Business laws

Introduction
Ever sped through a red signal?
Tried travelling ticketless on public transport?
Have you been caught for offence on
such occasions?

No?
Well, you just got lucky!

Yet, remember it might not happen again…..

Now those of you who were caught….. And
penalized…
What reasons did you state for your action?

Did not notice the signal.

Am getting late for an appointment/work.
Did not find the ticket collector.
Am related to a police official in high authority.
…….
Most common, though not an exhaustive list of
excuses!
Well… did any of you say….
“Never knew I had to stop at a red signal”
OR
“Was not told that I needed a ticket for
travelling by public transport?
No?
Why not?
• Its because of the Latin maxim
“Ignorantia juris non excusat”

• Meaning….
Ignorance of the law is no excuse

• So, the bottomline is….

One should be aware of the law, and abide by
it.
Introduction to Legal systems &
Concepts

UNIT I
Nature of law:
• A system of rules that are imposed on the people
of a country with the intention to bring order in
the society.
• Law is nothing but a mechanism for regulating
human conduct in the society so that the
harmonious cooperation of its members increases
and the divergent conflicting interests are
curtailed.
Characteristics of law:
• Law pre supposes a state.
• The state makes or authorizes to make or
sanctions rules which are called laws
• For the rules to be effective, there are sanctions
behind them
• These rules (called laws) are made to serve some
purpose- ensure socio economic justice
• Laws may be mandatory, prohibitive or permissive
Laws are made effective
• By requiring damages (monetary compensation) to
be paid for an injury due to disobedience
• By requiring one to complete an obligation he has
failed to perform
• By preventing disobedience
• By administering some form of punishment
Important legal terms / maxims
1. Volenti Non Fit Injuria: to a willing person, injury is not
done
2. Ignorantia Juri non excusat: Ignorance of law is not an
excuse.
3. Ultra Vires Latin: beyond the powers.
4. Uberrimae Fidei : of the utmost good faith.
5. Sub Judice : under judicial consideration.
6. Stare Decisis : stay with what has been decided.
7. Ad valorem: according to value
8. Res Judicata : already subject to judicial determination.
9. Quo Warranto : legal procedure taken to stop a person or
organization from doing something for which it may not
have the legal authority, by demanding to know by what
right they exercise the controversial authority.
10. Quorum: The minimum number of voting members that
must be in attendance at a meeting of an organization for
that meeting to be regularly constituted.
11. Quid Pro Quo : something for something.
12. Quantum Meruit : as much as is deserved/merited.
 13. Prima Facie (Latin) A legal presumption which means on
the face of it or at first sight.
14. Jus in rem – right against the whole world
15. Jus in personam – right against a person, group of persons
16. Habeas Corpus Latin: a court petition which orders that a
person being detained be produced before a judge for a
hearing to decide whether the detention is lawful.
17. Status quo: existing condition
18. De jure: in law/legal
19. De novo :anew, Afresh, from the beginning
18. Ex parte: something done to a person not in the presence of his
opponent
19. Intra vires: within the law
20. Ipso facto: by the mere fact
21. Locus standi: signifies a right to be heard
22. Mens rea: a guilty mind
23. Obiter dictum: An opinion of law not necessary to the decision;
by the way; said in passing
24. Ratio decidendi: reasons for deciding
Maxims from the Law dictionary
Non-Exhaustive list:
• Ab initio - from the start; from the beginning
• Bona Fide – good faith
• Caveat Emptor – Buyer beware
• Consensus Ad Idem – a meeting of the minds
• De Facto – in fact
• Delegatus non potest delegare - a delegate cannot delegate
• Ex Parte - outside the awareness of a party; for one party
only
• Jus - the law or a legal right
 Meaning of Law and Justice

General Interpretation
• A citizen may think of law as a set of rules to obey
• A lawyer may think of law as a vocation/profession
• A legislator may look at law as something created
by him.
• A judge may think of law as guiding principles to be
applied in making decisions.
Meaning of Law and Justice

Legally speaking:
• Law includes all the rules and principles which
regulate our relations with other individuals
and with the State.

• Such rules of conduct, if recognized by the

State and enforced by it on people, are
termed as “law”
Definitions
Law:
“Law is the body of principles recognized and applied by the
State in the administration of justice”
- Salmond
(Judge – Supreme Court, New Zealand)
Justice:
“The proper administration of the law; the fair and equitable
treatment of all individuals under the law. A title given to
certain judges, such as federal and state Supreme Court
Judges”
- Legal Dictionary
 Hierarchy of courts in India
• One of the essential functions of the Judiciary is to enforce justice
by protecting the rights of the people and punishing wrongdoers.
• Matters of dispute may relate to both commercial matters or
domestic/non commercial matters
• Disputes can also be classified as disputes relating to civil cases and
criminal cases
• Civil cases usually involve private disputes between persons or
organizations.
• Criminal cases involve an action that is considered to be harmful to
society as a whole- the state is the prosecutor in criminal cases
• The parties to a dispute in civil cases are plaintiff and defendant
• In case of criminal cases, it’s the accused and the prosecutor.
Judicial process
• Judicial Process begins when a suit is filed by a
party claiming a right or complaining against a
wrong.
• On filing of the suit, the court summons the
parties for a hearing and give the judgment at the
end of a trial.
Hierarchy of Courts in India
• There are various levels of
judiciary in India –
different types of courts
• They form a strict
hierarchy of importance
• The Supreme Court of
India is at the top,
followed by High Courts of
respective states with
district judges sitting
in District Courts
Jurisdiction of the Supreme Court
• Court of Record. Has power to punish for contempt.
• Original Jurisdiction.
• Highest Court of Appeal in the country.
• Advisory Jurisdiction.
• Law declared by the Supreme Court binding on all Courts in
India.
Jurisdiction of the High Court
• Court of Record. Has power to punish for
contempt.
• Original Jurisdiction in civil and criminal matters
in the case of some High Courts.
• Appellate jurisdiction in respect of criminal and
civil cases decided by Subordinate courts.
• Administrative Jurisdiction over subordinate
courts.
Organization of the courts at District
level
• Civil Courts subordinate to the High Court
administering civil justice.
• Civil justice is remedial and is concerned with
enforcement of rights.
• Proceedings in Civil Courts are regulated by Civil
Procedure Code.
• Criminal Justice is punitive and is concerned with
punishing the offenders.
• Proceedings in Criminal Courts are regulated by
Criminal Procedure Code.
 Hierarchy of Courts
• Business courts: • Alternative Dispute Resolution
• Modern creation of (ADR):
specialized courts in the US • "ADR“ refers to any means of
• Business Courts are trial settling disputes outside of the
courts that hear business courtroom. ADR typically includes
disputes primarily or negotiation, conciliation,
exclusively.  mediation, and arbitration.
• The jurisdiction of the court • As burgeoning court queues, rising
to hear certain cases is costs of litigation, and time delays
limited to disputes that are continue to plague litigants, more
in some way related to states have begun experimenting
"business" disputes with ADR programs.
Business Courts in India
• Civil Courts
• CLB/ NCLT
• Commercial arbitration
• Ombudsman
• Tribunals
Sources of Indian Law
• Principal sources:
– Customs or customary law
– Judicial precedents or decisions
– Statutes or legislation
– Personal law of the parties
• Secondary sources
– Common law
– Law merchant
– Principle of equity
– Statute law (laws referred to)
Overview of Constitution
• The Constitution of India is the supreme law of India
• The Constitution of India is the supreme legal document of
its jurisdiction which extends throughout the territory of
the country.
• It lays down fundamental rights, directive principles and the
duties of citizens
• The Supreme Court of India is the logical and primary
custodian of the Indian Constitution, while also being its
interpreter.
CONSTITUTION

• The constitution is the supreme law of the country and all

the laws enacted by the government has to be in conformity
with the constitution.
• It lays down the basic structure of the government and its
main organs- the executive, legislature and the judiciary.
• The Constitution not only defines the powers of each organ,
it demarcates the responsibilities of each. It regulates the
relationship between the different organs and between the
government and the people.
• The legislative section is divided into three lists: the Union
list, State list and the concurrent list
• Union list : contains the items on which the Parliament has
the authority to enact laws. Eg Income tax matters, Service
tax
• State list: contains the items on which the state legislature
has the authority to enact [Link]: sales tax, tax on
alcohol.
• Concurrent list : both the central and the state has the
authority to enact laws eg: labour welfare
Business and Human Rights Violation
• States have a responsibility to protect human rights.
• Companies operating across borders are often involved in
severe abuses, such as forced labor
• At times profits are built on the back of human rights
abuses
• governments rarely even investigate corporate wrongdoing
• Primary reasons are lack of access to information,
corruption and powerful state-corporate alliances
• The current need is to prevent such human rights abuse, by
making companies accountable for them, enable access to
justice for those affected by the abuse, and protect rights
of persons beyond borders.
Quiz
• Which is the apex court in India?

• What is the meaning of ab initio?

• What is an ADR?

• How are civil courts different from criminal courts?

• Why is the Constitution of India an important document?