Legislative and Regulatory Update

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In This Issue

[No.170]

September 20, 2006
Supreme Court
High Courts
PIB
RBI
TRAI
International Cases & News

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Supreme Court

  • A. Geetha Vs. State of Tamil Nadu and Anr

In the present case, the appellant, wife of the detenu calls in question the legality of the judgment rendered by a Division Bench of the Madras High Court dismissing the Habeas Corpus Writ Petition filed by her challenging the order of detention of the detenu. The aforesaid detenu was detained under Section 3(2) of the Tamil Nadu Prevention of Dangerous Activities of Bootleggers, Drug Offenders, Forest Offenders, Goondas, Immoral Traffic Offenders, Slum Grabbers and Video Pirates Act, 1982. The allegation against the detenu was that the detenu was involved in prostitution business and was alleged to have committed offences like keeping a brothel, living on the earnings of prostitution, doing prostitution in the vicinity of public place and abducting women for prostitution which were punishable under the Act and IPC. The investigation revealed that the detenu used to get young innocent poor girls, who because of poverty were in search of employment from State of Andhra Pradesh and under the guise of getting them employment, induced and forced them to indulge in prostitution business. Held, the grounds of detention clearly shows that the acts committed by the detenu were of such intensity that the moral fibre of the community was disturbed. Therefore, the detenu has rightly been detained. Appeal is dismissed.

  • Beena Philipose and Anr Vs. State of Kerala

The appellants were tried for commission of offence punishable under Section 420, 471, 120B read with Sections 466 and 468 of Indian Penal Code. The allegations which led to the trial of the appellants were that the appellant No. 1 secured admission to M.B.B.S Course in Thiruvanthapuram Medical College on the basis of forged mark-sheets. It was the case of the prosecution that as a result of conspiracy between first accused, i.e. appellant No. 1, second accused, i.e. father of the girl, appellant No. 2, accused No. 3 an official of the University accused No. 4 a Contractor and accused No. 5, the mark sheet was forged. The forgery was done with the purpose of utilizing the forged mark-sheet to secure admission to the M.B.B.S course. On the basis of compliant lodged, investigation was undertaken and charge sheet was filed. The Sessions Judge, found the accused guilty and sentenced them. On appeal to the High Court, the conviction was maintained but the sentences were reduced. Hence, the present appeal. On behalf of the appellants it was contended that the Supreme Court should take a lenient view considering the fact that the alleged offence was committed a quarter of century back. Held, there is no reason to interfere with the analysis of factual position made by the trial Court as maintained by the High Court to conclude the guilt of the appellants. Appeal is therefore disposed of.

  • O.N.G.C. Ltd Vs. Commnr. of Customs, Mumbai

The appellant, a pubic sector undertaking, applied for renewal of oil exploration licence which was granted. It then filed an application for grant of essentiality certificate for exemption of payment of customs duty for 3-D Seismic Tapes, used in its oil exploration purposes, in terms of a government notification. The Appellant was asked to resubmit the application for grant of essentiality certificate in a new format which was adhered to by the appellant, thereafter which the essentiality certificate was granted by the Director of Hydrocarbons. The said 3-D Seismic Tapes were treated to be the 'goods' within the meaning of the provisions of the Customs Act, 1962. The goods were cleared provisionally but since the Appellant failed to produce the essentiality certificate earlier, a notice to show cause was issued as to why the said data tapes should not be classified and charged to duty. The matter came before the Customs, Excise and Service Tax Appellate Tribunal which ruled in favour of the respondent. The matter came up before the Supreme Court which remitted the matter to the Commissioner for fresh consideration who ultimately ruled against the appellant and hence the present appeal. Held, unless a final order of assessment is passed, production of a delayed essentiality certificate may not come in the way of importers for obtaining the benefit of exemption notifications. The conduct of appellant must, therefore, be judged from the factual matrix. Appeal is allowed.

High Courts

Bombay

  • The Archidiocese of Goa, Daman and Dui, through its Constituted Attorney Father Victor Rodriques, Procuractor Vs. Union of India (UOI), Collector of Daman and Mamlatdar of Daman

The dispute in the present petition pertained to certain lands including agricultural and non-agricultural lands belonging to the petitioners that were taken over by the Administration of Daman and Diu in view of Daman (Abolition of Proprietorship of Villages) Regulation 1962. The petitioner contended that the said agricultural land was taken over without giving any compensation and that the non-agricultural property was also taken over, even though it could not be taken over under the said Regulation of 1962. A writ petition was filed and was allowed wherein direction was given to the petitioners to make an application to the Mamlatdar stating therein list of properties which would not fall within the ambit of the Regulation and the Mamlatdar was required to pass appropriate orders with regard to the same. The Mamlatdar, came to the conclusion that the said properties were non-agricultural lands and were not covered within the ambit of the Regulation and therefore the petitioners were entitled to retain the said properties. In suo-moto revision under Section 12-D of the Regulation, the Collector, set aside the order passed by the Mamlatdar and remanded the matter to the Mamlatdar with a direction that an enquiry should be conducted. The petitioner by an application contended that only those affected persons, who were not earlier heard in the matter, were to be given opportunity of hearing again and that the respondents including the Collector who were already heard in the matter could not get an opportunity to file fresh written reply, written statement or to lead any evidence or to cross-examine any of the witnesses, etc. The said application was dismissed by the Mamlatdar and hence the present writ petition. Held, when a fresh enquiry is to be held by giving opportunity to persons who are likely to be affected, naturally respondents should also get an opportunity to file reply, written statement, to lead evidence and to cross-examine the witnesses of the petitioners and if this right is refused to the respondents on the ground that they were previously heard, the enquiry may not be complete. Writ petition is dismissed

  • Brihanmumbai Municipal Corporation Vs. Mr. S.R. Mishra

The respondent bus driver was employed with the Transport Undertaking of the appellant corporation. While on duty, the bus driven by him hit a cyclist and his wife. The cyclist died on the spot and his wife suffered injuries. It was alleged that the respondent, despite the accident, did not stop the bus or report the accident to the police or to the Undertaking. Information about the accident was lodged by the wife of the cyclist and the respondent came to be chargesheeted for misconduct under Standing Orders 20(j) and 20(k) of the Certified Standing Orders and under Standing Order 20(k) for his failure to report the accident to the management. A departmental enquiry was conducted and the respondent was dismissed from service. The respondent filed an application before the Labour Court under Sections 78 and 79 of the Bombay Industrial Relations Act, 1946. The Labour Court came to the conclusion that the punishment of dismissal was disproportionate to the misconduct proved and directed reinstatement of the respondent without back wages but with continuity of service. The order of the Labour Court was confirmed in appeal by the Industrial Court. Hence the present appeal. Held, the Labour Court lost sight of the fact that there is a society outside which is directly affected when drivers of a public transport Undertaking indulge in serious acts of misconduct causing death or bodily injury to the members of the public. The Industrial Court which heard the appeal against the order of the Labour Court also manifestly erred in declining to exercise its jurisdiction to correct a clear and patent error. Petition is allowed.

Karnataka

  • Shri Pundalika Savanna Kaladagi S/o Savanna Kaladagi Vs. The State of Karnataka, Department of Health and Family Welfare (Medical Education), represented by Secretary, Vikasa Soudha, Shri M.G. Hiremath S/o G. Hiremath, Karnataka Institute of Medical Sciences represented by Chief Administrative Officer and Member Secretary

The petitioner was appointed as a Lecturer at the Karnataka Institute of Medical Sciences of the respondent and worked as a Principal and In-charge Director of the Institute. Later, the petitioner was named as the Director of the Institute on deputation for a period of two years by a notification. It is the case of the petitioner that his tenure as Director of the institute was abruptly curtailed. He was then reverted to the post of Professor with immediate effect vide a notification. Simultaneously, under the same notification, respondent No. 2 has been appointed in place of the petitioner. This action of the first respondent is challenged by the petitioner in the present petition. The petitioner submitted that the post of Director is a tenure post and that the tenure is for five years and that the appointing authority is the State Government. The respondents raised objections with regard to the maintainability of the writ petition. They stated that the petitioner, a government servant, was on deputation for two years and vide a notification his deputation was abruptly withdrawn and he was repatriated to the Parent department. If this act was contended as being violative of petitioner's service conditions, the petitioner's remedy lies before the Karnataka Administrative Tribunal in terms of Section 15 of the Administrative Tribunals Act, 1985 and not by writ before the High Court . Held, the petitioner would have to approach the Tribunal under the Administrative Tribunals Act, 1985 in respect of his grievance. The writ petition is without jurisdiction and is accordingly dismissed.

Press Information Bureau

  • Proposed Amendments to Prevention of Food Adulteration Rules, 1955

Press Release Dated 03.09.2006: The Department of Health has issued a draft notification proposing to amend Rule 65 of the PFA (Prevention of Food Adulteration), Rules, 1955 relating to Maximum Residue Limits/Tolerance Limits for certain pesticides in different articles of food. As per the above mentioned draft notification, Maximum Residues Limits for 6 more pesticides registered by the Registration Committee under Insecticide Act, 1968, are proposed to be prescribed in different articles of food, under the Prevention of Food Adulteration Rules, 1955.

RBI

APDIR(Series)

  • Overseas Direct Investment by Regulated Entities in the Financial Sector

Circular No.: A.P.(DIR Series) Circular No. 06 Dated 06.09.2006: At present, entities engaged in financial services activities in India making investment in non-financial services activities overseas are not required to comply with additional conditions mentioned in Regulation 7 of Notification No.FEMA120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004]. Vide the above circular, the RBI notifies that with a view to assess the impact of the overseas operations of such entities on a consolidated basis, it has been decided that regulated entities in financial sector in India investing overseas in any activity will also have to comply with the conditions stipulated in Regulation 7 of the Notification ibid. It is further clarified that trading in Commodities Exchanges overseas and setting up JV/WOS for trading in Overseas Commodities Exchanges will be reckoned as financial services activity and will require regulatory clearance from the Forward Markets Commission (FMC).

  • Purchase of immovable property in India by Non-Resident Indians and Persons of Indian Origin – Mode of Payment – Clarification

Circular No: A.P.(DIR Series) Circular No. 05 Dated 16.08.2006: As per the terms of the existing FEMA Regulations, 3 and 4 of Notification No. FEMA 21/RB-2000 dated May 3, 2000 of the RBI, an Indian citizen resident outside India and Person of Indian origin can acquire immovable property in India other than agricultural property, plantation or a farm house. The present circular by RBI clarifies that the payment for such acquisition shall be made out of (i) funds received in India through normal banking channels by way of inward remittance from any place outside India or (ii) funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999 and the regulations made by Reserve Bank of India from time to time. The RBI vide the above circular notifies that such payment cannot be made either by traveller's cheque or by foreign currency notes or by other mode other than those specifically mentioned by RBI.

Telecom Regulatory Authority of India (TRAI)
  • TRAI disallows additional revenue share for roaming calls

Press Release No. 88/2006 Dated 11.09.2006: The above press release by TRAI relates to the Admissibility of Revenue share between Visiting Network and Terminating Network for Roaming Calls. As per the prevailing IUC (Interconnection Usage Charges) Regulation, uniform termination charge @ Rs. 0.30 per minute is applicable for all types of calls. The prescribed termination charge is cost based, independent of the network from where the call is originating/terminating and also independent of the tariff charged by the operators. One of the operators with significant market share conveyed its scheme for additional revenue share, over and above the prescribed termination charge for terminating the roaming calls in its network. It also sought commercial agreement with other operators on reciprocal basis. Having considered the opinion of various stakeholders, TRAI vide the above press release notifies that there is no justification for a revenue sharing arrangement among operators in respect of roaming calls and that the terminating operator should get only the termination charge as prescribed in the IUC Regulation. Prescribing any additional amount for terminating such calls may defeat the objective of achieving seamless national roaming without any extra burden on the consumers.

International Legal Cases and News

Cases

Limitation

  • Estate Of Arthur M. Barrett By Elaine Barrett, In Her Capacity As Administratrix Of The Estate Of Arthur M. Barrett v.United States, Et Al.

The present case arises out of Federal Bureau of Investigations’ mishandling of informants drawn from organized crime. It was alleged that the spouse of the plaintiff was kidnapped and murdered by one of FBI’s confidential informant and that the FBI tried to protect the said accused confidential informant. The trial court rejected the claims of the plaintiff under the Federal Tort Claims Act (FTCA), the Fourth and Fifth Amendments to the Constitution, and Massachusetts' wrongful death statute due to her failure to file the case within the applicable two- and three-year statutes of limitation. Hence, the present appeal. It was argued by the defendants that the appellate court does not have jurisdiction over the matter and that the claims of the plaintiff are time-barred. Held, the court does not have jurisdiction to review plaintiff's FTCA claim against the government as the plaintiff did not exhaust her administrative remedies. Also, plaintiff's constitutional and wrongful death claims fail as the plaintiff waited more than three years to file her complaint after the accrual of her cause of action. The decision of trial court is therefore affirmed.

Constitution

  • Libertarian Party of Ohio, et al. v. Blackwell

The present case questions the constitutional validity of an Election Regulation of the State of Ohio. As per the plaintiff, the requirement of Ohio Election Regulation that all political parties nominate their candidates via primary election and that all minor political parties file a petition with the Secretary 120 days in advance of the primary election imposes an unconstitutional burden on its First and Fourteenth Amendment rights of free association. The District Court granted summary judgement in favour of the defendant and hence the present appeal. Held, Ohio Election Regulations are not narrowly tailored and do not advance a compelling state interest and therefore violative of Constitution. Ruling of District Court is therefore reversed.

Criminal

  • Jibril L. Ibrahim v. District Of Columbia, ET AL.

The plaintiff-appellant while serving a life sentence in a federal penitentiary filed the present suit against the defendants claiming that they denied him adequate medical treatment for Hepatitis C and prostate cancer while in prison, which in turn damaged his liver and placed him at heightened risk of other injuries and even death. He alleged that the defendants denied him access to justice and various prison benefits and failed to mitigate assaults against him by prison personnel. He alleged that all these are in violation of the Eighth Amendment of the United States Constitution, the “common law of the District of Columbia,” and the Americans with Disabilities Act. The District Court dismissed the plaintiff’s claims and ruled that the said claims were barred by res judicata. Hence, the present appeal. On appeal, the appellate court reversed the judgement of the District Court in part and remanded the matter for further proceedings with leave for plaintiff to appeal.

News

  • Pakistan rights activists demand suspension of Islamic rape laws

Pakistan’s women rights activists urged the Pakistan Government to suspend controversial religious laws that make it extremely difficult to prosecute rapists in the country. The Pakistan Parliament delayed the introduction of a revised 2006 Protection of Women Bill as Islamic leaders are against any amendment to laws, called the Hudood Ordinances and would not make a compromise deal to parallel them with secular criminal laws. The proposed bill would classify rape under the penal code and would make it easier for women in Pakistan to prove rape allegations.

  • Protests against proposed South African same-sex marriage bill

Thousands of protestors took to the streets across South Africa protesting same-sex marriage as South Africa's parliament prepares to hold hearings on a bill that would place same sex marriages in South Africa on equal footing with traditional marriage. The parliament is expected to approve the Civil Unions Bill, which was mandated by an October 2005 ruling of the South African Constitutional Court, wherein the court held that the 1961 Marriage Act prohibition against same-sex marriages violates the South African Constitution. Once the proposed bill becomes an Act, South Africa would become the first African nation to recognize same-sex marriage and the fifth nation worldwide, after Belgium, the Netherlands, Spain and Canada.

  • Proposed referendum relating to abortion in Portugal

Voters in Portugal would go to the polls in January 2007 to vote in a referendum on the legalization of abortion after the Ruling Socialist Party made the proposal to legalize the same against staunch opposition from the Opposition, Christian Democrats Party. The Ruling Socialist Party stated that the current legislation which banned abortion is "socially unjust." The proposed referendum would legalize abortion during the first ten weeks of pregnancy. Portugal last voted on a similar referendum in 1998, when only a small majority voted to keep abortion illegal. The Portuguese government attempted to hold another referendum in November 2005, but the country's constitutional court blocked the referendum on the ground that the President had rejected the option earlier in that legislative session on grounds that not enough people were likely to vote.

  • White supremacist prison gang members spared from death penalty due to Jury deadlock

Two members of “Aryan Brotherhood prison gang”, previously found guilty of charges of conspiracy, murder, and racketeering, will now serve terms of life in prison without parole after the death penalty phase of their proceeding ended in a mistrial. U.S. District Judge of the District Court for the Central District of California said that jurors could not come to a consensus even after 4 ½ days of deliberation on the matter which resulted in the mistrial. The trial of the two defendants on charges under the Racketeer Influenced and Corrupt Organizations Act (RICO) was one of the largest capital cases in US history and initially involved 16 defendants initially eligible for the death penalty in connection with 32 murders and attempted murders over a 30-year period in jails across the US.