Navigating Judicial Activism: Corporate Perspectives and Other Concerns?”

“Judicial activism is a necessary adjunct of the judicial function because the protection of public interest, as opposed to private interest, is the main concern.” [1]

– Justice A. H. Ahmadi, the former Chief Justice of India

Today, the judiciary has been taking a more proactive role in interpreting the laws as the polity has grown more complex, and where there are no laws, the court has expanded the application of existing laws to decide on issues that are brought before it for decisions. However, the intellectual elites prefer to use the phrase “Judicial Activism” in recent years to describe their level of unhappiness with the judiciary’s increasing role in India’s legislative democracy.  The fundamental focus of the complaint is that the court is running the nation and, in the opinion of some, damaging it through interfering with legislative and executive responsibilities through its orders. One of their defenses is that the courts’ scope for judicial review has been extended as a result of the broadened definition of locus standi, especially when it comes to PIL.[2]  This article attempts to demonstrate how judicial activism is a fundamental aspect of the judicial system and develops as a result of several factors. It also tries to investigate if the growing trend of judicial activism could indeed be a cause for concern within the corporate world.

As courts become more actively involved in shaping and interpreting laws, it introduces an element of uncertainty for businesses. Judicial decisions may have a significant impact on corporate operations, regulations, and legal landscapes. For corporations, this increased judicial intervention means they need to stay vigilant and adaptable to evolving legal interpretations. It might also lead to more complex compliance requirements, potential legal challenges, and a need for strategic adjustments in business practices. But judicial activism, when viewed positively, can be seen as a force for justice and societal progress. Rather than being a source of worry, it can contribute to a fair and equitable legal environment.

Democratic politics operate very similarly to a market. It functions best when there is fierce competition among the players, which encourages them to adapt to customer preferences. But when rulers suppress competition and try to bend the norms of political activity in their favour, the system becomes “dysfunctional”. It is essential that all state organs operate within their sphere of responsibility inside the framework of our constitution, which places a premium on the separation of powers. A few intrusions may occur, but that is to be expected when the “domains overlap” and the invisible line of control is quite hazy.[4]  However, the argument that the judiciary is running the country and, in the opinion of some, damaging it by dictating policy to the executive branch is couched in idealistic thinking that ignores the “real-world pressures” that drive judicial decisions.

The best case to illustrate this point is the Supreme Court’s well-known ruling in the Vishakha case[5], where the court had set down regulations to safeguard women from sexual harassment at work after being horrified by the rising number of crimes against women and the lack of adequate legislation. In a typical instance of judicial legislation, the judges established a law and endeavoured to enforce it, but they also made it clear that the rules would only be regarded as law until the legislature enacts a proper statute on sexual harassment. This occurred in 1997, and until a decade of this judgement, our politicians had not passed a legislation on the matter! If the Supreme Court’s method was “appropriate” or whether “judicial excess occurred” is a matter that demands an answer from the critiques.[6]

The question of “judicial activism or overreach” must thus be examined in its political setting. The “public’s confidence in and credibility” with the political elite has reached an all-time low today. Anyone can see how “cynical” the public is becoming and how the political elite has failed miserably to live up to expectations. The courts must step in to uphold the grandeur of the law as it must be upheld under such circumstances, and the public’s weakening trust in justice must be preserved. It is correct to note that the “inaction” of the other branches of the state in most instances leads to what is termed “judicial activism”.

The “executive class’s lack of compassion” and “indifference” cannot be ignored by the courts of justice. When the court is informed of and satisfied with grave abuses of fundamental human rights, it cannot throw up its hands in defeat” and turn a blind eye. The judicial system cannot dodge or delay decisions. Citizens who believe the legislative is unresponsive and the administration is uncaring would descend on the streets if the judiciary closed its doors to them, which would be detrimental to both the rule of law and the democratic operation of the state. Hence, it’s safe to say that the judiciary in our nation has and must consistently stand up for democracy, democratic principles, and constitutionality. [7]

The extended notion of “locus standi” concerning “PIL”, critics claim, has occasionally broadened the jurisdictional scope of courts conducting judicial review. However, it’s crucial to realize that the Supreme Court has created this tool that allows it to consider issues, particularly unconventional and unpopular ones pertaining to the poor, the underprivileged, and the deprived who, in the absence of a platform, to seek redressal of their grievances. They now have immediate access to the supreme court. This is the public interest litigation or social action litigation instrument, according to Upendra Baxi. Numerous topics, including “bonded labour”, “prison conditions”, the “education of prostitute’s children”, etc., have been examined by the Supreme Court as a result of PILs.

Not only that, but there have also been cases involving the pavement in Mumbai (Olga Tellis v. Bombay Municipal Corporation[8])”, Delhi hawkers and street vendors (Saudan Singh v. NDMC & others[9]), free and mandatory education for all children, and the eviction of people from their natural habitats as a result of enormous civil projects (dams, etc.). The court has demonstrated foresight and a progressive agenda in this regard. It has aided such underprivileged people in their endeavors to achieve some measure of justice and dignity. According to Baxi, “activism” has helped to “defend, promote, and preserve human rights” as well as “redemocratize the Indian polity.”.[10]

One of the main justifications for exercising restraint in judicial orders is that judicial activism may negatively influence the independence the judiciary enjoys, according to Justices AK Mathur and Markandey Katju, whose comments on this drew a lot of public attention. As stated by the judges: “The lesson of this tale is that politicians and others will inevitably respond if the court does not show discipline and overstretches its bounds. When this happens, politics will intervene and limit the judiciary’s authority or even its independence.” But are they really advocating judicial restraint or literally calling for a “submissive judiciary”?[11] The social, economic, and political facets of justice” should, in theory, be left primarily in the hands of legislators, and it should be assumed that the “entire legislative process influenced by ideas of justice, reason, and fairness. But as was previously mentioned, idealism is regrettably ineffective in a society that is rife with entrenched interests, corruption, and poverty. Consequently, it only seems sensible that the court plays a relatively proactive role in interpreting the true meaning of the law in the greater advantage of the public. [12]

The ‘Basic Structure Doctrine’s’ usefulness is also disputed by academics because of its anti-democratic underpinnings. It is true that a constitutional tool for reform is required for the Constitution’s orderly development, which leads to the process of constitutional amendment. But there is always a chance that the government might abuse its power and become an autocratic tyranny when it is endowed with such unchecked power. For some, it might be acceptable to utilize the amending authority to make appropriate adjustments in order to fulfil the promise made by the enlightened luminaries who serve as the people’s representatives in constituent bodies. However, it would be abhorrent and unequivocally condemnable to seek to utilize such a process to repeal or overturn the Constitution’s fundamental foundation. Indeed, one can even view the situation as a great hoax against the people who gave themselves this Constitution.[13]

It will be a show of submission to the whims of majoritarianism if a constitutional change is blindly accepted with the broadest possible significance. The current legislature may abuse its power to violate the Constitution due to “individual”, “group”, and “institutional interests”. Since history has repeatedly shown that unlimited power leads to absolute corruption, allowing it to act arbitrarily, as was shown during the declaration of a national emergency in 1975, would effectively entail legitimising “constitutional hara-kiri”. Therefore, it’s crucial to implement certain protections, such as refraining from arbitrary or superficial constitutional amendments.[14]

As Justice Chandrachud had exquisitely laid down,

“Amend as you may even the solemn document which the founding fathers have committed to your care, for you know best the needs of your generation. But, the Constitution is a precious heritage; therefore, you cannot destroy its identity”.[15]

Then criticisms also raise the question of how an unelected entity like the court can have such authority when the legislative majority reflects the will of the people. It is important to understand that in India, even without obtaining a majority of votes, a party or coalition of parties can win a legislative majority and establish the government. The logic goes that such a “coalition” shouldn’t be permitted to change the “fundamental provisions of the Constitution”, which the Constituent Assembly enshrined after extensive discussion and debate.

The parliament has occasionally veered off course and begun misusing the amending powers given to it in the past and even in the present. The Indian Constitution is a wonderful gift to “We the People,” but the Parliament has abused it to forward its own agenda at the expense of the will of the populace. Due to the amending power granted by Article 368, the Parliament made several unfavourable adjustments.

The internal emergency declared by Indira Gandhi in 1975, after she had been unseated by the Allahabad High Court for violating an electoral law, helps to the judiciary’s success in addressing the aforementioned issue. The 39th Constitution Amendment Bill was passed in part to overturn this decision and in part to preserve more authority for the Parliament. In Indira Gandhi v. Raj Narain[16], this amendment was contested on the grounds that it upset the Constitution’s fundamental structure. Although Indira Gandhi’s election was affirmed based on merits, the Supreme Court invalidated the amendment on the grounds that it was incompatible with the fundamental principles of the Constitution. Another justification for the court’s activism’s validity was this verdict.[17] The “poor and disenfranchised”, for whom the legal system is their final line of defense, would prefer that it be “more activist”.

Today, it is believed that the Supreme Court, rather than the Parliament or the government, is more sympathetic to the concerns of the oppressed and more indicative of a consensus in a multicultural society made up of many “cultures”, “traditions”, and “competing interests”. The former two are seen to be split by “casteism”, “regionalism”, and “communalism”, and are “political and opportunistic”, but the court is thought to be relatively more unbiased and above these difficulties.[18]

Critiques also claim that the term “basic structure” has a very broad definition and that not defining it would contradict the point of having one. Although it is true that the term or the phrase basic structure has not really been defined by the courts, but the judiciary has repeatedly provided the fundamental components that make up basic structure. It’s also critical to keep in mind that constitutional provisions cannot simply be separated into those that express rights in general terms and those that express non-rights in particular terms. It should not come as a surprise that such characteristics exist. Any regulation must be somewhat general or broad, and the wording of the constitution is under special pressure to be as broad as possible.

In a similar line, generality encourages the longevity of constitutions. Due to the intricacy of governance, it would be challenging to properly define all of the government’s powers even if it were wanted. Because of this, constitutions are full of ideas that are expressed in general or abstract words and to which judges are required to add further elements, even in matters of structure.[19]

As a result, we might draw the conclusion that judicial activism in India covers a legislative gap. Judicial activism strengthens democracy and restores the confidence of the general public in the rule of law. But at the same time I do agree that judges must strike a delicate balance between activism and excessivism while still becoming activists which means that they must try to refrain from taking on subjects that, although being urgent, are outside the purview of the court. The practice may be broadened, but it should stay within the boundaries of the courts. They must only be “activists”.[20] In the words of Upendra Baxi, too little activism would signify under-enforcement of constitutional notions of good governance, rights, and justice. Too many results in over-enforcement of these ideals, imperiling the legitimacy and efficacy of judicial power.

REFERENCES:


[1] A.M. Ahmadi, Judicial Process: Social Legitimacy and Institutional Viability , 4 S.C.C. J. v.1, 1-10 (1996).

[2] SK Patnaik and Swaleha Akhtar, JUDICIAL ACTIVISM IN INDIA : MYTH AND REALITY, 58 Indian Journal PS 88, 79–92 (1997)

[3] Shouvik Kumar Guha & Moiz Tundawala, Constitution: Amended it Stands?, 1 NUJS L. Rev. 533 (2008)

[4] Sidharth Sharma, Myth of Judicial Overreach, 43 Economic and Political Weekly 17, 15–18 (2008)

[5] 1997 ALD CRI 2 604

[6] supra note 4

[7] A. S Anand, , JUDICIAL REVIEW – JUDICIAL ACTIVISM – NEED FOR CAUTION, 42 Journal of the Indian Law Institute 157, 149–59 (2000)

[8] 1985 SCC 3 545

[9] 1992 AIR SC 1153

[10] Ravi P Bhatia, EVOLUTION OF JUDICIAL ACTIVISM IN INDIA, 45 Journal of the Indian Law Institute 267, 262–74 (2003)

[11] supra note 4

[12]Id.

[13] supra note 3

[14] Id.

[15]Kesavananda Bharati v. State of Kerala, (1973) 4 SCC 225.

[16] 1975 AIR SC 2299

[17] Id.

[18] supra note 10

[19] Adrienne Stone, Judicial Review without Rights: Some Problems for the Democratic Legitimacy of Structural Judicial Review, 28 Oxford JLS. 1, 9 –10 (2008)

[20] supra note 10

Commercial Implications: Evaluating the Success or Failure of Abolishing the Intellectual Property Appellate Board

  1. Introduction

The “World Trade Organization’s agreement on trade-related aspects of intellectual property rights” (TRIPS) gave rise to the IPAB. According to the terms of this agreement, all participants agreed on the need of robust intellectual property rights protection and enforcement. As a signatory to the TRIPS agreement, India formed a specialised board, with specialised brains in the field of intellectual property rights, to deal with intellectual property issues, namely the Intellectual Property Appellate Board. [1] Prior to the founding of the IPAB, the High Courts had yet to resolve around 599 intellectual property disputes. A few of them had been pending for quite some time. “The need for the establishment of a specialized Board to deal with IP appellate matters was to ease the burden off the shoulders of the various high courts before which, such appellate matters previously, would lie.”[2] The abolition of the tribunal resulted in a rise in the total amount of matters to be handled by the commercial courts and the high courts, bringing legal management back to the beginning because the courts were already overloaded by the the amount of cases leading to pendency, and now the courts have to cope with more cases requiring special expertise. This abolition also had a negative worldwide impact. The main question now is whether it was a wise decision or a blunder by the lawmakers. [3]

  1. Did IPAB completely failed to perform its duties?

One of the primary concerns for corporations revolves around the effective protection of their intellectual property. But the manner through which the abolition brought about change is unusual. It amends the Trade Marks Act of 1999 and the Patents Act of 1970 by inserting a series of forum substitutes. The phrase ‘Appellate Board’ in these two acts was primarily substituted by ‘High Court’. [4] It simply transfers traffic from the Appellate Board down to the High CourtsIt leaves the existing jurisdiction and functions of the recipient forums untouched, with no effort made to restructure or incorporate this workload. Instead, the receiving forums were simply left to manage and conclude this task independently. [5]

But, did the board entirely fail to discharge its obligations over its almost 17-year tenure? Before addressing, it is important to recognise that every coin has two sides. It is also important to note that, despite the fact that the board or tribunal was formed with the mandate of resolving disputes with effectiveness and efficacy, the board didn’t have a chairperson for a total of 1130 days.

It is also worth noting that the board was missing a technical member in 2016 and no endeavours were made to appoint one. Furthermore, following the merger of the copyright board and the IPAB, it was agreed upon that a technical member to deal with copyright infringement issues would be appointed; however, no such person was recruited. The problem of appointment was raised by the Delhi High Court in the case of Mylan laboratories limited v. Union of India[6], in this instance, the Hon’ble court emphasized “the absence of technical members appointed specifically for copyright cases, as well as the prolonged vacancy of technical members in the realms of trademarks and patents. This extended period of vacancy has led to a backlog of cases, causing significant delays that have negatively impacted the rights of intellectual property holders”.[7]

  1. Arguments against the abolition of the IPAB

Its also important to note that the 161st report of the Parliamentary Standing Committee on Commerce, which assessed India’s Intellectual Property Rights framework, was submitted to both the Rajya Sabha and Lok Sabha on July 23rd, 2021. Here, the committee itself admitted that elimination of IPAB may create a void in the “appellate resolution of cases,” potentially necessitating the transfer of cases to “commercial or High Courts,” thereby exacerbating case backlog. The Committee also noted that prolonged delays in appointing higher-level officials, coupled with the resulting suspension of IPAB operations, had hindered its optimal functioning. Consequently, the Committee recommended to the government that IPAB should be “reconstituted” with enhanced structural autonomy and reinforced capabilities, alongside the implementation of infrastructure and administrative improvements. Additionally, the prompt “appointment of officials and experienced personnel” was advocated to address these issues effectively.[8]

Specialized IP courts hold the promise of enhancing the caliber of justice, as their specialized competence empowers them to adjudicate disputes drawing from their extensive experience in resolving previous intellectual property conflicts. This specialized expertise assumes heightened significance in intellectual property disputes, where courts frequently face requests for expedited interim relief decisions.

Another benefit of specialized IP courts lies in their ability to stay current with and promptly adapt to evolving intellectual property legislation. Additionally, the court’s specialized proficiency is regarded favorably, given the potential risk in non-specialized courts, where, due to the “technical complexity of disputes,” decision-making responsibilities might be delegated to specialized professionals (appointed by the court or even by the parties), who ultimately assume the role of decision-makers instead of the judges.[9] This factor merits consideration as it appears to be crucial in maintaining the proficiency of a specialized IP court, potentially offering an advantage over non-specialized courts. It plays a pivotal role in preserving the specialized court’s expertise, ensuring that the presiding judges stay well-informed about the latest developments in the legal domain.

  1.  Arguments In Favor Of The Abolition Of The IPAB

Several drawbacks to creating dedicated IP courts have been noted. For starters, the expenses of establishing and maintaining dedicated IP courts are seen as a disadvantage, particularly in nations with a “general lack of resources, a low IP case load, and little IP expertise.”The validity and appropriateness of such expenditures are determined primarily by the caseload and the extent to which these costs may be met by existing resources. The prospective expenses of establishing a dedicated IP court should also include an assessment of the costs of selecting, recruiting, and retaining judges.[10]

Another issue of concern is the susceptibility of a specialized court to potential political or economic influences. This vulnerability arises from the perception that generalist courts often maintain greater independence compared to specialized courts. This risk could materialize even before a judge’s appointment to the specialized court, during the selection process. From this standpoint, it is proposed that generalist courts can serve as a potential safeguard or “antidote” against this risk.[11]

For instance, the IPAB powers grew to be concentrated primarily in the hands of one person, the Chairperson of the IPAB, who was normally a retired judge of a High Court. With the ability to form benches to hear cases and assign cases to benches, the Chairpersons wielded enormous authority over the results of all IPAB litigation. The apparent concern with such concentration of power is that the ideological bent of the IPAB’s Chairperson might determine all IP law flowing from the IPAB for a three-year period (i.e. their statutory tenure). During the IPAB’s existence, there were relatively few situations in which any member of the IPAB disagreed or dissented from the Chairperson’s judgement. Due to administrative issues, the IPAB was unable to carry out its adjudicatory powers. [12]

It is also argued that “judicial specialization diminishes the cross-fertilization of legal concepts.” This aspect of specialized courts has garnered significant attention and has been extensively examined by scholars, who have debated whether and in what circumstances such specialization can be justified. In this context, some argue that the absence of centralization could foster a more vibrant “marketplace of ideas,” while decentralization and diversity might offer more effective conflict resolution mechanisms. [13]

There is also an argument suggesting that if non-specialized judges struggle to grasp the intricacies of IP law, the response should not necessarily be the creation of specialized IP courts but rather reforms to the substantive IP law itself. Furthermore, specialized IP courts have the potential to promote consistency and uniformity in legal interpretations, ultimately benefiting future litigants and society by offering more predictable court decisions and enhancing overall efficiency. However, it’s important to note that uniformity alone should not be the ultimate objective, as “uniformity says nothing about quality or accuracy.”[14]

  •  Intellectual Property Division of the Delhi High Court: The way forward?

Promoting IP expertise within non-specialized IP courts has been proposed as a constructive approach, especially in developing nations. This approach might eventually lead to the creation of specialized IP divisions within conventional courts. An example of this approach is the US Patent Pilot Programme (PPP), which directed patent cases in 14 pilot districts to judges who volunteered to handle them, thus enhancing these judges’ specialization in patent-related matters. This case illustrates that the process of familiarizing and specializing judges in IP matters does not always necessitate the establishment of dedicated IP trial courts. Therefore, training judges in intellectual property issues can be achieved without the need for the formation of dedicated IP courts. The pivotal focus in IP disputes should be on cultivating judicial expertise, with this endeavor being the primary objective.[15]

In this regard, the Delhi High Court is regarded as a major forum in India for resolving IP rights issues. As after the elimination of the Intellectual Property Appellate Board (IPAB) in April 2021, the IP Division was announced in July 2021 and commenced operational on February 28, 2022.In its first year, the division resolved approximately 600 of the 2,000 cases received by the IPAB. There were 200 original trademark application cases decided, and about 40% of all transferred trademark appeals were resolved. In its first year, the division received 628 new commercial IP claims, while over 500 IP rights issues covering other categories (e.g., cancellations or appeals) were initiated. More than 700 cases were resolved in total, with just 60 appeals filed against these rulings, which might be read as litigants’ acceptance of the quality of decisions delivered. However, as of March 31, 2023, there were over 4,000 IP rights complaints pending, indicating that the first year was both inspirational and problematic. [16]

One characteristic of the IPD Rules is that if the same “trademark or patent” is involved in several lawsuits, the court can combine the procedures into a single trial. In Octave Apparels v. Nirmal Kumar trading as Apricot Fashion Alloy & Anr. [C.O. (Comm.IPD-TM) 352/2022], the IPD bench directed that “a lawsuit filed before the district court pertaining to an identical trademark between the same parties be transferred to the High Court of Delhi to be tried alongside the cancellation action filed before it”. Consolidation minimises court time and expenses for litigants while without jeopardising either party’s rights. A recent case involving copyright (Phonographic Performance v. Lookpart Exhibitions and Events; CS(COMM) 188/2022) highlighted “another unique feature under the IPD Rules through which the court can seek the assistance of an independent expert(s) relating to the subject matter of a dispute.”[17]

  •  Conclusion

The establishment of such a court serves a dual purpose beyond just enhancing intellectual property protection. It also aims to guarantee an efficient and equitable dispute resolution process, overseen by seasoned judges, to the advantage of all involved parties, including “intellectual property proprietors,” “consumers of products and services,” and “society at large.” With governments and businesses forging international connections and collaborations, stakeholders are increasingly becoming both holders of intellectual property rights and consumers of “third-party intellectual property rights,” underscoring the necessity for a “well-balanced system.”

The government’s commitment to specialized intellectual property tribunals conveys a clear message to the public: intellectual property rights will be upheld and enforced. The establishment of such specialized courts raises the prominence of intellectual property rights within a nation, signifying that the government recognizes it as a vital area deserving protection. This heightened awareness of intellectual property rights can lead to the stigmatization of individuals who intentionally infringe upon them, creating social pressure that discourages infringing behaviors. Rights holders can have greater confidence that their intellectual property rights will be safeguarded, thereby fostering artistic creation and innovation. Investments in the arts and innovation benefit society as a whole by instilling confidence in the business and corporate sectors, enhancing the prospects for foreign investment, and ultimately contributing to economic growth.[18]

In conclusion, there is no convincing evidence that specialist IP courts foster innovation more effectively than non-specialized courts in all circumstances. However, it is obvious that adequate knowledge and expertise among courts and judges may considerably improve the quality of justice in intellectual property conflicts.[19] India currently lacks a unified intellectual property court system. With the demise of a tribunal that has rendered important judgements on several occasions, a consistent Intellectual Property redressal system is urgently required. In more recent developments, the High Court of Madras has announced the establishment of an intellectual property division in April 2023. Furthermore, the High Courts of Gujarat and Calcutta have issued particular nomenclature for intellectual property issues. All of these instances point to a shift in the country’s IP jurisprudence. It is genuinely desired that other high courts in the nation would adopt the Delhi IPD approach to guarantee consistency in the adjudication of intellectual property disputes throughout India.


[1] Zimmer, Markus. Overview of Specialized Courts. International Journal for Court Administration. (2009https://www.researchgate.net/publication/285741895_Overview of Specialized Courts/citation/download

[2] Roy, M., & Manchikanti, P. (2017). Analysis of the disposition of IP cases by the Intellectual Property Appellate Board of India.

[3] Khushbu & Akshit Narula, Need for Specialised IPR Courts in India, 5 INDIAN J.L. & LEGAL Rsch. 1 (2023).

[4] Eashan Ghosh, A Case for Tethering Intellectual Property Appellate Board Cases to a Designs Act-Style Framework, 3 NAT’l L.U. DELHI Stud. L.J. 43 (2021).

[5] Id.

[6] Mylan laboratories limited v. Union of India, W.P. (C) 5571/2019 & C.M. Application 24540/2019 26833/2019.

[7] supra note 3

[8] Lamba, H. (2022). Parliamentary Standing Committee Report On India’s Intellectual Property Rights Regime. Mondaq Parliamentary Standing Committee Report On India’s Intellectual Property Rights Regime – Patent – India (mondaq.com)

[9] de Werra, Jacques, Specialised Intellectual Property Courts – Issues and Challenges (March 23, 2016). published in: Specialised Intellectual Property Courts – Issues and Challenges, Global Perspectives for the Intellectual Property System, Issue Number 2: CEIPI-ICTSD. 2016, p. 15-41 , Available at SSRN: https://ssrn.com/abstract=2761209

[10] IBA Survey, p, 37; IIPI Study, p. 7; see also Zimmer, ‘Overview of Specialized Courts’, p. 4; this difficulty may potentially be managed by making it possible for the court to sit and hold hearings in other places so that the court and the judges can move to the place where the litigants are located.

[11]  Holmes Grp., Inc. v. Vornado Air Circulation Sys., Inc., 535 U.S. 826, 839 (2002) (Stevens, J., concurring) (‘occasional decisions [on issues of patent law] by courts with broader jurisdiction will provide an antidote to the risk that the specialized court may develop an institutional bias’).

[12] Reddy, P. (2021). The End of the IPAB and Lessons on Concentration of Judicial Powers. SpicyIP. URL The End of the IPAB and Lessons on Concentration of Judicial Powers – Spicyip

[13] supra note 8

[14] Diane P. Wood, ‘Keynote Address: Is It Time to Abolish the Federal Circuit’s Exclusive Jurisdiction in Patent Cases?’, Chicago-Kent Journal of Intellectual Property 13.1 (2013): 1–10, at 3 (http://scholarship.kentlaw.iit.edu/ckjip/vol13/iss1/1); see also Craig Allen Nard and John F. Duffy, ‘Rethinking Patent Law’s Uniformity Principle’, Northwestern University Law Review 101 (2007): 1619–75 (http://scholarlycommons.law.case.edu/cgi/viewcontent.cgi?article=1590&context=facul ty_publications), at 1620: ‘Yet uniformity is not a proxy for quality. That a policy is uniformly applied says very little about its soundness or desirability.’

[15] supra note 8

[16] Kaur, B. (2023). The Delhi High Court IP Division’s First Year Has Transformed Indian IP Jurisprudence. Remfry and Sagar https://www.remfry.com/publications/the-delhi-high-court-ip-divisions-first-year-has-transformed-indian-ip-jurisprudence/

[17] Id.

[18] Zuallcobley, R. W. (2012) Study on Specialized Intellectual Property Courts. International Intellectual Property Institute.

[19] supra note 8

Role of Indian Judiciary in Promoting Child Welfare

ABSTRACT

Child labour, in and of itself, is a violation of children’s human rights since it deprives them of their “growth”, “development”, “education”, and, indeed, “childhood” itself. Article 24 of the Indian Constitution states that no child under the age of 14 may work in a “mine factory”, or other dangerous environment. However, the Constitution doesn’t explicitly specify what “dangerous work” is. Does it refer to simply physical risks or also include “moral”, “mental”, “psychological”,  hazards etc.?[1] One of the biggest issues facing the whole globe, especially emerging nations like India, is the prevalence of child labour. But as time has gone on, a global awareness of the severity of the issue has emerged. A country’s child population that is discovered to have engaged in “paid” or “unpaid employment” in a certain scenario is considered to have engaged in child labour, even if the definition and notion of child labour might vary greatly relying primarily on “social”, “economic”, “environmental”, or “physical postulates”. Therefore, the primary goal of this article is to examine the judicial trends surrounding the issue of child labour. Additionally, an effort has been made to examine the issue of child labour in relation to those working children under the age of 14 who are engaged in gainful “industrial” and “non-industrial” occupations that are not only seen as detrimental to their “physical”, “mental”, or “moral development” but also seriously impede their social advancement.[2]

INTRODUCTION

In India, there is a severe problem with child labour. On the one hand, India is moving from being a developing to a developed state; it ranks fifth in terms of economic growth, claims a permanent seat on the UN Security Council, and more than “221 people have entered the club of billionaires in recent decades.” India, on the other hand, has made little success in the fight against child labour since it “holds the world’s highest number of child labourers.” The “greatest incidences” of child labour are reportedly found in India, despite the country having the “strongest regulatory framework” in the world with the express purpose of abolishing child labour. There are approximately “300 Central and State Statutes targeting children to “safeguard” and “help” them in attaining the core principle of our National Charter of child labour welfare. This article analyses the rising issue of child labour in India as well as a few court decisions on the subject to evaluate the role that the courts have had in outlawing, enhancing, or easing the employment of children and their working circumstances. In order to safeguard the interests of both children and society, it concludes with a few recommendations for resolving this pervasive problem that affects kids generally. [3]

MAGNITUDE OF THE PROBLEM

Numerous children in India are forced to labour every day, losing their “childhood,” “education,” and “complete mental” and “physical” development. According to the 2011 census conducted by the Indian government, “there were 43.53 lakhs children employed between the ages of 5 and 14.” Although this is a growth from the “1.26 crore number from the 2001 census,” structural problems that promote child labour, such as “poor,” “weak enforcement,” and “regulation,” continue. However, the absence of a “functional definition” for “child labour” and “labour” makes it difficult to estimate the number of child labourers in India. “ The term “unpaid employees” was not included in the 1971 official census of child labourers. Even though unpaid workers were included in official estimates, children who tend “cattle,” “collect water and wood,” and prepare “meals” as part of their household chores were not classified as “working children” in 1981. Even if they are paid, children who labour with their parents and street kids who act as “prostitutes” and “beggars” are either “underreported or not reported at all.” Children helping “hawkers”, “shoe shiners”, and “newspaper salespeople.” If this “underreporting” was corrected in subsequent censuses is uncertain. “Child homelessness,” “poor birth records,” “informal sector jobs,” and “large refugee populations” are other factors that affect underreporting.[4]

SO MUCH TO BE DONE – YET SO LITTLE DONE

Critics argue that India’s legal system is poorly administered and rife with loopholes. Employers can thus avoid paying such fines by altering their production processes or contacting government officials. The Child Labor Act also doesn’t deal with the primary causes of child labour in India, which include “poverty,” “caste discrimination,” a “lack of educational possibilities,” and “misconceptions” regarding the nature of children’s work. Despite enormous advancements in over the past ten years India has received, in the Child Development Index for “education,” “nutrition,” and “child health” it is ranked one of the lowest.  Despite the Child Protection Act, there are several ways that children’s rights are violated, such as when they are “denied” or “unable” to access their rights to “food,” “education,” and “health.” “, as well as defence against exploitation. These days, discovering child labour cases in the Law Reports is like hunting for a “needle in a haystack “.  Perhaps the reason is because not many cases are brought to higher courts. This may be unfortunately the truth, despite the government’s declarations that “children are the nation’s greatest wealth” and that the “country’s future” is inextricably linked to how well they are raised and fed, and that child labour is not a viable choice.”[5]

In M.C Mehta v. State Of Tamil Nadu And Others [6] , the decision was an important first-step in protecting the rights of India’s child labours. According to the Court, “poverty is the fundamental motive” for minors to work. The Court ordered enterprises to pay these children a minimal wage and to ensure that they are insured in order to safeguard against child labour abuse. The “welfare fund” and offering “recreational” and “medical services” were established by the decree in an effort to balance children’s desire for employment with the Constitution’s guarantee of “a good standard of living.” In this case, the Court was limited in its duty as a “policymaker.” ” No kid under the age of 14 shall be compelled or permitted to work in any industry”, according to the Factories Act. It is confusing how the Supreme Court reconciled its decision to let children to work in factories “if they are packing matches rather than making them” with its restriction on “any factory” activity. The Court’s apparent acceptance of the “nimble fingers” interpretation of children’s work is another matter of controversy. They observed that the young workers’ “Sensitive hands are better adapted to sorting out the produced commodities and prepping them for packing. Several human rights groups, including Human Rights Watch, have questioned the fundamental premise of “nimble fingers”.[7]

WHAT THE COURT SHOULD/COULD HAVE DONE

The Court stressed that employers must contribute to the “well-being of children at work,” whether through a “insurance scheme” or by making contributions to a “welfare fund,” but it made no mention of the “potential penalties for failing to pay children a minimum wage” or “employing children” in the manufacturing process. Despite the arguments, the Court stated that poverty is the “fundamental reason that leads parents of a child” to secure employment . The Court’s final decision too represented this concern about poverty; rather than outright prohibiting child labour, the Court tried to regulate it in order to protect working children’s dignity and standard of living. Otherwise, “no parent, especially no mother, would want a young child to work in a dangerous workplace.” The court stated that unless a family’s “alternative income” is ensured, the “topic of eradication of child labour” would really remain a “will-o’-the-wisp.” Rather than outright outlawing child labour, the Court tried to strike a “balance between the child’s economic necessities and his or her basic rights”. Child labour will cease to exist once “poverty is removed”, according to the court. The reasoning is that if there is a low unemployment rate, then children will be less likely to have to work and more likely to attend school. [8]

However, is poverty actually the fundamental problem? Since 1991, India’s economy has grown at an unmatched rate. However, it indicates that child labour is “at the same levels as in preceding decades in the 1990s.” This figure demonstrates that “stopping child labour alone will not reduce poverty.” The “socioeconomic elements” that encourage children to work must be addressed in order to stop child labour in India. Long-held beliefs about “women’s education,” the “value of formal schooling,” and “structural concerns linked to caste, “religion,” and “class” must be dispelled if child labour is to be eradicated. The legal system in India does not go far enough in resolving these problems. The Child Labor Act and the government’s policy towards child labour is rarely implemented and is rife with loopholes that employers may take advantage of. Furthermore, children employed in “non-hazardous areas” “do not get any legal protection.” According to the Act, local labour inspectors are in charge of implementing these regulations. These labour inspectors are overworked and susceptible to “corruption and bribery,” as was previously reported. Even if research indicates that only a “small percentage of enterprises are penalised,” even if labour inspectors are allowed to detain businesses for violating the Act. The most concerning aspect of the decision is that it offers no respite to young children who work in industries other than those that are classified as hazardous.

JUDICIAL COMPROMISE – ALLOWING CHILDREN TO WORK IN PROHIBITED EMPLOYMENT

In India, the legal system is focused on protecting children from the dangers of working in unhygienic conditions. For young children employed in supposedly non-hazardous occupations, there isn’t a comparable regulation, though. Even if the state is successful in outlawing child labour in dangerous occupations, there is always a chance that the practise will either disappear or that the kids will look for employment in occupations that are not covered by the Act or the Court’s decision. In conclusion, the Court impliedly approved of child labour in “non-hazardous industries,” “family businesses,” or “government training centres.” The Campaign Against Child Labour (CACL) undertook a fact-finding tour in Sivakasi in November 2001. It discovered “six children working in two fireworks manufacturers. It also discovered numerous children making fireworks at home”.

Bandhua Mukti Morcha v. Union of India [9]is another public interest litigation filed by the petitioner organisation seeking a “writ of mandamus” directing the government to take steps to “stop the employment of children in the carpet industry” in the State of Uttar Pradesh; “to appoint a committee to investigate their working conditions”; and to issue such “welfare directives” as are appropriate for “total prohibition on the employment of children under the age of 14” in the carpet industry. The court in the present instance acknowledged the worth of children and childhood and what the country would lose if they were not well cared for, but it did not think it was necessary to “push the government to outlaw child labour.” The opposite was asserted, saying that “total employment prohibition may push the children and bulk them up towards poverty and other malicious circumstances, making them “vagrant”, “hard criminals”, and prone to social risks, etc.” Because of this, the court thinks that the (poor) children are more likely to become a danger to society if they don’t work! As a result, the court came to the conclusion that outlawing child labour immediately would be both “impractical” and “counterproductive”. The court ruled that the most “dangerous and undesirable” forms of child labour should be outlawed first, including “slavery,” “bonded labour,” “trafficking,” “prostitution,” “pornography,” and “destructive sorts of labour,” among others. In this way, the court gave “implicit assent to the continuance of other kinds of child labour” while also adding some safeguards.

JUDICIAL RELUCTANT ACCEPTANCE OF CHILD LABOUR?

In Labourers Working on Salal Hydro Project v. State of Jammu and Kashmir[10], the court’s unconditional acknowledgment of child labour as a terrible reality, despite the poverty argument, is rather startling. As the guardian of children’s constitutional rights, the court could have instructed the government to make education mandatory rather than just advising the central government to “persuade the labourers to send their children to a nearby school.” The court’s sympathies should, according to the argument, should be with the children rather than the child labour employers.

Rajangam, Secretary, District Beedi Workers Union v. State of Tamil Nadu [11]was a letter petition addressed to the Supreme Court. The court issued specific directions in this instance, but since the entire process is “home-based” and difficult to monitor, it is unclear if the court’s directives had “any impact on the children participating in the beedi production” enterprise. The court did little to promote the cause of child labour in this industry by failing to provide the state government a clear mandate and instead allowing it to abolish child labour in beedi production in a “phased manner to be established by the state government.”.

WAY FORWARD

The ineffective execution of laws is without a doubt one of the most difficult parts of ending child labour in India. It is important to hold administrative leaders accountable for resolving this problem and to put in place suitable systems for evaluating their performance. The outdated regulations need to be changed since the proliferation of laws leads to confusion and insecurity and ultimately serves as a roadblock to resolving the child labour problem. A universal definition of child should be adopted since different laws establish distinct definitions of children, adding further confusion. The government should take harsh action against companies who utilise children in hazardous employment and impose strict sanctions on those who intentionally involve children in the worst types of child labour, such as “prostitution,” “modern-day slavery,” and so forth.

The Legislature should quickly put the principal judgement of the Judiciary into effect. The Judiciary’s recommendations were ignored by the Legislature in a number of cases. To solve such pressing issues, strong collaboration amongst them is necessary. The implications of child labour, their impact on society, the level of life, and the general development of the nation should also be widely known in society, especially among parents of young children. If India wishes to address the issue of child labour, it must use these methods to achieve the best results.[12] It takes special consideration and awareness of children’s challenges to prevent child exploitation and abuse. Children’s “rights and privileges” require “political will” and “public understanding.” Their “bright,” “healthy,” and “happy” present, as well as their “overall growth,” and advancement, are essential to our future.[13]

CONCLUSION

In conclusion, I think the Indian Supreme Court left several major gaps in its laws governing child labour. The Supreme Court has adopted a conciliatory stance toward the issue and has acknowledged that child labour will always exist in our nation, according to the analysis of child labour decisions provided above. It also didn’t discuss the government’s incapacity to put the law into practise or factors other than poverty that contribute to child labour. The decisions of the Supreme Court of India in these instances will help reduce child labour in the short term, but it is debatable whether the Court’s judgement would be adequate to permanently end the issue. India will need some time to properly outlaw child labour. To achieve this, as discussed India’s political elite must promise to successfully implement its rules and laws. To expose legal violations, “non-governmental organisations (NGOs),” “social activists,” and the “international community” will need to work together. The Indian Supreme Court may be extremely helpful in assisting the Indian government and other authorities in accomplishing this goal through PIL. To achieve the “triumphs and victories” Nehru promised on the eve of India’s independence, this will be a crucial step.[14]


[1] Judicial Response to Child Labour in India : A Human Rights Perspective Thomas Paul

[2] Indian Journal of Industrial Relations , Apr., 2001, Vol. 36, No. 4 (Apr., 2001), pp. 492-498

[3] Arjit Pandey, A Comparative Analysis of Child Labour Laws in US & India, 4 IJLMH 580, 570 – 591(2021)

[4] Ranjan K. Agarwal, The Barefoot Lawyers: Prosecuting Child Labour in the Supreme Court of India, 21 Ariz. J. Int’l & Comp. L. 663 (2004).

[5] Rashmi Shetty, Child Protection Laws in India, ActionAid (2021)

[6] 1991 SCC CRI 897

[7] Id.

[8] Id.

[9] 1984 AIR 802

[10] (1984) 3 SCC 538

[11] Supl. (2) 357 1992 SCC (1) 221

[12] supra note 1

[13] Jaimala Chahand, PROTECTION OF CHILDREN RIGHTS: JUDICIAL ACTIVISM IN INDIA, 2 Hcommons 15, 1-20 (2021)

[14] supra note 2

IMPORTANCE OF TRANS INCLUSION IN FEMINIST STRUGGLES

ABSTRACT

Before studying transgender oppression in class, I knew very little about it and did not give transgender oppression any thought. But now that I’ve read and learned about it, I have a clearer understanding of what it is, and I find myself eager to learn more about it. I have come to understand how, even though they are very different, sex and gender were utilized synonymously in our culture. I understood how most forms of “oppression”, “people’s beliefs” and “values” are based on a “cycle of socialization” that starts in childhood. (Stock, 2022) For example- my parents used to dress me in jeans, sports dresses, and colors like red and blue. I was taught, like many other people, that because I was a boy, I was not supposed to like barbies or dolls.  In this paper, I try to tackle the gender-critical argument against trans-inclusion. The purpose of this paper is to support the claim that Trans inclusion plays a very important role. I also take into account the arguments put out by feminists like Janice Raymond, who, as far as I’m aware, is well-known for her work against violence, sexual exploitation, and medical mistreatment of women as well as her contentious work criticizing transsexuality and the transgender rights movement. Finally, I make a statement about transgender issues in India.

INTRODUCTION

“If you see inequality as a “them” problem or “unfortunate other” problem, that is a problem,”

  • Kimberle Crenshaw (STEINMETZ, 2022)

Bem (1974) wrote a ground-breaking article on “psychological androgyny”, and it has been more than 40 years since then. She called for the elimination of gender as a “stable feature” consisting of “discrete categories”, challenging the “binary view” of gender in “western academia”. (Bem, 2022) However even now, the “binary system,” in which male and female are “opposites,” is often believed to be the sole way. The ideology that promotes “heterosexuality as the superior”, “legitimate”, and “natural way” to express “sexuality” is the foundation of harassment of LGBTQ people. (WEGNER, 2022) Because of this, I think “trans inclusivity” is crucial to feminism’s battles. However, they frequently aren’t included in it since a “trans woman” in particular isn’t recognized as one of them, which is still an issue. Trans and gender non-conforming” persons have suffered “discrimination”, “hate speech”, “threats”, and “harassment” at the hands of the “feminist movement” throughout the “second wave” in the 1970s and still do now. The book “Transsexual Empire: The Making of the He-She” by feminist Janice Raymond, for instance, claims that “all transsexuals rape women’s bodies by reducing the real female form to an artifact, appropriating the body for themselves.” (Kacere, 2022)

What these gender-critical feminists overlook is that “transgender people” are more likely to endure “abuse” and relatively higher levels of “discrimination” in “housing”, “work”, and “access to healthcare”. Even though women experience discrimination, as is validly claimed in the video “Contra points”, it is still preferable to be a “she” than an “it” once you start passing as a woman.

Even Susan Stryker in her article gives her own example that

“…I am perceived as a woman (which is most of the time), I experience the same misogyny as other women, and to the extent that I am perceived as a man (which happens every now and then), I experience the homophobia directed toward gay men..”(emphasis added)

I firmly think that until the most “marginalized members” of our society experience equality, we will not truly have “equality”. So, I believe we should fight for transgender people and try to address gender problems by listening to them. It is crucial to recognize that “trans issues are feminist concerns”, and we must strive to make feminism “trans-inclusive” if we are to create an intersectional and successful “feminist movement”. Because even today, women of colour frequently need to demonstrate their “womanhood”. Numerous top athletes, like Dutee Chand and Caster Semenya, have been made to show proof of their “womanhood” by having their “chromosomes” and “testosterone” levels invasively examined. (5 Things to Know to Make Your Feminism Trans-Inclusive, 2022) Making trans people and other “marginalized members” a fundamental part of the movement is what I believe the battle should be about, not just making the “feminist movement more inclusive”.

I also disagree with Stock’s main argument against “allowing transgender people into locations reserved for women, which is that doing so puts cisgender women at risk”. If a “cis-women-only” space is required, in my opinion, name it that. However, when a “women-only space” is read as “cis-women-only”, the groups’ very existence serves to “delegitimize” trans women’s gender “identities and experiences”. I feel that assuming or arguing that “only cis women require the protection of women-only spaces”, insisting that “trans women’s socialization experiences mirror those of cis males”, and not taking “gender identity” seriously as a factor in determining who qualifies as a woman are three mistakes made by gender-critical feminists. (Knight, 2022)

In India, many “trans women”, also known as “hijras” in India, make a living by performing at social events like “weddings” or “selling sex”, as well as “beggaring” at busy intersections and on trains. Transgender individuals can only rent out homes in “Dalit colonies”. This might be the consequence of the “poorer homeowner’s” need to rent out his or her residence for “financial reasons” rather than an “acceptance of trans status”. As Susan stated, there is very little justification to support transgender concerns at the “institutional level” as long as transgender is perceived as the “fraction of a fraction of a movement”, as long as it is thought to represent “only a few insignificant outliers” in a larger and more significant set of data. By the numbers, transgender people will always lose. (Knight, 2022)

The NALSA v. India 2014 AIR SC 2285 ruling is problematic in my opinion because it pathologizes trans people and utilizes “transphobic terminology”. It is also so ambiguous and unclear that it is hard to tell if it actually reflects “inclusion” or a crafty exclusion of trans people from society. The use of the term “eunuch” itself is derogatory, and “hijra” and “eunuch” are used interchangeably throughout the verdict. Even after this judgement. discrimination against them is visible, and they still frequently are rejected by their own family and denied access to “employment”, “education”, and “healthcare”. I feel that the relevant authorities ought to have arranged meetings to discuss the judgment’s ramifications and at the very least translated or simplified the 130-page ruling into local languages that “hijra” sisters could understand.(Semmalar, 2022)

Additionally, I believe that the Transgender Act of 2019 violates the NALSA ruling. The new law, in my opinion, gives one government entity unprecedented authority to decide whether transgender persons are “fit” for legal recognition as who they are. Additionally, it forces people to undergo medical operations they may not wish to have, which is against international and Indian legal precedent and a violation of their fundamental rights. I think that the legal recognition procedure and one’s right to physical autonomy should be handled apart from any medical treatments. But those treatments should be offered and accessible if a person needs medical assistance as part of their personal identification or transition process. (Knight, 2022)

Lastly, I believe that the issue is not that there is a gender binary, but rather that gender is assigned randomly and that anyone who crosses the bounds set by their society is excluded and subjected to institutional oppression and violence. Neither femininity nor masculinity is the issue. It is forced femininity and forced masculinity based on a value system that devalues everything feminine. We may observe how multiple groups are dealing with numerous interrelated problems at once when we view the world through an “intersectional feminist lens”. Building a future that leaves no one behind requires crucial activities such as “showing solidarity” with one another, “challenging power systems”, and “speaking out against the causes of inequality”. (Intersectional feminism: what it means and why it matters right now, 2022)

Submitted by-

Anshuman Patra (20011317)

BBA LLB(Hons.)

2020-2025

BIBLIOGRAPHY

  1. Bem, S., 2022. APA PsycNet. [online] Psycnet.apa.org. Available at: <https://psycnet.apa.org/record/1974-27631-001&gt; [Accessed 9 October 2022].
  2. Human Rights Campaign. 2022. 5 Things to Know to Make Your Feminism Trans-Inclusive. [online] Available at: <https://www.hrc.org/resources/5-things-to-know-to-make-your-feminism-trans-inclusive&gt; [Accessed 9 October 2022].
  3. Kacere, L., 2022. Why the Feminist Movement Must Be Trans-Inclusive. [online] Everyday Feminism. Available at: <https://everydayfeminism.com/2014/02/trans-inclusive-feminist-movement/&gt; [Accessed 9 October 2022].
  4. Stock, K., 2022. Academic philosophy and the UK Gender Recognition Act.. [online] Medium. Available at: <https://medium.com/@kathleenstock/academic-philosophy-and-the-uk-gender-recognition-act-6179b315b9dd&gt; [Accessed 9 October 2022].
  5. STEINMETZ, K., 2022. She Coined the Term ‘Intersectionality’ Over 30 Years Ago. Here’s What It Means to Her Today. [online] Time. Available at: <https://time.com/5786710/kimberle-crenshaw-intersectionality/&gt; [Accessed 9 October 2022].
  6. Semmalar, Gee Imaan. “Unpacking Solidarities of the Oppressed: Notes on Trans Struggles in India.” Women’s Studies Quarterly, vol. 42, no. 3/4, 2014, pp. 286–91. JSTOR, http://www.jstor.org/stable/24365012. Accessed 9 Oct. 2022.
  7. UN Women – Headquarters. 2022. Intersectional feminism: what it means and why it matters right now. [online] Available at: <https://www.unwomen.org/en/news/stories/2020/6/explainer-intersectional-feminism-what-it-means-and-why-it-matters&gt; [Accessed 9 October 2022].
  8. WEGNER, R., 2022. A psychometric evaluation of the homonegative microaggressions scale. [online] Taylor & Francis. Available at: <https://www.tandfonline.com/doi/abs/10.1080/19359705.2016.1177627&gt; [Accessed 9 October 2022].
  9. 2014 AIR SC 2285

Corporate Conundrums: Unraveling Liability Issues for Internet Intermediaries in Copyright Infringement

ABSTRACT

The major social media platforms, including “Facebook”, “Instagram”, “YouTube”, “Twitter”, and “LinkedIn”, are frequently observed “deleting” or “pulling down” information from their sites that violates the IP rights of the right holders. These platforms have “specific policies” and “processes” in place to safeguard the rights of IP owners and remove any potentially infringing content they may be hosting. For instance, the “Rights Manager” feature on “Facebook” and “Instagram” helps safeguard the material of IP holders by identifying any content that resembles the original work. They also have established procedures to report IP violations on their platforms by stating exactly which links or posts are allegedly infringing on the rights of the IP owners. Instagram said in 2020 that it does not support “embedding” and highlighted that an “explicit authorization” is always required from the original owner of any work before any copyrighted information is placed on Instagram. This remark was made in response to a case of copyright violation in the United States. YouTube, a platform for sharing videos, also has extensive IP security measures in place. Through a straightforward webform on this website, one may submit separate “takedown requests” for “copyright” and “trademark violations”. The same is true for Twitter’s trademark policy, which details what constitutes infringement and what doesn’t, and its copyright policy, which outlines what qualifies fair use and what doesn’t. (Banerjee)

One party that frequently finds itself the target” of legal action in situations of internet infringement is the “intermediary”, or the location where the infringing information was posted. These are the locations where anyone may go and ‘submit their work”, regardless of “whether or not” it violates the copyright of another person. In addition, it has become difficult for these websites to control the information that is placed on them, which has led to each of them “developing their own infringement rules” that they adhere to in order to reduce the danger of copyright infringement. The paper looks at when and if social media sites like Facebook, Twitter, and Google are responsible for the online behaviour of its users. The study will briefly review the relevant clauses before concentrating on India’s and the US’s current situations.

INTRODUCTION

Today, it’s possible that more people explore the “virtual” world than the physical one, and “Facebook may be the most frequently read “book.” Everybody is a “journalist” on social media, therefore “newspapers” and other “conventional media” no longer hold the monopoly on “public opinion”. YouTube”, “Instagram”, and other platforms pose a severe threat to “art galleries” and “exhibitions”. “Universities”, “libraries”, “scholars”, and “publishers” are no longer the only sources of information and “truth” judgments. The “conventional hallows of knowledge” are challenged by “virtual learning”, whereas reliable websites impart “knowledge” without charging any fees. Sharing of information has become more quicker and simpler because to social media tools like “WhatsApp”, “Messenger”, and “Instagram”.

As of “January 2022, there were 4.62 billion users”, which means that their “influence and reach” now extend to more than “half of the world’s population”. Our lives have been completely “transformed” by the introduction of “Internet intermediaries” including “Internet service providers”, “social media platforms”, and search engines.[1] Internet intermediaries making money off of “user-generated material”, especially “illegal content” like copyright infringements. Large organisations that “monetize” this material include “Facebook, Inc.” and “Alphabet, Inc”. (the parent company of “YouTube” and “Google”), who each make millions of crores annually. This raises a number of issues, including: Should they be required to keep an eye on the content that users “upload on their platforms”? Should they, even if they are its users, be “made responsible” for the activities of other parties? (Vishal)

PROVISIONS FOR EMERGING ISSUES OF ONLINE COPYRIGHT INFRINGEMENT

Copyright infringement is the “manufacture of an intellectual property work without the consent of the copyright owner”. When a “third party” infringes the “rights of the copyright owner, such as their exclusive ownership of a work for a certain amount of time, a copyright infringement occurs. Well-known entertainment goods like “music” and “movies” are frequently violated by “copycats”. “Future obligations” or “cash set aside” in the case of a lawsuit may emerge from infringement litigation. (Copyright Infringement Cases in India 2022) The principal acts of infringement are discussed in Section 51(a), whereas the subsidiary acts of infringement are discussed in Section 51(b). But I think a quick glance makes it clear that the section’s “writers” did not, unless a broad interpretation was provided, take into account the burgeoning problems of “online copyright infringement”. According to the clause, infringement occurs when someone violates a copyright without the owner’s “consent” or when the owner permits an infringement to occur somewhere for “financial gain”. The expression “any place” allows for the possibility of reading “internet pages” and contents as potential locations for intellectual property infringement. Thus, the question of “intermediary websites” is raised. (Vishal)

Internet intermediaries should be left to their own devices and not subject to governmental control, a view that was largely shared in the early days of the Internet. However, in an effort to stop infringement and recoup their losses, the owners of copyrighted content started holding these “internet intermediaries accountable” for the violations of their users.  Religious Technology Center v. Netcom On-Line Communications Services, Inc. (907 F. Supp. 1361 (N.D. Cal. 1995)), one of the first cases to address the “issue of internet intermediaries’ liability” for online copyright infringement, held that while the “internet intermediary is not directly responsible for copyright violations committed by its subscribers”, it may be partially responsible if it “knew” or should have known about the violations. The rationale behind this is that because they operate as the gatekeepers to the Internet and web-based services, these intermediaries are best positioned to keep an eye on the actions of their subscribers and, as a result, can stop them from violating copyright. (Kamil)

The single chapter of the IT Act devoted to the topic of intermediary liability is Chapter XII. In the circumstances listed in Section 79 of the Act, the intermediary is excluded from liability relating third party information. The clause is comparable to the “safe harbour” provisions of the “Digital Millennium Copyright Act” in the United States and the “European E-Commerce Directive”. It specifically specifies that “an intermediary is not responsible for any content created by third parties.”  The recent ruling against YouTube in M/s Shri Krishna International etc. v. Google India Pvt. Ltd. and others has demonstrated that the “safe harbour” will only be given if these requirements are met and if the intermediary actually played no part in the infringement at all. (Intermediary Liability)

CHALLENGES FACED BY INTERMEDIARIES

As was already said, intermediaries assume that the public has granted them permission to convey their opinions. Since they never know what could be uploaded on this website, they run a “very high risk” as a result. Following the publication of an “MMS film” showing two students in lewd situations, the “CEO of baazee.com (now eBay. in)” took the brunt of the criticism. Even though he was unaware that such information was placed on the internet, this led to the CEO’s incarceration. That lawsuit paved the way for holding ISPs and other middlemen accountable for the material put on them. As a result, even if they had a medium volume of material flow, it was almost impossible for the intermediaries to go over each and every article submitted to the website before publishing. This produced a highly unfriendly market position for them. In Facebook Inc. v. Surinder Malik & Ors2 and Instagram LLC v. Surinder Malik & Ors3, the Delhi High Court made it clear that “although online intermediaries like Facebook and Instagram may not actively participate in the posting of the infringing contents on their platforms, as facilitators of the infringement, they are under a duty to remove such content” as soon as it is brought to their attention or knowledge. (Intermediary Liability)

In order to reduce “dissent”, “hate speech”, “privacy violations”, and the like, governments all over the world are “putting more pressure on intermediaries to block their users’ objectionable online content.” This is because the majority of “creative expression” today takes place over communications networks run by private companies. Making communication intermediaries “legally liable” for the “actions and words” of their users is one way to exert pressure. Even as governments work to address very real policy issues, liability regimes that subject platform businesses to legal risk for users’ online activities constitute “censorship-by-proxy” and endanger both free “speech and innovation”.(Intermediary Liability)

But since the legislation does not clearly specify the type of content that is prohibited by the law, there is “little clarity” about the rule on intermediaries. What steps the intermediary should take when it discovers such information is “unclear”. Another reason why many intermediaries have taken matters of censorship into their “own hands” which doing so might be perceived as an infringement on the “constitutionally protected right to free speech” and “expression of users”. Because figures show that “takedown notices” have significantly grown, violating fundamental human rights and having a “chilling effect” on free expression mainly because intermediaries are trying to avoid their responsibility. This is what is typically seen nowadays. This is the reason India’s intermediary law is having issues. ( Liability of Online Intermediaries under the Copyright Regime)

DRAFT AMENDMENTS TO THE INFORMATION TECHNOLOGY (INTERMEDIARIES GUIDELINES) ACT, 2018

YouTubers, particularly those who focus on commentary, frequently respond to specific videos in order to produce their own material, which they then upload to their channels. Numerous tiny YouTube channels are persecuted by large corporations, which copyright strike their videos even when they utilise the content in accordance with YouTube’s “fair use” policies. “Reuploading photographs” by users without the “original uploader’s knowledge” or “authorization” is one of the most prevalent copyright infringement situations in social media today. When it comes to copyright infringement, “professional photographers”, “journalists”, “video producers”, and “vocalists” are the worst victims. A “Haitian photographer was given $1.22 million in 2013” when businesses began using the images of the disaster he had already uploaded on social media. Social media has seen the emergence of the meme notion in recent years as a means of disseminating humorous representation in the form of visuals. Meme producers typically post them with specific context to make them appear hilarious by using a video clip, an image from a movie, or any other copyrighted depiction. (Dhankhar)

Due to the shifting character of “internet intermediary liability”, it has been suggested that the intermediary regulations be modified in 2018. This has created a lot of discussion about the “Draft Amendments to the Information Technology (Intermediaries Guidelines) Act, 2018”. According to it, in order to identify illegal content on the platforms, the intermediaries must apply automated filters, according to rule 3(9) of the proposed rules. The proposal was appropriately the target of a number of criticisms since it appeared to be a step closer to the privatisation of justice because it would allow intermediaries and their algorithms to control what material is published online. Although the most blatant inconsistency between the regulations and the constitutional legal framework (specifically with the Shreya Singhal Judgment) exists, there are other ramifications of such a rule for online copyright that might endanger the free flow of creative information online. (Nithya)

PROACTIVE MONITORING MECHANISM

The entire idea of proactive monitoring contests the “notice” and “takedown procedure” as well as the “safe harbour paradigm of intermediary immunity”. The “safe harbour paradigm” is founded on the fundamental notion that intermediates are simply that “they have no control over the material that is sent via platforms”. The safe harbour is only offered to intermediaries that act as nothing more than content carriers and passively transmit data from third parties. The intermediaries would no longer be seen as “passive intermediaries” but rather as companies that have complete control over the material on their platforms if requested to monitor the content on the platforms. This would be in direct opposition to the rationale supporting the safe harbour. Thus, it can only be inferred that a proactive monitoring system enabled by AI technologies would not be able to coexist with the safe harbour paradigm for intermediaries that is already in place in many countries, including India, the EU, and the USA. (Nithya)

“State-mandated proactive monitoring” would also result in adopting an unusual and risky deviation from the “Notice and Takedown process” that was being used in the majority of nations, much as how it conflicts with the “safe harbour paradigm”. This is because, unlike the “notice and takedown procedure”, which allowed users and courts to determine whether or not a given piece of information should remain online, “auto-filters” used by intermediaries would force these private business platforms to make that decision. Such auto-filters may even infringe the rights of the right owners guaranteed under section 14 of the Copyright Act of 1957 in the event of online copyrighted material. (Nithya)

Along with the issues with the current judicial system, it’s important to address the risk posed by AI-enabled systems that forecast “false positives”. There is a real risk that the filters would mistakenly identify a “non-infringing work as an infringing one”, resulting in the removal of the work from the platform. This is because not all AI tools can “comprehend or perceive some of the very well-established doctrines in copyright law” (like the degree of originality, the idea-expression dichotomy, etc.) as meticulously as a Court of Law. The problem of false positives by YouTube’s own freely used automatic filter tool, Content ID19, has been caused by the inability to recognise and detect works under the well-known copyright doctrine of fair use. According to platforms like YouTube, disclosing the criteria used by the AI technologies to evaluate the material would put them at danger of losing their competitive advantage. Because the filter’s algorithms are opaque, producers are unable to identify a legitimate technique to get beyond the automated tools of intermediaries. Since the AI technologies also block a particular piece of information from resurfacing on the site, the serious repercussions of false positives will be increased even more. This emphasises how dangerous proactive surveillance by intermediaries would be for the unrestricted spread of creative creations online. (Nithya)

WHATSAPP, TELEGRAM ENABLING THE CIRCULATION OF THE E-NEWSPAPERS

In Bennett Coleman Co. Ltd. v. Whatsapp Inc. and Ors, the Delhi High Court granted an ad interim injunction prohibiting the Defendants, including the popular instant messaging services WhatsApp and Telegram, from “copying”, “distributing”, “adopting”, “reproducing”, “transmitting”, or otherwise “disseminating the e-newspapers” published by the Plaintiff through any website or portal

The Plaintiff, who owns a number of well-known newspapers in India, including The Times of India, filed a lawsuit for copyright infringement against WhatsApp and Telegram on the grounds that “those services were illegally disseminating the plaintiff’s e-newspapers and violating the copyrights of the “original literary works” they had published in those publications.” The plaintiff claimed to be the sole owner of the copyright to the literary works, which included the freedom to duplicate and share the content in any format. Therefore, it was recognised that the Defendants were facilitating free downloads by freely broadcasting the e-newspapers. Additionally, it was claimed that users were regularly contributing PDF versions of electronic newspapers through various groups on these platforms.

The Hon’ble Justice ruled in favour of the plaintiff, saying that because “the plaintiff is a sole owner of the copyright in the claimed literary work, holds all rights to it in whatever material forms.” It is against the plaintiff’s rights for defendants to distribute copies of the plaintiff’s electronic newspapers in this manner. The Court issued notices to “WhatsApp, Telegram and other Defendants who were allegedly involved in or enabling the circulation of the e-newspapers of the Plaintiff.”

PIRACY THROUGH SOCIAL MEDIA PLATFORMS AND MESSAGING APPLICATIONS

It is important to remember that copyrighted content has been threatened by piracy in the entertainment sector since the advent of “DVDs and CD players”; nevertheless, in recent years, pirated content has spread more widely thanks to internet streaming and mobile applications. In the case Zee Entertainment Enterprises v. Tejendra Modi and Ors., the plaintiff alleged that the cinematographic film “Radhe: Your Most Wanted Bhai” (the “film”) violated their exclusive licencing and exploitation rights. The plaintiff claimed that once the movie was made available on their digital entertainment streaming service, it was pirated on social media sites and through messaging services like WhatsApp. The Plaintiff alleged that the Defendants were disseminating the movie’s material on social media sites like WhatsApp, even though the app’s Terms of Service explicitly prohibit users from abusing their services to violate intellectual property rights. A temporary injunction prohibiting the defendants from “unauthorizedly storing”, “reproducing”, “communicating”, “disseminating”, “circulating”, “copying”, “selling”, “offering for sale” or “making available copies of the film or any other portion thereof”, through WhatsApp or any other means or modes, that may infringe the Plaintiff’s copyright in the film” was issued by the Delhi High Court as a result. It is also important to note that the Court in this instance reversed the instructions included in the earlier judgement wherein the Court had suspended the WhatsApp accounts of certain Defendants and acknowledged the necessity for “actual knowledge” for intermediaries to be held accountable. (Sehgal)

COPYRIGHT INFRINGEMENT IN THE UNITED STATES OF AMERICA

The “doctrine of inducement” has frequently been used by American courts to decide “whether a distributor (intermediary) actively encourages the use of its platform or device to violate copyrighted content”. In MGM Studios v. Grokster Ltd., the U.S. Supreme Court ruled unanimously that the defendant, a company that facilitates “peer-to-peer file sharing”, could be held liable for IPR infringement on the grounds that it actively encouraged “file sharing and profited from third parties “direct infringement of its intellectual property.

In addition, the United States District Court for the Southern District of New York held that “it would be practical to assert an equal claim of infringement against the defendant since it exercises control over and benefits from the dissemination of such messages” in Arista Records LLC v. Lime Group LLC (discussed on the blog here), even though the court granted a “permanent injunction to shut down the defendant’s file-sharing service”. This verdict was likewise largely founded on the law of inducement, which states that the intermediary who encouraged infringement and indirectly supported it did so in order to benefit. (Iyer)

In re Aimster Copyright Litigation, the U.S. District Court for the Northern District of Illinois addressed the issue of contributory infringement. Since it was difficult to enforce rights individually due to the enormous number of infringers at once, the court placed indirect liability on the intermediary. According to the court, “enforcing accountability against the middleman would be the only workable solution among millions of consumers”. The intermediate was unable to manage all users, but it was able to remove specific content after being informed to do so. Therefore, it is suggested that “the intermediary should be held accountable under the Aimster Rule” when content is not removed because they were indirect contributors. (Iyer)

BALANCE BETWEEN OVER-ENFORCEMENT AND UNDER ENFORCEMENT.

Finding a balance between “over- and under-enforcing copyright laws” is, in my opinion, the major problem with the responsibility imposed on internet intermediaries and its repercussions. On the one hand, excessive oversight of intermediaries would stifle the development of innovative and valuable services, limit market participation, and impede the exercise of fundamental constitutional rights. On the other hand, if the platforms are not closely watched, they may become regular enablers of intellectual property violations, which would stifle online creativity. In order to deal with the overabundance of notifications to take down content, which was implemented to address the aforementioned problem, intermediaries have been forced to participate in enforcement mechanisms using automated algorithms that would filter content that would subject them to liability. (Iyer)

There are several strong reasons against this approach, some of which have been stated in this article, as fresh discussions have erupted over the use of autofilters by internet intermediaries. However, the necessity to enforce such automatic algorithmic struggles has not yet gained much traction. This proactive screening method used by intermediaries in the context of copyright violations would do “more harm than good”. Instead of reducing online copyright violations, it would create conditions that would be extremely harmful to the online spread of creative work. The technique also obviously contradicts the current “safe harbour and notice and takedown models”. Therefore, any legislation that requires internet intermediaries to engage in this practise of AI-enabled auto filtering is a bad move. (Nithya)

WAY FORWARD

The idea of copyright is not all-inclusive. The present issue facing our nation is not a desire to replicate the content of another person’s work, but rather a lack of understanding of copyright rules. Many individuals may not understand all that falls under the definition of “fair use” and what does not, and as a result, they subsequently face the repercussions of copyright infringement through drawn-out legal processes. Therefore, in order to use another person’s original invention, the required permits, licences, and royalties must be obtained. (Dhankhar)

The buck should not stop here, even “when laws are passed and economic crime theories” are put into practise in India. The owners of the copyrights must work hard to identify ways to be more “vigilant”, “assist in forming policies”, “inform decision-makers” when necessary, and “effectively punish infractions”. The “largest publishing market” in the world now is India, which is working hard to catch up with the global situation. A person produces their opinion when they publish something, and in a democracy, that view needs to be “respected”, “defended”, and “safeguarded”. Emerging economies suffer significant losses as a result of copyright violations, and every effort must be taken to minimise these losses. (Dhankhar)

CONCLUSION

In conclusion, the judiciary appears to favour preserving intellectual property, particularly copyrighted content that circulates freely online. According to recent trends, the courts are starting to identify the constantly changing and novel ways that are being used to violate intellectual property rights as a result of technical advancement and the quickening of time brought on by Covid-19. The Judiciary nonetheless appears to be wary of all the issues at play and conscious of the need to strike a “fair balance between the right to free speech, the safe harbour protections” for intermediary liability under Section 79 of the Information Technology Act of 2000, and the rights of copyright holders. (Banerjee)

Copyright and trade mark owners’ intellectual property rights are increasingly under jeopardy as vlogs and reels circulate online. However, it is important to keep in mind that social media sites may only be held liable for IP violations to the degree that IP holders are careful in protecting their rights and notifying intermediaries of any violations. The potential of social media as a digital platform for the dissemination of material produced by a person or organisation is boundless. Social media is, by far, the most effective and convenient medium for the average person to publish and disseminate his or her work of intellect to the general audience. With the ease with which one’s IP may be shared via social media platforms also comes the possibility of IP infringement. IP infringement on social networking sites is frequent in the modern digital era. Such cases of intellectual property infringement inevitably put the middlemen that these social media sites are under the spotlight. (Banerjee)

BIIBLIOGRAPHY

  1. Banerjee, Tiyasa. “IP Violations on Social Media Platforms and the Role of Intermediaries – Trademark – India.” IP Violations On Social Media Platforms And The Role Of Intermediaries – Trademark – India, Sujata Chaudhri IP Attorneys, 9 June 2022, https://www.mondaq.com/india/trademark/1200208/ip-violations-on-social-media-platforms-and-the-role-of-intermediaries.
  • Vishal, Vatsalya, and Aditya Sharma. “Into the Crosshairs – The Liability of Online Intermediaries in Case of Copyright Infringement.” Nirma University Law Journal, vol. 8, no. 1, December 2018, pp. 89-96. HeinOnline.
  1. “Copyright Infringement Cases in India 2022.” Vakil Search, https://vakilsearch.com/blog/copyright-infringement-cases-in-india/.

 

THE NEED FOR SHAREHOLDER ACTIVISM IN INDIA’S CORPORATE GOVERNANCE:  A COMPARATIVE ANALYSIS WITH OTHER COUNTRIES

  1. Introduction

The debate over shareholder activism is essentially a debate over the balance of power between shareholders and management in public companies. But over the years shareholder activism has turned out to be crucial for promoting transparency and accountability in corporate governance. (Bebchuk & Weisbach) However, the absence of effective shareholder activism in India’s corporate landscape remains a significant concern. This paper critically examines the legal and regulatory framework governing shareholder activism in India, and talks about other countries to identify the gaps and challenges. The paper concludes with recommendations for reforms to promote effective shareholder activism and ensure better corporate governance in India.

  • Shareholder activism is crucial for promoting transparency, accountability, profitability, and higher valuations

Shareholder activism is crucial for promoting transparency. In 2017, Infosys, one of India’s largest IT companies, faced criticism from institutional investors over its executive compensation practices. The company had granted a large severance package to its former CFO without disclosing it to shareholders. Institutional investors such as HDFC Asset Management and ICICI Prudential Asset Management used their voting power at the AGM to demand more transparency about executive compensation. (Shingade et al., 2022) The pressure from institutional investors led Infosys to revise its executive compensation policy and disclose more information about executive pay in its annual report.

Due to an increase in transparency and accountability within firms, it can improve investor confidence and lead to higher valuations as it should be noted that when firms are more transparent about their operations and financial performance, investors are more likely to invest in them. This can lead to higher valuations over time.

Shareholder activism can help to address environmental and social issues that may be important to stakeholders, which can improve the reputation of the firm and lead to increased profitability. They note that firms with strong environmental and social policies tend to have better reputations among consumers and investors. This can lead to increased profitability over time.

Shareholder activism can help to address agency costs within corporations. Agency costs refer to the costs associated with conflicts of interest between managers and shareholders. When managers prioritize their interests over those of shareholders, agency costs can arise. Shareholder activism can help to reduce these costs by providing a mechanism for shareholders to hold managers accountable for their actions. (Shingade et al., 2022)

Shareholder activism can help to address issues related to executive compensation, board composition, and other aspects of corporate governance that may be important for firm performance. This is because when shareholders are actively engaged in monitoring the actions of managers and directors, they are more likely to demand greater transparency and accountability from these individuals. (Shingade et al., 2022) For example, shareholders may demand more frequent reporting of financial information or greater disclosure of executive compensation packages.

  • The Absence Of Effective Shareholder Activism In India’s Corporate Landscape Remains A Significant Concern

There is still an absence of effective shareholder activism in India’s corporate landscape which remains a significant concern, although there has been a rise over the years. While shareholder activism has become increasingly common in other countries, such as the United States and Europe, it remains relatively rare in India.

One reason for the absence of effective shareholder activism in India is the concentration of ownership among a small number of large shareholders as many Indian companies are family-owned or controlled by a few large institutional investors, which can make it difficult for minority shareholders to have their voices heard. (Shingade et al., 2022) And also, many Indian companies have complex ownership structures that can make it difficult to identify who holds significant voting power.

Another factor is that while Indian law provides some protections for minority shareholders, these protections are often weakly enforced. A study by the World Bank found that India ranked 163rd out of 190 countries on its ease of enforcing contracts index. (The World Bank) This suggests that even when minority shareholders do have legal recourse, they may face significant challenges in enforcing their rights. This index is important for investors and businesses because it indicates the strength and effectiveness of a country’s legal system in resolving disputes and enforcing contracts. (Sharma) In the context of minority shareholder rights, the enforcing contracts index is particularly relevant because it measures the ease with which minority shareholders can enforce their legal rights.

More importantly, small shareholders in India tend to rely on regulatory bodies, major competitive shareholders, and financial institutions for their protection. (Sharma) This makes them docile investors who would prefer to exit or remain loyal rather than resorting to shareholder activism.

Lack of effective shareholder activism in India is also due to cultural factors like there is a general reluctance among Indian investors to engage in public disputes with company management or other stakeholders. This reluctance may be due to concerns about damaging relationships or reputations, or simply a lack of familiarity with activist strategies (Shingade et al.)This is also due to several other factors, including cultural norms that prioritize harmony and consensus-building over confrontation, as well as concerns about potential retaliation or negative publicity.

  • Opposing View

There is an opposing view that the profitability of target firms decreases in the short term after an activist campaign, which suggests that these campaigns impose costs on companies as per an author who used a unique dataset of US activist campaigns from 2002 to 2017 to analyze the effects of different types of activist interventions on target firms.

But the study does not provide a detailed explanation of how exactly shareholder activism leads to decreased profitability, rather it suggests that these interventions may disrupt the firm’s operations, create uncertainty and distraction for management, and increase costs associated with responding to shareholder demands and some proposals put forward by activists may not be value-enhancing or may have unintended consequences that harm the firm’s performance. (Barros et al., 2022)

Other arguments put forth were as follows: Firstly, activist campaigns may disrupt the firm’s operations and create uncertainty and distraction for management. This can lead to decreased productivity and increased costs associated with responding to shareholder demands. Secondly, some proposals put forward by activists may not be value-enhancing or may have unintended consequences that harm the firm’s performance.

Thirdly, the short-term focus of some activist investors may lead managers to engage in earnings management practices to increase their pay-for-performance compensation, which can harm the long-term interests of the company and its shareholders. (Barros et al., 2022) Finally, even if shareholder activists possess appropriate information and knowledge, they may be pursuing their own personal agendas and short-term gains rather than acting in the best interests of all shareholders.

Therefore, while shareholder activism can have positive effects in some cases, there is an argument that its impact is complex and depends on various factors that need to be carefully considered.

  • How to minimize the risk of being targeted by shareholder activists?

Maintaining good relations with shareholders: The board needs to balance its role between legislative compliance, corporate strategy, and policy-making. Clarity on the role of the board and its members helps maintain a good relationship between the management and shareholders, which builds shareholder confidence.

Effective communication: Companies should communicate effectively with their shareholders to ensure that they are aware of the company’s strategy, performance, and governance practices. This can help build trust and reduce the likelihood of activist campaigns.

Proactive approach: Demonstrating a proactive approach to addressing shareholder concerns can help build confidence among shareholders and reduce the likelihood of activist campaigns

Strong governance practices: Companies should have strong governance practices in place, including independent directors, effective risk management systems, and transparent reporting

Engagement with stakeholders: Companies should engage with stakeholders beyond just their shareholders, including employees, customers, suppliers, and communities in which they operate. This can help build support for the company’s strategy and reduce the likelihood of activist campaigns. (Khaitan et al.)

  • Lessons Can Be Learned From other Countries To Improve and Promote Effective Shareholder Activism In India

Cross-border comparison of shareholder activism in developed countries can help identify gaps and challenges in India’s legal and regulatory framework as there have been successful activist campaigns in other countries, such as the United States, where shareholder activism has become an established force.

Policymakers can study how other countries have balanced the interests of shareholders with those of other stakeholders, such as employees or creditors. For example, some countries have implemented “stakeholder-oriented” corporate governance models that prioritize the interests of all stakeholders rather than just shareholders. . (Bebchuk & Weisbach  By studying these models, policymakers can gain insights into how to create a legal and regulatory framework that promotes effective shareholder activism while also protecting the interests of other stakeholders.

Policymakers can examine how other countries have addressed issues such as executive compensation, board composition, and risk management. For example, some countries have implemented regulations or guidelines on executive pay to ensure that it is aligned with long-term value creation rather than short-term profits. Other countries have implemented rules on board composition to ensure that boards are diverse and independent. By studying these approaches, policymakers have already gained and can gain more insights into how to address similar issues in their own country. Policymakers can learn from the experiences of other countries in implementing corporate governance reforms. For example, some countries have implemented reforms through legislation or regulation, while others have relied on voluntary codes or market-based mechanisms. . (Bebchuk & Weisbach) By studying these approaches and their outcomes, policymakers can gain insights into which approaches are most effective in promoting effective shareholder activism and improving corporate governance.

  • Lack of indigenous development?

On the contrary it can also be argued that there is lack of indigenous development of corporate governance principles in India may be one of the reasons why India has not been able to avoid corporate scandals like Harshad Mehta, Ketan Parekh, and Satyam. This argument is that because these principles were not developed specifically for the Indian context, they may not be well-suited to addressing the unique challenges faced by Indian companies.

For example, Indian companies may face different cultural, social, and economic factors than companies in other countries. These factors can affect how companies operate and how they are governed. If corporate governance principles are not tailored to these specific factors, they may not be effective in preventing corporate scandals. (Singh, 2017)

In addition, the approach to corporate governance in India has been contractual and economic, which is similar to the approach taken in countries like UK and US. This approach focuses on legal compliance and financial performance as measures of good governance. However, this approach may not take into account other important factors such as ethical behaviour and social responsibility.

Therefore, it is argued that there is a need for more research and development of indigenous corporate governance principles in India. (Singh, 2017) This would involve taking into account the specific cultural, social, and economic factors that affect Indian companies and developing governance norms that are tailored to these factors before taking inspiration from other countries.

  • Suggestions to Promote Effective Shareholder Activism And Ensure Better Corporate Governance

While there is no denying that India has some governance norms in the corporate sector but still it has not been able to avoid corporate scandals like Harshad Mehta, Ketan Parekh, and Satyam. There is a need for more research and development of indigenous corporate governance principles in India. This would involve taking into account the specific cultural, social, and economic factors that affect Indian companies and developing governance norms that are tailored to these factors

There is a need for greater awareness among shareholders about their rights and responsibilities. Many shareholders are not aware of their rights as investors or how they can exercise those rights effectively. (Singh, 2017) This paper suggests that more education programs could be developed to help shareholders understand their rights and how they can engage with companies to promote better corporate governance practices

There is a need for large investors to take up a more activist role in the corporate governance of Indian companies. This is necessary to protect the rights of minority shareholders. Additionally, having a substantial equity stake gives financial institutions more power to influence corporate decisions and push for changes that can improve company performance. (SARKAR & SARKAR)Therefore, it is suggested that large shareholders, such as financial institutions, can play an important role in promoting good corporate governance practices and improving company performance.

There are many examples of successful shareholder activism in India, such as the case of Satyam Computers, where institutional investors played a crucial role in exposing the accounting fraud. It is one of the most high-profile cases of corporate fraud in India’s history. In 2009, it was revealed that the company’s founder had inflated profits and assets for years, leading to a massive loss of investor confidence. (Singh, 2017) This case illustrates the need for greater transparency and accountability in corporate governance, as well as the importance of shareholder activism in uncovering fraudulent practices.

Small shareholders can also still play a role in promoting good corporate governance practices by advocating for greater transparency and accountability in corporate decision-making This can include supporting initiatives that promote shareholder rights and protections, such as the right to vote on important issues or the right to access information about the company’s operations. (SARKAR & SARKAR) Small shareholders can also work together to form coalitions or alliances with other investors to increase their collective bargaining power and influence over corporate decisions.

  • Conclusion

In conclusion, effective shareholder activism is essential for promoting transparency, accountability, and profitability in India’s corporate governance landscape. While there have been some successful examples of shareholder activism in India, such as the Satyam and Tata cases, there is still a long way to go to ensure that companies are held accountable for their actions and that shareholders are able to exercise their rights effectively.

To achieve this goal, it is necessary to strengthen the legal and regulatory framework governing corporate governance in India, increase shareholder participation in company decision-making processes, enhance board independence and improve disclosure practices. Additionally, institutional investors should be encouraged to take a more active role in promoting good corporate governance practices (SARKAR & SARKAR).

By implementing these reforms, India can create a more transparent and accountable business environment that benefits all stakeholders. It is our hope that this paper will contribute to the ongoing discussion on how best to promote effective shareholder activism and ensure better corporate governance in India.

  1. REFERENCES
  1. Bebchuk, L. A., &amp; Weisbach, M. S. (n.d.). The state of corporate  governance research . Harvard Law School . Retrieved April 9, 2023, from http://www.law.harvard.edu/programs/olin_center/papers/pdf/Bebchuk_652.pdf
  • Shingade, S., Rastogi, S., Bhimavarapu, V. M., & Chirputkar, A. (2022, March 23). Shareholder activism and its impact on profitability, return, and valuation of the firms in India. MDPI. Retrieved April 5, 2023, from https://www.mdpi.com/1911 8074/15/4/148

Today’s society has become extremely critical and judgmental about everything

Isn’t it true that today’s society has become extremely critical and judgmental of everything?

Despite our freedom, we are now bound in our decision-making by the opinions of others.

There are so many people today who want to do or start something of their own but they don’t.

Why?

Because they fear that society might laugh at them.

We just can’t imagine the number of people who dreamt of starting their youtube channel but didn’t because they feared that society will put them down if they committed even a single mistake.

That is why many people simply do not try since they are aware that they will make mistakes and that others would judge and mock them.

People now fear to commit even a honest mistake.

But weren’t we taught in school that making mistakes is fine as long as you learn from them?

Has society become so ruthless that even if you make one mistake, people will attack you from all sides to ensure you lose your sense of self-respect in society?

I know someone who has quit making educational videos because his peers mocked him, claiming he was unfit to teach.

Are the people around you going to dictate what you can and can’t do now?

People nowadays begin to criticize/troll for even the tiniest of mistakes.

People notice and comment on the one bad thing out of a hundred positive things.

Hats off to everyone who defied the odds and started doing something they love despite the fact that they knew many would laugh at them.

People just simply write a hate comment and leave, but they have no idea how much emotional trauma that single comment may cause.

People merely say to ignore such people when asked about a remedy to the situation.

Do you honestly believe it’s that simple to ignore? Is it really that simple to disregard?

Sometimes the issue isn’t with you; rather, it’s with the people around you, and it needs to be addressed.

What can we do to make this culture less critical, allowing people to pursue their passions without fear of being judged?

I feel-

People must learn to be courteous.

People need to allow other people to commit mistakes and not laugh at them. 

People must learn to appreciate the decisions of others.

And, above all, people must learn CONSTRUCTIVE CRITICISM.

What do you think can be a good solution?

LEASE DEED SAMPLE

LEASE DEED

This Deed of Lease (“ Lease deed ”) is made at New Delhi on the 25th day of May, 2022 (“Execution Date”):

BY AND BETWEEN

Shri Vikram Singh son of Shri Angad Singh, (hereinafter referred to as the “LESSOR” which expression shall, unless repugnant to the context or meaning thereof be deemed mean and include his heirs, executors, administrators, representatives, successors and assigns) of the One Part;

AND

Shri Hardik Pathak son of Shri Hari Narayan Pathak, (hereinafter referred to as the “LESSEE” which expression shall, unless repugnant to the context or meaning thereof be deemed mean and include his heirs, executors, administrators, re presentatives, successors and assigns) of the Other Part.

(The Lessor and the Lessee are hereinafter collectively referred to as the “Parties” and individually as a “Party”)

WHEREAS:

  1. The Lessor is the owner and in possession of Singh buildings situated at N-10, Pitampura, Delhi, 110034;
  • The Lessor had invited bids/ proposals from eligible bidders for selection of a lessee for a property on the 1st floor in the building measuring 2700 sq. that included 2 washrooms and 10 parking space for cars in the parking area;
  • The Lessee (Hardik Pathak) submitted a proposal to the Lessor of opening a gym at the property for commercial purposes. Of all the proposals submitted by eligible bidders, the mentioned Lessee has been selected as the successful bidder;
  • The Lessee shall be provided physical possession of the Plot within 30 (thirty) days of the Execution Date along with the execution and delivery of the Possession Letter by the Parties;

NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING AND THE COVENANTS AND AGREEMENTS SET FORTH IN THIS LEASE DEED, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, AND INTENDING TO BE LEGALLY BOUND HEREBY, THE PARTIES AGREE AS FOLLOWS:

  1. DEMISE AND TERM
    1. This lease shall be in force for a period of 5 (Five) years. The Lessee shall handover to the Lessor, vacant and peaceful possession of the property within 45 (Forty-Five) days of expiry or termination
    2. Notwithstanding anything to the contrary herein before contained, the Lessee shall be entitled and shall have the option to terminate this Lease at any time on giving 2 calendar months’ prior notice in writing to the Lessor (s) and on expiration of the period to be mentioned in such notice this lease shall cease to be operative.
    3. On expiry of the initial Term of Lease, Lessee if lessee wishes to, can extend the term of the Lease by every subsequent month by without having to enter into a fresh Lease Deed solely by continuing to holdover property for 30 (thirty) days and paying rent in the same manner as would be paid if the Lease had not ended. Provided further that no objection to this is raised on the holding over of the possession of the property withing 15 (fifteen) days of the expiry of the initial Term or as the case may be in the event of the formation of fresh Lease Deed.
  2. GOVERNING LAW
    1. The Lease Deed will be governed by and interpreted in accordance with the Delhi Rent Act, 1995.
  3. RENT AND PAYMENTS
    1. The rent for the Demised Property for the lease amounting to 400000 (Four lakh Rupees Only) shall be payable at the start of every month by the lessee to the lessor. Provided a delay of a one week shall be reasonable extension within which the rent can be paid. Provided further, in case of extraordinary circumstances, the Lessor shall provide Lessee with reasonable period to pay the due rent which will be finally decided by the Lessor upon negotiations with the lessee.
    2. The security deposit on the Demised Property stands Rs. 800000 (Eight Lakh Rupees Only) and has been paid by the lessee to the lessor. The entirety of the security deposit shall be refunded at the expiry of the term of the Lease Deed. In case, the Lease Deed is terminated before the expiry of the initial term, due to the damage caused to the property, amount equivalent to the damage shall be deducted from the security deposit and the remainder shall be returned to the Lessee.
    3. The Lessor (s), during the lease or extension thereof shall pay all present and future municipal taxes assessments and / or other outgoing or impositions whatsoever payable by the owner and / or occupier in respect of the demised premises under the law for the time being in force and shall keep the lessee/s indemnified against all claims, demands, action, suits and proceedings in respect of the same.
    4. The Lessee shall be liable to pay all charges for electricity and water consumed by the Lessee during the lease period and calculated as per the readings recorded by the respective meters installed in the demised premises.
    5. In case of default in the payment of the taxes and other statutory dues, service charges by the lessor (s) and a demand notice is served on the lessee then he may make payment of the same and such payment shall be against adjustment of future rents payable.
  4. WARRANTIES OF LESSEE AND LESSOR
    1. The Lessor warrants that he has good, rightful power, total authority, and title to demise the demised premises to the Lessee in the manner hereby stated, free of all encumbrances, trusts, his dependents, executions, and attachments.
    2. Lessee shall have the exclusive right to open a gym space in the building and Lessor shall not rent out any other space in the building to a gym.
    3. During the period of lease and thereafter the Lessee at its expense will keep the property premises and other structures clean, free from defect and in good condition.
    4. On the Lessee paying monthly rent hereby reserved and covenants and conditions herein contained and on the part of the Lessee to be observed the Lessee shall quietly hold, possess and enjoy the demised premises and every part thereof during the period of lease or any extension thereof without any interruption from or by the Lessor (s) or any person or persons lawfully or equitably claiming by / through / under or in trust for the Lessor/s or successors or assigns.
    5. The Lessor shall, at his own cost, carry out all repairs including periodical painting of the demised property. The periodicity of such painting will be once in 2 years. If the Lessor fails to carry out such repairs including periodical whitewashing and painting, the Lessee shall be at liberty to get it done and adjust the amount spent or expended or such repairs, etc., towards the rent payable to the Lessor or the Lessee shall have the right to recover the same from the Lessor.
    6. The Lessee shall observe, perform and abide by or otherwise comply with Applicable Laws in so far as the same are applicable to the Lessee,
    7. The Lessee shall not, at any time during the tenancy of the lease, cause or permit any nuisance in or upon the said property and in particular shall not use or permit the to be used for any purpose, which may disturb or create problems for others in the building like very loud music, omission of odour, liquid, dust, smoke, gas, noise vibrations or fire hazards or which may cause permanent damage to the land. Lessor shall have full right to always prohibit or regulate these matters or even terminate the lease.
    8. The Lessee shall utilize the demised premise only for the purpose of running a gym and shall ensure that the Premises has the required provisions for fire/ smoke detection, fire safety and all other firefighting arrangements as may be prescribed under Applicable Law.
    9. The Lessor (s) shall not allow anyone in the building carry on any hazardous occupation or business in or upon any part of the said premises or any adjoining premises thereon which may cause loss or annoyance or inconvenience to the lessee at the demised premises.
    10. The Lessor may at any time, in its sole discretion, seek any clarifications and/or any additional information in writing from the Lessee, which may be required by the Lessor to verify all statements, information and documents submitted by the Lessee. But the Lessee shall submit to the Lessor, within a period of 7 (seven) days from the date a request is made by the Lessor, all such information and documents as is reasonably requested by the Lessor.
    11. The Lessee shall send to the Lessor by letter or email, a report stating accidents and unusual occurrences if any at the property Premises like death or injury to any person or damaged or dislodged fixed equipment or smoke or fire, such other relevant information as may be required by the Lessor, from time to time.
    12. The lessor cannot enter upon the demised premise any time he wants, except in the case of an emergency. The lessor must give a prior notice of 48 (forty-eight) hours, and at the cost of the Lessee, to enter upon and inspect the premise.
    13. The Lessee shall not make or permit any alterations or additions to the approved that would cause any harm to the walls and fittings in the Premises without obtaining the previous consent, in writing, of the Lessor.
  5. STAMP DUTY AND REGISTRATION CHARGES
    • This Lease Deed shall be lodged for registration by the Parties and the Parties shall admit execution thereof. All stamp duty and registration charges and related fees, costs, charges and expenses in respect of this Lease Deed and/or any other document pertaining to the lease granted hereunder or any other charges by whatever name called, shall be borne and paid by the Lessee, alone.
  6. HOURS OF BUSINESS
    • The lessee shall run the business only between 6:00 AM and 11:00 PM.
  7. USE OF THE DEMISED PROPERTY
    1. The Lessee shall have exclusive right on the parking space for parking of the vehicles of staff members and customers of Lessee and the same shall not be disturbed obstructed or encroached in any manner by any persons whomsoever.
    2. The lessee or its customers cannot use other parking spaces of the building which aren’t included in the lease agreement.
    3. The Lessee shall have the absolute & exclusive right to use the entire property for smooth functioning of the gym, both outside and inside for making full use of frontages and the side walls in displaying Lessee’s signboards / advertisements. If anybody causes any intrusion, trespass or encroachment restricting the functioning of the gym, the Lessee shall be at liberty to take legal action against the violators.
    4. The Lessee will take possession of the property in “as is where is” condition and no further demand for any development, such as earth filling, raising the level, etc., shall be entertained.
    5. The Lessee shall been titled at any time during the said terms; to install, erect, fix and set up such required gym equipment in the demised premises and every part thereof as the Lessee may require without causing any material damage to the demised premises and on the expiration or sooner determination of this lease to remove the same and every part thereof at its own costs without thereby causing any material damage to the demised premises.
    6. Notwithstanding anything contained hereinabove the lessee shall be entitled to surrender, leave and deliver the unused, un-utilized portion/area of the leased premises property to the Lessor in case the Lessee feels that the unused, un-utilized and excess area is not required for the purpose taken on lease during the tenure  of the lease without determining / terminating the said lease and continue in occupation the portion required for the purpose after surrendering of the unused and unutilized area / portion and in the event of such partial surrender of the un-utilized area / portion, then rent fixed for the lease will be reduced / decreased proportionately according to the area / portion surrendered by the Lessee.
  8. LIABILITY
    1. The Lessee confirms that all risks, losses, taxes, liabilities and payments arising in connection with the gym therein for the period shall forever remain the absolute liability and responsibility of the Lessee alone and the Lessor shall assume no liability, responsibility or obligation, monetary or otherwise, in relation to the period during which the Lessee was in occupation of the Premises.
  9. DEFAULT AND TERMINATION
    1. If the lessee shall at any time fail and neglect to perform and observe any of the agreed covenants and conditions herein contained, then the lessor shall be entitled at its option to forthwith determine this Lease.
    2. Misrepresentation by the Lessee, either under this Lease Deed or under any other documents submitted by the Lessee to the Lessor, is made or discovered or if it comes to the notice of the Lessor that the Lessee has given an incorrect/ inaccurate/ misleading information or has made any misrepresentation or suppressed any material information/ facts then this shall be deemed to be a “Lessee Event of Default”. In such case, lessor may give a notice in writing to the Lessee for remedying the breach and if the Lessee fails to do so within a period of 15 (fifteen) days from the date of such notice, the Lessor may terminate this Lease Deed without giving any further notice.;
    3. As and when the property is no longer required by the Lessee for the purpose as set out herein, the Lessee may, subject to approval from the Lessor, forthwith relinquish and restore the Premises in favor of the Lessor, provided such surrender of the Premises by the Lessee is made before cancellation of the allotment or termination of this Lease Deed by the Lessor for breach of any of the covenants of this Lease Deed.
    4. In case of cancellation due to a breach of any of the covenants of this Lease Deed then no refund of the allotment cost shall be made to the Lessee
  10. ARBITRATION-
    1. Any controversy or claim arising out of or relating to this lease deed, or any breach or alleged breach thereof, shall be finally settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996. The lessee shall be entitled to appoint one arbitrator and lessor shall be entitled to appoint one arbitrator and that those two arbitrators shall nominate a third arbitrator. The arbitration proceedings shall be held in Delhi.
  11. FORCE MAJEURE-
    1. Upon occurrence of a Force Majeure Event like COVID-19 pandemic, Act of God, extremely adverse weather conditions, lightning, earthquake, landslide, cyclone, flood, volcanic eruption, chemical or radioactive contamination or ionizing radiation, fire or explosion or any event or circumstances of a nature analogous to any of the foregoing the lessee shall by notice report such occurrence to the other Party forthwith.
    2. The lessee shall not be entitled to any relief for or in respect of a Force Majeure Event unless it shall have notified the lessor of the occurrence of the Force Majeure Event as soon as reasonably practicable, and in any event no later than 2 (two) days after the lessee knew, or ought reasonably to have known, of its occurrence, and shall have given particulars of the probable material effect that the Force Majeure Event is likely to have on the performance of its obligations under this Lease Deed.
  12. NOTICES AND COMMUNICATIONS-
    1. All notices can be sent by hand, by post or courier at the respective address given below:
  • LESSOR

Vikram Singh

N-10, Singh Buildings, Pitampura, Delhi, 110034.

  • LESSEE

Mukesh Pathak.

A-05, Pasha Court Apartments, Dwarka, Delhi, 110037

SCHEDULE

(Description of the “Said Premises”)

Property measures 2700 sq.ft and is in 1st floor of Singh Buildings situated at A-05, Pasha Court Apartments, Dwarka, Delhi, 110037 and is worth INR 20000000. The property includes 2 washrooms, 4 fans, 1 water purifier, 2 Air conditioners, 15 light bulbs, 2 storage area.

IN WITNESS WHEREOF THE PARTIES HERETO HAVE SET THEIR HANDS AND SEAL ON THE DATE ABOVE STATED

WITNESSESS                                                                                    LESSOR / S

(1). Deepak Rathore

(2). Sidharth Raju                                                                                 LESSEE


Should the Criminal Procedure Act 2022 be Repealed as it Conflicts with the Right Against Self-Incrimination?

INTRODUCTION

Interrogation of suspects and accused is critical in any criminal investigation in order to draw the facts from them. Most tactics, many of that were based on kind of torture which were utilized by investigating authorities to seek data from convicted and the suspected since ancient times. New ways of lie detection have emerged with the advancement of technology which eliminated the police’s use of “third-degree torture.” However, legal problems have been raised about the legality of tests such as Narco Analysis, with some supporting it based on legal considerations and others dismissing it as a flagrant breach of constitutional obligations. (Rathore) The legal principle of “Nemo Tenetur Seipsum Accusare” declares that no one should be forced to offer any evidence, statement, or answer that shows him guilty of any crime. (Nandidni Sathpathy v P. L. Dani, 1978) This ancient legal principle, sometimes known as the “Right to Silence,” is talked about by both Article 20 (3) of the Indian Constitution and the Code of Criminal Procedure. The Identification of Prisoners Act is a long-standing law that provides for the collection of photographs and measurements of offenders. (Manikam V State, 2009) By far, there has been no legal conflict between the aforementioned legislation. However, the Criminal Procedure (Identification) Act of 2022, which supersedes the Identification of Prisoners Act of 1920, has sparked a slew of controversies and debates. It has been argued that the act requires an individual to provide measurements that include not only “finger impressions”, “palm-print impressions”, “footprint impressions”, “photographs”, but also “iris” and “retina scans”, “physical and biological samples”, and “behavioral attributes”, which could violate a person’s right against self-incrimination that is ensured by Article 20(3) of the Indian Constitution. The present article argues that the Criminal procedure Act 2022 must be repealed as it does conflict with the right against self-Incrimination.

ARGUMENTS

One could argue, citing various decisions such as Kathu Kalu’s case, where the court stated that being a “witness” could be equatable to presenting proof in the sense of making oral or written statements, but in the broader sense of the expression, giving a “thumb impression” or impression of “palm” or “foot” or “finger” or “specimen writing” or trying to expose a part of the body by an accused person with the intention of identification are not included in the expression “to be a witness.” Even in Shallendra Nath Sinha v. The State, the Calcutta High Court Division Bench concluded that an order for the accused to produce “specimen handwriting” did not amount to compelling the accused to give testimony and distinguished Sharma’s Case since it involved a search warrant for the production of documents. Also, in Ram Swarup v. State and Others, the Allahabad High Court held that because it would not be a document provided for examination by the court, writing obtained by the court under Section 73 of the Evidence Act would not be regarded as “evidence,” and the court’s directive under Section 73 would not be affected by article 20. (3). (Srivastava, 1996)

But the main problem with this act is that terminologies like “measurements” and “behavioral attributes” leave a lot of space for interpretation, and it also doesn’t clarify what a “biological sample” implies, which may be “Narco analysis”, “Polygraph test”, and “Brain Electrical Activation Profile”. The assumption behind “polygraph testing” is that when a subject lies in response to a question, he or she produces physiological responses that differ from those that occur naturally. Several types of equipment are attached to the subject during the “polygraph examination” to measure and record the subject’s physiological responses. The examiner then reviews these results, analyses them, and assesses the subject’s replies’ believability. “Polygraph examinations” make use of instruments such as “cardiographs”, “pneumographs”, “cardio-cuffs”, and “sensitive electrodes”. They monitor things like “respiration”, “blood pressure”, “blood flow”, “pulse”, and “galvanic skin resistance”. The truthfulness or falsity of the subject is determined by relying on physiological response records. These tests breach the right against self-incrimination because we know that if an accused gives evidence willingly or under a request, he cannot utilize article 20(3), but in this case, the evidence is extracted involuntarily and the accused has no choice to refuse according to the new act. (Sethi & Agarwal, 2021)

The right against self-incrimination was established to protect the integrity of the legal system, prevent false evidence, and ensure fairness. Imposing such measures on the accused would negate the purpose while also raising questions about the fairness of our proceedings. However, it has been emphasized numerous times that the victims’ statements made during the test are not utilized against them, but rather to aid the investigation. (Jain, 2019) But this issue was brought before in the case of Selvi v. State of Karnataka, the Supreme Court dismissed the High Court’s reliance on the “utility”, “reliability”, and “validity” of “narco-analysis tests” and other such tests as means of criminal investigation. The Court determined that forcing an individual to undergo “narco-analysis tests”, “polygraph tests”, and “brain-mapping” constitutes a necessary compulsion. The subject is unable to decide whether or not to answer a question because the responses provided during these tests are not given intentionally and willingly, resulting in “testimonial compulsion”, which is protected under Article 20. (3). The “narco-analysis test,” according to the Court, is a harsh and inhumane treatment that violates an individual’s “right to privacy” and “right against self-incrimination”, and that courts cannot allow the “narco-analysis test” to be administered against the individual’s consent. (Saxena, 2019)

A person can use protection under the right against self-incrimination when the three ingredients of Article 20(3) are satisfied i.e.,  i) the person must be accused of an offense ii) Compulsion to be a witness, iii) Compulsion resulting in giving evidence against himself.  The Criminal Procedure Act violates the right against self-incrimination since it requires the accused to be a witness, which entails giving evidence. Because firstly this act also applies only to those who are guilty of an offense punishable under any law in force at the time or arrested in connection with an offense punishable under any law in force at the day, he must allow a police officer or a prison official to take his measurement. (Criminal Procedure Act, 2022)

Secondly, this act compels the person to be a witness because anyone arrested under any law is required to give his measurements as demanded without any choice. After all, if a person who is compelled to enable measurements to be taken under this act opposes or refuses, the police officer or jail officer may take the measurements lawfully (Criminal Procedure Act, 2022) and this objection to or refusal to allow measures to be taken under this Act would be prosecuted under Section 186 of the Indian Penal Code. (Criminal Procedure Act, 2022)

Thirdly, because the clause is so ambiguous and unclear about what tests would be utilized, the police may threaten the accused with the potential of performing tests like “polygraph tests” to find out the specifics and compel him to be a witness. And such compulsion will result in the person being interrogated giving evidence against himself since the person being interrogated may make self-incriminating remarks due to fears that these procedures will extract the truth. Such behavior on the side of investigators is more likely to occur when the person being interrogated is unaware of his or her legal rights or is otherwise intimidated. Because this statute does not specify terms like “measurements,” “biological sample,” and “behavioral attributes,” the police may end up using tests like “polygraph tests”, as described above. And we know from Selvi v. State of Karnataka that it amounts to testimonial compulsion because the answers given during these examinations are not given knowingly and voluntarily. As a result, it satisfies the three requirements while violating the right to self-incrimination.

Another issue is that all private information, such as someone’s “physical” and “biological samples”, “behavioral characteristics”, “finger impressions”, “iris” and “retina scans”, and so on, is logged and stored in a central database, which is a violation of someone’s privacy from every viewpoint. The act of 2022 further stipulates that data maintained in a national database by the National Crime Records Bureau (NCRB) can be utilized to prove or disprove a case not only in the case in which an accused is now being tried, but in any past, future, or parallel case. The record of measures will be kept in digital or electronic form for “seventy-five” years from the date of collection, which raises concerns not only about it being used for self-incrimination in the future but also about the right to privacy. To illustrate, suppose Mr. A is accused of robbery and is placed in judicial custody; under the Act of 2022, his measurements will be taken and stored in the central database. Assume Mr. A was charged with another offense 30 years later. The result of this is that if Mr. A submits such information for a crime committed today, the investigating officer will use that information to construct a case 30 years later as well. In other words, Mr. A’s information will be used against him to prove his guilt.

In India, not only the constitution but also some CRPC provisions, including Sec 161(2), highlight a suspect’s right to remain silent and that he or she shouldn’t be coerced to give any evidence that could lead to punitive measures against him. “No individual shall be compelled to be a witness against oneself in any criminal proceeding,” the 5th Amendment of the US Constitution states. The preceding right has obtained a broad scope after being construed by the courts in various decisions. In civil and criminal proceedings, the right to self-incrimination applies to both witnesses and parties. It covers both “oral” and “written” evidence, as well as any “disclosures”, such as answers, that support a “criminal conviction” or provide a part of the network of proof needed for a prosecution. It is also a basic aspect in the UK that no one suspected of a crime should be forced to uncover “documents” or “items” that incriminate themselves. Except in a few limited circumstances, no witness, whether party or outsider should be forced to respond to any question or provide any document that could subject the witness (or the witness’s spouse) to “criminal prosecution”, “penalty”, or “forfeiture”. The purpose of this privilege is to motivate people to give testimony while also protecting them from damage or undue difficulty as a result of doing so. (Saxena, 2019)

Other violations by the act include violation of Article 14 of the Constitution by delegating too many powers to the executive in two ways: first, “by giving the executive broad rule-making powers with no guidance”, and second, “by empowering functionaries” like “police” and “prison officers” to decide who they can oblige to give measurements. Furthermore, the act’s section 3 does not anticipate all members of the class of people enlisted giving their measures. Only those individuals who police or prison authorities believe are obliged to furnish the measures will be forced to do so. Because there is no provision outlining any norms or principles by which such a requirement may be evaluated, it is safe to assume that the act is arbitrary in its sight. (JAVED, 2022) Only in the case of a biological sample, an exception is made. The exemption states that a person may decline to provide such samples unless he is arrested for a crime: (i) “against a woman or a child”, or (ii) “with a minimum sentence of “seven years” in jail”. The first exemption is broad in scope. For example, it could contain a theft case involving a woman. A rule like this would contradict the equality of law between someone who stole something from a man and someone who stole something from a woman. (“The Criminal Procedure (Identification) Bill”, 2022)

CONCLUSION

The right against self-incrimination is important to ensuring freedom from police overabundance and torment and providing personal and biometric information under duress and/or without authorization is arbitrary and erroneous. The act of 2022 requires record-keeping, which violates the right to privacy. Instead of empowering such obvious attacks on fundamental rights and privileges, Parliament should enact legislation to protect them. It is more necessary to invest in investigating technology and tools. Sensitizing investigating authorities to better and more efficient methods of investigation is more fruitful than trampling on the fundamental rights of the accused.

In conclusion, the act does not significantly contribute to the goal of working on the sufficiency and efficacy of investigation and enhancing State Machinery but rather increases managerial weights while also infringing on Fundamental rights. Although the Criminal Procedure Bill has now become an act, this provision is quite ambiguous and subject to misuse, so it should be repealed or terms like “measurements,” “behavioral attributes,” and “Biological sample” should be more specific to avoid misuse as they can be used by the state to collect self-incriminating evidence against any arrested, convicted, or detained person without their consent. As previously discussed, this violates the right against self-incrimination guaranteed by Article 20(3) of the Constitution. (Hasan, 2022)

BIBLIOGRAPHY

  1. Rathore, D. (n.d.). Article 20 (3) of constitution of india and Narco Analysis. Legal Service India. Retrieved May 15, 2022, from https://www.legalserviceindia.com/article/l375-Article-20-(3)-Of-Constitution-of-India-And-Narco-Analysis.html
  2. Nandidni Sathpathy v P. L. Dani (Supreme Court 1978).
  3. Srivastava, U. (1996). IMMUNITY FROM SELF INCRIMINATION UNDER ARTICLE 20 (3) OF THE CONSTITUTION OF INDIA. Ijtr.nic.in. Retrieved 15 May 2022, from http://ijtr.nic.in/articles/art19.pdf.
  4. Sethi, R., & Agarwal, N. (2021). RIGHT AGAINST SELF-INCRIMINATION: A DETAILED STUDY OF THE CONSTITUTIONAL PROTECTION. JOURNAL ON CONTEMPORARY ISSUES OF LAW [JCIL]5(3). Retrieved 15 May 2022, from.
  5. Jain, Y. (2019). The right to remain silent: A case commentary on Smt. Selvi v State of Karnataka – iPleaders. iPleaders. Retrieved 15 May 2022, from https://blog.ipleaders.in/right-remain-silent-case-commentary-smt-selvi-v-state-karnataka/.
  6. Saxena, S. (2019). Right against Self-incrimination under Article 20(3) of the Constitution. iPleaders. Retrieved 15 May 2022, from https://blog.ipleaders.in/right-against-self-incrimination/.
  7. Criminal Procedure Act (2022).
  8. JAVED, S. (2022). Unravelling concerns over the Criminal Procedure (Identification) Bill, 2022. The Leaflet. Retrieved 15 May 2022, from https://theleaflet.in/unravelling-concerns-over-the-criminal-procedure-identification-bill-2022/.
  9. The Criminal Procedure (Identification) Bill, 2022. PRS Legislative Research. (2022). Retrieved 15 May 2022, from https://prsindia.org/billtrack/the-criminal-procedure-identification-bill-2022.
  10. Hasan, Z. (2022). Explainer: Why the Criminal Procedure (Identification) Act Is Being Challenged in Court. The Wire. Retrieved 15 May 2022, from https://thewire.in/law/explainer-why-the-criminal-procedure-identification-act-is-being-challenged-in-court.

 Zee Telefilms Ltd. vs Union of India

Introduction

The first article under Part III of the Indian Constitution is Article 12, which does not guarantee any right but specifies the authorities and the bodies, that are deemed to be “state” and against whom the fundamental rights can be enforced.[1] The apex court of the country through its various landmark judgments has laid down the tests for determining whether a body would fall within the meaning of the term local authorities and other authorities and hence would be considered “state” or not. [2] Here, in the case of Zee Telefilms Ltd. vs Union of India [3], the test laid down in the case of Pradeep Kumar Biswas v. Indian Institute of Chemical Biology[4] was used to determine whether BCCI is a state or not.

Background

Zee Telefilms Ltd is a media and entertainment group based in India. The second respondent, the Board of Control for Cricket in India, is a Tamil Nadu-based society that claims to be recognized by the Ministry of Youth Affairs and Sports of the Union of India. The contract giving exclusive television rights for a four-year term was terminated by the Board of Control of Cricket on September 21, 2004. A writ petition was filed under Article 32, arguing that the contract termination was arbitrary and in violation of Article 14. On the day of the hearing, Mr. K.K Venugopal, learned Senior Counsel appearing for the Second Respondent, raised the preliminary issue of the petition’s maintainability, arguing that a petition against the Board is not maintainable under Article 32 because it is not a “State” within the meaning of Article 12 of the Indian Constitution. [5] Since the issue was treated as a critical one, it was heard right away.

Major Arguments by Petitioner

(a) The BCCI is responsible for all cricket-related activities, and the squad it fields is known as the “Indian Team “, they wear uniforms with the national flag and are recognized as India’s sporting ambassadors.

(b) Today’s players are professionals who commit their lives to the game, and players have the right to be considered for participation in the game under Article 19(1)(g). In exercising its disciplinary powers, the BCCI can ban players from playing cricket.

(c) It is also submitted that even domestically, all representative crickets can only be under its aegis. At any level of cricket, no representative tournament can be held without the authorization of the BCCI or its affiliates.[6]

Major Arguments by Respondent

(a) There is no representation of the Government or any Statutory Body. And the government has no control over the function, finance, administration, management, or affairs, nor does it receive any grant of assistance from the government in any form or manner in this regard.

(b) Respondent no.2 organizes cricket matches and/or tournaments between the Teams of its Members and with the Teams of the members of the International Cricket Council (ICC) which is also an autonomous Body dehors any Government control.

(c) Respondent No.2 has never been granted monopoly status, either by statute or by the government. Any other organization might organize its own matches, and neither Respondent No. 2 nor the Government could object.[7]

Judgement

The petition under Article 32 could not be sustained, according to the Majority Judges, because they agreed with most of the points made by the respondent in this matter. It was held that just because a non-governmental organization does something public does not make it a “State” for the purposes of Article 12.[8] Also, the Board’s actions do not meet the criteria outlined in Pradeep Kumar Biswas v. Indian Institute of Chemical Biology[9] to qualify it as a “State” under Article 12. However, according to the Minority judges, the board was a state since, despite the fact that it was not constituted by legislation, the board’s Monopoly Status was undeniable, and hence the petition was maintainable as per minority opinion.

Analysis

1. Article 12 :

I agree with the majority bench that BCCI won’t come under the definition of “State” as the Board does not come within the purview of any of the six legal tests laid down by the Court in Pradeep Kumar Biswas v. Indian Institute of Chemical Biology to make it a “State” under Article 12. Hence, I feel that the petition was rightly dismissed. The Pradeep Kumar Biswas v. Indian Institute of Chemical Biology[10] case is significant in this regard because the court took into account all previous precedents, interpreted the term “other authorities” for the purposes of Part III of the constitution, removing all doubts about the same because the definition of State was previously treated as exhaustive and limited to the authorities or those that could be read ejusdem generis with the authorities mentioned in the definition of article 12 itself. The court itself held that the principles formulated in the case of Ajay Hasia v. Khalid Mujib[11] were not rigid and therefore a body falls within any of them, it’s to be considered to be a state within the meaning of Article 12.

It is important to understand that treating the Board as a “State” will have far-reaching consequences for other national sports federations as well as some other bodies that represent India in international forums in the fields of art, culture, beauty pageants, cultural activities, music and dance, science and technology, or other such competitions as they will be required to be treated as “States” within the meaning of Article 12, potentially opening the floodgates of litigation under Article 32. Many of the federations or entities described above perform tasks and/or exercise powers that are, if not identical, at least comparable to those performed by the Board. Many athletes and others who represent their respective organizations make a living from it (e.g. football, tennis, golf, beauty pageants, etc.). As a result, if the Cricket Board is considered a State for the purposes of Article 12, there is no reason why other organizations in comparable positions may not be considered “State” as well. The fact that cricket is a popular sport in India cannot be used to distinguish these organizations from the Board.[12] Any distinction based on the body’s popularity, finances, or public opinion would be a clear violation of Article 14 of the Constitution, as justifiable discrimination must be founded on actual facts, not mere assumptions. As a result, the Board cannot be singled out as “other authority” for the purposes of Article 12. For the reasons described above, I believe that none of the other federations or organizations mentioned above, including the Board, can be regarded as a “State” for the purposes of Article 12.

2. Monopoly:

It is true that the second Respondent wields immense authority, from selecting and preparing players at the grassroots level to organizing the Duleep Trophy, Ranji Trophy, and other tournaments, as well as selecting teams and umpires for international competitions. BCCI has a monopoly on the market. However, there is no law prohibiting other organizations from forming a similar organization. Respondent No.2 has never been granted monopoly status, either by statute or by the government. As rightly contended by respondent 2 that it only has a monopoly because of its first-mover advantage and the fact that it is the only player in the field of cricket control. Any other body can organize its own matches, and neither Respondent No. 2 nor the Government could object. The clearest example is Subash Chandra, the owner of Zee Telefilms, who decided to take matters into his own hands and began recruiting various domestic and foreign players, promising them big sums of money in exchange for playing Indian Cricket League.[13]

 Although the BCCI immediately declared the league and the players who signed up for it to be rebels, the main reason for the ICL’s failure was that it failed to capture the imagination of Indian fans, partly due to the absence of big-ticket Indian superstars and partly due to the ICL’s inability to take the tournament to different venues to create regional rivalries. If ICL had been successful, it may have given the BCCI a tough time and could have put an end to its monopoly, but there is no doubting that similar organizations or leagues like ICL could be formed in the future with better planning to compete with the BCCI. The memory of ICL serves as a continual reminder to BCCI to maintain high levels of play both at home and abroad, lest free-market economics allow another, more enthusiastic player to stage a coup and run away with the game.[14]

3. Article 19(1)(g):

Yes, I agree that the BCCI has a monopoly in cricket, and it would be quite difficult for any organization to establish a similar body and compete with it. However, I disagree that it violates the cricketer’s fundamental right under Article 19(1) (g). The petitioners contend that because cricket has become a profession, players and today the Board controls the said rights of a citizen. The petitioners also stated that the Board has all-pervasive powers to control a person’s cricketing career under the Memorandum of Association and the rules and regulations, as well as due to its monopolistic control over the game of cricket, as it has the sole authority to decide on a person’s membership and affiliation to any particular Cricketing Association, which would affect his right to play cricket at any level in India and abroad. As a result, the petitioners believe that the BCCI should be considered a state.

However, if this argument were to be used, every employer that governs how his employees work would be considered a state.[15] Although BCCI’s rules prohibit an Indian player, whether contracted or uncontracted, from playing franchise cricket – T20 leagues, T10 leagues, or any other competition of “that format” – outside India, but BCCI does allow players to play first-class and List A matches outside the country. A good example is Cheteshwar Pujara, India’s Test specialist, who was recently signed by Sussex, an English county cricket side, for the 2022 season. He will also represent the club in the Royal One-Day Cup, which begins on August 2nd. As a result, it can’t be argued that the BCCI forbids players from playing elsewhere because any BCCI-affiliated player can enter any competition with the BCCI’s approval. Former BCCI General Manager Karim Saba argued that if the BCCI enables its senior and junior players to participate in global T20 tournaments, there will be very few cricketers left to play domestic cricket, which is rational. A huge void will be created in BCCI cricket, just as it has been in other nations that have permitted its players to participate.[16]

And, although there is no doubt that Article 19(1)(g) gives all citizens the fundamental right to practice any profession, trade, employment, or business[17], and that such a right may only be controlled by the State under Article 19(1)(g)(6). As a result, any breach of this right must be brought solely against the State; unlike the rights under Articles 17 and 21, which may be brought against non-state entities, including persons, the right under Article 19(1)(g) cannot be brought against an individual or a non-State institution. Thus, to argue that every entity, which validly or invalidly arrogates to itself the right to regulate or for that matter even starts regulating the fundamental right of the citizen under Article 19(1)(g), is a State within the meaning of Article 12 is to put the cart before the horse. The pre-requisite for invoking the enforcement of a fundamental right under Article 32 is that the violator of that right should be a State first. Therefore, the petitioner cannot allege that the board violates fundamental rights and is, therefore, State within Article 12. And as the petitioner has failed to establish that the Board is State within the meaning of Article 12.[18] Therefore, assuming there is a violation of any fundamental right by the Board that will not make the Board a “State” for the purpose of Article 12. Hence. while Board enjoys a monopoly in cricket exercising enormous power which is neither in doubt nor in dispute, I don’t think BCCI in any way infringes the fundamental right of any cricketer.

Conclusion

The court through its interpretations has time and again tried to include more and more bodies within the definition of state so that maximum people can enforce their fundamental rights. In this case, it was rightly contended by respondent 2 that the Board has never been granted monopoly status, either by statute or by the government and that there is no law prohibiting other organizations from forming a similar organization. The court using the test laid down in Pradeep Kumar Biswas v. Indian Institute of Chemical Biology rightly ruled that the petition under Article 32 cannot be maintained as BCCI is not a “State”. Also, the right under Article 19(1)(g) cannot be brought against an individual or a non-State institution. Hence, I feel that the petition was rightly dismissed.


[1] The Constitution of India, s 12

[2] Manshi Sinha, ‘Explained: Article 12 of the Indian Constitution'(LexForti,12 May 2021) < https://lexforti.com/legal-news/article-12-constitution/ >accessed 3 April 2022

[3] (2005) 4 SCC 649

[4] (2002) 5 SCC 111

[5] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649

[6] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649

[7] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649

[8] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649

[9] (2002) 5 SCC 111

[10] (2002) 5 SCC 111

[11] (1981) 1 SCC 722; AIR 1981 SC 487

[12] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649

[13] Rajesh Tiwary, ‘Remembering Indian Cricket League, the ‘rebel’ that led to IPL would have turned 10 today'(Firstpost,30 Nov 2017) < https://www.firstpost.com/firstcricket/sports-news/remembering-indian-cricket-league-the-rebel-that-led-to-ipl-would-have-turned-10-today-4235115.html>accessed 3 April 2022

[14] Rajesh Tiwary, ‘Remembering Indian Cricket League, the ‘rebel’ that led to IPL would have turned 10 today'(Firstpost,30 Nov 2017) < https://www.firstpost.com/firstcricket/sports-news/remembering-indian-cricket-league-the-rebel-that-led-to-ipl-would-have-turned-10-today-4235115.html>accessed 3 April 2022

[15] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649

[16] ‘Saba Karim Explains How BCCI Not Allowing Players to Participate in Foreign T20 Leagues Has Helped India'(News18, 22 Aug 2021) < https://www.news18.com/cricketnext/news/saba-karim-explains-how-bcci-not-allowing-players-to-participate-in-foreign-t20-leagues-has-helped-india-4113233.html>accessed 3 April 2022

[17] The Constitution of India, s 19(1)(g)

[18] Zee Telefilms Ltd. vs Union of India (2005) 4 SCC 649