CONSTITUTION OF INDIA ,LAW AND ENGINEERING

SUBJECT CODE: KNC501

MODULE-5
BUSINESS ORGANIZATIONS AND E-GOVERNANCE: SOLE TRADERS,
PARTNERSHIPS:
COMPANIES: THE COMPANY’S ACT
INTRODUCTION:
The Companies Act, 2013 passed by the Parliament has received the approval of
the President of India on 29th August, 2013. The Act consolidates and amends the
law relating to companies. The Companies Act, 2013 was enacted on August 30,
2013. Some of the provisions of the Act have been implemented by a notification
published on 12th September; 2013 and some need to be notified yet. It is worthy
to mention that the provisions of Companies Act, 1956 is still in force.
As on march 31, 2016; the number of total companies registered in the country
under the Companies Act, 2013, Companies Act, 1956 and previous company
laws were 15,43,712; of these 285845 were closed.

THE KEY FEATURES OF THE COMPANIES ACT, 2013 ARE AS

FOLLOWS;
1. The concept of “dormant companies” introduced (companies not engaged in
business for two consecutive years can be declared a s dormant).
2. National Company Law Tribunal introduced.
3. Provision of self regulation with disclosures/transparency instead of government
approval based regime.
4. Companies are required to go for maintenance of documents in electronic form.
5. Faster merger and acquisitions including short mergers and cross border
mergers.
6. For companies which have net assets of 1 cr. or less, then official liquidators are
empowered with adjudicatory powers.
7. Concept of “one Person Company” introduced.
8. Concept of independent directors included as a statutory requirement.
9. Women director for prescribed class of companies.
10. Compulsory provision for constitution of Corporate Social Responsibility
(CSR) committee and formulation of CSR policy, with mandatory disclosure for
specified class of companies.
11. The term “Key Managerial Personnel” and “Promoter” has been defined to
affix the responsibility on main functionaries of the company.
12. Duties of director to shareholders, employees, the community and the
environment defined.
13. Listed companies are required to have one director representing small
shareholders.
14. Companies Act, 2013 has put a cap on the number of directorship up to 20
companies of which 10 can be public companies.
15. Search and seizure of documents, during investigation, without an order from a
magistrate.
16. Freezing assets or disgorgement of illegal gains of company under
investigation.
FORMATION OF A COMPANY:

1. Promotion of a Company
2. Registration of a Company
3. Certificate of Incorporation; and
4. Commencement of the Business.

1. Promotion of a Company:
A business enterprise does not come into existence on its own. It comes into
existence as a result of the efforts of an individual or group of people or an
institution. That is, it has to be promoted by some person or persons. The process
of business promotion begins with the conceiving of an idea and ends when that
idea is translated into action i.e., the establishment of the business enterprise and
commencement of its business.

Who is a Promoter in a Company?

A successful promoter is a creator of wealth and an economic prophet. The person
who is concerned with the promotion of business enterprise is known as the
Promoter. He conceives the idea of starting a business and takes all the measures
required for bringing the enterprise into existence.

For example, Dhirubhai Ambani is the promoter of Reliance Industries.

The promoters find out the ways to collect money, investigate business ideas
arranges for finance, assembles resources and establishes a going concern.

The company law has not given any legal status to promoters. He stands in a
fiduciary position.

Types of Promoters
Promoters are different types such as professional promoters, occasional
promoters, promoter companies, financial promoters, entrepreneurs, lawyers and
engineers.

2. Registration of a Company

It is registration that brings a company into existence. A company is properly

formed only when it is duly registered under the Companies Act.
Procedure of Registration
In order to get the company registered, the important documents required to be
filed with the Registrar of Companies are as follows.

1. Memorandum of Association: It is to be signed by a minimum of 7 persons for

a public company and by 2 in case of a pvt company. It must be properly stamped.

2. Articles of Association: This document is signed by all those persons who have
signed the Memorandum of Association.

3. List of Directors: A list of directors with their names, address and occupation is
to be prepared and filed with the Registrar of Companies.
4. Written consent of the Directors: A written consent of the directors that they
have agreed to act as directors has to be filed with the Registrar along with a
written undertaking to the effect that they will take qualification shares and will
pay for them.

5. Notice of the Address of the Registered Office: It is also customary to file

the notice of the address of the company’s registered office at the time of
incorporation. It is to be given within 30 days after the date of incorporation.

6. Statutory Declaration: A statutory declaration by

a. any advocate of the Supreme Court or
b. of a High Court, or
c. an attorney or pleader entitled to appear before a High Court or
d. a practicing chartered accountant in India, who engages in the Company
formation or
 e. by a person indicated in the articles as director, managing director, Secretary
or manager of the company, mentioning that the requisites of the Act and the
rules there under have been complied with. It is to be filed with the Registrar
of Companies.
3. Certificate of Incorporation

On the registration of Memorandum of Association, Articles of Association and

other documents, the Registrar will issue a certificate known as the ‘Certificate of
Incorporation‘. The issue of certificate is the evidence of the fact that the
company is incorporated and the requirements of the Companies Act have been
complied with.

4. Certificate of Commencement of Business

As soon as a private company gets the certification of incorporation, it can can

commence its business. A public company can commence its business only after
getting the ‘certificate of commencement of business‘. After the company gets
the certificate of incorporation, a public company issues a prospectus for inviting
the public to subscribe to its share capital. It fixes the minimum subscription. Then
it is required to sell the minimum number of shares mentioned in the prospectus.
After completing the sale of the required number of shares, a certificate is sent to
the Registrar along with a letter from the bank stating that all the money is
received.

The Registrar then scrutinizes the documents. If he is satisfied he issues a

certificate known as ‘Certificate of Commencement of Business’. This is the
conclusive evidence for the Commencement of Business.
MEMORANDUM OF ASSOCIATION – MOA FORMAT:
A Memorandum of Association (MoA) represents the charter of the company. It is
a legal document prepared during the formation and registration process of a
company to define its relationship with shareholders and it specifies the objectives
for which the company has been formed. The company can undertake only those
activities that are mentioned in the Memorandum of Association. As such, the
MoA lays down the boundary beyond which the actions of the company cannot go.

Memorandum of Association helps the shareholders, creditors and any other

person dealing with the company to know the basic rights and powers of the
company. Also, the contents of the MoA help the prospective shareholders in
taking the right decision while thinking of investing in the company.
MoA must be signed by at least 2 subscribers in case of a private limited company,
and 7 members in case of a public limited company.

CONTENTS OF MEMORANDUM OF ASSOCIATION

Memorandum of Association (MoA) consists of the following clauses :

1. Name Clause: This clause specifies the name of the company. The name of
the company should not be identical to any existing company. Also, if it is a
private company, then it should have the word ‘Private Limited’ at the end.
And in case of public company public company, then it should add the word
“Limited” at the end of its name. For example, ABC Private Limited in case
of the private, and ABC Ltd for a public company.

2. Registered Office Clause: This clause specifies the name of the State in
which the registered office of the company is situated. This helps to
determine the jurisdiction of the Registrar of Companies. The company is
required to inform the location of the registered office to the Registrar of
Companies within 30 days from the date of incorporation or commencement
of the company.

3. Object Clause: This clause states the objective with which the company is
formed. The objectives can be further divided into the following 3
subcategories:

i. Main Objective: It states the main business of the company

ii. Incidental Objective: These are the objects ancillary to the attainment of main
objects of the company
iii. Other objectives: Any other objects which the company may pursue and are
not covered in above (a) and (b)

4.Liability Clause: It states the liability of the members of the company. In case of
an unlimited company, the liability of the members is unlimited whereas in case of
a company limited by shares, the liability of the members is restricted by the
amount unpaid on their share. For a company limited by guarantee, the liability of
the members is restricted by the amount each member has agreed to contribute.

5.Capital Clause: This clause details the maximum capital that a company can
raise which is also called the authorized/nominal capital of the company. This also
explains the division of such capital amount into the number of shares of a fixed
amount each.

ARTICLES OF ASSOCIATION:

The Articles of Association (AoA) is a document that defines the purpose of a

company and specifies the regulations for its operations. The document outlines
how tasks should be accomplished within an organization, including the
preparation and management of financial records, and the process of director
appointments.

COMPONENTS OF THE ARTICLES OF ASSOCIATION

The articles of association will usually specify the way a company issues stocks,
distributes dividends, and performs financial records. The document is focused on
giving the reader information about the methods a company uses to achieve its
daily, monthly, and yearly goals.

The articles of association are relatively similar in any part of the world, even
though the exact terms and items vary across jurisdictions. In general, it includes
the following:

• Provisions on the company name

• Purpose of the company
• Share capital
 • Organization of the company
• Provisions on shareholder meetings

Company Name

A company must adopt an official name as a legal entity. It must be present in the
articles of association. Usually, the following suffixes “Inc” or “Ltd” are used to
show that an entity is a company. Please note that jurisdictions vary from country
to country, and thus, there are various rules regarding company names.

The words “government” or “church” cannot be used as a name because it might

confuse the public. Also, words that are offensive and vulgar are also prohibited.

Purpose of the Company

Companies are incorporated for a specific reason. Primarily, it is a for-profit reason

to pursue a certain goal by delivering value to society. The reason or purpose of the
organization must be clearly stated in the articles of association.

Some jurisdictions allow for very broad purpose statements, such as

“management,” while others require a more detailed purpose of an enterprise, i.e.,
“the operation and growth of a restaurant chain.”

Share Capital

The articles of association will state the number and type of shares comprising a
company’s capital. Typically, there is always at least one form of common shares
that makes up its capital. Additionally, one can also see several types of preferred
stock.

If information about stocks is found in the articles of association, it means they can
be issued by the company when there is a need for funding.

Organization of the Company

The document includes legal information about the company, including the
registration address, the number of directors and employees, and the identity of the
founders and original shareholders.

Legal advisors and auditors may also appear here, depending on the type of
business and a country’s jurisdiction.

Shareholder Meetings

The first general shareholder meeting provisions are listed in the shareholder
meetings section. Notices, resolutions, and votes are detailed as well in the section,
governing subsequent annual shareholder meetings.

Companies Required to File an Articles of Association

The following entities must file their own articles of association:

1. Unlimited companies

The document must include the number of employees and the amount of share
capital, if any.

2. Companies limited by guarantee

The document must specify the number of members with which the company will
be registered.

3. Private companies limited by shares

The document must include the provision restricting any transfers of shares, a limit
of 50 members, and the prohibition of invitations to the public for share purchases
in the form of stocks or debentures.
SHARES:

Shares are units of equity ownership interest in a corporation that exist as a

financial asset providing for an equal distribution in any residual profits, if any are
declared, in the form of dividends. Shareholders may also enjoy capital gains if the
value of the company rises.
KEY TAKEAWAYS

• Shares represent equity ownership in a corporation or financial asset, owned

by investors who exchange capital in return for these units.
• Common shares enable voting rights and possible returns through price
appreciation and dividends.
• Preferred shares do not offer price appreciation but can be redeemed at an
attractive price and offer regular dividends.
• Most companies have shares, but only the shares of publicly-traded
companies are found on stock exchanges.

Understanding Shares
When establishing a corporation, owners may choose to issue common stock or
preferred shares to investors. Companies issue equity shares to investors in return
for capital, which is used to grow and operate the firm.

Shares of privately-held companies or partnerships are owned by the founders or

partners. As small companies grow, shares are sold to outside investors in
the primary market. These may include friends or family, and then angel or venture
(VC) investors. If the company continues to grow, it may seek to raise additional
equity capital by selling shares to the public on the secondary market via an initial
share offering (IPO). After an IPO, a company's shares are said to be publicly
traded and become listed on a stock exchange.

Example of Shares
Investors buy shares of companies that they believe will grow and hope to capture
some of those capital gains as investors. As the 10-year bull market that began
following the 2008 financial crisis stretched on, shares of companies continually
reached new highs through 2019.
So-called FAANG (Facebook, Apple, Amazon, Netflix, and Google) tech stocks
led the market rally, as their share prices soared by double digits in 2019 on strong
earnings results. The increasing price meant that investors were willing to pay
more to own shares of these companies.

AUTHORIZED AND ISSUED SHARES:

Authorized shares comprise the number of shares a company’s board of directors
may issue. Issued shares comprise the number of shares that are given to
shareholders and counted for purposes of ownership.

Because shareholders’ ownership is affected by the number of authorized shares,

shareholders may limit that number as they see appropriate. When shareholders
want to increase the number of authorized shares, they conduct a meeting to
discuss the issue and establish an agreement. When shareholders agree to increase
the number of authorized shares, a formal request is made to the state through
filing articles of amendment.

DIRECTORS:

The board of directors are in charge of the management of the company's

business; they make the strategic and operational decisions of the company and are
responsible for ensuring that the company meets its statutory obligations

A company acts through two bodies of people – its shareholders and its board of
directors. The board of directors are in charge of the management of the
company’s business; they make the strategic and operational decisions of the
company and are responsible for ensuring that the company meets its statutory
obligations.

The directors are effectively the agents of the company, appointed by the
shareholders to manage its day-to-day affairs. The basic rule is that the directors
should act together as a board but typically the board may also delegate certain
powers to individual directors or to a committee of the board.

General Duties

As a director you must:

1. Act within powers

 You must act in accordance with the company’s constitution, and only exercise
your powers for the purposes for which they were given.

The company’s constitution includes its articles of association and resolutions and
agreements of a constitutional nature (e.g. shareholder or joint venture
agreements).

2. Promote the success of the company

You must act in the way you consider, in good faith, would be most likely to
promote the success of the company for the benefit of its members as a whole.

Success will generally mean a long-term increase in value but fundamentally it is

up to each director to decide, in good faith, whether it is appropriate for the
company to take a particular course of action.

When considering what is most likely to promote the success of the company, the
legislation states that a director must have regard to:

• the likely consequences of any decision in the long term

• the interests of the company’s employees
• the need to foster the company’s business relationships with suppliers, customers
and others
• the impact of the company’s operations on the community and the environment
• the desirability of the company maintaining a reputation for high standards of
business conduct
• the need to act fairly as between members of the company.

This list is not exhaustive but is designed to highlight areas of particular

importance to responsible business behaviour. Other relevant factors should also be
properly considered.

3. Exercise independent judgment

You must exercise independent judgment and make your own decisions.

This does not prevent you from acting in accordance with the company’s
constitution or an agreement which the company has entered into.
 4. Exercise reasonable care, skill and diligence

• the general knowledge, skill and experience that may reasonably be expected of a
person carrying out the same functions as you in relation to the company.
• the general knowledge, skill and experience that you actually possess.

The expected standard is measured against both objective and subjective

yardsticks. A director’s actual understanding and abilities may not be enough if
more could reasonably be expected of someone in his or her position.

5. Avoid conflicts of interest (a conflict situation)

You must avoid a situation in which you have, or could have, an interest that
conflicts, or may conflict, with the interests of the company. This applies in
particular to the exploitation of any property, information or opportunity,
regardless of whether the company could take advantage of it.

This duty is not infringed if:

• the situation you are in cannot reasonably be regarded as likely to give rise to a
conflict of interest. On a proper analysis of the circumstances, consider whether
there will actually be a conflict or potential for conflict with the interests of the
company

6. Not accept benefits from third parties

You must not accept a benefit from a third party given because you are a director
or because you do (or do not do) anything as a director.

This duty is not infringed if your acceptance cannot reasonably be regarded as

likely to give rise to a conflict of interest.
GENERAL MEETING AND PROCEEDINGS:

Meetings are a crucial part of the management of a company as mentioned in

the Companies Act, 1956. Meetings enable the shareholders to know the
ongoing proceedings of the company and allow the shareholders to deliberate on
certain issues.

As per Section 96 of the Companies Act, 2013: Every Company, other than One
Person Company (OPC), must hold a general meeting in each year apart from
other meetings as Annual General Meeting (AGM). The AGM must be held
within six months from the closing date of financial year.

As per Section 96 of the Companies Act, 2013:

Every Company, other than One Person Company (OPC), must hold a general
meeting in each year apart from other meetings as Annual General Meeting
(AGM). The AGM must be held within six months from the closing date of
financial year. A notice of 21 days has to be sent to all members.

Every Company, apart from OPC, must have to hold in addition to other meetings,
by giving a notice about the meeting, not more than 15 months in between the date
of AGM to the next. A Company may hold its first AGM within the period of 9
months from closing of its first financial year otherwise in other cases within the
period of 6 months. [Section 96(1) of the Companies Act,2013]. As per the above,
if a company holds its meeting, then it has no need to call an AGM in the year of
its incorporation.

APPROVAL OF FINANCIAL STATEMENTS AT AGM

According to Section 129(2), at every AGM, Board of Directors of the company

shall lay before the meeting financial statement for the financial year.

Moreover, Section 129(3) says, where the company has one or more subsidiaries,
then they have to prepare in addition to the statement under section 129(2) a
consolidated financial statement and of all subsidiaries in same format and also
present before the AGM of the Company with the prescribed statement under
section 129(2).

BUSINESS TO BE TRANSACTED AT AGM

As per section 102(2) of the Companies Act, 2013, the following businesses may
be transacted during AGM:-

1) Ordinary Business [Section 102(2)], i.e.

a. Consideration of financial Statements and reports of board of directors and

Auditors.

b. Declaration of any Dividend

c. Appointment of directors in place of retiring one

d. Appointment of and Fixation of the remuneration of the auditors.

2) Special Business [Section 102(b)]: Apart from the above businesses, the rest are
deemed to be a Special business, transacted during the AGM.

DEFAULTING IN HOLDING ANNUAL GENERAL MEETING

If a Company not holding an Annual General Meeting as per Section 96, or not
complying with any direction of the Central Government, then the Company and
its every officer come in the Category under Section 99 of the Company Act, 2013
and punishable with fine which may extend to Rs. 100,000 and in case of
continuing default, it may extend to Rs. 5000 for every day.

Further, Section 97 of the Companies Act, 2013, provides for the power of the
Tribunal to call AGM if the Company fails to hold Annual General Meeting. Any
member of the company can request to NCLT for calling AGM. [Section 97(1)].
EXTENSION FOR HOLDING AGM

The Registrar of Companies (ROC) may extend the period within which the AGM
(not being the first AGM) shall be held, not exceeding 3 months under section 96(1).

There is no provision for extension of 1st AGM but in other cases it can be
extended for period of three months by ROC. [Second proviso to Section 96 of the
Companies Act, 2013]. However, if such first AGM is not held, NCLT can order
holding of General Meeting under section 97 of the Act.
PROCEEDINGS OF A COMPANY:

1. No business shall be transacted at any general meeting unless a quorum of

members is present at the time when the meeting proceeds to business. (ii) Save as
otherwise provided herein, the quorum for the general meetings shall be as
provided in section 103.

2. The Chairperson, if any, of the Board shall preside as Chairperson at every

general meeting of the company.

3. If there is no such Chairperson, or if he is not present within fifteen minutes

after the time appointed for holding the meeting, or is unwilling to act as
Chairperson of the meeting, the directors present shall elect one of their members
to be Chairperson of the meeting.

4. If at any meeting no director is willing to act as Chairperson or if no director is

present within fifteen minutes after the time appointed for holding the meeting, the
members present shall choose one of their members to be Chairperson of the
meeting.

AUDITOR:

An auditor is a professional who is qualified to conduct an audit of the company.

Such a person evaluates the validity of the company's financial statements. This is
undertaken to report if the company adheres to the established set of standards or
procedures.

Every company needs to appoint an individual or a firm as its auditor as per section
139(1) of the Companies Act 2013. Furthermore, Companies Act, 2013 provides
an auditor of a company certain statutory rights and duties in order to help him
undertake his commitments honestly.
 DUTIES OF AN AUDITOR:

1. Provide an Audit Report

The fundamental duty of a company’s auditor is to make a report regarding
accounts and financial statements examined by him and present the same to the
members of the company.

Such an opinion of the auditor enhances the credibility of the financial statements.
This is because it provides reasonable assurance from the auditor that the financial
statements give a true and fair view of the company’s state of affairs.

Furthermore, such an auditor’s opinion assures that the report has been prepared
taking into account the accounting and auditing standards.
2. Make Proper Enquiry
It is the duty of every auditor to seek access to books of accounts, vouchers and
other information and explanation from the company. Furthermore, an auditor can
also inquire information regarding the following matters from the company at any
time:

• whether the loans and advances made by the company on the basis of security have
been properly secured. Furthermore, he needs to inquire whether the terms and
conditions on the basis of which such loans and advances have been made are not
unfair.
• if the transactions of the company represented only by book entries have actually
taken place and are not unjust to the company in any way
• whether loans and advances made by the company are shown as deposits
if the personal expenses (expenses not associated with the company) are charged to
the revenue amount
• whether cash has been received for the shares that were issued for cash. However,
if no cash has actually been received, the auditor shall verify that the company’s
position as stated in the books of accounts is correct, regular and not misleading.

3. Assist in Branch Audit

The accounts of a branch office can be audited by:

• a company’s auditor
• any individual appointed as the branch auditor as per the act
• company’s auditor or accountant or any competent person appointed as per the
laws of the foreign country in case of a foreign branch
Thus, a branch auditor needs to prepare a report with regards to the accounts of the
branch examined by him. He needs to ensure that proper books are maintained and
hence give reasons of qualification in the report.

After preparing the report, the branch auditor needs to submit this to the
company’s auditor. Furthermore, the company’s auditor shall examine such a
report in a manner as he deems fit.
4. Compliance With Auditing Standards

The central government establishes the auditing standards in consultation with the
ICAI and National Financial Reporting Authority (NFRA).

These standards help the auditors to examine the books of accounts effectively and
with great accuracy. Thus, every auditor must comply with the established auditing
standards while examining a company’s books of accounts.
5. Reporting of Frauds
A company’s auditor while performing his duties might encounter fraudulent
situations. In such circumstances, the auditor may believe that an offence
equivalent to a fraud has been committed against the company.

And such a fraud has been committed by any of the officers or the company’s
employees. Thus, in such situations, it is the duty of the auditor to report such
matters to the central government within 60 days of his knowledge.
6. Provide Assistance in Investigation
Investigation refers to checking of specific records of a business systematically and
critically.

Such an examination is conducted when a fault on the part of the company already
exists and the intent of the investigation is to find out a reason and person involved
in such an activity.

Thus, it is the duty of an auditor to assist the officers undertaking such an

investigation.
WINDING UP OF COMPANY:

The winding up or liquidation of a company is the process by which

a company's assets are collected and sold in order to pay its debts. ... Secondly, the
shareholders or the creditors of the company can themselves apply to wind
up the company in proceedings known as “voluntary winding up”.

The winding up or liquidation of a company is the process by which a company’s

assets are collected and sold in order to pay its debts. Any monies remaining after
all debts, expenses and costs have been paid off are distributed amongst the
shareholders of the company. When the winding up has been completed, the
company is formally dissolved and it ceases to exist.

Broadly speaking, a company can be wound up in one of two ways. First, the Court
can compulsorily wind up a company. Secondly, the shareholders or the creditors
of the company can themselves apply to wind up the company in proceedings
known as “voluntary winding up”. The following is a brief overview of
compulsory winding up.

Compulsory Winding Up

There are certain grounds upon which a company can be wound up compulsorily
by the Court. A company’s inability to pay its debts is a common ground for
presenting an application for compulsory winding up. A company is deemed to be
unable to pay its debts if:

• A creditor having a claim against the company exceeding S$15,000.00 has

served a written demand requiring payment of the sum so due, and the
company has for 3 weeks after the service of the demand neglected to pay
the sum, or to secure or compound for it to the reasonable satisfaction of the
creditor;
• Execution of a judgment obtained by a creditor against a company remains
unsatisfied in part or in whole; or
 • It is proved to the Court’s satisfaction that the company is unable to pay its
debts.

An application to wind up a company compulsorily may be filed by:

• The company itself;

• Any director of the company;
• A creditor of the company;
• A contributory;
• A liquidator of the company;
• A judicial manager of the company;
• Where the company is carrying on or carried on banking business, the
Monetary Authority of Singapore; or
• Various Ministers on grounds specified under the law.

Procedure

The application for the winding up of a company by the Court in either Form CIR-
11 or Form CIR-12 of the Insolvency, Restructuring and Dissolution (Corporate

Insolvency and Restructuring) Rules 2020 must be filed together with a supporting
affidavit. In addition, the plaintiff or applicant needs to pay a deposit to the Official
Receiver before the filing of the application. When filing the winding up
application, the plaintiff or applicant may nominate a licensed insolvency
practitioner to be appointed as the liquidator if a winding up order is made by the
Court.

An advertisement of the winding up application is required to be placed in an

English local daily newspaper or in any other newspaper directed by the Court, as
well as in the Government Gazette not less than 7 days before the hearing of the
winding up application.
Any person who wishes to oppose the winding up application may file an affidavit
in opposition which must be served on the applicant at least 5 days before the
hearing of the winding up application.

The hearing of the winding up application is usually fixed within 6 weeks from the
date of its filing. Hearings are usually conducted in open court before a High Court
Judge each Friday. The Judge may dismiss the winding up application, adjourn the
hearing or make a winding up order or an interim order.

ROLE OF ENGINEERS IN E GOVERNANCE:

The civic body has decided to appoint software support engineers for nine e-
governance applications for the next three years.
The engineers would have to understand the user requirement and develop reports
from the respective systems. They would also have to undertake development of
integrated dashboard of all 40 modules and any other system development
responsibility given by the municipal corporation, a civic official said.
The software engineers would be imparted training for a week on the applications,
development technology, and front-end and back end details, the official said.
The nine e-governance applications they will have to handle are related to solid
waste management, public auditorium, basic services for the urban poor, public
library management, legal department, audit department, document management
and file tracking, digital dashboard and central medical stores.

Engineers are the architect of developing India and scope of Engineers in India is
approximately 80 percent of the business sector, which spans across transport,
equipment's, capital goods, other machinery and equipment's need good engineers
to man their respective jobs. We all are familiar with the engineering, most of them
are doing engineering or most of others are preparing for it and many of them had
done it. We all know that India is a developing country, it has a second position in
the world for its population according to 2011 population counting. But still it is
not taking the growth as it should be taken because no one has to initiate. A man
who initiates for development is only an engineer and also engineers play an
important role in the development of India.

Engineers discover the new technology. These technologies are used to make our
country better or more powerful according to defence side of view. In India, many
of the institute which manufactures million of engineers every year. But most of
them want to do work in a foreign country only for the life style and salary. We
made these engineers, but they work in other nations and they don’t want to do
anything for their country. India is the only country where everybody should free
to take any of the decision freely so engineers are settled in foreign nations. They
settled in other nations only for money they don’t think about the duties of his
nation. We have best seven IIT’s in India, which manufacture the world's top class
engineer, but these engineers are not working for us they work in another country
only due to salary purpose.

Developing India wants good Engineers to manufacture best product at cheaper

rates using the technology. So the future of the India is so good and no one will
greedy and no one should die due to food. When every engineer work in our
country, no one will sleep without eating food. All most every company in our
country needs good engineers for improving their quality and for new innovation at
cheaper rates.
Need for reformed engineering serving at the Union and State level:

In a bid to rationalize the Civil Services in the country, the Union government is
preparing a plan to cut down more than 60 Civil Services in the country to just 3-4
broad categories.
In the last five years, Prime Minister Narendra Modi's government has taken
several steps to reform Indian bureaucracy and civil services. Now the government
is planning to 'rationalize' 60 plus civil services. The Department of Personnel and
Training (DoPT) has prepared a five-year vision plan for reforming the Indian
Civil Services structure.

Niti Aayog in its report “Strategy for New India @75” issued in the year 2018,
recommended conducting a single exam with an All India ranking for the services.
It states that “The existing 60-plus separate civil services at the central and state
level needs to be reduced through rationalization and harmonization of services.”

At present, there are more than 25 Group A civil services and more than 30 Group
B services. The Union government might classify 60 plus civil services into three
broad groups. The report further states ““Recruits should be placed in a central
talent pool, which would then allocate candidates by matching their competencies
and the job description of the post. Concomitantly, the number of exams for civil
services should ideally be brought down to one with all India ranking. States may
also be encouraged to use this pool for recruitments.”
As per the report, no decision regarding how to undertake the rationalization has
been done by the government. However, a possible solution could be to classify
civil services into three groups.
“One way of doing it is dividing the services into Indian Administrative Service,
which would include all non-technical services; the Indian Police Service that
would include all security-related services and the Indian Technical Services,
which would include all technical services,” the official said.
n the report, the Commission recommends “There is a mismatch between positions
and skillsets. Recruitment is not competency specific and often, the right person is
not placed in the right job.”
NITI Aayog recommends to recruit and employ the officers based on their skillset
and education to utilize their knowledge in a particular service. For example, an
officer holding a medical degree could perform well better in the Health Ministry
than employed under the Ministry of Finance.
Encourage Lateral entry: Inducting specialists at higher levels of government will

provide much-needed expertise.

Nurture Specialization: The key to reform in civil services are encouraging officers

to cultivate specializations based on their education and skills early on in their

careers. Wherever possible, longer tenure postings need to be made based on the
officers’ expertise. However, it is also necessary to ensure cross-sector mobility for
civil servants from areas where they have become surplus to areas of emerging
importance.
ROLE OF IT PROFESSIONALS IN JUDICIARY:

Technological Developments in the field of information and introduction of

computers have made a turning point in the history of human civilization. It has
brought about a sea change in all fields of human activity. It has resulted in
enhanced efficiency, productivity, and quality of output in every walk of life.

Extensive use of Information Technology by diverse organizations the world over

has resulted in enhanced efficiency, effectiveness and optimal use of resources.
Computers as well as electronic communication devices such as facsimile
machines, electronic mail, video conferencing, provide the ability to process large
volumes of data with speed and accuracy, exchange of useful information between
different locations and support a higher quality of decision making. These
capabilities have contributed to more efficient and responsive systems not only in
business organizations but also in legal, governmental and other public systems.

While the Information Revolution arrived in India some years ago, automation has
not transformed all facets of life in equal measure. It has not permeated to the
Subordinate judiciary, in particular, resulting in old work methods based on
manual systems being continued even now. The enormous problems being faced
by the judiciary due to arrears, backlogs, and delays can be partly resolved by the
introduction of automation in subordinate courts.

The problems faced by courts, judiciary, and public seeking justice in terms of
backlogs, delays and expense are well known. While there are many dimensions to
these problems, improvements in operational efficiency, coordination, accessibility
and speed which IT could bring about can contribute significantly towards
improvement and alleviation of difficulties.

However, the present pace of development, particularly at the subordinate court

level is too slow and is unlikely to have the desired impact in the near future.
Massive problems need appropriately large commitments and major initiatives if a
significant dent is to be made.

Most of the bottlenecks identified by Judicial Commissions and Committees

referring to delays, arrears and backlog be partly overcome if a sound judicial
management information system is introduced in India. Case Management, File
Management, and Docket Management will be vastly improved by resorting to the
use of computers. In particular, the following are areas where the use of computers
will result in enhanced productivity and reduction of delays.

) Legal Information Data Bases.

b) On line query system for precedents, citations, codes, statutes etc.

c) Generation of Cause List and online statistical reports.

d) Online Caveat matching.

e) Online updating of data, monitoring and “flagging” of events.

f) Pooling of orders and judgments.

g) Daily List generation with historical data of each case.

h) Word processing with standard templates including generation of

notices/processes.

i) Access to international databases.

j) Feedback reports for use of various levels.

The above are some of the areas where information technology can be introduced
after due preparation. In particular, tracking of cases would result in better
monitoring and control of cases by the Presiding Officers, rather than by the
lawyers.

Computerization should be supplemented by the use of Fax, E-Mail, Video

conferencing and other facilities for higher productivity and quicker decision
making at all levels

The wider infusion of technology will go a long way in improving the service and
efficiency of the Indian judicial system. ... The Indian judiciary has been
using technology primarily for uploading cause lists and orders on the internet for
easy access for the litigants, but the scale and scope have been rather limited.
PROBLEM OF ALIENATION AND SECESSIONISM IN THE NORTH-
EAST INDIA:

The North-Eastern region of the country had the state of Assam and the Princely
states of Manipur and Tripura when India became free on 15 August 1947. Today
the region has seven states of Assam, Arunachal Pradesh, Manipur, Meghalaya,
Mizoram, Nagaland and Tripura. Again, we had four Autonomous Districts
Councils in Assam under the provisions of the Sixth Schedule of the Constitution
of India. Today, the number of ADCs and the Tribal Councils exceed a dozen. The
autonomy demand started in the Naga Hills district of Assam and the Naga
National Council was then the only insurgent outfit in the region. The Nagas got
their State in 1963, but the problem did not end. The Nagaland was replicated
many times; the insurgent outfits mushroomed.
The present state of affairs in the region is due to interaction of diverse
psychological, historical, social, political and economic factors. Some factors have
colonial roots; yet there are others which are due to our mishandling the North-
Eastern affair. Different sections of the people have developed deep sense of
perpetual grudge, antagonism and mistrust for each other, lack of the sense of
belonging and the communication gap. The Central leadership, barring Mahatma
Gandhi, is charged with having agreed to the Cripps Mission proposal of
‘Grouping Assam with East Pakistan’. The vested interest groups try to perpetuate
the memory that Nehru abandoned the people of Assam in the face of Chinese
aggression.
The North-East region of the country has a slender link of 22 kms with the rest
of the country. Thus only 2% of the region has link with rest of the country near
Siliguri, popularly known as 'Siliguri Chicken Neck'; 98% of the border is attached
with the foreign countries. There is a tendency to create fear in the minds of the
people on this count. Obviously, there is no basis of the fear sychology due to the
following facts. (a) A large number of the countries, far weaker than India, such as
Nepal and Bhutan, have even cent per cent borders with the foreuign countries.; (b)
Our people in the North-East are not a commodity that they may be plundered by
an enemy; (c) Even a narrow passage is enough till the neighbours remain friendly.
The border becomes fluid and the movement becomes unrestricted through the
enemy country.
Colonial historiography
The British, during their rule of over 100 years, mis-interpreted history and
culture of the region; created the myths of race. They invented the myth of core-
fringe conflict and that of isolation, which the Indian historians and ethnographers
parroted and over-emphasized. They also created artificial barrier between the hills
and the plains of the region by introducing Inner-Line Regulation as early as 1973
to prevent plains people from visiting the hills – Naga Hills (now Nagaland), Mizo
Hills (now Mizoram) and Arunachal Pradesh. The colonial historiography ignored
age-old links not only between the region and the rest of India, but also between
the hills and the plains of the region. Our own historians, on the other hand, did
nothing to bring the perceptional change about the region. Here, it needs mention
that none of the Indian historians, except Tapan Roy Choudhury and Irfan Habib,
did study the history of North-East India as a part of the history of India. Even they
included the history of the medieval period of Assam only in the appendix of The
Cambridge History of India, Thus the region does not find proper place in the
history of India. In this connection, it needs mention that such trend of colonial
historiography is not confined only to the North-East region, but also to the
South1. The trend of non-inclusion of the regional history in the history of India,
especially of the Medieval and the British periods, is rightly criticized as the
‘Ganga Valley Bias’2. Here it needs mention that Indian historians have many
failures to their credit. As mentioned above, they failed to incorporate regional
histories in the broader frame of the Indian history. Their blatant ignorance and
irresponsible act becomes shocking when we find that a paper on the North-East
was categorized as non-Indian in a volume of the Indian History Congress. It is
strange that the struggle of the Khasis, Jaintias, Nagas, Mizos, Manipuris, etc
against the British did not find legitimate place in the history of the freedom
struggle. It is, no doubt, a serious lapse on the part of the Indian historians and the
nation was weakened by the same.
An important reason for the spread of insurgency in the NE region was the
alienation and weakening of the sense of belonging generated by the myth of
isolation. The artificial barrier created by the British prevented national freedom
movement from penetrating to certain areas of the region. It was often claimed that
the Inner Line Regulation was devised to ensure the identity of the tribes and to
prevent their exploitation. Ironically, the tribal identity is not discussed therein.
The hollowness of such claims is proved by the fact that the British frequently
interfered in the internal affairs of the tribes and the former monopolized the trade
of the latter’s produce.

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