Unit 3 NOTES COI (KNC 501)
Unit 3 NOTES COI (KNC 501)
The Law and the legal system are very important in any civilization. In modern times, no one can imagine a
society without law and a legal system.
Law can be described as a system of rules and regulations which a country or society recognizes as binding
on its citizens, which the authorities may enforce, and violation of which attracts punitive action.
The Principle of Natural Justice - The concept of natural justice is not provided in Indian constitution but it is
considered as necessary element for the administration of justice. Natural justice is a concept of common law
which has its origin in “jus natural” which means law of nature. Natural justice means natural sense of what is
right or wrong. Natural justice is not justice found in nature; it is a collection of concepts which must be
naturally associated with justice, whether these concepts are incorporated in law or not. Natural justice is
concerned with 2 primary rules. These are:
1. Nemo Judex In Causa Sua (rule against bias).
2. Audi Alteram Partem (rule of fair hearing).
1. Nemo Judex In Causa Sua - Rule against bias. It is the first principle of natural
justice which says no man shall be judge in his own cause or a deciding authority
must be impartial and neutral while deciding any case. Thus the principle signify that
in a circumstances where a judge or deciding authority is suspected to be bias an
partial then he/she shall be disqualify for determining any case before them. It
formulate that justice should not only be done but seen to be done.
2. Audi Alteram Partem - Rule of fair hearing. This is the second most fundamental
rule of natural justice that says no one should be condemned unheard. In a
circumstances where a person against whom any action is sought to be taken and his
right or interest is being affected, shall be given an equal opportunity of being heard.
Sources of Law
Sources of Law
The term law is very diverse in nature. It is essential to have an effective legal system for the orderly
function of social life and the existence of mankind. It is very important to understand that the law of
every land is derived from the sources so one has to know what are the sources of law before getting
into any concept of law. India derives its laws from a variety of sources and they are as follows:
1. Legislation as one of the sources of law -
The term ‘Legislation’ is derived from the Latin words ‘Legis’ meaning regulation and ‘latum’ which
means making. The legislation is considered as a primary source of law in India, legislation has a wide
ambit and it is used to regulate, authorize, to enable, to provide funds, to prescribe, to sanction, grant,
declare or to restrict. The legislature is framed by the parliament in the form of new acts, new laws,
repeal and amendment of old laws. The procedure for this is prescribed in the constitution of India.
2. Customs as one of the other sources of law-
Customs is an established mode of social behaviour within a community. It is one of the main and
oldest sources of law in India. According to Roscoe Pound, customary regulations comprises:
∙ Law formulated by customs of famous motion.
∙ Law formulated through judicial choice.
∙ Law formulated with the aid of doctrinal writings and clinical discussions for legal standards.
3. Judicial Precedents is another one of the most important sources of law in India-
Judicial Precedents lays on the doctrine ‘stare decisis’, it simply means adhering and relying on
earlier decisions made by the courts; i.e., for instance if high court decides on a particular case and a
similar situation comes to the lower court, the lower court will treat the case alike and pass the
judgement same as done by the high court. This is because the high court has set a precedent for the
lower court and the lower court are bound to follow it.
4. Justice, Equity and Good Conscience -
This principle is applied only in cases where the judges feel that the law seems to be inadequate or out of date
or unjust. In such cases the judges make decisions based on equity, good conscience, fairness and justice using
their common-sense.
5. Conventional Law - International Treaties/Agreements /Conventions -
With the emergence of globalisation, there was an increased need for world countries to interact with one
another, this means that there is a requirement for world countries to be bound by a single set of laws. Such
laws are made by the way of treaties, agreements, etc., and these are harmonized by the United Nations.
Countries who are members of the United Nations have to accept such rules or norms laid down by the
organization, and abide by such rules and also such members also have to frame laws in conformity with such
rules. And hence International conventions have an important role in framing new laws or making amendments
to existing laws.
All these sources play a very important role in different changes and decisions made for justice.
Types of Law
There are various kinds of laws in India. These laws are interconnected with each other and form a
hybrid legal system. Indian legal system consists of civil law, common law, criminal law along with
customary or religious laws regulating personal laws of followers of each religion. However, laws in
India can be broadly categorized into four categories: Common Law, Criminal Law, Civil Law and
Statutory Law.
1. Common Law - Common Law originated in England and came to India when East India
Company came to the country. As the name suggests, it is common to all. The Common Law is also
known as judicial precedent or judge-made law or case law. So, it is a body of law that derives its
origin from judicial decisions of the cases decided by the courts. In the UK, when a case was brought
up in the court of law and the decision was given by the judge then that decision was taken as a
precedent for future cases. Article 141 of the Constitution of India states that “the law declared by the
Supreme Court shall be binding on all courts within the territory of India.” Hence, it can be said that
the Indian legal system has a wide application of Common Law.
2. Criminal Law - Criminal law is a body of rules that defines various acts prohibited by the State because they harm
and threaten public safety, called “offences” and provides punishment for committing such offences. These acts are
considered as offences against society as a whole and not just an individual. In India, Criminal law is basically dealt by,
the Indian Penal Code, 1860; Code of Criminal Procedure, 1973; and the Indian Evidence Act, 1872.
3. Civil Law - The Civil Law consists of a body of rules which provides procedures, and judicial precedents to help in
resolving the various non-criminal disputes. These disputes are either between individuals or organization. The objective
of Civil Law is to resolve dispute and disagreements between individuals by providing compensation to the aggrieved.
Civil law emphasizes more on dispute resolution than punishment. Civil law can be further subdivided into four
categories: Law of Torts, Family Law, Contract Law and Property Law.
a. Law of Torts - A tort is a civil wrong, done by one person or to another, which results in injury or property damage
and monetary compensation is given to the injured party. There are three categories of torts: negligence, intentional tort,
and strict liability.
b. Family Law - Family law is the branch of civil law that deals with marriage, divorce, child custody,
adoption, etc and any other issues and disputes of families. Different religions have their own personal laws
in this regard, for example, Hindu law, Muslim law, Christian law, Parsi law etc. The cases relating to this
law is dealt with by the family courts and not civil courts.
c. Contract Law - Contract Law in India is provided under The Indian Contract Act, 1872 which deals with
all kinds of contract, oral or written. The Indian Contract Act, 1872 contains provisions related to the
validity of a contract, its discharge and provides penalties for breach of the contract. In other words, contract
law is the branch of civil law that deals with agreements between two or more parties and when one party
violates any of the terms and conditions of the contract, it is known as “breach of contract” a civil wrong.
d. Property Law - Property Law is the branch of civil law that deals with all kinds of property, personal
property or real estate/property, tangible or intangible, movable or immovable. Personal property is a class
of property that can include any asset other than real estate. Personal property basically consists of movable
property like vehicles, furniture, jewellery etc. This is tangible in nature. Intangible, on the other hand,
includes intellectual property like copyright, patent etc. and bonds, stocks etc.
4. Statutory Law - Statutory law is also known as legislative law or national law or
municipal law. It is made by the government (national and state legislature) to
regulate the conduct of its people. Legislation can make law on its own to counter
any present or future problems. The legislation does not need any case to be brought
in the court of law to make a law and set precedent. The statutory law comes into
existence by codification and a process is followed for it to become a law. First, it is
proposed as a bill in the legislation, which then, if passed, gets signed by the
executive (Governor in the case of state and President in the case of the country) and
becomes an Act. For example, the Information Technology Act, 2000, Motor
Vehicles Act, 1988 etc.
Contents
Dispute Settlement Three Tier Mechanism: The Consumer Protection Act provides for three-tier
quasi-judicial Consumer disputes redressal machinery at the National, State and District levels, for
expeditious and inexpensive settlement of Consumer disputes it includes 1. National Consumer
Disputes Redressal Commission (NCDRC) 2. State Consumer Disputes Redressal Commission 3.
District Forum.
A Consumer Dispute Redressal Forum also known as the “District Forum” established by the State
Government in each District of the State by notification. Provided that the State Government may, if
it deems fit, establish more than one District Forum in a District.
A District Consumer Forum can hear cases for any company that operates an office or a branch in the
district. The law provides that the District Consumer Disputes Redressal Forum has the same powers
as a civil court under Code of Civil Procedure 1908. The District Consumer Forum can order the
company to take the following actions once it hears the complaint and decides that the company is at
fault:
• Correct deficiencies in the product to what they claim.
• Repair defect free of charges.
• Replace product with similar or superior product.
• Issue a full refund of the price.
• Pay compensation for damages / costs / inconveniences.
• Discontinue or not repeat any unfair trade practice or the restrictive trade practice.
Tribunals
Tribunal is a quasi-judicial institution that is set up to deal with problems such as resolving
administrative or tax-related disputes. It performs a number of functions like adjudicating disputes,
determining rights between contesting parties, making an administrative decision, reviewing
an existing administrative decision.
▪ The term ‘Tribunal’ is derived from the word ‘Tribunes’, which means ‘Magistrates of the
Classical Roman Republic’.
o Tribunal is referred to as the office of the ‘Tribunes’ i.e., a Roman official under the monarchy
and the republic with the function of protecting the citizen from arbitrary action by the
aristocrat magistrates.
▪ A Tribunal, generally, is any person or institution having an authority to judge, adjudicate on, or
to determine claims or disputes – whether or not it is called a tribunal in its title.
Need of Tribunal
▪ To overcome the situation that arose due to the pendency of cases in various Courts, domestic
tribunals and other Tribunals have been established under different Statutes, hereinafter referred
to as the Tribunals.
▪ The Tribunals were set up to reduce the workload of courts, to expedite decisions and
to provide a forum which would be manned by lawyers and experts in the areas falling under
the jurisdiction of the Tribunal.
▪ They hear disputes related to the environment, armed forces, tax and administrative issues.
Tribunals were not part of the original constitution, it was incorporated in the Indian Constitution
by 42nd Amendment Act, 1976.
o Article 323-A deals with Administrative Tribunals.
o Article 323-B deals with tribunals for other matters.
Tribunals in India
Administrative Tribunals
▪ Administrative Tribunals was set-up by an act of Parliament, Administrative Tribunals Act,
1985. It owes its origin to Article 323 A of the Constitution.
o It adjudicates disputes and complaints with respect to recruitment and conditions of
service of persons appointed to the public service and posts in connection with the
affairs of the Union and the States.
▪ The Administrative Tribunals Act, 1985 provides for three types of tribunals:
o The Central Government establishes an administrative tribunal called the Central
Administrative Tribunal (CAT).
o The Central Government may, upon receipt of a request in this behalf from any State
Government, establish an administrative tribunal for such State employees.
o Two or more States might ask for a joint tribunal, which is called the Joint
Administrative Tribunal (JAT), which exercises powers of the administrative tribunals
for such States.
▪ There are tribunals for settling various administrative and tax-related disputes,
✔ High Courts
✔ Supreme Court of India
High Courts in India
The highest judicial court in a state is the High Court.
It is termed as the second-highest in the country.
Currently, India has 25 High Courts established in different states of the country.
Historical Background - On the recommendation of the Law Commission (1858), the Parliament passed the Indian High
Courts Act, 1861 which suggested the establishment of High Courts in place of Supreme Court in three Presidencies:
Calcutta, Madras and Bombay. The Charter of High Court of Calcutta was ordered in May 1862 and that of Madras and
Bombay were order in June 1862. Thereby, making the Calcutta High Court the first High Court of the country.
The reason for the implementation of this act was the need for a separate judiciary body for different states. The British
Government, therefore, decided to abolish the then-existing Supreme Court and Sadar Adalat and replaced it with High
Court.
Certain rules and eligibility criteria were set for the appointment of a Judge in any High Court and later after independence
as per Article 214 of the Indian Constitution, it was declared that every Indian State must have their own High Court.
High Court Jurisdiction
The jurisdictions of a High Court are as mentioned below:
∙ Original Jurisdiction – In such kind of cases the applicant can directly go to the High Court and
does not require to raise an appeal. It is mostly applicable for cases related to the State Legislative
Assembly, marriages, enforcement of fundamental rights and transfer cases from other courts.
∙ Power of Superintendence – Under this, the High Court holds the right to order its subordinate
offices and courts the way of maintaining records, prescribe rules for holding proceedings in the
court.
∙ Court of Record – It involves recording the judgments, proceedings and acts of high courts for
perpetual memory. These records cannot be further questioned in any court. It has the power to
punish for contempt of itself.
∙ Appellate Jurisdiction – This is for cases where people have risen a complaint about a review of
the judgement given by the district level or subordinate court of that territory. This power is further
divided into two categories.
Supreme Court In India
▪ The Supreme Court of India is the highest judicial court and the final court of appeal under
the Constitution of India, the highest constitutional court, with the power of judicial review.
Brief History of the Supreme Court of India
▪ The Regulating Act of 1773 established the Supreme Court at Calcutta, with full power &
authority.
▪ It was established to hear and determine all complaints for any crimes in Bengal, Bihar and
Orissa.
▪ The Supreme Courts at Madras and Bombay were established by King George – III in 1800
and 1823 respectively.
▪ The India High Courts Act 1861 created High Courts for various provinces and abolished
Supreme Courts at Calcutta, Madras and Bombay and also the Sadar Adalats in Presidency
towns.
▪ These High Courts had the distinction of being the highest Courts for all cases till the creation
of Federal Court of India under the Government of India Act 1935. The Federal Court had
jurisdiction to solve disputes between provinces and federal states and hear appeal against
Judgements from High Courts.
▪ After India attained independence in 1947, the Constitution of India came into being on 26
January 1950. The Supreme Court of India also came into existence and its first sitting was
held on 28 January 1950.
▪ The law declared by the Supreme Court is binding on all Courts within the territory of India.
Contents
Arbitration Allowed – Partnership, All Civil Matters, Construction Project, Insurance, Time Based Debts.
Arbitration Not Allowed – Criminal Matters, Industrial Dispute, Guardianship.
THANK
YOU…