Professional Documents
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DPC Answers
DPC Answers
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Facts: U had petitioned to the High Court for dismissing an allotment of land in the name of M. No
relief, however, was sought to allot the said land in favour of U. The High Court nonetheless granted
this relief. This issuance was held by the SC to be bad in law.
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Supreme Court in Rajnesh v. Neha [(2021) 2 SCC 324, 383], which laid down the following
guidelines in this regard:
“128. To overcome the issue of overlapping jurisdiction, and avoid conflicting orders
being passed in different proceedings, it has become necessary to issue directions in this
regard, so that there is uniformity in the practice followed by the Family Courts / District
Courts/Magistrate Courts throughout the country. We direct that:
128.1. (i) Where successive claims for maintenance are made by a party under different
statutes, the court would consider an adjustment or set-off, of the amount awarded in the
previous proceeding(s), while determining whether any further amount is to be awarded in
the subsequent proceeding.
128.2. (ii) It is made mandatory for the applicant to disclose the previous proceeding
and the orders passed therein, in the subsequent proceeding.
128.3. (iii) If the order passed in the previous proceeding(s) requires any modification or
variation, it would be required to be done in the same proceeding .”
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The following principles must be kept in mind while drafting a consumer complaint:
1. “Complaint” means any allegation in writing, made by a complainant for obtaining any
relief provided by or under the Consumer Protection Act, 2019. It must pertain to,
inter alia, any of the kinds of causes of action which are provided for in Section 2(6)
of the Act – which includes an unfair contract or unfair trade practice or a restrictive
trade practice has been adopted by any trader or service provider; the goods bought
suffering from one or more defects; services hired or availed suffering from any
deficiency; situations where the goods, which are hazardous to life and safety when
used, are being offered for sale to the public; excess pricing etc.
2. Importantly, a claim for product liability action lies against the product manufacturer,
product seller or product service provider. Product liability here means the
responsibility of a product manufacturer or product seller, of any product or service,
to compensate for any harm caused to a consumer by such defective product
manufactured or sold or by deficiency in services relating thereto.
3. The complaint has to be filed before the appropriate consumer redressal forum in
accordance with the jurisdictional authority granted to them under the Act.
4. The relevant forum, if satisfied that the compliant is true and deserves to be allowed,
may, inter alia, pass an order granted one or more of the following reliefs (as per
Section 39): (a) to remove the defect pointed out by the appropriate laboratory from
the goods in question; (b) to replace the goods with new goods of similar description
which shall be free from any defect; (c) to return to the complainant the price, or, as
the case may be, the charges paid by the complainant along with such interest on
such price or charges as may be decided; (d) to pay such amount as may be
awarded by it as compensation to the consumer for any loss or injury suffered by the
consumer due to the negligence of the opposite party (including pecuniary damages);
(e) to pay such amount as may be awarded by it as compensation in a product
liability action; (f) to remove the defects in goods or deficiencies in the services in
question; (g) to discontinue the unfair trade practice or restrictive trade practice and
not to repeat them; (h) not to offer the hazardous or unsafe goods for sale; (i) to
withdraw the hazardous goods from being offered for sale; (j) to cease manufacture
of hazardous goods and to desist from offering services which are hazardous in
nature; (k) to pay such sum as may be determined by it, if it is of the opinion that loss
or injury has been suffered by a large number of consumers who are not identifiable
conveniently; (l) to issue corrective advertisement to neutralise the effect of
misleading advertisement at the cost of the opposite party responsible for issuing
such misleading advertisement; (m) to provide for adequate costs to parties; and (n)
to cease and desist from issuing any misleading advertisement. In addition to this,
under Sections 49(2) and 59(2), the State and National Commissions, respectively,
may also declare any terms of contract, which is unfair to any consumer, to be null
and void. The relief sought by the complainant should be designed around the
authority to grant relief in terms of the aforesaid provisions of the Act.
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e. Termination
f. Dispute resolution
2. Specific Clauses:
a. Scope of premise/the place of use: The place used/occupied for residence or
commercial use shall be mentioned in detail with full address describing all
sides and borders of the place and also mention the purpose like in
commercial agreement which type of business is going to be carried out. It
should be clearly mentioned in the agreement about the space which should
be used accordingly.
b. Transfer of rights: This clause is very important as it clearly expresses that
the lessor is transferring the rights of his property to the lessee for a period of
time. This clause contains the main purpose of this agreement and is also
imperative to the agreement.
c. Rent and Security deposit: This clause tells us about the security amount and
rent amount clause. Rent is the consideration which is mutually decided by
both parties and sometimes in commercial agreement along with the base
rent the party has to share the profit percentage with the other party. The
security deposit is to be paid in the context of any dispute/default arising out
of the agreement by the lessee to the lessor as security. This should be
ideally paid after the agreement is signed by both parties and returned at the
end of the tenure.
Power of Attorney
General Overview
These are agreements of agency entered into between persons where the agent agrees to
act on behalf of the principal in general or in select circumstances. POAs are broadly
dividable into two parts: general POA (GPOA) and special POA (SPOA). A GPOA always
confers a general power of performing while an SPOA confers only a specific or confined
power to perform any particular act or task. Both, however, are in the form of agreements of
agency which are governed under the Indian Contract Act, 1872. Agreements which grant
POA to the agent to the principal are recognised under the Powers-of-Attorney Act, 1882.
Drafting Considerations
As the classifications discussed above indicate, POAs must comprise of the subject matter
of the agency, the scope thereof, and the duties and responsibilities of the agency while
acting on behalf of the principal. At the same time, clauses restricting liability of a principal
may also be incorporated, for the purposes of avoiding any contingencies which may arise to
the prejudice of the principal owing to the agent’s actions. A GPOA’s drafting is more open-
ended and flexible, whereas an SPOA is much more closed, confined, specific, nuanced and
limited-in-scope. for instance, a POA entered into between a principal and its agent, whereby
the latter would represent its interest in the AGMs of all companies where the former is a
shareholder, would be GPOA. Whereas a POA where the agent would act on behalf of the
principal-shareholder only for the general meetings of one company, while the principal
appoints other agents for other companies, is an example of a SPOA.2
Partnerships
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Note: Companies Act, §105 (“Proxies”) – a POA can be entered into be a member of a company for
appointing a person as their proxy for acting on their “to attend and vote at a meeting of the
company”.
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Regulated under
Based on the kind of liability which is imposed on the partners, they are regulated either
under the Partnerships Act, 1932, or the Limited Liability Partnership Act, 2008
Important Clauses
1. Capital contributions. Your partnership agreement should explicitly state what
contributions each partner will make to the partnership and the percentage of ownership
interest they will each take. Cash is the most typical contribution, although property,
securities, assets, and even certain skills can also be listed as valid business
contributions.
2. Duties as partners. One of the drawbacks of partnerships is the risk of unclear
authority. For that reason, a large part of your partnership agreement should spell out
the partners' duties. This includes specifying each partner's level of authority, business
decision-making power, important management duties (not minor ones), and other
responsibilities.
3. Sharing and assignment of profits and losses. Allocation that is proportionate to
each partner's ownership percentage is a popular way to allocate and distribute profits
and losses. The agreement should also specify whether partners will be able to take a
regular "draw" -- a withdrawal from his or her allocated profits -- each year, or whether
the partners can take their entire allocated profits. This will depend on the partners'
financial needs.
4. Acceptance of liabilities. Depending on the type of partnership you're entering into,
each partner may (or may not) be held personally liable for the business obligations of
the partnership. As this can expose the partners' personal assets should the business
become indebted and insolvent, it's an essential element to consider when forming your
partnership.
5. Dispute resolution. As with most business ventures, you should expect to have a
"heated disagreement" or two with your business partners. Have a clause in your
agreement that spells out how deadlocked disputes will be handled. For example,
instead of allowing the partners to go to court, you could require that arbitration or
mediation is used first.
6. Name and place of the partnership firm: Two individuals may have a different kind of
partnership with respect to various business, hence, it is advisable to clearly state the
name of the business/partnership firm as it provides a fictional identity to the
partnership, similarly, to mention the registered place of the firm is also necessary to
mention because all the official correspondence and communication will be received or
originate from the official registered place.
7. Nature and Scope of business: The business needs to be defined properly because
all the rights and liabilities are related to the business only, it should include what is
business-related to for example the business is of Manufacturing of Bottles and the
purpose is to sell it other business entities (B2B Model), the business will be having both
online and offline presence. If nature and scope are complex and require a detailed
explanation, then a schedule can be incorporated clearly stating the aspects of the
business. Further, it can also be added that the partners by convening meetings and
mutual agreement can exclude or include anything in the nature and scope of the
agreement and the same will not render the agreement unenforceable.
8. Duration: The term period of the partnership agreement must be defined along with the
provision for renewal.
9. Registration of partnership deed: A partnership firm is a separate legal entity, which
means that the partners can sue and will be sued in the name of the firm, it is pivotal to
get the deed registered in accordance with the law as it bolsters the legal sanctity and
identity of the firm. Once the deed is registered, it is easier for partners to sue others in
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the name of the firm. Therefore, the deed must have a clause stating that the deed shall
be duly registered within XYZ days upon execution and the same rule shall be applied in
the event of any amendment in the deed.
Difference between Partnership and Joint Venture
A joint venture can be described as a contractual arrangement between two or more entities
that aims to undertake a specific task. A partnership involves an agreement between two or
more parties wherein they agree to share the profits as well as any loss incurred in a single
venture. Partnerships are usually formed with a partnership agreement or contract between
the individuals who make up the partnership. The partnership agreement lays out the terms
of the partnership covering topics such as sharing in profits and losses, how partners can
leave the partnership, the percentage of control held by each partner, and similar issues.
Joint ventures, on the other hand, may not necessarily have an agreement in place. Or, if
there is an agreement, it is a short-term and very specific contract that addresses the
particular project that is going to be undertaken. Partnerships are designed to last for the life
of the business. They can run infinitely. In contrast, joint ventures are meant for short-term
project lifetimes. They are not meant to last forever, just long enough to allow the parties to
reach a particular goal.
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Appeal against decisions of High Courts lies before the Supreme Court under Article 132
and 133 if the following conditions are fulfilled: (1) the High Court certifies that there is a
substantial question of law as to the interpretation of the Constitution is involved; and (2) the
High Court certifies that there is a substantial question of law of general importance and the
said question needs to be decided by the Supreme Court. The certificate is issued by the
High Court under Article 134-A of the Constitution. Further, Article 133(2) permits the
Parliament to enact laws for appeal to the Supreme Court.
Criminal Appeals under Article 134
Appeal lies before the Supreme Court in respect of criminal matters arising out of decrees or
judgments of a High Court in the following scenarios:
1. The High Court has on appeal reversed an order of acquittal of an accused person
and sentenced him to death;
2. The High Court has withdrawn for trial before itself any case from any court
subordinate to its authority and has in such trial convicted the accused person and
sentenced him to death.
3. Any other appeal which the High Court certified under Article 134-A.
Further, Article 133(2) allows the Parliament to enact laws for appeal to the Supreme Court
in criminal matters.
Writ Petition
A writ petition for the enforcement of fundamental rights under Part III of the Constitution
may be filed under Article 32. Pursuant to a petition under Article 32, the Supreme Court
may issue writs of habeas corpus, mandamus, prohibition, quo warranto and certiorari.
However, there have been instances where Article 32 petitions have been entertained for
purposes other than the enforcement of fundamental rights. For instance, in Shivraj Singh
Chouhan v. M.P. Legislative Assembly [(2020) 17 SCC 1], the Supreme Court allowed a
petition filed to convene a legislative assembly session to conduct a floor test – which is
completely unconnected with the enforcement of fundamental rights under Part III of the
Constitution.