 Section 22 - any employer who (a) pays to any employee less than the

minimum rates of wages fixed for that employee’s class of work or less than
the amount due to him under the provisions of this Act or contravenes any rule
or order made under Section 13, shall be punishable with imprisonment for a
term which may extend to six months or with fine which may extend to five
hundred rupees or with both.
 While imposing any fine for an offence under this section the court shall take
into consideration the amount of any compensation already awarded against
the accused in any proceedings.
 Section 22A - any employer who contravenes any provision of this Act or of any
rule or order made thereunder shall if no other penalty is provided for such
contravention by this Act be punishable with fine which may extend to five
hundred rupees.
Mercantile Law or Business Law
 branch of law which consists of laws relating to trade, industry and commerce
 one of the important branches of Civil Law - also called - Commercial Law
 According to Mr. S.R. Davar : Mercantile law means that branch of law which is
applicable to or concerned with trade and commerce in connection with various
mercantile or business transactions.
 law relating to contracts, partnership, sale of goods, negotiable instruments,
companies, insolvency, insurance, carriage of goods, etc.
 study of rights and obligations arising out of mercantile transactions between
mercantile persons.
Mercantile Law or Business Law
 laws which pertain to how, what and why of how businesses are legally allowed
 legal laws of business and commerce in the public as well as the private sector.
 Significance of Business Law
◦ important aspect of law - without which, the corporate sector, manufacturing sector and retail
sector would be in difficulty.
◦ to maintain safe and functional working spaces - involved in the business, whether they’re
running it or working for the people running it.
 Types of Business Law
◦ Contract Law
◦ Employment / Labour Law
◦ Company / Partnership / LLP Law
◦ Intellectual Property Law
◦ Securities Law
◦ Tax Law
Business Laws in India
 Indian Contract Act of 1872
◦ governs the working of contract laws in our country.
◦ Some of its requirements for contract laws are:
 Absolute acceptance of the contract by both parties.
 Lawful consideration from both parties.
 Competent to contract:
 Neither party should be a minor.
 Neither party should be of unsound mind.
 Free consent: neither party should have been coerced into signing.
 Agency: when one party engages another party to act in place of it.
 Final enforcement of contracts
 Sale of Goods Act 1930
◦ transfer of ownership of a tangible, immovable commodity between a buyer and a seller for a
decided amount of money warrants a sale of goods contract,
Business Laws in India
 Indian Partnership Act 1932
 A partnership in business refers to when two or more business entities come together
to create a new venture together. The investment and profits are split evenly between
the involved parties. The Indian Partnership Act provides the laws under which
partnerships in India can function.
 Limited Liability Partnership Act 2008
 This Act is differentiated from the IAP of 1932. A Limited Liability Partnership is a
separate legal entity, which continues with its business as is, even if a partnership
dissolves, only suffering the liability as mentioned in the contract.
 Companies Act 2013
 This is the ultimate business law, which oversees and provides the rules pertaining to
each aspect of creation as well as dissolution of companies established in India.

Sources of Mercantile Law
 Indian mercantile law is based largely upon the English mercantile law.
 Prior to various mercantile law /Acts, the personal laws of the parties to suit regulated
mercantile transactions.
 Rights of Hindus were governed by Hindu Law and Muslims by Mohammedan Law.
 Persons other than Hindus and Muslims - Courts applied the principles of English Law.
 where laws and usage of Hindus or Muslims were silent, the principles of English Law
were applied.
 The first efforts to pass an Act constituting mercantile law in India were made in 1872
by the passing of the Indian Contract Act.
 From that time a large number of statutes have been enacted concerning matters
coming within the purview of mercantile law.
 For example, the Sale of Goods Act, 1930, the Partnership Act, 1932, the Companies
Act, etc.
Sources of English law
 Statute Law
 laid down by Acts of Parliament, most superior/powerful source of law.
 Overrides common/ Equity law
 Case Law
 important source of English mercantile law.
 built upon decisions of Judges.
 based on principle that what has been decided in earlier case is binding in similar
future case also unless that there is a change in the circumstances of the case.
 A Lex Mercatoria or Law Merchant
 It is also one of the important sources of English mercantile law.
 A lex mercatoria or law merchant consists of legal principles based on customs and
usage.
 They developed first as a separate system of law and subsequently became part of
the common law.
Main Sources
 Statute Law
◦ Bill passed by Parliament and signed by the President becomes a “Statute” or an Act.
◦ Most of Indian laws in the various Acts passed by the Central as well as State
legislators.
◦ The Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Companies Act, 1956
are some of the examples of the statute law.

 Judicial Decisions
◦ Judicial decisions are also called as case laws.
◦ Referred to as precedents a
◦ binding on all Courts having jurisdiction lower to the Court, which given judgement.
◦ The Courts in deciding cases involving similar points of law also follow them.
Main Sources
 Customs and Usage
◦ Customs and usage plays an important role in regulating business transactions.
◦ A well-recognized custom or usage can even override the statute law.
◦ Most of the business customs and usage have been codified and given legal sanctions in India.
◦ Some of them have been ratified by the decisions of the competent Courts of law.
◦ Customs to become binding on the parties, must satisfy certain requirements
 a. Definite and certain
 b. Reasonable
 c. Consistent with the law
 d. Uniformly accepted in ordinary courts of business
 e. Not to be opposed to any legislature enactment
◦ When a custom is accepted by a court it is incorporated in a judicial decision, it becomes a
legally recognized custom.
The Constitution of India, 1950
 a written document which currently comprises over 450 Articles and 12
Schedules.
 It is the longest written constitution of any sovereign country in the world.
 The Constitution of India was drafted and adopted by a constituent assembly of
elected representatives of the people and came into effect on 26 January 1950.
 The Constitution of India is not the creation of parliament but of the people of
India and is therefore supreme.
 India's constitutional supremacy is evidenced in the opening sentence of the
Preamble to the Constitution of India:
 "We, The People of India, having solemnly resolved to constitute India into a
Sovereign Socialist Secular Democratic Republic".
Nature of our Constitution
 Our Constitution derives several of its features from foreign sources, most
notably:
◦ Parliamentary government, rule of law from the UK.
◦ Directive Principles of State Policy from Ireland.
◦ Fundamental rights, judicial independence and functions of the president from the
US.
◦ Union list and state list from Canada.
◦ Concurrent list and freedom of trade from Australia.
◦ Fundamental duties from the former USSR.
 Having features of both federal and unitary constitutions,
 neither purely federal nor purely unitary,
 widely considered as quasi-federal in nature.
System of Governance
 India is a union of states and UTs.
 Parliamentary system, with legislatures at both union and state levels.

 Head of state
 The President is the constitutional head of the Union of India
 The "real" executive power is vested in the Prime Minister and the council of
ministers (and the President must act on their "aid and advice").
 A similar system is established at the state level.
 While the governors are the head of the states, the executive powers are
exercised by the chief ministers (leader of the state government) and their
council of ministers.
Structure
 Bicameral legislature at the Union level - two Houses:

 Lok Sabha (House of the People).

◦ The political party or coalition of political parties with a majority in the Lok Sabha forms the
government.
◦ The members are directly elected by the people from their territorial constituencies.

 Rajya Sabha (Council of States).

◦ The members are indirectly elected from the state assemblies.
◦ However, the legislative powers of these two Houses are quite similar.
◦ At the state level, there is the state legislature. All states have a legislative assembly (which is
similar to the Lok Sabha)
◦ some states may also have a second House (that is, a legislative council)
◦ Number of the state legislature members depends on the population of the specific state.
Separation of Powers
 The Constitution does not have an express provision for separation of powers.
 However, it still recognises and incorporates the doctrine of separation of powers
between three branches (legislature, executive and judiciary).
 while no formal lines have been drawn between them, it is widely considered that the
doctrine of separation of powers "runs through" the Constitution of India.
 The executive can legislate using: The ordinance-making powers of the President and
the governors. – and Delegate executive legislation
 The legislature exercises some form of control over judiciary - it can legislate on the
constitution, jurisdiction and powers of the courts, and can also impeach judges.
 Judiciary can review & strike down unconstitutional executive and legislative decisions.
 The legislature can make such rulings ineffective by amending the law while staying
within the constitutional limits (a concept known as "legislative overruling").
 This is an example of the inherent checks and balances under the Constitution which
further strengthen the separation of powers.
 Despite overlaps, Indian judiciary has recognised the doctrine of separation of
powers as a basic feature of the Constitution and an essential part of the rule
of law.

 General legislative process – Law Making power

◦ India's parliamentary system empowers legislating at the union level by the Indian
Parliament, and at the state level by the state legislatures.
◦ Their subjects of legislation are clearly defined under two separate lists in the
Constitution of India, the Union List and the State List.
◦ There is also a Concurrent List of subjects on which both Parliament and the state
legislatures can legislate.
◦ If there is a conflict between a legislation of the union and a state, union legislation
prevails (although there are some exceptions to this).
◦ The law-making procedure is generally similar at both levels.
 .
Proposal and drafting

 Typically, the text of a proposed law (that is, a bill) is drafted by the relevant
ministry of the government.
 The bill is circulated to other relevant ministries and sometimes even to the
public, for their input.
 After revisions are made (as necessary), the bill is presented for approval to
the council of senior ministers, headed by the Prime Minister (this is known as
the Union Cabinet).
 On approval, the bill is introduced in either House of the Parliament (either Lok
Sabha or Rajya Sabha).
 The only exception to this is money bills (bills of a fiscal nature) which can be
introduced only in the Lok Sabha.
Bill Passing
 In either House of the Parliament, a bill generally goes through three readings,
that is – Introduction, Scrutiny and passing
 Once passed by majority in one House, introduced to other House
 All bills (except money bills) need the approval of each House.
 This is different from the state legislatures where the legislative council only
plays an advisory role and where the legislative assembly is the final authority.
 For money bills, the Lok Sabha has the final authority and the Rajya Sabha has
only recommendatory powers.
 After Bill is passed by majority in both Houses, sent to the President for assent.
 The President can seek information or clarification about the bill and can
return it to the Parliament for reconsideration (but only once).
 If both Houses pass bill again, the President must give his or her assent.
Enactment
 When Presidential assent is received, the Bill becomes an Act of Parliament
and is notified in the official government gazette.
 The President can also legislate by passing an ordinance when the Parliament
is not in session.
 Once the Parliament is in session again, the ordinance must be ratified by the
Parliament for it to continue as a law (otherwise it will lapse).
 The governor has similar ordinance-making powers at the state level.
Judiciary power to review legislative and executive actions
 Superior judiciary has one of the widest and most extensive scopes of judicial
review
 The power of judicial review of legislative and executive action is considered to
be an essential tool for preserving the doctrine of separation of powers and
the rule of law.
 The Supreme Court of India and the High Courts can review and invalidate
legislative or executive actions if they are found to breach the Constitution.
 This power is not exercised suo moto (that is, on its own motion), but only
when the validity of an action, law or rule is specifically challenged before the
court.
 Judicial review must be exercised with judicial restraint.
 The courts must not encroach into the legislative or executive domain by
rewriting legal provisions or by making policy decisions.
Emergency powers reserved for the executive
 National emergency
 National emergency can be declared if there is a threat to the security of India
or a part of India.
 It must be subsequently approved by Parliament within one month, and can be
repeatedly extended.
 All fundamental rights under the Constitution (except the rights to life and
personal liberty) are automatically suspended.
 National emergencies have been declared three times in India's history, two of
which were during wars.
State emergency
 State emergency can be declared in a state if it is found that the "constitutional
machinery" of the state has failed
 Which means the governance cannot be carried out in constitutional manner
 Loss of majority of the ruling party, collapse of coalition or death of chief
minister have been most prominent causes of imposition of state emergency
 Once declared, the President assumes all executive and administrative power
of that state (this is known as the President's rule).
 State emergency must be approved by Parliament within two months and can
be extended for a maximum period of three years.
 An extension beyond one year can be made only if a national emergency has
been declared and it is difficult to hold elections in that state.
 State emergencies have been declared in various states several times.
Financial emergency
 Financial emergency can be declared if the financial stability or the credit of
India (or of any part of it) is threatened.
 Normally, can be declared for two months but can be extended with
parliamentary approval.
 During a financial emergency, the President can give any directions he or she
deems necessary and adequate to states,
 including to present all money bills to him or her to consider, or to decrease
the remuneration of public servants.
 Financial emergency has never been declared in India.
 An emergency can be declared only by the President of India, and with the aid
and advice of the Prime Minister and the Union Cabinet.
Fundamental Rights
 Constitution of India provides for following Fundamental Rights:
◦ Right to equality (Article 14-18)
◦ Right to freedom (Article 19-22)
◦ Right against exploitation (Article 23-24)
◦ Right to freedom of religion (Articles 25-28)
◦ Cultural & educational rights (Articles 29-30)
◦ Right to constitutional remedies (Article 32).
 Right to Equality (Articles 14-18):
◦ Article 14 (Equality before law):
 state shall not deny to any person equality before the law or the equal protection of the laws within the
territory of India.
◦ Article 15 (Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth):
 State shall not discriminate against only of religion, race, sex, place of birth, any of them.
 the government can make special provisions for women & children and for a group of citizens who are
economically and socially backward.
◦
Right to Equality
 Article 16 (Equality of opportunities in matters of public employment):
 there shall be equality of opportunity for all citizens in matters relating to employment
or appointment to any office under the state
 Article 17 (Abolition of Untouchability):
 Untouchability is abolished and its practice in any form is forbidden.
 The enforcement of any disability arising out of untouchability shall be an offense
punishable by law.
 Article 18 (Abolition of titles):
 no title, not being a military or academic distinction, shall be conferred by the State.
 No citizen of India shall accept any title from any foreign state.
 The awards, Bharat Ratna, Padma Vibhushan, Padma Bhusan and Padma Shri, called as
The National Awards would not amount to title within the meaning of Article 18(i).
Right to Freedom (Articles 19-22)
 Article 19 (Protection of certain rights regarding freedom of speech, etc.):
◦ 1. to freedom of speech and expression.
◦ 2. To assemble peacefully and without arms.
◦ 3. To form associations or unions.
◦ 4. To move freely throughout the territory of India.
◦ 5. To practice any profession or to carry on any occupation, trade or business.
 Article 20 (Protection in respect of conviction for offenses):
◦ state can impose reasonable restrictions on groups of security of the state, friendly relations
with foreign states, public order, decency, morality, contempt of court, defamation etc
 Article21 -Protection of life and personal liberty:
 Article 21A –state shall provide free and compulsory education to all children of the
age Of 6-14 years.
 Article 22 -protection against arrest and detention in certain cases
 Right Against Exploitation (Articles 23-24):
◦ Article 23 - prohibition of traffic in human beings and forced labour.
◦ Article 24 -prohibition of employment of children in factories, etc.

 Right to Freedom of Religion (Articles 25-28)

◦ Article 25- freedom of conscience and free profession, practice, and propagation of
religion.
◦ Article 26 - freedom to manage religious affairs.
◦ Article 27 - freedom as to payment of taxes for promotion of any particular religion.
◦ Article 28 - freedom as to attendance at religious instructions or religious worship in
certain educational institutions.
 Cultural and Educational Rights (Articles 29-30):
◦ Article 29 -protection of language, script, and culture of minorities.
◦ Article 30 -right of minorities to establish and administer educational institutions.

 Right to Constitutional Remedies (Article 32):

◦ Article 32 deals with the right to move to the supreme court for the enforcement of
Fundamental Rights including the Writs of
◦ (i) Habeas corpus
◦ (ii) Mandamus,
◦ (iii) Prohibition,
◦ (iv) Certiorari and
◦ (v) Quo warranto.
The Directive Principles - Part IV, Articles 36-51
 contain the broad directives or guidelines to be followed by the State while
establishing policies and laws.
 The legislative and executive powers of the state are to be exercised under the
purview of the Directive Principles of the Indian Constitution.
 However, the Directive Principles cannot be enforced in a court of law and the
State cannot be sued for non-compliance of the same.
 This indeed makes the Directive Principles a very interesting and enchanting
part of the Constitution
 while it does stand for the ideals of the nation, these ideals have not been
made mandatory.
 the Directive Principles consist of the following guidelines for the States:
◦ The State should strive to promote the welfare of the people
◦ Maintain social order through social, economic and political justice.
◦ The State should strive towards removing economic inequality.
◦ Removal of inequality in status and opportunities.
◦ To secure adequate means of livelihood for the citizens.
◦ Equal work opportunity for both men and women.
◦ Prevent concentration of wealth in specific pockets through uniform distribution of the material
resources amongst all the strata of the society.
◦ Prevention of child abuse and exploitation of workers.
◦ Protection of children against moral and material abandonment.
◦ Free legal advice for equal opportunities to avail of justice by the economically weaker section.
◦ Organization of Village Panchayat which will work as an autonomous body working towards
giving justice.
 Assistance to the needy includes the unemployed, sick, disabled and old people.
 Ensure proper working conditions and a living wage.
 Promotion of cottage industries in rural areas.
 The state should endeavor towards a uniform civil code for all the citizens of India.
 Free and compulsory education for children below the age of 14years.
 Economic and educational upliftment of the SC and ST and other weaker sections of the society.
 Prohibition of alcoholic drinks, recreational drugs, and cow slaughter.
 Preservation of the environment by safeguarding the forests and the wild life.
 Protection of monuments, places and objects of historic and artistic interest and national
importance against destruction and damage.
 Promotion and maintenance of international peace and security, just and honourable relations
between nations,
 respect for international law and treaty obligations, as well as settlement of international disputes
by arbitration
Court structure and hierarchy
 The Indian judicial system is a single integrated system.
 Superior judiciary (the Supreme Court and the High Courts) and the subordinate
judiciary (the lower courts under the control of the High Courts).
 The Supreme Court of India is the apex court of the country and sits in New Delhi.
 It is presided by the Chief Justice of India.
 There are twenty-five High Courts in the country.
 Each state has one High Court, although some High Courts have jurisdiction over
multiple states and Union Territories.
 For administrative convenience, states are further sub-divided into districts,
 each of which has its own District Court.
 Barring a few states, the original jurisdiction for both civil and criminal cases vests with
the District Court.
 The judicial pronouncements by the Supreme Court are binding precedents on all courts, judicial
authorities and tribunals in India.
 Similarly, High Court decisions are binding on all subordinate courts, authorities and tribunals in
India, unless there is a contrary decision from another High Court.
 If there is a contrary decision from a different High Court, the decision from the court with the
larger judge bench usually prevails.
 District Court decisions are not binding on any other court.
 certain traditional courts - to deal with certain areas of law.
 Family courts to deal with issues relating to marriage, inheritance, guardianship of minors and
maintenance.
 The Special Court of Central Bureau of Investigation to deal with cases of corruption and bribery.
 With the socialist aim of making legal remedies accessible and affordable to all, the Indian judicial
system has constituted Lok Adalats and Gram Panchayats at the village level.
 These bodies apply traditional or customary laws and primarily work towards settling local disputes
by using alternative dispute resolution mechanisms.
 Apart from the courts, the Indian judicial system comprises tribunals, commissions and
quasi-judicial authorities that derive their authority from specific statutes.
 Central Administrative Tribunal, which adjudicates disputes that relate to the
recruitment and conditions of service of public servants.
 National and State Human Rights Commissions for the protection of human rights.
 National Company Law Tribunal and National Company Law Appellate Tribunal, which
adjudicate issues relating to company law, including insolvency and bankruptcy matters.
 Consumer disputes forums at national, state and district level to deal with consumer
disputes.
 Competition Commission of India to promote and protect market competition.
 Ombudsman for banking, Insurance, Income tax and electricity matters.
 Income Tax Appellate Tribunal, Central Excise and Service Tax Appellate Tribunal and
Sales Tax Appellate Tribunal to hear tax and excise matters.
Litigation (civil and criminal)
 Trial
 The main parties to civil matters are the claimant and the defendant.
 In criminal matters, the main parties are the state prosecution and the
accused.
 The main function of a trial is assessing the available evidence by the court,
and weighing and balancing it before pronouncing the verdict.
 A trial usually includes examination and cross-examination of witnesses,
interrogation of the accused (defendant) and scrutiny of the evidence.
 Re-examination of witnesses may also be allowed (with the permission of the
court).
 In some cases, the court can also direct further investigation to collect
evidence while the trial is ongoing.
 Role of judiciary
 the judge is a neutral arbiter and facilitates the trial, weighs the facts of the case and
considers the evidence collected against the standard of proof.
 However, judges have wide powers under both civil and criminal law not only to
examine the parties or witnesses, but also to compel a person who is relevant to the
hearing to attend court and give evidence.
 Role of legal counsel
 Legal counsel in India are officers of the court.
 They must assist the court in properly adjudicating the dispute and in the
administration of justice.
 The counsel must also advise the client, keep client information confidential (unless it is
required to be disclosed by law) and represent them in legal proceedings in the best
possible manner
Verdicts
 Civil law
 In a civil suit, depending on the reliefs sought and the outcome of the case, the court
can give a variety of verdicts.
 A verdict in favour of the claimant will typically be a money decree, a declaratory
decree, or both.
 A verdict in favour of the defendant may result in the claimant being ordered to pay
costs (if necessary).

 Criminal law
 In criminal matters, the verdict can be either a conviction or acquittal.
 Where more than one person is accused, the court can convict some parties and acquit
the rest.
Penalties/relief
 Civil law
◦ On reaching a verdict, a civil court can grant all or any of the monetary or
declaratory reliefs sought by the claimant in its claim before the court.
◦ A civil court will not usually grant any relief which is either not sought at all
or is beyond what has been sought.
◦ Monetary reliefs can be general damages for a breach of contract, or special
damages in special circumstances.
◦ A civil court can also grant incidental damages (such as reasonable expenses
or costs). Indirect losses (for example, for reputational harm, or loss of
business and opportunity)
◦ Apart from monetary reliefs, declaratory reliefs (usually, permanent or
mandatory injunctions) can be granted.
Penalties/relief
 Criminal law
◦ After a guilty verdict, depending on the nature of the crime and the
statutory penalty prescribed,
◦ the criminal court can sentence the convict to simple or rigorous
imprisonment (ranging from a few months to imprisonment for life),
◦ or the death penalty.
◦ A fine can also be imposed, if permitted under the statute.
◦ Upon conviction of corporate entities, Indian criminal law does not permit
imposing punishment on their officers (unless specifically permitted by a
statute)
Commonly Used Legal Terms
 Affidavit
 The affidavit is a sworn statement made by a party, in writing, in the presence
of an oath commissioner or a notary public.
 Affidavits are used as evidence in court proceedings.
 An affidavit in reply to a petition, filed by a respondent, is called a counter-
affidavit.
 The petitioner’s response to a counter is called a rejoinder affidavit.
 Appeal
 The appeal is a process by which the correctness of the decision of a lower
court or tribunal is questioned in a higher court.
 Arbitration
 a method for two parties to resolve a dispute through a private dispute
resolution procedure instead of going to court.
 Attestation
 Attestation is authentication of a signature by an authorised person, who could
be an oaths commissioner or a notary public.
 Bench
 The composition of judges sitting to hear a matter in court.
 In the High Court, judges can sit singly, in division benches of two judges or in
full benches of three or more judges.
 In the Supreme Court, the vacation judge or judge in chambers may sit singly;
division benches comprise two or three judges;
 constitution benches five or more judges.
 Cause List
 information like the bench, courtroom number and the position of the matter.
 Cognisable Offence
 a police officer has the authority to make an arrest without a warrant and to
start an investigation with or without the permission of a court.
 Contempt of Court
 A party willfully disobeying an order of a court can be held in contempt of that
court.
 Any act that lowers the authority of the Court or interferes with the course of
justice is defined as ’criminal contempt’.
 Intervenor
 a person who is not a party to the proceedings, with the permission of the
court, intervene in a case, if the outcome of the case will affect such person in
some way.
 .
Penalties/relief
 Issue Notice
 When a Court decides to consider a case, it asks the respondents to explain
why the case should not be admitted (show cause).
 This is done by a notice sent to the respondents which give the details of the
case and the next date of hearing along with a copy of the petition.
 If the respondent does not appear on this date, the court may proceed ex
parte.
 Stay Order
 an application filed seeking an interim court order to prevent the respondents
from performing an action or to prevent an order from being carried out.
 Sub judice
 A matter pending a decision by a Court is called sub judice. Parties to such a
matter should not do anything that would affect the outcome of the case.
 Suo Motu
 The Court may take action on its own when facts requiring legal intervention
reach its notice.
 Vakalathnama
 The document by which an advocate is authorised to represent a party in
court.
 Writ & Writ Petition
 a direction that the Court issues, to be obeyed by the authority/person to
whom it is issued. A petition seeking issuance of a writ is a writ petition
Thank you