.pdf" target="_blank">first of two related</a> lawsuits
challenging the constitutionality and statutory authorization of certain
intelligence gathering practices relating to the wholesale collection of phone
record metadata and internet activity of all US Citizens<a href="file:///C:/Users/Esha/AppData/Local/Packages/microsoft.windowscommunicationsapps_8wekyb3d8bbwe/LocalState/LiveComm/5eb1f4563be86c20/120712-0049/Att/2000894f/NSA%20%20Constitutionality%20note.docx#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 12pt; line-height: 115%;">[1]</span></span><!--[endif]--></span></a>.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
Court found that it does not have the authority to evaluate the constitutional
challenge on one of the lawsuits, one claiming that government has exceeded its
statutory authority under the Foreign Intelligence Surveillance Act (“FISA”). However the Court did find sufficient basis
for jurisdiction and authority to evaluate the NSA’s conduct on constitutional
challenges, notwithstanding the fact that it was done pursuant to orders issued
by the Foreign Intelligence Surveillance Court (“FISC”).<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
Court granted in part, the Motion for Preliminary injunction. In spite of
granting this injunction, the judge himself stayed his order in view of the
“significant national security interests at stake in this case and novelty of
the constitutional issues” pending appeal.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">In
a significant statement the Court said<o:p></o:p></span><br />
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<i><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">“Plaintiffs have a substantial likelihood of showing that
their privacy interests outweigh the government’s interest in collecting and
analysing bulk telephony metadata and therefore the NSA’s bulk collection
program is indeed an unreasonable search under the fourth amendment.” <o:p></o:p></span></i></div>
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<i><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><br /></span></i></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">The almost-Orwellian technology that enables
the government to store and analyze the phone metadata of every telephone user
in the United States is unlike anything that could have been conceived in 1979.
<o:p></o:p></span></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">The reference to the year is to distinguish a
US Supreme Court Case called <i>Smith v. Maryland<a href="file:///C:/Users/Esha/AppData/Local/Packages/microsoft.windowscommunicationsapps_8wekyb3d8bbwe/LocalState/LiveComm/5eb1f4563be86c20/120712-0049/Att/2000894f/NSA%20%20Constitutionality%20note.docx#_ftn2" name="_ftnref2" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span lang="EN-US" style="font-size: 12pt; line-height: 115%;">[2]</span></b></span><!--[endif]--></span></a><b> </b></i>where
the question before the Court was whether local police could collect phone
records after the pen register was installed for the limited purpose of
investigating a case of harassing phone calls. The US Supreme Court held that
such surveillance is in compliance with the fourth amendment. The NSA relies
heavily on this precedent to justify its bulk surveillance programme. <o:p></o:p></span></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">The judge in the instant case stated that the
extension of the precedent in <i>Smith</i>
would be “stuff of science fiction”. <o:p></o:p></span></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><br /></span></div>
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<span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">The judge also remarked<o:p></o:p></span></div>
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<i><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">“I cannot imagine a more "</span></i><i><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">indiscriminate</span></i><i><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">"
and "arbitrary invasion" than this systematic and high- tech
collection and retention of personal data on virtually every single citizen for
purposes of querying and analyzing it without prior judicial approval. Surely,
such a program infringes on "that degree of privacy" that the
Founders enshrined in the Fourth Amendment. Indeed, I have little doubt that
the author of our Constitution, James Madison, who cautioned us to beware
"the abridgement of freedom of the people by gradual and silent
encroachments by those in power," would be aghast."</span></i><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><o:p></o:p></span></div>
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<i><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><br /></span></i></div>
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<br /></div>
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<span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">In a span of about 10
days a similar question came up before <b><i><a href="https://www.aclu.org/files/assets/order_granting_governments_motion_to_dismiss_and_denying_aclu_motion_for_preliminary_injunction.pdf" target="_blank">American Civil Liberties Union Et. Al v.James Clapper et. al</a><a href="file:///C:/Users/Esha/AppData/Local/Packages/microsoft.windowscommunicationsapps_8wekyb3d8bbwe/LocalState/LiveComm/5eb1f4563be86c20/120712-0049/Att/2000894f/NSA%20%20Constitutionality%20note.docx#_ftn3" name="_ftnref3" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span lang="EN-US" style="font-size: 12pt; line-height: 115%;">[3]</span></b></span><!--[endif]--></span></a>
</i></b><i> </i>before the United States District Court
Southern District of New York. In a similar set of facts, the Plaintiffs
challenged the legality of NSA’s telephony metadata collection program. The
Court denied the claims and allowed the Government’s motion to dismiss. It
ruled that the state interest was reasonable and not violative of the fourth
amendment right and security of state supersedes the right to privacy.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><br /></span></div>
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<u>Big Brother Surveillance in India:</u></div>
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<span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">In the recent past,
India has also introduced several bulk surveillance programmes which seek to
closely monitor communications and movements of citizens. Such programmes are
giving wings to various governmental departments to rely on databases which
contain private information such as, tax details, PAN numbers, date of birth
etc. the following paragraphs will throw some light on these technologies:<o:p></o:p></span></div>
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<b style="text-indent: -18pt;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b>
<br />
<ol>
<li><b style="text-indent: -18pt;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">CMS</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%; text-indent: -18pt;">:
The Central Monitoring System is an initiative by the Ministry of
Telecommunications which will empower governmental departments such as
intelligence agencies and tax authorities to intercept telephone messages,
calls, emails and VoIP. It is stated that this project is in line with Section
5 of the Indian Telegraph Act, 1885 and is secure as it has a strong inbuilt
mechanism to protect the privacy of information stored. We believe that this clearly
impinges upon the right to privacy. The lack of public documentation which
highlights the effects and manner of implementation of the project raises
concerns. Secondly, the concept of necessity has been done away with as
information will be monitored even when there is no threat to security of
state. Thirdly, by including tax authorities in the list of authorised
departments the Government has gone beyond the ruling of the Supreme Court
which stated that economic emergency is not national emergency.</span></li>
<li><b style="text-indent: -18pt;"><span lang="EN-US" style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">NATGRID:</span></b><span lang="EN-US" style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -18pt;"> is a project introduced after the gruesome 26/11
attacks and envisions networking 21 databases for purposes of crime
investigation including tax, health, and travel information. The information
will be accessible to 11 security agencies and law enforcement agencies. </span><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%; text-indent: -18pt;">Supporters
of the project claim that the project is merely a technical interface for
intelligence agencies and is a security initiative, thereby forming a
reasonable restriction to privacy. One of the biggest hurdles to is the
protection of information and lack of adequate safety equipment. Establishment
of such grids will pose a huge risk of data loss due to hacking and
contamination. Further NATGRID will not help in preventing attacks like 26/11
because the nodal defense departments are not privy to the information. The
Government has also failed to define the legal status of the project, which poses
huge concerns for privacy.</span></li>
<li><b style="text-indent: -18pt;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">UAV</span></b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%; text-indent: -18pt;">:
Unmanned Ariel Vehicles are being used by the police to monitor large crowds
and traffic. The Mumbai police recently used UAV ‘Netra’ to monitor large
crowds during the Raj Thackrey rally. The use of these vehicles for concerns
other than combating terrorism is an infringement of privacy as restoration of
public order does not qualify as public emergency. Further there is no clarity
on how the information is collected, stored and accessed.</span></li>
<li><b style="text-indent: -18pt;"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">CCTV</span></b><span lang="EN-US" style="color: #333333; font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%; text-indent: -18pt;">: CCTV cameras have
been installed by many metro cities in public places such as railway stations
and metro stations. These have been installed under simple executive orders and
no clear safeguards exist with regard to how this information is stored,
processed, accessed and monitored. The recent Privacy Protection Bill, 2011 is
the only parliamentary step which seeks to regulate information and footage
collected through such cameras. However the Bill is still at its infancy and it
will take a lot of time before this data protection legislation becomes the law
of the land.</span></li>
</ol>
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<span lang="EN-US" style="color: #333333; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
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<span lang="EN-US" style="color: #333333; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><u>Big Brother Surveillance: Cross Border Remedy:</u></span></div>
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<span lang="EN-US" style="color: #333333; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">As India’s privacy law
is modeled on the American jurisprudence, such conflicting decisions are bound
to affect the law on bulk surveillance and privacy in the country. It is
interesting to note that the NSA’s bulk surveillance programme also keeps tabs
on communications that happen within India. This was challenged before the Hon’ble
Supreme Court of India in </span><i style="text-align: left;"><span style="font-size: 11.5pt;">S.N. Singh Patron Baanaana.com v Union of India</span></i><span lang="EN-US" style="color: #333333; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">. </span><span lang="EN-US" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">The Supreme Court dismissed
a petition on the grounds that Article 32 can be invoked only against the
state, hence other civil remedies must be resorted to.</span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Such
lack of remedies poses a huge concern for the citizens of India, as there is no
redressal for cross border surveillance which clearly impinges upon the privacy
of an individual.</span><span lang="EN-US" style="color: #333333; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<span style="font-family: Times New Roman, serif;"><span style="line-height: 18.399999618530273px;"><u>Conclusion:</u></span></span></div>
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<span lang="EN-US" style="color: #333333; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">It is our opinion that
there is a need to strike a balance between the states duty to protect the
right to privacy and ensure security of state. Article 21, while encompassing
the right to be left alone also provides that the same can be abridged in
accordance to reasonable procedure established by law. Taking a cue from this
exception, several Supreme Court cases have held privacy to be subservient to
security of state. The need for surveillance is justified as there is a duty on
states to protect public order and state security under Article 38 of the Constitution
of India. But this Directive Principle of State Policy must be read with Part
III as both form an essential part of fundamental governance of state. Hence the
big brother surveillance techniques are in direct conflict with the right to privacy.
These programmes must get Parliamentary approval and can be regarded as
reasonable exceptions only if strong steps are taken towards protecting the
data collected.</span><b><span lang="EN-US" style="background: white; color: #333333; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></b></div>
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<span style="font-size: xx-small;"><a href="file:///C:/Users/Esha/AppData/Local/Packages/microsoft.windowscommunicationsapps_8wekyb3d8bbwe/LocalState/LiveComm/5eb1f4563be86c20/120712-0049/Att/2000894f/NSA%20%20Constitutionality%20note.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="color: black; font-family: "Times New Roman","serif"; line-height: 115%;">[1]</span></span><!--[endif]--></span></a>
<i>Klayman et al v. Obama </i>Civil Action No. 13-0851 (RJL) Filed December 16, 2013
<o:p></o:p></span></div>
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<span style="font-size: xx-small;"><a href="file:///C:/Users/Esha/AppData/Local/Packages/microsoft.windowscommunicationsapps_8wekyb3d8bbwe/LocalState/LiveComm/5eb1f4563be86c20/120712-0049/Att/2000894f/NSA%20%20Constitutionality%20note.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><span lang="EN-US"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Calibri","sans-serif"; line-height: 115%;">[2]</span></span><!--[endif]--></span></span></a><span lang="EN-US"> </span><i><span lang="EN-US" style="background: white; color: #333333; font-family: "Times New Roman","serif";">442 U.S. 735 (1979</span></i><o:p></o:p></span></div>
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<span style="font-size: xx-small;"><a href="file:///C:/Users/Esha/AppData/Local/Packages/microsoft.windowscommunicationsapps_8wekyb3d8bbwe/LocalState/LiveComm/5eb1f4563be86c20/120712-0049/Att/2000894f/NSA%20%20Constitutionality%20note.docx#_ftnref3" name="_ftn3" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="color: black; font-family: "Times New Roman","serif"; line-height: 115%;">[3]</span></span><!--[endif]--></span></a><i>ACLU v Clapper </i>13
Civ. 3994 (WHP) <o:p></o:p></span></div>
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Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-641220598905849865.post-39169726963397150352014-03-18T01:00:00.001+05:302014-08-26T14:49:56.762+05:30Better Late Than Never: Rights for Street Vendors<div dir="ltr" style="text-align: left;" trbidi="on">
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<span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">On February 19, 2014 the Rajya Sabha passed the <a href="http://egazette.nic.in/WriteReadData/2014/158427.pdf"><span style="color: blue;">Street Vendors (Protection of Livelihood and Regulation of
Street Vending) Act, 2014</span></a> and it received the President’s
assent earlier this month. This Act is a welcome step towards protecting the
right to life and livelihood of the poor. This post seeks to provide an
insight into this legislative attempt.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span background:white="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The
Minister of Housing and Urban Poverty Alleviation, Dr.Girija Vyas while
introducing the Bill in the Lok Sabha stated that street vending is a means
of self-employment for the poor and also provides affordable and convenient
services to a majority of the urban population. She further emphasized that </span><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">these vendors must be able to pursue their
livelihoods in a congenial and harassment free atmosphere. This Bill was
passed by Lok Sabha on the 24<sup>th</sup> August, 2013 and transmitted
to Rajya Sabha for its concurrence. The Rajya Sabha passed the Bill with
amendments at its sitting held on the <a href="http://164.100.47.132/lob/15/XV/SLOB20.2.2014.pdf"><span style="color: blue;">19th February, 2014</span></a>.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">This legislative action reminds us of the decision
passed by the Supreme Court in the case of <i>Olga Tellis v Union of
India</i></span><a href="https://www.blogger.com/null" name="_ftnref1"><b><i><span lang="EN-GB" style="font-family: '', serif, '', serif; font-size: 12pt;">[1]</span></i></b></a><i><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> </span></i><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">where the
Court held that eviction of slum dwellers, over 50 percent of whom were
street vendors, without alternative housing or arrangements would violate
their right to life and livelihood under Article 21 of the Constitution of
India. In its decision the Court did pay heed to the fact that the eviction
would possibly interfere with their rights under Article 19(1)(g) as well. The
decision was rendered in the context of eviction of slum dwellers who were
evicted by the Bombay Municipal Corporation without any alternate
arrangement.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The decision of the
Supreme Court in <i>Sodan Singh v. NDMC</i></span><a href="https://www.blogger.com/null" name="_ftnref2"><b><i><span style="font-family: '', serif, '', serif; font-size: 12pt;">[2]</span></i></b></a><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> is also of
relevance. The Court stated that “<i>If properly regulated according to the
exigency of the circumstances, the small traders on the side walks can
considerably add to the comfort and convenience of the general public,
by making available ordinary articles of everyday use for </i></span><i><span style="font-family: ""serif"","serif"; font-size: 12.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">a comparatively
lesser price. An ordinary person, not very affluent, while hurrying towards
his home after a day’s work can pick up these articles without going out of
his way to find a regular market. The right to carry on trade or business
mentioned in Article 19(1)(g) of the Constitution, on street pavements, if
properly regulated cannot be denied on the ground that the streets are meant
exclusively for passing or re-passing and no other use.”</span></i><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">These decisions have important implications not only
the provisions of the Street Vendors Act, 2014 but also on the existing
jurisprudence on the subject. </span><span background:white="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">.This Act garners
the spirit of these famous cases and clearly provides for the protection of
livelihood rights, social security of street vendors and regulation of urban
street vending in the country.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The Act defines a
street vendor to include a person engaged in vending of articles, goods,
wares, food items or merchandise of everyday use or offering services to the
general public, in a street, lane, side walk, footpath, pavement, public park
or any other public place or private area, from a temporary built up
structure or by moving from place to place and includes hawker, peddler,
squatter and all other synonymous terms which may be local or region
specific.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><u><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Salient Features of
the Act:</span></u></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Town Vending
Committee</span></b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">;
The Act envisions the formulation of a scheme, under which a ‘Town vending
Committee’ shall be established. This Committee will be responsible for
conducting surveys such that ‘vending zones’ can be clearly established. This
survey is to be conducted every 5 years after the first survey is completed. </span><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">All existing street vendors, identified in the
survey, will be accommodated in the vending zones subject to a norm
conforming to 2.5% of the population of the ward or zone or town or city.
Where the number of street vendors identified are more than the holding
capacity of the vending zone, the Committee is required to carry out a draw
of lots for issuing the certificate of vending for that vending zone and the
remaining persons will be accommodated in any adjoining vending zone to avoid
relocation. </span><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Further
the committee is responsible for issuing vending certificated to vendors.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The Town Vending
Committee’s composition is one commendable feature of this Act. The Committee
is to have 40 per cent representation from the Street Vendors on the basis of
an election as per prescribed rules. Another 10 percent will be the
NGOs working in the field. The rest of the members are to be nominated by the <i>Appropriate
Government</i></span><a href="https://www.blogger.com/null" name="_ftnref3"><b><i><span style="font-family: '', serif, '', serif; font-size: 12pt;">[3]</span></i></b></a><i><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">. </span></i><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The Committee will
have the Municipal Commissioner or Chief Executive Officer as the
Chairperson.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Vending
Certificates:</span></b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> The
Act seeks to provide all vendors with a certificate upon payment of a nominal
fee. The certificate will clearly highlight the vending zone, time allocated
for vending, conditions and restrictions for vending. This certificate is
issued for a specified period of time and can be renewed upon expiry. The
certificate is issued under three main categories (a) a stationary vendor;
(b) a mobile vendor; or (c) any other category as may be specified in the
scheme.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Rights of street
vendors:</span></b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> Vendors
now have the right to carry on business subject to the terms and conditions
of the vending certificate. In case of eviction street vendors can demand a
new site to carry on the business. Street vendors can now exercise the
statutory right to object to relocation or eviction until the survey is in
progress. </span><span lang="EN-GB" style="font-family: ""serif"","serif"; font-size: 12.0pt; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">In case a street vendor, to whom a
certificate of vending is issued, dies or suffers from any permanent
disability or is ill, one of his family member i.e. spouse or dependent child
can vend in his place, till the validity of the certificate of vending.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Duties of street
vendors: </span></b><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The
Act also enlists a few duties of a street vendor. These include general
duties to maintain cleanliness and public hygiene in the vending zones,
adherence to conditions of certificate maintenance of public property in the
vending zones. Street Vendors are also obligated to pay periodic maintenance
charges for facilities provided in the vending zones in addition to the
prescribed vending fee. Street vendors must also remove goods and wares at
the end of their time sharing period.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Relocation:</span></b><span en-gb="" lang="EN-GB" mso-ansi-language:="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> The Act provides a clear procedure for relocation of vendors in
case they are inhabiting an area which has been declared as a non – vending
zone. The vendors are entitled to 30 days of notice before relocation.
Additionally the authorities have been empowered to seize the goods in such
case. In case they don’t relocate, they will be liable to pay for every day of
default.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Redressal of Grievances: </span></b><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Under the provisions of the Act, the <i>Appropriate
Government</i> may constitute one or more committees consisting of a
Chairperson who has been a civil judge or a judicial magistrate and two other
professionals. Every street vendor who has a grievance or dispute may make an
application in writing to the committee. The Committee is to then verify,
conduct enquiry and take steps for redress the grievance. Decisions of the
committee may appeal to the local authority.</span><a href="https://www.blogger.com/null" name="_ftnref4"><span lang="EN-GB" style="font-family: '', serif, '', serif; font-size: 12pt;">[4]</span></a><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Plan:</span></b><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> The
Local authority is required to make out a plan once in every 5 years, on the
recommendation of Town Vending Committee, to promote a supportive environment
and adequate space for urban street vendors to carry out their vocation. It
specifically provides that declaration of no-vending zone shall be carried
subject to the specified principles namely; any existing natural market, or
an existing market as identified under the survey shall not be declared as a
no-vending zone; declaration of no-vending zone shall be done in a manner
which displaces the minimum percentage of street vendors; no zone will be
declared as a no-vending zone till such time as the survey has not been
carried out and the plan for street vending has not been formulated. </span><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">There is an important
provision which mandates that the Plans of the Committee ensure that the
provision of space or area for street vending is reasonable and consistent
with existing natural markets.</span><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> Thus
the Bill provides for enough safeguards to protect street vendors interests.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<b><span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Penal Provisions:</span></b><span en-gb="" lang="EN-GB" mso-ansi-language:="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> If any street vendor indulges in vending activities without a
certificate of vending; contravenes the terms of certificate of vending; or
contravenes any other terms and conditions specified under the Act or Rules,
he shall be liable to a penalty for each such offence which may extend up to
rupees two thousand as may be determined by the local authority.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">Other welfare provisions of the Act provide for the
appropriate Government to undertake promotional measures of making available
credit, insurance and other welfare schemes of social security for the street
vendors.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">The legislation should be seen as a good first step
towards the protection of street vendors, however the jury is still out on
what the practical consequences of the application of the Act might be. On
the one hand, the rights of the street vendors has been recognised in a
legislation while on the other hand engaging in street vending without a
certificate is now illegal and entails penal consequences. This power to
issue certificates can be linked to the decision of the Supreme Court in </span><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">the case of <i>Maharashtra
Ekta Hawkers Union v. Municipal Corporation, Greater Mumbai</i></span><a href="https://www.blogger.com/null" name="_ftnref5"><b><i><span style="font-family: '', serif, '', serif; font-size: 12pt;">[5]</span></i></b></a><span mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times=""> where the Court made it clear
that hawkers have a right under Article 19(1)(g) to carry on their trade and
can be restricted for the purpose of regulation under Article 19(6) of the
Constitution. Hence any action challenging the constitutionality of the same
might not succeed.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span lang="EN-GB" mso-ansi-language:en-gb="" mso-bidi-font-family:="" mso-fareast-font-family:="" new="" roman="" serif="" style="font-family: "; font-size: 12.0pt;" times="">To a significant extent the effect of this Act is
dependent on the rules and schemes to be framed and actions taken by the
“Appropriate Government” and the various committees established under the
Act. Hence, any judgement on the merit of this legislation would in our
opinion, be premature.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<a href="https://www.blogger.com/null" name="_ftn1"><span style="font-family: Arial, sans-serif; font-size: 7.5pt;">[1]</span></a><span style="font-family: Arial, sans-serif; font-size: 7.5pt;"> <span style="background: white;">1986 AIR 180 1985 SCR Supl.
(2) 51</span><a href="https://www.blogger.com/null" name="_ftn2">[2]</a> (1989) 4 SCC 155<br />
<a href="https://www.blogger.com/null" name="_ftn3">[3]</a> Appropriate Government means - in respect of
matters relating to,— (i) a Union territory without Legislature, the Central
Government; (ii) the Union territories with Legislature, the Government of the
National Capital Territory of Delhi or, as the case may be, the Government
of Union territory of Puducherry; (iii) a State, the State Government;<br />
<a href="https://www.blogger.com/null" name="_ftn4">[4]</a></span><span lang="EN-GB" style="font-family: Arial, sans-serif; font-size: 7.5pt;">“Local Authority” means
- Municipal Corporation or a Municipal Council or a Nagar Panchayat, by
whatever name called, or the Cantonment Board, or as the case may be, a civil area
committee appointed under section 47 of the Cantonment Act, 2006 or such other
body entitled to function as a local authority in any city or town to provide
civic services and regulate street vending and includes the “planning authority”
which regulates the land use in that city or town.</span></div>
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<a href="https://www.blogger.com/null" name="_ftn5"><span style="font-family: Arial, sans-serif; font-size: 7.5pt;">[5]</span></a><span style="font-family: Arial, sans-serif; font-size: 7.5pt;"> </span><span style="background: white; color: #2e2e2e; font-family: "Arial","sans-serif"; font-size: 7.5pt; mso-fareast-font-family: "Times New Roman";">AIR
2004 SC 416</span><b><span style="font-family: 'Times New Roman', serif; font-size: 12pt;"><o:p></o:p></span></b></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-35686694327212839742014-03-09T22:50:00.003+05:302014-08-26T14:53:02.588+05:30The Curious Case of Bitcoins - Part I<div dir="ltr" style="text-align: left;" trbidi="on">
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<div style="text-align: left;">
<i style="text-align: justify;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Introduction</span></i></div>
</div>
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<i><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></i></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Bitcoin, a creation of
a computer programmer under the pseudonym Satoshi Nakamoto is an immensely
popular decentralized virtual currency. In this post we seek to present a brief
overview of such currency and its legal classification. We will however discuss
the issues in detail in subsequent posts.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Bitcoins are referred
to as cryptocurrency. The system basically uses encryption to validate
transactions as well as for the production of the currency. Unlike other
currencies either real or digital, there is no central bank or other central
controlling authority. Bitcoin’s
decentralized system depends purely on an algorithm to regulate the currency
thereby excluding human involvement in the production or distribution of the
currency.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Bitcoin’s popularity
lies in the fact that it works on a peer-to-peer basis. Hence it eliminates the
need of a third party which significantly lowers transaction costs. There is a
common presumption that transactions relating to Bitcoins are anonymous. However,
one must take into account that Bitcoin system records all transactions on a
public ledger referred to as <i>blockchain.</i>
The transactions are not completely anonymous but allow for the use of
pseudonyms. The public ledger is part of a highly cost-efficient design. The
public ledger addresses two major problems. Firstly, since each Bitcoin and
each user is given a unique digital identity the risk of forgery or
counterfeiting is mitigated. Secondly, the public ledger eliminates the need to
include a third party to verify transactions since the public ledger itself verifies
the transfer of Bitcoins to the seller from the buyer.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">In general there are
three modes in which Bitcoins can be procured.
Users can exchange conventional money to procure Bitcoins. Typically
there is a 0.5 per cent or lower exchange fee in such transactions. Bitcoins are sold at prices determined on the
basis of supply and demand. The price of
Bitcoin is prone to severe volatility with prices fluctuating by a few hundred
dollars within a month. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The second method of
procuring Bitcoins is by accepting the same as exchange for sale of goods or
services. The third method is called <i>mining.
</i>Users solve a complex math problem to discover new Bitcoins. Typical home
computers will generally not enjoy much success in solving the problem. It is
so designed that Bitcoins will be discovered at a limited and predictable rate.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Bitcoins are immune
from the monetary policy of the Central Bank of a country since neither its
velocity (rate of exchange) or the amount of money is directly under the
supervision of the bank determining monetary policy in a country.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Another unique feature
is that only 21 million Bitcoins will ever be created. One Bitcoin can be
divided up to 8 decimal places. When the maximum limit of Bitcoins are reached,
will be traded without addition in number of Bitcoins,
the trades will be likely to be in fractions of Bitcoins such as transactions
of 0.10 Bitcoins down to 0.000 000 01 BTC.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Commercial
Advantages with Bitcoins<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The use of Bitcoins has
attained a fair amount of popularity. The widespread use may be attributed to
the following:</span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><br /></span></div>
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<span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><span style="font-family: Times New Roman, serif;">1. </span></span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">Transaction costs are significantly reduced
for electronic payment.</span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">2. Transactions using Bitcoins provide a
great amount of privacy and perhaps a complete protection from identity theft.</span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">3.Immunity from inflation is another
complex advantage over conventional currency. Once value stored in conventional
currency is converted into Bitcoins, a reduction in relative value of
conventional currency has no effect on value stored in Bitcoins.</span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Concerns
with use of Bitcoins<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The extent of
regulation of Bitcoin remains unclear, especially in the Indian context. In December last year, the RBI released a
<a href="http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30247" target="_blank">press note </a>warning users of Virtual Currencies against Risk posed by such
currencies including Bitcoins and litecoins. The regulation does not prohibit
the use of Bitcoins, instead it declares that the creation of Bitcoins and
their trading is not regulated under the auspices of the Central Bank or
monetary authority. The concerns
highlighted in the press note are that <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">i.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Virtual Currency (VC) is stored in
electronic form carried in electronic wallets. They therefore become vulnerable
to hacking and loss of password. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">ii.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">There is no established framework for
consumer dispute redressal.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">iii.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The value of VC has been subject to
great volatility in the recent past.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">iv.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">VC may be used for illicit
transactions. Further, in view of the
limited anonymity this could lead to unintentional breaches of the Anti Money
Laundering and CFT(combating the financing of terrorism) regulations.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.5in;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">As a caveat the RBI has
stated it is currently examining the issues associated with the usage, holding
and trading of VCs under the extant legal and regulatory framework of the
country, including Foreign Exchange and Payment Systems laws and regulations.”<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Its concerns are well
founded in the wake of instances of hacking of VC systems in specific Bitcoins
since well known Bitcoin Exchanges like Mt. Gox and Bitfloor have been subject
to hacking attacks resulting in great theft of Bitcoins.<o:p></o:p></span></div>
<div class="MsoNormal" style="tab-stops: 263.75pt; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Legal
status of Bitcoins<o:p></o:p></span></b></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">Recently the United
States District Court of Eastern District of Texas sought to define the term
and stated that a bitcoin is an electronic form of currency unbacked by any
real asset or without specie, such as a coin or precious metal. In simple
terms, Bitcoins are currencies which are intangible and are not issued by the
Central Bank. They are generated by a specific community and are definite
mediums of exchange in those communities which accept the same. In its
</span><a href="http://www.law.du.edu/documents/corporate-governance/securities-matters/SEC-v-Bitcoin-Savings-and-Trust.pdf" style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;" target="_blank">judgement</a><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"> the court stated that:</span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify; text-indent: 2.25pt;">
<span style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span>
<span style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">“<i>It is not regulated by
a central bank or any other form of governmental authority; instead, the supply
of Bitcoins is based on an algorithm which structures<span class="apple-converted-space"> </span>a decentralized peer-to-peer
transaction system.”<span class="apple-converted-space"> <o:p></o:p></span></i></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify; text-indent: 2.25pt;">
<span style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><i><span class="apple-converted-space"><br /></span></i></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The legality of
Bitcoins was discussed elaborately in the same case. The
point taken into consideration was whether Bitcoins are securities.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">This question was
answered in the affirmative by the Court. In this case Shavers, the founder of Bitcoin Saving & Trust (BTCST)
solicited the sale of Bitcoins to investors. The investors suffered losses due
to a fraudulent transactions and misrepresentations. The first question the Court considered was whether Bitcoins are securities under 15 U.S.C. § 77b. Determination of this issue was
relevant to assess whether the SEC had subject matter jurisdiction over the
dispute.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Shavers contended that
a Bitcoin is not a currency regulated in the United States of America. Further
no ‘money’ had been exchanged in these transactions. Therefore SEC does not
have the jurisdiction. The SEC on the other hand argued that the BTCST
investments are both investment contracts and notes, and, thus, are securities.
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The term “security” is
defined as “any note, stock, treasury stock, security future, security-based
swap, bond…[or] investment contract…” <span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-size: 12pt; line-height: 115%;"><a href="file:///C:/Users/user/Desktop/Google%20Drive/Blog/BItcoin_semi.docx#_ftn1" name="_ftnref1" title="">[1]</a> </span></span><a href="file:///C:/Users/user/Desktop/Google%20Drive/Blog/BItcoin_semi.docx#_ftn1" name="_ftnref1" title=""><!--[endif]--></a></span>An
investment contract is any contract,
transaction, or scheme involving (1) an investment of money, (2) in a common enterprise, (3) with the expectation
that profits will be derived from the efforts of the promoter or a third party.<span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-size: 12pt; line-height: 115%;"><a href="file:///C:/Users/user/Desktop/Google%20Drive/Blog/BItcoin_semi.docx#_ftn2" name="_ftnref2" title="">[2]</a></span></span><a href="file:///C:/Users/user/Desktop/Google%20Drive/Blog/BItcoin_semi.docx#_ftn2" name="_ftnref2" title=""><!--[endif]--></a></span> <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">By relying on the above
definition, the court concluded that a Bitcoin can be used as money as it can
be used to purchase goods or services. The only limitation being that the same
is used only in places where the currency is accepted. Therefore Bitcoin was
held to be security.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">While the SEC has at
least preliminarily found to have standing to regulate Bitcoins, the Treasury
has declined from exercising jurisdiction in relation to investments and
trading in Bitcoins.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> In subsequent posts, we will discuss in detail
the regulatory issues out of use and trade of Bitcoins and similar currency
with a special focus on India. <o:p></o:p></span></div>
<br />
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<!--[if !supportFootnotes]--><span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><br clear="all" /></span>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><i><a href="file:///C:/Users/user/Desktop/Google%20Drive/Blog/BItcoin_semi.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[1]</span></span><!--[endif]--></span></a> 15 U.S.C. § 77b.<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif; font-size: xx-small;"><a href="file:///C:/Users/user/Desktop/Google%20Drive/Blog/BItcoin_semi.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><span style="line-height: 115%;"><i><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[2]</span></span><!--[endif]--></i></span></span></a><span style="line-height: 115%;"><i>
SEC v. W.J. Howey& Co., 328 U.S. 293, 298-99 (1946); Long v. Shultz Cattle
Co, 881 F.2d 129, 132 (1989).</i><o:p></o:p></span></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-641220598905849865.post-37800395119577031292014-03-06T14:13:00.000+05:302014-08-25T15:02:49.976+05:30Why there is no pride in NAZ<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-align: justify;">On
Tuesday, the 28</span><sup style="font-family: 'Times New Roman', serif; line-height: 115%; text-align: justify;">th</sup><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-align: justify;"> of January 2014 a two-judge bench of the Supreme
Court dismissed the review petition filed by NAZ Foundation against the Supreme
Court order upholding the constitutionality of Section 377 of the Indian Penal
Code.</span><br />
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">In
this post we seek to define clearly the contours of the rights enjoyed by the
LGBT community in India by tracing the change in the judicial attitude towards
the criminality imposed by Section 377 of the IPC insofar as it relates to gay
rights.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">In
essence, Section 377<a href="file:///C:/Users/Esha/Downloads/FINAL%20POST.docx#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 12pt; line-height: 115%;">[1]</span></span><!--[endif]--></span></a>
punishes voluntary acts of carnal intercourse “against the order of nature” with
a man, woman or animal. A look at the context and the stated intent of the
provision facilitates a conclusion that Section 377 had been enacted to impose
a judeo-christian moral and ethical standard which criminalizes all
non-procreative sexual activity- <i>i.e</i>
oral and anal sex. The direct consequence of this provision is that the
penile-vaginal sex is the only permitted sexual activity which in the specific
context of homosexual intercourse is not possible. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">While
this provision has scarcely used for prosecution, the existence of the
provision within the penal code has bred insurmountable social stigma against
the LGBT community in India and have encouraged a host of police and civilian
brutalities targeting members of the LGBT Community. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">NAZ
Foundation decided to espouse the cause of the LGBT and shield them against
police brutality and exposure to HIV/AIDS. They filed a writ petition
challenging the constitutional validity of Section 377 of the IPC insofar as it
criminalizes consensual sexual acts between adults in private which was alleged
to violate various constitutional safeguards <i>vis</i> Article 14(right to equality), Article 15(Prohibition of
discrimination on ground of sex ), Article 19(right to expression) and Article
21 (right to life and liberty). The Petitioner urged the Court to restrict the
application of Section 377 to two specific circumstances: non-consensual penile
non-vaginal sex and penile non-vaginal sex involving minors. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
Delhi High Court in its very progressive judgment agreed with the petitioner
and gave birth to the protection of gay rights in India. Sadly, 4 years later,
the Supreme Court of India went several steps back and punctured the need for
gay rights by upholding the constitutionality of the impugned provision.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">A
combined analysis of the conflicting judgments of the Division Bench of the
Delhi High Court and Supreme Court is carried out under the following broad
heads:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">a.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><u><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Article
21- Dignity, Autonomy and Privacy<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Largely
in the words of the Delhi High Court, privacy when understood within the prism
of autonomy allows persons to develop human relations without interference from
the State. The exercise of autonomy, leads to the development of self - esteem,
building of relationships, living a life with dignity and pursuit of legitimate
goals. The Delhi High Court stated that sexual orientation and gender falls
within the private sphere of an individual which is therefore protected under
Article 21 of the Constitution of India. It further acknowledged that one
cannot leave behind or detach from the sense of gender or sexual orientation. To
establish the next link it referred favorably to <b>The National Gay Coalition for Gay and Lesbian Equality v. The Minister
of Justice</b> and held that the expression of sexual identity requires a
partner, real or imagined. It is neither the duty nor the prerogative of the
State to arrange for the choice of sexual partners but for partners to choose
themselves. Quite logically, Section 377 IPC denies a gay person the
opportunity for full person-hood included in the notion of life under Article 21
of the Constitution of India.<span style="color: red;"> </span><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Before
the Delhi High Court, the respondents tried to establish the need for retaining
the provision as it formed a reasonable exception on grounds of compelling
state interest, public health, public safety and morality.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Arguments
in favour of decriminalization sought to establish before the Court that there
is a compelling state interest to do so as the existence of Section 377 hampers
HIV intervention efforts aimed at sexual minorities. This was countered by the
ASG’s argument that public health is in fact one of the reasons why Section 377
should be preserved because there is documentary evidence to show that the risk
of transmission of HIV is higher in cases of homosexual intercourse
(specifically male-male intercourse) as compared to heterosexual intercourse.
Hence the provision furthers the aim of preventing unsafe sexual acts and
spread of HIV AIDS. Fortunately, the
Court identified that the true question lay in the understanding of the concept
of homosexuality as a form of sexual orientation and not a disease and
therefore dismissed the argument put forth by the respondent.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
State presented a strong argument which in essence communicated to the Court
that alternate sexual orientation is inconsistent and plainly contradicts the country’s
moral fabric. The compelling state interest advanced to justify the provision
lay in the protection of morality. The High Court’s response was sharp as the
Court recognized the distinction between public morality (general public
disapproval) and constitutional morality. The latter, derived from
constitutional values and not dependent upon the automatic acceptance of
majority opinion is the true test to qualify compelling state interest to
abridge fundamental rights. <span style="color: red;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">It
is clearly noticeable from the reading of the judgment that the Supreme Court
relied on two major principles to justify its decision to uphold the
constitutionality of the Section 377. First, the Court granted a wide array of
protection to the current state of the law on the ground a strong presumption
of constitutionality. Second, the Court relied and perhaps overextended the
scope of the principle that the mere fear of abuse of a provision would not
render a provision unconstitutional. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
Supreme Court could have taken into account the fact that the apprehensions of
brutalities against members of the LGBT community are not empty fears but an
inevitable consequence of the existence of such a provision.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18.0pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">b.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><u><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Violation
of Article 14 & 15<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Under
the Constitution of India, all persons enjoy a right to equality. In this
context, the essence of NAZ’s argument is that Section 377 does not only
criminalize the act of homosexual intercourse but also has the direct effect of
prejudicing the community and facilitating this social stigma. In accordance
with their argument, the violation of Article 14 therefore lies in the fact
that homosexuals as a class, are targeted and prejudiced as a result of operation
of Section 377. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
Supreme Court, however adopted a different interpretation of Article 14. It
stated that while conferring privileges or imposing liability upon similarly
situated persons was prohibited under Article 14, it does not forbid classification
for the purpose of legislation on the condition that it is not arbitrary. In
this specific context ‘arbitrary’ is a rather incomplete term. According to the
Court classification that is based on “some” qualities or characteristics and
such quality or characteristic has a reasonable nexus with the object sought to
be achieved by the Act. The Court does not seem have to have gone into this
issue in detail. No reasoning has been offered to distinguish how this general
line of argument is different in application to this provision vis-à-vis other
penal statutes. Also, the Court seems to have assumed without much discussion
that Section 377 independently qualifies as having a rational nexus with the
object of the legislation- the IPC. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">In
what is perhaps the most difficult conclusion to agree with, the Supreme Court
in its judgment states that:</span></div>
<div class="MsoNormal" style="text-align: justify;">
<i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">“</span></i><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">While reading down Section </span></i><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="color: windowtext; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">377</span></i></a></span><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> Indian Penal Code, the Division Bench of the High
Court overlooked that a miniscule fraction of the country's population
constitute lesbians, gays, bisexuals or trans-genders and in last more than 150
years less than 200 persons have been prosecuted (as per the reported orders)
for committing offence under Section </span></i><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="color: windowtext; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">377</span></i></a></span><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> Indian Penal Code and this cannot be made sound basis
for declaring that section ultra vires the provisions of Articles </span></i><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="color: windowtext; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">14</span></i></a></span><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">, </span></i><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="color: windowtext; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">15</span></i></a></span><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> and </span></i><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="color: windowtext; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">21</span></i></a></span><i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> of the Constitution.”<o:p></o:p></span></i></div>
<div class="MsoNormal" style="text-align: justify;">
<i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><br /></span></i></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">On the face of it, this line of
reasoning has one consuming inconsistency- in order for the Court to be
empowered to draw this conclusion it would have to also affirm that the
criteria for determining unconstitutionality on the basis of violation of the
equality or liberty clause in the Constitution depends upon the number of
people affected, which it is, by its own strong line of precedent, precluded
from doing. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
allegation of violation of Article 15 also arose out of the same facts and the
Delhi High Court understood Article 15 and Article 16 as areas of specific
application of Article 14, the genus of the varied species of equality
enshrined in the Constitution. The Supreme Court however did not find a
violation of Article 15 of the Constitution in this case. <span style="color: red;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">A
certain amount of disillusionment is the prevalent in the mood. Perhaps, it
arises out of our common agreement to what Delhi HC stated – “<i><span style="background-color: white; background-position: initial initial; background-repeat: initial initial;">A
provision of law branding one section of people as</span><span style="background: white;"> criminal based wholly on the State's moral
disapproval of that class goes counter to the equality guaranteed under
Articles<span class="apple-converted-space"> </span></span></i></span><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">14</span></i></a></span><span class="apple-converted-space"><i><span lang="EN-US" style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> </span></i></span><i><span lang="EN-US" style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">and<span class="apple-converted-space"> </span></span></i><span lang="EN-US"><a href="https://www.blogger.com/null"><i><span style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">15</span></i></a></span><span class="apple-converted-space"><i><span lang="EN-US" style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> </span></i></span><i><span lang="EN-US" style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">under any standard of review.”</span></i><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<br />
<div>
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<br />
<div id="ftn1">
<div class="MsoNormal" style="text-align: justify;">
<a href="file:///C:/Users/Esha/Downloads/FINAL%20POST.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span lang="EN-US" style="font-size: 10pt; line-height: 115%;">[1]</span></span><!--[endif]--></span></span></a><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"> 377. Unnatural offences.-- Whoever
voluntarily has carnal intercourse against the order of nature with any man,
woman or animal, shall be punished with 1[ imprisonment for life], or with
imprisonment of either description for a term which may extend to ten years,
and shall also be liable to fine. Explanation.- Penetration is sufficient to
constitute the carnal intercourse necessary to the offence described in this
section.<o:p></o:p></span></div>
<div class="MsoFootnoteText">
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