Unit – 1. Law of Contract - General Principles.(Indian ... · CONTRACT •As per Section 2 (h) of...

19-05-2020

UNIT – 1. LAW OF

CONTRACT -GENERAL

PRINCIPLES.(INDIAN CONTRACT ACT, 1872)

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)

TY B.COM (Pattern 2013) Business Regulatory Framework (Mercantile law) (301)

DEFINITION, CONCEPT AND KINDS OF CONTRACT

• As per Section 2 (h) of the Indian Contract Act – An Agreement is that which is

enforceable by the law. An agreement accordingly is an assertion of the object of which is

to make a legitimate commitment i.e. an obligation enforceable by law

• All Contracts are agreements, but all agreements are not contracts.

• A contract is an agreement between two or more parties to perform a service, provide a

product or commit to an act and is enforceable by law. There are several types of

contracts, and each have specific terms and conditions.


TYPES OF CONTRACT

• A - From the perspective of Legality

• Valid Contract

• Voidable contract

• Void Contracts

• Unenforceable contract

• B - From the perspective of execution

• Executed Contract

• Executory Contract

• Unilateral Contract

• Bilateral Contract


OFFER AND ACCEPTANCE.

• Offer 2(a): When one person signifies to another his willingness to do or to abstain from

doing anything, with a view to obtaining the assent of that other to such act or

abstinence, he is said to make a proposal.

• An "offer" is the starting point in the process of making an agreement

• Acceptance 2(b): When the person to whom the proposal is made, signifies his assent

there to, the proposal is said to be accepted.

• An agreement emerges from the acceptance of the offer.


CAPACITY OF PARTIES

• Capacity to Contract

• According to Section 11, “Every person is competent to contract who is of the age of

majority according to the law to which he is subject, and who is of sound mind and is not

disqualified from contracting by any law to which he is subject.”

• we have three main aspects:

• 1. Attaining the age of majority

• 2. Being of sound mind

• 3. Not disqualified from entering into a contract by any law that he is subject to


CONSIDERATION

• According to Section 2(d), Consideration is defined as: "When at the desire of the

promisor, the promisee or any other person has done or abstained from doing, or does or

abstains from doing, or promises to do or abstain from doing something, such act or

abstinence or promise is called consideration for the promise". Consideration means

'something in return'.

• Mutual and lawful consideration for agreement, it should be enforceable by law. Hence,

intention should be to create legal relationship. Agreements of social or domestic nature

are not contracts, Parties should be competent to contract, and contract should not have

been declared as void under Contract Act or any other law is also important elements of a

valid contractTY B.COM (Pattern 2013) Business Regulatory Framework (Mercantile law) (301)

CONSENT AND FREE CONSENT.

• According to Section 13, " two or more persons are said to be in consent when they agree

upon the same thing in the same sense (Consensus-ad-idem). According to Section 14,

• Elements Vitiating free Consent

• Coercion (Section 15)

• Undue influence (Section 16)

• Fraud (Section 17)

• Misrepresentation (Section 18)

• Legality of object and consideration


19-05-2020

UNIT 2. - LAW OF PARTNERSHIPS

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• The Indian Partnership Act 1932 defines a partnership as a relation between two or

more persons who agree to share the profits of a business run by them all or by one or

more persons acting for them all.

• What is Partnership?

• A partnership is a kind of business where a formal agreement between two or more

people is made and agreed to be the co-owners, distribute responsibilities for running an

organization and share the income or losses that the business generates.


FEATURES OF PARTNERSHIP:

• Following are the few characteristics of a partnership:

• Contract or Formation

• Unlimited Liability

• Continuity

• Number of Members

• Mutual Agency


TYPES OF PARTNERSHIPS

• General Partnership

• Limited Partnership

• Limited Liability Partnership

• Partnership at Will


LIMITED LIABILITY PARTNERSHIP ACT 2008

• A typical partnership form of the business suffers from the problem of unlimited liability.

Liabilities of partners of a firm extend right up to their personal assets. This makes

regular partnerships undesirable for a lot of entrepreneurs. One solution for this issue

exists in the form of Limited Liability Partnerships, better known as LLP.

• The Parliament of India passed the Limited Liability Partnership Act in 2008 to govern

LLP businesses in India. According to Section 2 of this law, an LLP is a partnership

registered under the Act. Further, an LLP agreement means a written agreement either

between an LLP’s partners or between the LLP itself and its partners. This agreement

defines the rights, liabilities, duties, and powers of the partners.


DISTINCT FEATURES OF AN LLP

1. Separate legal entity

2. Limited liability of partners

3. Sharing of profits

4. Partners of LLPs

The salient features of the Limited Liability Partnership Act, 2008, are as

follows:-

1. Body corporate 2. Mutual rights and duties of partners 3. Separate legal existence 4.

Minimum partners 5. Perpetual succession


DESIGNATED PARTNERS

• [Section 2(1)(o)] "Partner" in relation to LLP means a person who becomes a partner in

a LLP in accordance with the LLP agreement.

• [Section 2(1)(q)] DESIGNATED PARTNERS [SECTION 7] LLP shall have at least two

"designated partners" who are individuals and at least one of them shall be "resident in

India".

• "Resident in India" means a person who has stayed in India for minimum 182 days during

the immediately preceding 1 year. Designated partner is responsible for compliance with

the provisions of LLP Act. Designated Partner is required to obtain Designated Partner

Identification Number [DPIN] from the Central Government.


INCORPORATION OF LLP

• INCORPORATION OF LLP [SECTIONS 11 TO 21] Procedure for incorporation of LLP is

similar to the procedure for incorporation of a company under the Companies Act, 1956.

Applicants are first required to file the application for reservation of name with the Registrar

of Companies [ROC]

• Any entity (body corporate/registered partnership firm) which has a name similar to the

name of LLP which has been incorporated subsequently may seek change of name of such LLP

through ROC within 24 months from date of registration of such LLP

• No person shall carry on business under any name/title which contains the words "Limited

Liability Partnership" or "LLP" without duly incorporating it as LLP under the LLP Act


CONTRIBUTION BY PARTNER [SECTIONS 32 AND 33]

• A contribution of a partner to the capital of LLP may consist of any of the –

• — tangible, movable or immovable property

• — intangible property

• — Other benefit to the LLP including money, promissory notes, contracts for services

• performed or to be performed. The obligation of a partner for the contribution shall be

as per the LLP agreement


AUDIT/FINANCIAL DISCLOSURES [SECTIONS 34 AND 35]

• LLP shall maintain the prescribed books of accounts relating to its affairs on cash or

accrual basis and according to the double entry system of accounting.

• The accounts of every LLP are required to be audited, except in following situations:

• — When turnover does not exceed Rs. 40,00,000/- in any financial year; or

• — Where contribution does not exceed Rs. 25,00,000/-

• Central Government has powers to exempt certain class of LLP from requirement of

compulsory audit.


19-05-2020

UNIT 3. SALE OF GOODS.(SALE OF

GOODS ACT,1930)

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• The Sale of Goods Act, 1930 herein referred to as the Act, is the law that governs the sale of

goods in all parts of India. It doesn’t apply to the state of Jammu & Kashmir. The Act defines

various terms which are contained in the act itself.

• . Buyer And Seller

• As per the sec 2(1) of the Act, a buyer is someone who buys or has agreed to buy goods.

Since a sale constitutes a contract between two parties, a buyer is one of the parties to the

contract.

• The Act defines seller in sec 2(13). A seller is someone who sells or has agreed to sell goods.

For a sales contract to come into existence, both the buyers and seller must be defined by

the Act. These two terms represent the two parties of a sales contract.


GOODS

One of the most crucial terms to define is the goods that are to be included in the contract for

sale. The Act defines the term “Goods” in its sec 2(7) as all types of movable property.

• 1. Existing Goods

• The goods that are referred to in the contract of sale are termed as existing goods if they are

present (in existence) at the time of the contract

• . In sec 6 of the Act, the existing goods are those goods which are in the legal possession or

are owned by the seller at the time of the formulation of the contract of sale. The existing

goods are further of the following types

• A) Specific Goods

• According to the sec 2(14) of the Act, these are those goods that are “identified and

agreed upon” when the contract of sale is formed. For example, you want to sell your

mobile phone online. You put an advertisement with its picture and information. A buyer

agrees to the sale and a contract is formed. The mobile, in this case, is specific good.

• B) Ascertained Goods:

• This is a type not defined by the law but by the judicial interpretation. This term is used

for specific goods which have been selected from a larger set of goods

• C) Unascertained Goods:

• These are the goods that have not been specifically identified but have rather been left to

be selected from a larger group


• Delivery

• The delivery of goods signifies the voluntary transfer of possession from one person to

another. The objective or the end result of any such process which results in the goods

coming into the possession of the buyer is a delivery process

• There are various forms of delivery as follows:

• Actual Delivery: If the goods are physically given into the possession of the buyer, the

delivery is an actual delivery.

• Constructive delivery: The transfer of goods can be done even when the transfer is

effected without a change in the possession or custody of the goods.

• Symbolic delivery: This kind of delivery involves the delivery of a thing in token of a

transfer of some other thing.


THE DOCUMENT OF TITLE TO GOODS

• From the Sec 2(4) of the act, we can say that this “includes the bill of lading, dock-

warrant, warehouse keeper’s certificate, railway receipt, multimodal transport document,

warrant or order for the delivery of goods and any other document used in the ordinary

course of business as proof of the possession or control of goods or authorizing or

purporting to authorize, either by endorsement or by delivery, the possessor of the

document to transfer or receive goods thereby represented.”


Mercantile Agent [Section 2(9)]

• Mercantile agent is someone who has authority in the customary course of business, either to sell or

consign goods under the contract on behalf of the one or both of the parties. Examples include

auctioneers, brokers, factors etc.

Property [Section 2(11)]

• In the Act, property means ‘ownership’ or the general property i.e. all ownership right of the goods. A sale

constitutes the transfer of ownership of goods by the seller to the buyer or an agreement of the same.

Insolvent [Section 2(8)]

• The Act defines an insolvent person as someone who ceases to pay his debts in the ordinary course of

business or cannot pay his debts as they become due, whether he has committed an act of insolvency or

not.

Price [Section 2(10)]

• In the Act, the price is defined as the money consideration for a sale of goods.

Quality of Goods

• In Sec 2(12) of the Act, the quality of goods is referred to as their state or condition.


ESSENTIALS

The five essential features of a contract of sale are as discussed below:

• 1) Two partied

• 2) Subject matter to be goods

• 3) Transfer of ownership of goods

• 4) Consideration is price.

• 5) Essential elements of a valid contract


19-05-2020

UNIT 4. E-CONTRACTS (E-TRANSACTIONS/E-

COMMERCE.)

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• E-Contracts are modelled, specified and executed by a software system and were born out of

convenience, the need for speed and efficiency. This article titled ‘E-Commerce and E-Contracts:

Overview’ understands the world of e-commerce and questions the validity of e-contracts in an entirely

online world.

• I. E-Commerce in India

• E-commerce in simple terms refers to the buying and selling of both products and services through the

internet. This essentially includes all commercial transactions that are based on electronic processing and

transmission of data including sound, text and images.

• Additionally, e-commerce also refers to the effects that electronic exchange of commercial information

may have on institutions and processes that support and govern commercial activities.


TYPES OF ONLINE TRANSACTIONS

• Business to Customer transactions [B2C]

• Business to Business [B2B]

• Customer to Customer [C2C]


E-CONTRACTS IN INDIA

• An e-contract refers to the computerized facilitation of a contract in a cross-

organizational business progression. It is an incredibly new mechanism in India and

facilitates electronic trading relationships between parties. In essence, it is modelled,

executed, specified, controlled, enacted, monitored and either fully or partially deployed

by a software system.


19-05-2020

UNIT – 5. CONSUMER

PROTECTION ACT, 1986

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• The Consumer Protection Act, 1986 (COPRA) is an Act of the Parliament of

India enacted in 1986 to protect the interests of consumers in India. It is replaced by The

consumer protection act 2019 It is made for the establishment of consumer councils and

other authorities for the settlement of consumer's grievances and for matters connected

there with it. The act was passed in Assembly in October 1986 and came into force on

December 24, 1986


SALIENT FEATURES OF C.P. ACT

• The salient features of Consumer Protection Act (CPA), 1986 are as follows

• Coverage of Items: It applies to all goods, services and unfair trade practices unless

specifically exempted by the Central Government.

• Coverage of Sectors: It covers all sectors-private, public or co-operative.

• Compensatory Nature of Provisions: Many Acts have been passed for the help of

consumers. Consumers enjoy the benefits of these Acts but if a consumer wishes the

Consumer Protection Act can provide extra help. As a result the nature of provisions of this

Act is compensating for the loss or providing extra help. Consumer is totally free to enjoy the

benefits provided in the Act.


• Three-tier Grievances Redressal Machinery. This is an important landmark legislation in

the field of consumer protection as it provides for establishment of three-tier quasi-judicial

consumer disputes Redressal machinery at the District, States and National levels to render

simple, inexpensive and speedy justice to consumers. It provides for establishment of

consumer protection councils at the central, state and district levels to promote and protect

the rights of consumers and a three-tier quasi-judicial machinery to deal with consumer's

grievances and disputes

• Group of Consumer’s Rights: It provides a statutory recognition to the six rights of

consumers. These rights are related to safety, information, choice, representation, redressal,

education etc.

• Effective Safeguards: This Act provides safety to consumers regarding defective products,

dissatisfactory services and unfair trade practices. So under the purview of this Act there is a

provision to ban all those activities which can cause a risk for consumer.

• Consumer Protection Council: To favour consumer protection and to encourage

consumer’s awareness there is a provision in this Act to establish Consumer Protection

Councils


DEFINITION OF CONSUMERS

• As per Consumer Protection Act, 1986, “Consumer” means any person who buys or

avails of any service for a consideration which has been paid or promised or partly paid

and partly promised under any system of deferred payment etc. (for details refer to

Section 2(1)(d) of CP Act, 1986).

• A person who buys a good or service for his own personal use and not for further

manufacture is called a consumer.


DEFINITION OF SERVICE

• "service" means service of any description which is made available to potential users and

includes, but not limited to, the provision of facilities in connection with banking,

financing insurance, transport, processing, supply of electrical or other energy, board or

lodging or both, housing construction, entertainment, amusement or the purveying of

news or other information, but does not include the rendering of any service free of

charge or under a contract of personal service;


DEFINITION OF DEFECT AND DEFICIENCY

• "defect"

• means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or

standard which is required to be maintained by or under any law for the time being in force

or under any contract, express or implied or as is claimed by the trader in any manner

whatsoever in relation to any goods or product and the expression "defective" shall be

construed accordingly;

• "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature

and manner of performance which is required to be maintained by or under any law for the

time being in force or has been undertaken to be performed by a person in pursuance of a

contract or otherwise in relation to any service;


DEFINITION OF COMPLAINANT

• complainant" means—

• (i) a consumer; or

• (ii) any voluntary consumer association registered under any law for the time being in force; or

• (iii) the Central Government or any State Government; or

• (iv) the Central Authority; or

• (v) one or more consumers, where there are numerous consumers having the same interest; or

• (vi) in case of death of a consumer, his legal heir or legal representative; or

• (vii) in case of a consumer being a minor, his parent or legal guardian;


UNFAIR TRADE PRACTICE

An unfair trade practice refers to that malpractice of a trader that is unethical or fraudulent.

These practices cause an inconvenience or grievance to consumers.

Examples of Unfair Trade Practices:

• A dress has been used for 2 months and is now being sold by a seller as a new dress.

• The battery of a mobile phone is guaranteed to work well for one year but wears away in a

month.

• A geyser that is not ISI approved has an ISI mark.

• A table of Rs. 500 is sold online with Rs. 600 delivery charge, but the good is claimed by the

seller to be free of cost.


RESTRICTIVE TRADE PRACTICES

• Examples of Restrictive Trade Practices:

• A trader accumulates his stock of food grains in order to increase the price of the grains

in the market so that he can sell it at a higher price.

• In order to buy a television from trader X, one needs to buy a table first.


CONSUMER DISPUTES REDRESSAL AGENCIES

• District Consumer Disputes Redressal Forum (DCDRF): Also known as the "District

Forum" established by the State Government in each district of the State.

• State Consumer Disputes Redressal Commission (SCDRC): Also known as the "State

Commission" established by the State Government in the State.

• National Consumer Disputes Redressal Commission (NCDRC): Established by the

Central Government.

• Video - https://www.youtube.com/watch?v=p2QzY0plaiQ


https://www.youtube.com/watch?v=p2QzY0plaiQ

19-05-2020

UNIT – 6. INTELLECTUAL

PROPERTY RIGHTS

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• What is a property?

• Property designates those things that are commonly recognized as being the possessions of

An individual or a group.

• Properties are of two types - tangible property and intangible property i.e. one that is

physically present and the other which is not in any physical form. Building, land, house, cash,

jewellery are few examples of tangible properties which can be seen and felt physically. On the

other hand there is a kind of valuable property that cannot be felt physically as it does not

have a physical form.

• Intellectual property is one of the forms of intangible property which commands a material

value which can also be higher than the value of a tangible asset or property


INTELLECTUAL PROPERTY RIGHTS (IPRS)

• Intellectual property refers to creations of the mind: inventions; literary and artistic works;

and symbols, names and images used in commerce.

• Intellectual property is divided into two categories:

1. Industrial Property includes patents for inventions, trademarks, industrial designs and

geographical indications.

2. Copyright covers literary works (such as novels, poems and plays), films, music, artistic works

(e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related to

copyright include those of performing artists in their performances, producers of phonograms in

their recordings, and broadcasters in their radio and and television programs.


• IP is protected in law by, for example, patents, copyright and trademarks, which

enable people to earn recognition or financial benefit from what they invent or create. By

striking the right balance between the interests of innovators and the wider public

interest, the IP system aims to foster an environment in which creativity and innovation

can flourish.

• Video - https://www.youtube.com/watch?v=hHQWCFE0J84


https://www.youtube.com/watch?v=hHQWCFE0J84

WHAT IS THE WORLD INTELLECTUAL PROPERTY ORGANIZATION?

• Established in 1970, the World Intellectual Property Organization (WIPO) is an

international organization dedicated to helping ensure that the rights of creators and

owners of intellectual property are protected worldwide, and that inventors and authors

are therefore recognized and rewarded for their ingenuity. stablished in 1970, the World

Intellectual Property Organization.

• This international protection acts as a spur to human creativity, pushing back the limits of

science and technology and enriching the world of literature and the arts. By providing a

stable environment for marketing products protected by intellectual property, it also oils

the wheels of international trade.


HOW DOES WIPO PROMOTE THE PROTECTION OF INTELLECTUAL PROPERTY?

• As part of the United Nations system of specialized agencies, WIPO serves as a forum

for its Member States to establish and harmonize rules and practices for the protection

of intellectual property rights. WIPO also services global registration systems for

trademarks, industrial designs and appellations of origin, and a global filing system for

patents. These systems are under regular review by WIPO’s Member States and other

stakeholders to determine how they can be improved to better serve the needs of users

and potential users.


TRADE RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS)

• Trade-Related Aspects of Intellectual Property Rights (TRIPS) is arguably the

most important and comprehensive international agreement on intellectual

property rights. Member countries of the WTO are automatically bound by

the agreement. The Agreement covers most forms of intellectual property

including patents, copyright, trademarks, geographical indications, industrial

designs, trade secrets, and exclusionary rights over new plant varieties. It

came into force on 1 January 1995 and is binding on all members of the World

Trade Organization (WTO).


• Intellectual Property Rights are the rights given to persons/agencies for their

creativity/innovations. These rights usually give the creator, an exclusive right over the use

of his/her creation for a certain period of time. The importance of intellectual property in

India is well established at all levels- statutory, administrative and judicial.

• This Agreement, inter-alia, contains an Agreement on Trade Related Aspects of Intellectual

Property Rights (TRIPS) which came into force from 1st January 1995. It lays

down minimum standards for protection and enforcement of intellectual property rights

in member countries which are required to promote effective and adequate protection

of intellectual property rights with a view to reducing distortions and impediments to

international trade. The obligations under the TRIPS Agreement relate to provision of

minimum standard of protection within the member countries legal systems and

practices.


19-05-2020

UNIT 7. NEGOTIABLE

INSTRUMENTS ACT, 1881

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• Negotiable Instrument Is that document which contains a promise by one person to pay a

specific amount to another certain person.

• In simple word, It is a written promise to pay a certain amount by the borrower to the lender

of money or services.

• When the seller sold goods on credit to another person, he has a fear of non-payment of his

due, in this case, negotiable instruments provide the guarantee to the seller for receipt of

payment.

• Negotiable Instruments (Amendment) Bill, 2017 - Aims to amend the Negotiable Instruments

Act, 1881


CHARACTERISTICS OF NEGOTIABLE INSTRUMENTS

1. It must be a written document

2. It must be an unconditional promise to pay a stated fixed amount of money

3. It must be payable to order or to bearer

4. It must be payable on demand or at a definite time

5. It must be signed by the maker or the drawer

6. It must be freely transferable from one party to another party


TYPE OF NEGOTIABLE INSTRUMENT: –

• There are following three type of Negotiable Instruments

• Promissory Note

• Bill of Exchange

• Cheque


PROMISSORY NOTE: –

• A promissory note is an instrument that contains the written and signed promise by the

maker(debtor) to pay a certain amount to the creditor on the specific date or on

demand.

• “A Promissory Note is an writing (not being a bank note or currency note), containing an

unconditional undertaking, signed by the maker to pay a certain sum of money only to or

to the order of a certain person or the bearer of the instrument”.

• -Section 4 of India’s Negotiable Instruments Act, 1881


BILLS OF EXCHANGE

• A bill of exchange is an instrument that contains a promise to pay some amount of money to a certain

person after a certain period of time. It is generally drawn by the creditor(maker or drawer) on his

debtor(acceptor or drawee) and debtor gives the acceptance to that he will pay the money to the

maker(drawer) after some certain period or specific date. It should be accepted by the person to whom

it is created or by another person on his/her behalf. Without acceptance, this document doesn’t have any

value.

• Definition: –

• “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker,

directing a certain person to pay a certain sum of money only to, or to the order of, a certain person, or

to the bearer of the instrument.”

-Section 5 of India’s Negotiable Instruments Act, 1881


https://tutorstips.com/bill-of-exchange

CHEQUE

• The cheque is an instrument in writing which contains an unconditional instruction to a banker (by a

person who has already deposit the amount with a banker), to pay a specific amount to a certain person

or to the order of the certain person or to the bearer of the instrument only on the demand.

• The cheque is the most used type of negotiable instrument. It is simple and easy to use. It is the piece of

paper on which the same of the payer is already mention and he will write the name of the receiver of

the payment and amount to be paid and signed it. The receiver will receive cash from the cheque by

encashing it from the bank.

• “A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise

than on demand and it includes the electronic image of a truncated cheque and a cheque in the

electronic form.”

-Section 6 of India’s Negotiable Instruments Act, 1881


CROSSING OF CHEQUES

• Crossing a cheque refers to drawing two parallel transverse lines on the cheque with or

without additional words like “& CO.” or “Account Payee” or “Not Negotiable” between the

lines.

• By using a crossed cheque, one can make sure that the amount specified cannot be en-

cashed but can only be credited to the payee’s bank account.

• Crossing of Cheque is recognized under The Negotiable Instruments Act, 1881.

• The crossing of cheque had developed gradually as a means of protection against misusing of

cheques.

• Video - https://www.youtube.com/watch?v=hotkHSggsng


https://www.youtube.com/watch?v=hotkHSggsng

DISHONOUR OF CHEQUE

• This article on “Dishonour of Cheque – Section 138 of the Negotiable instruments

Act” gives a comprehensive overview about all aspects of cheque bouncing and Cheque

Dishonour as per laws in India

• A person suffers a lot if a cheque issued in his favour is dishonoured due to the

insufficiency of funds in the account of the drawer of the cheque.


WHAT IS ENDORSEMENT?

• A signature authorizing the legal transfer of a negotiable instrument between parties is an

endorsement.

• The act of a person who is holder of a negotiable instrument in signing his or her name on

the back of that instrument, thereby transferring title or ownership. An endorsement may be

made if favour of another individual or legal entity, resulting in a transfer of the property to

that other individual o legal entity.

• Endorsement means signing at the back of the instrument for the purpose of negotiation. The

act of the signing a cheque, for the purpose of transferring to the someone else, is called the

endorsement of Cheque. Section 15 of the Negotiable Instrument Act 1881 defines

endorsement.


TYPES OF ENDORSEMENT

1. Blank endorsement,

2. Full or Special endorsement,

3. Restrictive endorsement,

4. Partial endorsement,

5. Conditional endorsement,

6. Sans Recourse endorsement

• Video - https://www.youtube.com/watch?v=9ACbabKwAG0 Explanation in Hindi


https://www.youtube.com/watch?v=9ACbabKwAG0

19-05-2020

UNIT 8. ARBITRATION & CONCILIATION:

BY PROF. SWATI

BHALERAO

(DNYANSAGAR ARTS

AND COMMERCE

COLLEGE, BALEWADI,

PUNE – 45)


INTRODUCTION

• An Act to consolidate and amend the law relating to domestic arbitration, international

commercial arbitration and enforcement of foreign arbitral awards as also to define the

law relating to conciliation and for matters connected therewith or incidental thereto.

• On August 9, 2019, the President of India gave his assent to the amendments to the

Arbitration and Conciliation Act, 1996 ('Act') and the same has been published in the

Official Gazette of India. Some of the key highlights of the Arbitration and Conciliation

(Amendment) Act, 2019 ('Amendment Act') are set out below:


• Arbitral Institution

• Section 1(ca) has been introduced to define an 'arbitral institution' as an arbitral

institution designated by the Supreme Court or a High Court under the Act.

• Appointment of Arbitrators under Section 11

• The Amendment Act empowers the Supreme Court (in the case of an international

commercial arbitration) and the High Court (in cases other than international

commercial arbitration) to designate arbitral institutions for the purpose of appointment

of arbitrators. Such arbitral institutions will be graded by the Arbitration Council of India

(discussed below). Where a graded arbitral institution is not available, the Chief Justice of

the concerned High Court may maintain a panel of arbitrators for discharging the

functions and duties of the arbitral institution.


ARBITRATION COUNCIL

• Part 1A has introduced the concept of an Arbitration Council of India ('Council'), which

will be established by a notification by the Central Government, and will have its

headquarters in Delhi.

• The composition of the Council will include a Chairperson who is a Judge of the

Supreme Court/ Chief Justice of a High Court/Judge of a High Court or an eminent

person, having special knowledge and experience in the conduct or administration of

arbitration, who will be appointed by the Central Government in consultation with the

Chief Justice of India.


GRADING OF ARBITRAL INSTITUTIONS AND ARBITRATORS

• The Council will make grading of arbitral institutions on the basis of

criteria relating to infrastructure, quality and calibre of arbitrators,

performance and compliance of time limits for disposal of domestic or

international commercial arbitrations, in such manner as may be specified

by the regulations under the Act.

• The qualifications, experience and norms for accreditation of arbitrators

will be such as specified in the Eighth Schedule to the Act.


QUALIFICATIONS AND EXPERIENCE OF ARBITRATORS

• A person will not be qualified to be an arbitrator unless he is/ has been:

• (i) an advocate within the meaning of the Advocates Act, 1961 having ten years of

practice experience as an advocate;

• (ii) a chartered accountant within the meaning of the Chartered Accountants

Act, 1949 having ten years of experience;

• (iii) a cost accountant within the meaning of the Cost and Works Accountants

Act, 1959 having ten years of experience;


• (iv) a company secretary within the meaning of the Company Secretaries

Act,1980 having ten years of experience;

• (v) an officer of the Indian Legal Service;

• (vi) an officer with law degree having ten years of experience in the legal

matters in the Government, autonomous body, public sector undertaking

or at a senior level managerial position in private sector;



Thank You

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