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THDC LAW

REPORTER
Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A Department

PATRON
From Editor’s Desk
➢ Sh. Vijay Goel, Director (Personal)
Hello readers, this new decade brings us with the new issue of this
e-magazine, we really hope this will be helpful in enhancing your EDITORIAL BOARD
knowledge in legal domain. It is a matter of great pride for all of
us that we are now publishing our seventh edition of THDC LAW ➢ Sh. R.C. Bhauguna, D.G.M. (L&A)
REPORTER with its first issue being published in the year ➢ Sh. V.K. Jain, D.G.M (L&A)
2016.we just entered in this new decade and with full enthusiasm ➢ Sh. K.S. Pundir, D.G.M (L&A)
we are here issuing this new edition with lots of knowledgeable ➢ Sh. N.L. Painuly, Sr. Manager
elements. we were putting our best to come up with new and (L&A)
beneficial. Law is the system of rules which a particular country ➢ Sh. S. Vamsi Prasad, Sr. Manager
or community recognizes as regulating the actions of its members (L&A)
and which it may enforce by the imposition of sanctions Here in ➢ Sh. Himanshu Kumar Jaiswal, Sr.
this issue we tried to focus on the recent and most remarkable Officer (Law)
judgments given by our hon’ble courts with some amazing facts ➢ Sh. Dharmendra Singh Bhati, Sr.
and quizzes. this law reporter is designed to start with articles Officer (Law)
which gives a brief introduction of recent judgments and it ends
with a small quiz which may help to check basic understanding
of law. in between we have mentioned some common legal
maxims which are used in law. we tried to change the format of
In this Issue
the magazine to make it more attractive and effective while
reading it. This new edition provides valuable updates in the field ➢ Important Court Decisions and Legal
of law with reference to recent judgments on the issues raised in
News
the society. we have mentioned achievements of THDC in some
cases such as Jaiprakash associates ltd. vs THDC Ltd. and in the ➢ Recent Judicial Proceeding in regards
judgment passed by the Hon'ble High Court in 14 nos. of land to THDC
reference first appeals in favor of THDCIL. For our improvement
➢ Legal Maxims
and encouragement, we welcome the feedback and opinion of our
readers. ➢ Lex Quizone
➢ Legal Facts
Important Court Decisions and Legal News

The Arbitration and Conciliation


Amendment Act, 2019

The Framework around the Arbitration in India has


witnessed a patterned shift in recent years. Prior to the
latest amendment of the Arbitration and Conciliation act
of 2019, the Govt had bought changes in the original act
through the virtue of the Arbitration and conciliation act
of 2015. The Government of India Promulgated the
Arbitration and Conciliation (Amendment) Ordinance,
2019 amending certain provisions of the Arbitration and
Conciliation Act, 1996 and the amendment bill of 2015, it
was efforts and steps to providing dispute resolution
mechanism in India.

The Arbitration and Conciliation Amendment Act, 2019


came into force with effect from August 9 2019. This was
primarily done to make India more accustomed to faster
resolution of disputes by 'simplifying the process of
domestic and international arbitration.

The act establishes an independent body called the The Court noticed that the introduction of Section 87 would
‘Arbitration Council of India’ for supervising arbitration, result in a delay of disposal of arbitration proceedings, and
mediation, conciliation and other alternative dispute an increase in the interference of courts in arbitration
redressal mechanisms under Part 1A of the act. matters, which defeats the very object of the Arbitration
Act, 1996, which was strengthened by the 2015 Amendment
Section 1CA has been introduced to define an ‘Arbitral Act.
Institution’ Under Section 11, the act Empowers the
Supreme court and the High court to assign and designate When the mischief of the misconstruction of Section 36 was
‘Arbitral Institutions’ which will be graded by the ACI. corrected after a period of more than 19 years by legislative
Section 23 has been amended so that the statement of claim intervention in 2015, to now work in the reverse direction
and defense must be completed within a period of six and bring back the aforesaid mischief itself results in
months from the date the arbitrator or all the arbitrators manifest arbitrariness.
from the time of their appointment.
The retrospective resurrection of an automatic-stay not only
Section 87 as introduced by the Arbitration and turns the clock backwards contrary to the object of the
Conciliation (Amendment) Act, 2019 states that Arbitration Act, 1996 and the 2015 Amendment Act, but
amendments made to the 1996 Act by the Arbitration and also results in payments already made under the amended
Conciliation (Amendment) Act, 2015 will not apply to court Section 36 to award-holders in a situation of no-stay or
proceedings arising out of or in relation to such arbitral conditional-stay now being reversed.
proceedings irrespective of whether such court proceedings
are commenced prior to or after the commencement of the
Arbitration and Conciliation (Amendment) Act, 2015.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 2

Department
Right to Internet: Now a
Fundamental Right LEGAL MAXIM #1
The right to freedom of speech and expression is one of
the most central and the basis of most of the
fundamental rights. It’s recognized in Article 19 (1) of
‘Actionable Per Se’
the Indian constitution, Article 19 of the International
MEANING
Covenant on Civil and Political Rights which India has
signed and ratified. Also, a part of United Nation Human
Actions that do not require the allegations or proof of
Rights Council is the right to speech and expression.
additional facts to constitute a cause of action
There’s a overabundance of case laws regarding Right to
Speech and Expression. EXAMPLE

On 10th January 2020, a three-judge bench of the court Defamation and trespass are two class examples of torts
declared and affirmed that the first section of Article 19 that are actionable per se.
also covers right to go online, or right to use internet as
one of the fundamental rights. This marked as a day of
achievement for the citizens of India. This also bring up-
to-date a vital aspect of democratic presence to the IT
age, India in the league of liberal jurisdictions has begun While this design seems ambiguous and unclear, it could
to correspond our legal position with that of the United provide enough scope for governments to justify internet
Nations Human Rights Council, which declared Internet bans in various cases, it is still noteworthy that the
access as a human right in 2016. justification used for such actions would be open to
judicial scrutiny. In other words, it cannot be done at a
This right first came into existence by the judgement government’s whim.
passed by the High Court of Kerala, which ruled that no
one should be deprived of internet as a basic right. It also The judgment was hailed in different alleys of civil
considered it as a basic human necessity. All society; however, it is pertinent to note that the judgment
fundamental rights have some reasonable restriction, it has done very little to address the issue of the internet
is a well-settled argument that distinct freedoms are ban. As a matter of fact, the judgment has not
granted as they are subsequently extensive to violate the pronounced right to access to internet as a fundamental
rights of others. For example, Freedom of Speech must right. Freedom of speech and expression through the
not clatter with other laws & order. As the classic logic medium of the internet is a fundamental right under
has it, no one should be allowed to falsely shout “fire" in Article 19(1)(a) of the Constitution. The bench added that
a closed hall and cause a stampede. broad suspension of telecom services, be it the internet or
otherwise, being a drastic measure, must be considered by
As for right to internet, the Supreme Court’s judgement the State only if necessary and unavoidable. In
gave government space to restrict its access on the furtherance of the same, the State must assess the
condition that it’s comparable to the problem branded. existence of an alternate, less intrusive remedy.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 3

Department
LEGAL MAXIM #2
‘Dies non’
MEANING

A day on which no legal business can be done

EXAMPLE

“The applicant seeks regularization of his three periods


of absence which have been treated to be dies non
without break”

Curative petition, The last


constitutional remedy
In another case, the Supreme Court set aside its own
Curative petition is the last constitutional remedy for a judgment which held that the action of a the woman
person whose review petition is not accepted by the Supreme merely kicking her daughter-in-law or threatening her
Court. The curative power was introduced in the case of with divorce would not come within the meaning of
Rupa Ashok Hurra v. Ashok Hurra & Anr, where the "cruelty" under Section 498 A of the Indian Penal Code.
supreme court reevaluated its judgement to prevent abuse of The three judge Bench allowed the curative petition led
its process and to cure a gross miscarriage of justice. by the National Commission for Women (NCW) by
restoring the Special Leave Petition.
The supreme court observed that the powers conferred on
the court by article 142 is curative in nature and cannot be Before the origin of curative petition in Rupa Hurra
interpreted as powers which authorize the court to ignore case, a writ petition was led under Article 32 of the
substantive rights of a litigant. Constitution in the Supreme Court. This is was done in
the case of A.R.Antulay v. R.S. Nayak & Anr. where
The curative petition was allowed in the case of Navneet the majority judges (5:2) opined that a previous
Kaur v. State of NCT of Delhi imposed upon him on the judgment could be recalled under a petition under
grounds of supervening circumstance of delay of 8 years in Article 32 or 136 of the Constitution
disposal of mercy petition. The apex court in this case
allowed the curative petition by commuting the death Thus, it can be said that the idea of the curative
sentence to life imprisonment on the ground of inordinate petition is a Constitutional remedy which is a last resort
delay of 8 years in disposal of mercy petition and on the that was originated to rectify the decision of the
ground of insanity. Supreme Court by themselves as a legal and moral
obligation in deciding rarest of rare cases.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 4

Department
LEGAL MAXIM #3
‘Quo warranto’
MEANING

A writ or a legal action through which a person shows


by what warrant an office or franchise is held, claimed
or exercised.

EXAMPLE

“A quo warranto has been filed against the High court


of Uttarakhand against the Chief Minister”

Mahatma Gandhi is beyond formal


recognition of Bharat Ratna
A petition with a peculiar prayer seeking conferment of
Bharat Ratna on Mahatma Gandhi was heard by the
Supreme Court today. This PIL prayed for the father of the
nation Mahatma Gandhi to be awarded the Bharat Ratna,
India's highest honor, for his contribution to the building of

“Truth never
the nation.

When this petition was taken up by the Bench of Chief


Justice of India SA Bobde with Justices BR Gavai and Surya

damages a cause Kant, the Court said that while it agrees with the sentiment
of the petitioner, this was not the forum to ask for the same.
The Court also remarked that Mahatma Gandhi, being the

that is just” father of the nation, is beyond such formal recognitions and
didn't need the same.

With these observations, the Court pointed out that this


Mahatma Gandhi prayer was beyond its scope and thus would not entertain
this plea. The petitioner, however, was told by the Court to
make a representation before the government if he so
desired.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 5

Department
Whether MPs and MLAs are allowed LEGAL MAXIM #4
to practice law during their tenure?
This petition was filed under article 32 of Indian Constitution ‘Bona Vacantia’
as Public Interest Litigation in Supreme Court of India. In this
petition it was prayed by the petitioner that the legislators or MEANING
Members of Parliament and Legislative Assemblies who had
Bona Vacantia is a legal concept associated with the
degree of law and registered as lawyers be prohibited to
property that has no owner. It exists in various
practice as advocates in courts.
jurisdictions, but with origins mostly in English law.
That this Public Interest Litigation was filed by the petitioner
seeking directions of the apex court for prohibiting EXAMPLE
legislators/Members of Parliament/lawmakers/Members of
Legislative Assemblies and Members of Legislative Councils “The right can be transferred only intestate or via a will
from practicing law. That it was contended by the petitioner and becomes bona vacantia if no heirs exist.”
that the MPs/MLAs and MLCs are elected by the public in
large and called public representatives.

That the argument was made by the petitioner that such


persons are duty bound to work for public cause which is a full- The Supreme Court of India held that in the absence of
time engagement. That practice of law is also a full-time work any rule which clearly and expressively prohibit the
and a noble profession. If these people work as public servant legislators from practicing as advocates Rule 49 of the
as well as they practice law being an advocate, they cannot rules framed by Bar Council of India does not apply. It
justify both the works simultaneously. was held that rule 49 of the Bar Council of India Rules
provides that an advocate should not be the full-time
That the petitioner contended against such people who are employee of anybody. It includes any person, firm,
seen regularly in courts as advocate and they are Members of organization or government. If any advocate takes any
Parliament as well. It was also argued that such people such employment, he has to inform the Bar Council about
frequently come in media, give interview and appear on TV the employment and he ceases to be an advocate and from
channels. They can influence the litigants and courts too. That practicing law till the course of employment.
it was also contended by the petitioner that such people
practice law and they charge high amount of fees from their It was held by the Supreme Court that State Bar Councils
clients and they get allowances/ funds and pension from the can frame the rules regarding restrictions and conditions
government as well. for the practicing advocates. Court held that advocacy is a
noble work which requires full time engagement. Rules
That it was also argued by the petitioner that there can be can be made for putting restriction on legal practitioners
professional misconduct on their part if they don’t justify their so that they can pay full attention towards their clients
role as an advocate. That there are chances that at the time of and the cases. Supreme Court held that the case of
the bill of any law (when law was being made in legislative professional misconduct will have to be proved beyond
assembly or parliament) they may be present in parliament reasonable doubt and it may vary from case to case.
and play a deliberate role and give contradictory opinion in
Court held that rule 49 does not impose any unreasonable
court at the time of practicing such law by challenging the restriction on the advocates. The mere fact that law
wisdom of parliament. This may cause a conflict of interest. makers or legislators or member of parliament/legislative
That the rule 49 of Bar Council of India Rules was referred by assemblies/councils withdraw salaries and pension or
petitioner which prohibits the practicing advocate from taking allowances does not bring them into the ambit of rule 49.
any other employment.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 6

Department
Recent Judicial Proceedings in regards to THDC

LEGAL MAXIM #5
‘Ubberime Fide’
MEANING

Utmost Good Faith

EXAMPLE

“She has established her position as a ubberime


fide celebrity.”

Jayprakash Associates LTD.


V. THDC LTD
In this case the Appellant (Jayprakash Associates) was given The appellant council submitted that the judgement of
a contract for certain works. Some disputes arose between the State of Uttar Pradesh v. Harish Chandra and Company
parties as there was an arbitration clause in the agreement was in contrary to the current judgement. The
both the parties decided to solve the dispute through Respondent council (THDC) gave the defense that the
arbitration. Through arbitration a majority award was Harish Chandra case followed the Arbitration act of
pronounced on October 10, 2010. The arbitrators also granted 1940 and Arbitration act of 1996 was to be followed in
interest at 10% pa and future interest at a 18% pa. the cases of arbitration.

The dispute in the court is that Clauses 50 and 51 of the General The appeal was rejected by the supreme court on the
Conditions of Contract (GCC) which governed the terms same basis as no clause in the THDC ltd (supra) spoke of
between the parties. Delhi High Court decided that no interest no claim of interest payable which may be lying in the
is payable as clauses 50 and 51 GCC. government.

The court also held that the clause followed by the Arbitrators
was from the case of Board of Trustees for Calcutta Port v.
Engineers De Space Age, and held that the clause had meant
no interest was payable on claim for delayed payment due to
contractor. Therefore, same construction is needed to be
applied to clauses 50 and 51.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 7

Department
LEGAL MAXIM #6
‘Ex post Facto’
MEANING

It is law that retroactively changes the legal


consequence of actions that were committed or
relationships that existed, before the enactment of law.

EXAMPLE

“The decisive ex post facto evidence of the benefits of


union must therefore come from the united churches
themselves.”
14 Land References for price
determination of land
As per the Land Acquisition Act, 1894 some land under the The reference court had enhanced the market rate of the
Bhumidari Rights was assigned in the village of Fulsaini, above acquired land to six times of the awarded amount. As
Dehradun by the State Govt. for the rehabilitation of the Tehri per judgment given by the reference court, huge financial
Dam ousters. The market rate of the land was Rs 2,34,120.76 allegation was involved in these cases. The Hon’ble High
per acre by the Special Land Acquisition Officer, Dehradun. 14 court had allowed the all 14 first appeals on 21.5.2014 and
bhumidars had filed a reference against the award declared by had also set aside the judgment dated 28.7.2007 passed by
the officer. The reference was referred in the Dehradun court the ADJ in LAR no. 15 of 2004 Veena Jain and other v.
for hearing. Collector, Dehradun and Anr. and other 13 connected
references. Out of 14 appeals, 9 distressed respondents had
The ADJ, Dehradun reference court had enhanced the market filed recall /review application against the judgment dated
rate of the acquired of the acquired land (land in question) 21.5.2014 passed by the Hon’ble High Court of
from Rs. 2,34,120.76 per acre to Rs. 14,30,737.97 per acre along Uttarakhand in 9 first appeals.
with the benefits as per Land Acquisition Act of 1894. State
Govt. of Uttarakhand through Collector, Dehradun had filed The Hon’ble high court has rejected/dismissed the all 09
the appeals against the judgment dated 28.4.2007 passed by recall/review applications on 28.8.2019 which were filed in
the ADJ in land reference no. 15 of 2004 Veena Jain Vs 09 first appeals (copy of judgment dated 28.8.2019.
Collector, Dehradun and other 13 connected land references. Resulting to aforesaid judgment of the hon’ble High Court,
THDCIL was impleaded as appellant no. 3 in these land an amount of Rs. 29.50 crores (approx.) has been saved by
reference appeals before Hon’ble High Court of Uttarakhand. THDCIL against financial liability as per the impugned
judgment of the reference court.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 8

Department
\
Royalty cases won by THDCIL LEGAL MAXIM #7
THDCIL filed cases before High Court of Uttarkhand against
order dated 19-03-2013 passed by DM , Tehri Garhwal (acting ‘Jus Naturale’
on behalf of State Government) directing THDCIL to deposit
an amount of Rs. 28 Crores(approx.) towards pits mouth value MEANING
of total mines and minerals allegedly illegally extracted by
THDC and also against order dated 12-03-2013 passed by DM Natural law is a philosophy that ascertains that certain
Tehri Garhwal directing THDCIL to deposit an amount of Rs. rights are inherent by human nature, traditionally by
1,70 Crores (Approx.) towards value of total mines / minerals, god and something that can be understood universally
mining extraction, transportation of the same done without through human reason.
lawful authority.
EXAMPLE
THDC challenged the above orders on the ground of being
violative of fundamental, statutory rights under article 14, 19 “The roman courts followed Jus Naturale.”
(1)(g) of Constitution of India; under Mines and Minerals Act
1957; UP Mines and Minerals (concession) rules. THDC filed
these cases and challenged the impugned orders because it had
acquired the land for the public purpose for quarrying for
purpose of construction of Koteshwar dam in lieu of. This was Judgment
primarily raised as a ground for attributing no rationale in
imposing the aforementioned amounts by DM, Tehri Garhwal. It was held that State Govt. is not competent to levy or
recover any royalty and penalty from the petitioners for
Identical questions of law and facts were involved in all cases; digging of site of Dam for the purpose of construction of
therefore, Single Judge bench of Hon’ble HC of Uttarakhand Tehri Dam and Koteshwar Dam.
vide order dated 26-05-2014 disposed of these cases by a
common judgment in favour of THDCIL. Against this common judgment of Single Judge of High
Court of Uttarakhand, appeals were filed by State
Background Government before Division Bench of High Court, but
same were dismissed on 24.10.2018. Further to this, State
For the purpose of construction of Tehri dam, huge chunk of Govt. has also reached Supreme Court of India in Special
land was dug and ultimately, Tehri Dam, came into existence. Leave Petitions but that were also dismissed by Supreme
The State Government (of Uttarakhand) decided to recover Court of India on 2.12.2019.
the royalty and penalty from the petitioners on the ground
that they were involved in illegal mining of minerals within THDC saved more than Rs. 200 Crores (Approx) through
Tehri Dam and Koteshwar Dam areas without taking mining these cases.
lease/ license, as required under Section 4 of the Mines and /
minerals (development and Regulation) Act, 1957 , therefore,
were liable to pay royalty and penalty under Section 21 (5) of
the Act.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 9

Department
Some Legal Questions

ANSWERS
1) Who is the present Chief Justice of India?
1) Justice Sharad Arvind Bobde
2) Who is the present Chief Justice of High Court
2) Justice Ramesh Ranganathan
of Uttarakhand?
3) ignorance of law is no excuse
3) What is meant by ignorantia 'legis non excusat'?
4) to produce a body- a writ requiring a person under
4) What is meant by writ of 'Habeus Corpus'? arrest to be brought before a judge or into court,
5) How many present judges in Supreme Court? especially to secure the person's release unless
6) In which case Supreme Court has held right to lawful grounds are shown for their detention.
internet as a fundamental right? 5) 30 judges
7) Indian parliament is based on the principle of? 6) Anuradha Bhashin Vs. Union of India
8) Public holidays are declared under which law? 7) Bicameralism.
9) If a witness makes a statement in court, knowing 8) Negotiable Instruments Act.
it to be false. he commits the offence of? 9) Perjury
10) Beyond what distance from the coast in the sea 10) 200 KM
known as "high sea”?

Interesting Legal Facts

1. The Indian Constitution is the largest in the world.


2. A Total Of 283 Members of The Constitution Assembly Signed the Constitution.
3. The Original Hand Written Copies of The Constitution Are Kept in Helium-filled Cases in The Library Of The
Parliament House.
4. The concept of the Five-Year plan was taken from the USSR.
5. The Preamble to Our Constitution was inspired by the preamble to the Constitution of United States of America.
6. The Fundamental Rights recognized by our Constitution has also been adopted from the American Constitution.

Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A 10

Department
Issue 7th | January 2020 | A quarterly e-magazine of Corporate L&A
Department

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