Area: INTEGRATIVE MGMT

Course Category: Global Leadership

Course Title : Legal Aspects of

Business
What is law
 LAW means a set of rules :
 rules of conduct
 recognized and
 enforced
 through the state
 to manage and regulate people's behaviour with a
view to securing justice, peaceful livelihood, and social
security.

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 The law of the land:
 the system of rules which
 a particular country or community recognizes as
 regulating the actions of its members and which
 it may enforce by the imposition of penalties.

There are laws for a group of

countries and the world at large

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 Laws with reach to more than one jurisdiction

 Organisation for Economic Co-operation and Development (OECD)

 Maritime laws
 International laws
 Double taxation avoidance agreements
 International Arbitration and
Reconciliation

Global village

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 EVOLUTION OF LAW IN INDIA
1 3

2 4

VEDIC PERIOD BRITISH

PERIOD

ISLAMIC POST
PERIOD INDEPENDENCE

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 INTRODUCTION TO LAW IN INDIA
HISTORY OF INDIAN LAW:

 Law in India primarily evolved from customary and religious practices,

 Recorded history of law starts from the Vedic period

 There may have been a form of legal system even during the Bronze Age and the
Indus Valley civilization.

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 ANCIENT AND VEDIC PERIOD

India has the oldest judiciary in the world. No other judicial system has a more
ancient or exalted pedigree.

 The laws were based on “Dharma”

 Indian sea farers trades across the seas over a 1000 years ago

 Business laws in ancient India

 Kautalyas Arthashastra
 Manu Smrithi

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 Manu mentions following grounds on which
litigation may be instituted

1. Non-payments of debts; 11. verbal assault;

2. deposits; 12. physical assault;
3. sale without ownership; 13. theft;
4. partnership; 14. violence;
5. non-delivery of gifts; 15. crimes against women;
6. non-payment of wages; 16. law concerning husband and wife;
7. Breach of Contract; 17. partition of inheritance; and
8. cancellation of a sale or purchase; 18. gambling and betting.
9. disputes between owners and
herdsmen;
10. the law on boundary disputes

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 ANCIENT AND VEDIC PERIOD
Pre Islamic period
 The King's Court was the highest court, next to which came the court of the
Chief Justice.

 The King's Court was the highest court of appeal as well as an original court in
cases of vital importance to the state.

 In villages, the village councils dealt with simple civil and criminal cases.

 In towns and districts the courts were presided over by government officers
under the authority of the King to administer justice.

 Trade guilds were authorised to exercise an effective jurisdiction over their

members.

 Family courts were established.

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 ANCIENT AND VEDIC PERIOD

 Minor criminal cases were dealt with by judicial assemblies in villages whereas
criminal cases of a serious nature were presented before the central court
usually held under the King or royal authority.

 The appeal system was practised and the King was the highest body of appeal.

 One significant feature of the ancient Indian legal system was the absence of
lawyers.

 Another notable feature was that a bench of two or more judges was always
preferred to administer justice rather than a single individual being the sole
administrator of justice.

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 ISLAMIC PERIOD
 Sharia and Islamic laws were introduced with the establishment of Delhi
Sultanate, Bengal Sultanate and Gujarat Sultanate.

 In the 17th century, the Mughal Empire's sixth ruler, Aurangzeb, compiled the
Fatawa-e-Alamgiri

 Has had an effect in most parts of South Asia.

 Sharia Islamic law or sharia law is a religious law forming part of the Islamic
tradition.

 Derived from the religious precepts of Islam, the Quran and the hadith.

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 BRITISH PERIOD

 In 18th century, the British East India Company took over the political and
administrative powers in India.

 For Muslims of India, the code was available in al-Hidaya and Fatawa-i Alamgiri
written under the sponsorship of Aurangzeb.

 The early period of Anglo-Hindu Law (1772–1828) was structured along the
lines of Muslim law practice.

 The arrival of William Bentinck as the Governor-General of British India in

1828, marked a shift towards universal civil code.

 In 1864, after the East India Company was dissolved and India became a formal
part of the British Empire, Anglo-Hindu law entered into a second phase (1864–
1947)

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 MODERN INDIAN LAW
CONSTITUTION LAW:

 The Constitution of India is the lengthiest written constitution in the world.

 Based on the Government of India Act 1935,

 Also contains various other provisions that were drawn from other constitutions.

 Codifies the relations between the Federal Government and the State Governments.

 A federal structure of government, with a clearly defined separation of legislative and

executive powers between the Federation and the States.

 Each State Government has the freedom to draft its own laws on subjects classified as
state subjects.

 Has unitary features and the overriding authority assumed by the Federal Government in
times of emergency.

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 The Constitution of India is
the longest written
constitution for a country,
containing
444 articles,
12 schedules,
94 amendments and
117,369 words.

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 MODERN INDIAN LAW
CIVIL LAW:

 Code of Civil Procedure was first enacted in 1858, which received the assent of
Governor-General on 23 March 1859.

 Not applicable to the Supreme Court in the Presidency Towns and to the
Presidency Small Cause Courts.

 Replaced by Code of Civil Procedure Code, 1877 and large amendments were
made.

 In 1882, the Code of Civil Procedure, 1882 was introduced and the Civil
Procedure, 1908 was enacted subsequently.

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 MODERN INDIAN LAW
CRIMINAL LAW:

 The Indian Penal Code formulated by the British during the British Raj in 1860.

 Jury trials were abolished by the government in 1960 on the grounds they
would be susceptible to media and public influence. This decision was based on
an 8-1 acquittal of Kawas Nanavati in K. M. Nanavati vs. State of Maharashtra,
which was overturned by higher courts.

 In February 2011, the Supreme Court of India ruled that criminal defendants
have a constitutional right to counsel.

 Capital punishment in India is legal. The last execution was conducted on

February 28, 2017, when two women, Renuka Shinde and Seema Mohan Gavit.

 They were also the first women in India to be given capital punishment.
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 MODERN INDIAN LAW
CONTRACT LAW:

 Contract law in India is codified in the Indian Contract Act, which came into
effect on 1 September 1872 and extends to all India.

 It governs entrance into contract, and effects of breach of contract.

 Indian Sales of Goods Act and Partnership Act were part of Indian Contract
act.

 The Contract act is the main and most used act of legal agreements in India.

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 MODERN INDIAN LAW
LABOUR LAWS:

 Indian labour law are among the most comprehensive in the world.

 inflexible resulting from government needing to approve dismissals.

 Labour rights are not actually available and laws are not enforced for some
workers due to poor implementation/enforcement.

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 MEANING AND SOURCES OF MERCANTILE LAW
INDIAN MERCANTILE LAW

 Indian mercantile law is primarily a version of the English law.

 Changes and modifications made for Unique circumstances prevailing in India.

SOURCES OF MERCANTILE LAW

 English Mercantile Law

 Indian Statue Law

 Jurisdictional Decisions

 Customs and Usages

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SOURCES OF MERCANTILE LAW
 English Mercantile Law

 Indian Statue Law

 Jurisdictional Decisions

 Customs and Usages

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 MEANING AND SOURCES OF MERCANTILE LAW
English Mercantile Law

 English laws were urbanized through customs and usages of merchants or

traders in England. The sources of English Mercantile Law are Common Law,
Equity, Law Merchant, and Statute Law.

 Also recognized as 'General Law'.

 It is an unwritten law based on judicial decisions, customs, usages, and

precedents.

 The mainly significant part of mercantile law, namely, the Law of Contracts, is
still a part of General Law in England.

 In the absence of any provision related to the issue in question, the direct
recourse is to refer to the English Mercantile Law.
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 MEANING AND SOURCES OF MERCANTILE LAW
Indian Statue Law:

 The Acts passed by the Indian Legislature.

 The significant Acts passed through the Indian Legislature are the Indian
Contract Act 1872, The Sale of Goods Act 1930, etc.

 Bring uniformity in Indian Law.

 Changes can be brought in Indian Law by legislative enactments.

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 MEANING AND SOURCES OF MERCANTILE LAW
Jurisdictional Decisions:

 The judicial decisions of courts of Higher Courts and peer Courts.

 Binding on all subsequent decisions unless appealed against in front of a Higher

Authority.

 The decision of the Supreme Court has persuasive value for the same bench, but
it has binding value in the case, a larger bench gave the earlier ruling.

 The judge has to decide the case just as to the principle of equity, justice, and
good conscience.

 The decisions of English courts are referred to in certain circumstances.

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 MEANING AND SOURCES OF MERCANTILE LAW
Customs and Usage:

 The codified law of India has given superseding powers to the customs and
usages.

 Section 1 of Indian Contract Act

 “Nothing herein contained shall affect any usage or custom of trade not
inconsistent with the Act.” – Case Irrawaddy Flotilla Company v. Bugwandas.

 A custom becomes valid when it is reasonable, consistent with law, not against
public policy etc. and is recognised as such.

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 LAWS TO TAKE PARTICULAR NOTE OF
Certain business laws that would be applicable to all business types.

 Indian Contracts Act 1872

 Sale of Goods Act 1930

 Companies Act 2013

 FEMA

 SEBI

 SCRA

 Income Tax Act 1961

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 THE ENACTMENTS WHICH ARE INCLUDED THE
SYLLABUS
 The Law of Torts Act India  Persons with Disabilities (Equal
 Indian Contract Act 1872 Opportunities, Protection of Rights and
 The Negotiable Instrument Act 1881 Full Participation) Act 1995
 Arbitration & Conciliation Act, 1996
 Workmen’s Compensation Act, 1923
 The Trade Marks Act, 1999 Intellectual
 Sale of Goods 1930 property
 Partnership Act 1932  Prevention of Money Laundering Act,
 Industrial Disputes Act, 1947 2002,
 Articles 15 and 16 of the Indian  Limited Liability Partnership Act 2008
Constitution  The Sexual Harassment of Women at
 Reserve Bank of India Act 1948 Workplace (Prevention, Prohibition and
 The Income Tax Act 1961 Redressed) Act, 2013
 Maternity Benefits Act, 1961  Companies Act 2013
 The Customs Act 1962  Insolvency and Bankruptcy Code 2016
 Specific Relief Act, 1963  Central Goods and Services Tax Act,
 Equal Remuneration Act, 1976 2017 (CGST)
 Prohibition of Benami Property  The Integrated Goods and Services tax
Transactions Act, 1988 (2016) Act, 2017 (IGST)
 Foreign Exchange Management Act 1990

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 Assignment

Henry Maine, British jurist, historian, and

anthropologist described the legal system of ancient
India "as an apparatus of cruel absurdities".
-- Discuss this statement.

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B.RAMANA KUMAR M.Com., LLB, FCA, IP,DISA(ICA)
ADVOCATE & INSOLVENCY PROFESSIONAL

51A DR RANGA ROAD,

MYLAPORE, CHENNAI-600004

PHONE 9841113024
[email protected] , [email protected]
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