273

 273
Chapter 10 Some Other Legal Aspects Relating to Business
Miscellaneous Laws
VII
Chapter 10: Some other Legal Aspects Relating to Business  275
The chapter on ‘Some other legal aspects relating to business’ will present salient
aspects of law relating to partnership alternative dispute resolution, sexual harassment,
right to information and environment protection. This chapter is divided into six
sections. After reading the chapter you should be able to understand:
Section - 1 Law relating to Partnership:
What is partnership and its essential elements.
Meaning of partner, firm, nature and registration of firm.
Rights and duties of partner.
Reconstitution and dissolution of firm.
Section - 2 Law relating to Limited Liability Partnership:
Definition and characterstics of Limited Liability Partnership (LLP)
Distinciton between LLP and traditional partnership
Incorporation (Registration) of LLP
Partners and designated partners of an LLP
Whistle blowers
Maintenance fo Books of Account and Audit
Winding up of LLP
Section - 3: Alternative Dispute Resolution (ADR)
Various modes of ADR.
Negotiation.
10
Chapter
CHAPTERSTRUCTURE
CHAPTEROBJECTIVES
Some other Legal Aspects
Relating to Business
“The most enlightened judicial policy is to let people manage their own business in
their own way..”
—Oliver Wendell Holmes
10.1 Introduction
10.2 Law relating to Limited Liability
Partnership
10.3 Alternative Dispute Resolution (ADR)
10.4 Law relating to Sexual Harassment
10.5 Right to Information
10.6 Law relating to Environment Protection
Summary
Review Questions
References
276  Business Law for Managers
What is arbitration, rules and procedure for the conduct of arbitration, and arbitral
award.
Advantages and disadvantages of arbitration.
Conciliation or mediation.
Tribunals and Lok-adalats,
Section - 4: Law relating to Sexual Harassment
What amounts to sexual harassment
Salient aspects of existing laws which can be used in cases of sexual harassment.
Section - 5: Right to Information
Historical development of law on right to information.
Salient aspects of the Right to Information Act, 2005.
Section - 6: Law relating to Environment Protection
Legislative initiative i.e. constitutional and statutory framework. Salient features of
Water and Air Act and Environment (Protection) Act.
10.1 Section – 1: Law Relating to Partnership
10.1.1 Introduction
To carry on a business, a person may choose any form of organization depending upon his needs.
When a person works in his individual capacity, he runs a proprietary organization, also known
as a sole trader. When he works with some person, they are running a partnership. ‘Partnership’
is the most common form of organization. Law relating to partnership is governed by the Indian
Partnership Act, 1932 (the Act). It extends to the whole of India.
10.1.2 Definition of Partnership
“Partnership” is the relation between persons who have agreed to share the profits of a business
carried on by all or any of them acting for all.1
10.1.3 Essential Elements of a Partnership
An analysis of the definition of partnership reveals the following essential elements.
a. An agreement: Partnership is the result of an agreement. It does not arise from status (as in the
case of Hindu Undivided Family) operation of law (as of co-owners) or inheritance. -Agreement
may be express or implied. Again it may be oral or in writing. Partnership deed is example, of
an agreement in writing.
b. Two or more persons: There must be at least two persons to form a partnership. The Act does not
mention any thing about the maximum number of persons who can be partners in a partnership.
firm but the Companies Act, 2013 (Section 454) read with rule 10 of Companies (Miscellaneous
Rules) lays down that a partnership consisting of more than fifty persons would be illegal. Hence
this should be regarded as the maximum limit on the number of partners in a partnership firm.
Note: The term ‘person’ means any person competent to enter into a contract and includes a
company also. A minor can be admitted as a partner only for the benefits of partnership.
c. Carrying on a business: For a partnership to exist, it is essential that there should be a business.
Business includes every trade, occupation and profession.2 It may be for long term business
activities or for a particular venture or for a short duration.
d. Sharing of profits: There must be sharing of profits. However, partners may agree to share
profits in any proportion. But whenever the partnership firm runs into losses, the partners will
share it too since a loss represents a negative profit.
e. Mutual agency: There must exist a mutual agency relationship among the partners. Mutual agency
implies that each partner acts for the other partners. He, thus, is an agent of other partners. Also,
each partner is a principal for he is bound by the acts of other partners.
10.1.4 Meaning of “Partner”, ‘Firm’, and ‘Firm name’
Persons who have entered into partnership with one another are called-individually ’partners’ and
collectively ‘a firm’, and the name under which their business is carried on is called the ‘firm name.’3
10.1.5 Nature of a Partnership Firm
A partnership firm is not a person in the eyes of law. It has no separate legal entity apart from the
partners constituting it.
10.1.6 Registration of Firms
According to the Act, it is not compulsory to get a firm registered with the Registrar of Firms.
(Appointed by the State Government). It is, thus, an optional affair.The Act, however, puts an
unregistered firm to certain disabilities thereby making registration of firms desirable. A firm may
get registered anytime, i.e. at the time of formation or anytime thereafter.
10.1.7 Rights of a Partner
a. Right to take part in business
b. Right to express views on business matters
c. Right of access to accounts

d. Right to share profits
e. Right to interest on capital
f. Right to interest on advances
g. Right to be indemnified
h. Right to use partnership property
i. Right as agent of firm
j. Right to permit introduction of new partner
k. Right to retire
l. Right not to be expelled
m. Right of outgoing partner to share subsequent profits
10.1.8 Duties of a Partner
The primary duties of a partner include the following:
a. General duties of partners
i. To carryon the business of the firm to the greater common advantage;
ii. To be just and faithful to each other;
iii. To render the accounts; and
iv. Full information of all things affecting the firm to any partner or his legal representative.
b. Duty to indemnify for loss caused by fraud or willful neglect
c. Duty to attend diligently
d. Not to claim remuneration
e. To contribute to losses
f. To use firm’s property for business
g. To account for profits in competing business
h. To act with authority - actual or implied
i. Joint and several liability for acts of firm
j. Not to assign his partnership rights

10.1.9 Reconstitution of Firm
A firm is reconstituted when there is a change in the composition of its partners without affecting
the continuity of the firm. Such a reconstitution may take place due to:
a. Introduction of a new partner
b. Retirement of a partner
c. Expulsion of a partner
d. Insolvency of a partner
e. Death of a partner, or
f. Transfer of a partner’s share
10.1.10 Types of Dissolution of Partnership Firm
The Act contemplates and distinguishes between:
a. Dissolution of firm: The term refers to “the dissolution of partnership between all the partners
of a firm”. Thus, where all the partners in a firm agree to sever their relationship, it is known
as dissolution of firm.
b. Dissolution of partnership: The term implies the re-organisation or reconstitution of firm wherein
one or more partners sever their relationship with other partners who decide to continue with the
business under altered conditions but without dissolution of firm. This may happen when one
or more partners in a firm either die, retire or are declared insolvent and the remaining partners
elect to continue with business. Thus, the dissolution of firm necessarily implies the dissolution
of partnership but the dissolution of partnership may not necessarily lead to the dissolution of
firm.
10.1.11 Modes of Dissolution of Firm
Broadly speaking, the dissolution of a firm may take place:
a. Without court order: Such a dissolution may take place in the following ways:
i. Dissolution by agreement
ii. Compulsory dissolution by the adjudication of all partners or of all the partners but one as
insolvent, or by the happening of any event which makes it unlawful for the business of the
firm to be carried on or for the partners to carry it on in partnership.
iii. Dissolution on happening of certain contingencies. Subject to contract between the partners
a firm is dissolved:
a. If constituted for a fixed term, by the expiry of that term;
b. If constituted to carry out one or more adventures or undertakings by the completion
thereof;
c. By the death of a partner; and
d By the adjudication of a partner as an insolvent.
iv. Dissolution by notice of partnership at will:
a. Where the partnership is at will, the firm may be dissolved by any partner giving notice
in writing to all the other partners of his intention to dissolve the firm.
b. The firm is dissolved as from the date mentioned in the notice as the date of dissolution,
or if no date is mentioned, as from the date of the communication of the notice.
c. Dissolution by the court: At the suit of a partner, the court may dissolve firm on any of
the following grounds, namely:
i. That a partner has become of unsound mind, in which case the suit may be brought
as well by the next friend of the partner who has become of usound mind or by
any other partner;
ii. That a partner, other than the partner suing, has become in any way permanently
incapable of performing his duties as partner;
iii. That a partner, other than the partner suing, is guilty of misconduct which is likely
to affect prejudicially the carrying on of the business;
iv. That a partner, other than the partner suing willfully or persistently commits breach
of agreements relating to the management of affairs of the firm or the conduct of
its business; or otherwise so conducts himself in matters relating to the business
that it is not reasonably practicable for the other partners to carryon the business
in partnership with him;
v. That the business of a firm cannot be carried on except at a loss;
vi. That a partner, other than the partner suing, has in any way transferred the whole
of his interest in the firm to a third party, or has allowed it to be sold if the recovery
of arrears of land revenue or of any dues recoverable as arrears of land revenue
due by the partner; or
vii. On any other ground which renders it just and equitable that the’ firm should be
dissolved.
10.2 Section – 2: Law Relating to Limited Liability Partnership
(LLP)
10.2.1 Limited Liability Parnership
The law of Limited Liability Partnership (LLP) is contained in the Limited Liability Partnership Act
2008 (The Act).
10.2.2 Definition of LLP
LLP is defined as” Limited Liability Partnership means a partnership formed and registered under
the Act”4
10.2.3 Characteristics of LLP
The following are the essential characteristics of LLP:
a. Body Corporate
b. Artificial legal person
c. Separate legal entity
d. Perpetual existence
e. Common seal
f. Limited liability
10.2.4 Distinction between LLP and Traditional Partnership
The main points of distinction between a LLP and a traditional partnership firm are summarised in
the table below:
S. No. Points of Distinction LLP Traditional Partnership Firm
1. Regulating Act LLP Act 2008 Indian Partnership Act, 1932
2. Number of Partners No maximum number is laid down Not more than fifty as laid down in
Rule 10 of the Companies Rules.
3. Separate legal entity LLP is a separate legal entity from
its partners
Does not have a distinct legal entity
separate from its partner
4. Liability Limited Unlimited
5. Authority of Partners Not as a agent of other partners An agent of other partners
6. Legal compliance By the designated partner Every partner
7. Audit LLP - No audit if the annual
turnover does not exceed Rs. Forty
lakh or capital contribution does
not exceed Rs. twenty five lakhs
No audit - if its annual turnover does
not exceeds Rs. sixty lakhs
8. Registration Mandatory Optional
9. Filing of statement of
account, and Annual
Return
Shall file ‘Statement of Account
and Solvency’ and ‘Annual Return’
Does not require to file these
10. Winding up No one member can windup - legal
formalities are there

‘Partnership at will’ can be woundup
by any partner
11. Creation It is created by law Created by agreement
12. Name of Entity Name to contain LLP as suffix Can have any name
13. Perpetual succession It has perpetual succession Does not have perpetual succession
14. Charter Document LLP agreement Partnership deed
15. Common seal May have its own common seal No concept of common seal
16. Can it sue third party? Being a legal entity can sue third
party
Only registered partnership can sue
third party
17. Can foreign National
became parther?
Can become partner Can not become partner
S. No. Points of Distinction LLP Traditional Partnership Firm
18. Ownership of Assets LLP has ownership independent of
partners
Partners have joint ownership
19. Rights/duties/obligation
of Partners
Governed by LLP agreement Governed by partnership deed
20. Desgnated Partner Must have at least two designated
partner
Need not have designated partner
21. Digital Signature Atleast one designated partner
must have digital signature

No such requirement of obtaining
digital signature
22. Dissolution Voluntarily or by order of the
National Company Law Tribunal
By mutual agreement, insolvency,
certain contingencies, and by court
order
23. Maintenance of Minutes By agreement may decide to
record proceedings of meetings of
partners/designated partners.
There is no concept of any minutes
24. Compromise /
Arrangements/Merger/
Amalgamation
LLP can enter into Compromise
/Arrangements / Merger /
Amalgamation
Cannot merge with other firm or enter
into compromise or arrangement
with creditors or partners
25. Whistle Blowing There is a provision No such provision under the Indian
Partnership Act.
26. Admission of Minor Cannot be admitted to the benefits
of LLP
Can be admitted to the benefits of
partnership
27. Liability of Partners for

legal compliance
Only designated partners are liable
for legal compliance
All partners are liable for legal
compliance
10.2.5 Name of LLP
a. Every person desirous of forming an LLP should find out the availability of the proposed name
from the Registrar of Companies (ROC). Every LLP shall have either the words “Limited Liability
Partnership” or the acronym “LLP” as the last words of its name. No LLP shall be registered by
a name which in the opinion of the Central Government is -
i. Undesirable; or
ii. Identical or too nearly resembles to that of any other partnership firm or LLP or body
corporate or a registered trademark or a trademark the application of which is pending.5
b. Keeping in view of the restrictions mentioned in 10.2.5(a), an application for reservation of name
with which the proposed LLP is to be registered shall be made to the ROC having jurisdiction
where the registered office of the LLP is to be situated. Where the ROC informs the applicant
about reservation of name with which LLP is to be registered, such name shall be available for
reservation for period of three months from the date of intimation by the ROC.6
c. If an LLP’s name is wrongly registered by a name, which in the opinion of the Central Government,
is identical with the name of another LLP or body Corporate or is undesirable, the Central
Government may direct such LLP to change the name and the LLP must comply with the said
direction within three months from the date of direction.7
d. An LLP may change its name voluntarily by filing with the ROC a notice of such change in such
form as may be prescribed.8
e. Once the name is chosen and the LLP is registered in that name, every LLP shall ensure that its
name, address of its registered office, registration number and a statement that it is registered
with limited liability is mentioned on all its invoices, official correspondence and publications.9
10.2.6 Incorporation Document
a. Two or more persons associated for carrying on a lawful business with a view to earn profit
will be required to subscribe their names to an ‘incorporation document’ for getting a LLP
incorporated. The incorporation document shall be filed in such manner and with such fees, as
may be prescribed, with the ROC of the state in which the registered office of the LLP is to be
situated.
b. An LLP cannot be formed for charitable or non-profit making activities.
c. A statement in the prescribed form shall be filed with the incorporation document stating that
all the requirements of the LLP Act and the rules made there under precedent to incorporation
have been complied with. This statement must be signed by either an advocate, or a Company
Secretary, or a Chartered or Cost Accountant, who is engaged in the formation of the LLP and
by any one who subscribed his name to the incorporation document.10
d. The incorporation document is a public document and it is open to public inspection in the office
of ROC on paymen of prescribed fee.11
10.2.7 Incorporation or Registration
a. The ROC will scrutinise whether the incorporation document and other papers presented to
him satisfy the requirements of the Act and if they are in order, he will register the LLP within
fourteen days from the date of presentation. On registration the ROC shall issue a ‘Certificate of
Incorporation’ signed by him, with his orricial seal stating therein that the LLP is incorporated
by the name specified in the incorporation document. The ROC shall enter the name of the LLP
in the Register of LLP’s statutorily maintained by him and shall assign an LLP identification
number (LLPIN) to the LLP.12
b. A certificate of Incorporation/Registration issued in respiect of any LLP shall be conclusive
evidence of the fact that the LLP is duly registered by the name specified in the incorporation
document.12
c. On obtaining the ‘Certificate of Incorporation’ the LLP becomes a body corporate, having separate
legal entity and perpetual succession.13
10.2.8 Registered Office of LLP
Every LLP shall have a registered office to which all communications and notices may be addressed
and where they shall be received.14
10.2.9 Who can be a Partner in an LLP?
The following can be partners in an LLP:
a. Any individual;
b. An Indian company;
c. Any other LLP;
d. A foreign LLP; and
e. A foreign company.15
10.2.10 Disqualifications of becoming a Partner
An individual shall not be capable of becoming a partner of an LLP, if:
a. he has been found to be of unsound mind by a court;
b. he is an undischarged insolvent;
c. he has applied to be adjudged insolvent.16
10.2.11 Minimum and Maximum Number of Partners
Every LLP shall have at least two partners. There is no upper limit on number of partners in LLP.17
10.2.12 Designated Partners
a. Number: Every LLP is required to have at least two ‘designated partners’ who are individuals
and at least one of them shall be a resident of India
b. Appointment: The designated partners can be named in the incorporation document and such
persons shall be designated partners on incorporation. Any partner may become or cease to be
designated partner in accordance with the LLP agreement. The designated partner is required
to give his prior consent to act as such to the LLP.
c. Designated Partner Identification Number (DPIN): Every designated partern would be required
to obtain a DPIN on the lines similar to ‘Directions Identification Number’ (DIN) required incase
of directors of companies.18 Every individual intending to be appointed as designated partner of
an LLP shall make an application to the Central Government for obtaining DPIN. The DPIN so
allotted by the Central Government is valid for the lifetime of the applicant.
d. Integration of DIN with DPIN: With effect from ninth July, 2011 no fresh DPIN will be issued,
only DIN will have to be obtained.19
e. Liabilities of Designated Partners: A designated partner shall be:
i. respoinsible for doing all acts, matters or things as are required to be done by the LLP in
respect of compliance of the provisions of the Act and LLP agreement, and
ii. liable to all penalties imposed on the LLP for any contravention of any provisions of the Act
and LLP agreement.20
f. Changes in Designated Partners: An LLP may appint a designated partner within thirty days
of a vacancy arising for any reason.21
10.2.13 How can a person become a partner of an LLP
The person who subscribed their names to the ‘Incorporation Document’ at the time of
incorporation
of LLP, shall be partners of LLP. Subsequent to incorporation new partners can be admitted in the
LLP as per the conditions and requirements of LLP agreement.22
10.2.14 LLP Agreement
a. It is not mandatory by law to enter into a formal LLP agreement, but it should be done to avoid
any unnecessary disputes in future. LLP agreement lays down the mutual rights and duties of
the partners and their rights and duties in relation to the LLP.
b. Where no LLP agreement has been executed or such an agreement is silent on certain issues, the
provisions of the first schedule to the Act shall apply.
c. The promoters of a new LLP may execute the LLP agreement either before incorporation or after
incorporation of the LLP. If it is pre-incorporation LLP agreement, it should be ratified by all
the partners immediately after the incorporation of the LLP.23

d. The LLP agreement and any changes made therein must be filed with the ROC within thirty
days of incorporation of LLP or the date of change made in the agreement, as the case may be,
along with the filing fee.
e. LLP agreement is not open to public inspection.
10.2.15 Extent and Limitation of Liability of LLP and Partners
a. Partner as agent of LLP vis-a-vis third parties: Every partner of an LLP will be an agent of the
LLP for the purpose of the business of LLP, but not of other partners.24 Only such partners who
are authorised by the LLP agreement to conduct its business are the agents of an LLP. A partner
authorised to conduct the business can make the LLP liable towards the third parties only if he
acts within the scope of his express or implied authority.
b. Extent of LLP’s Liability: The LLP is not bound by an act of a partner in dealing with a person,
if the partner has no authority to act for the LLP and the person knows that he has no authority
or does not believe that he is a partner of the LLP. The LLP is liable if a partner of an LLP is
liable to any person as a result of a wrongful act or omission on his part in the course of the
business of the LLP or with its authority. An obligation of the LLP whether arising in contract
or otherwise, shall be solely the obligation of the LLP. The liabilities of the LLP shall be met out
of the property of the LLP.25
c. Extent of Partners Liability: A partner is not personally liable, directly or indirectly, for an
obligation of the LLP, whether arising out of a contract or otherwise, solely by reason of his being
a partner of the LLP. However, a partner of LLP would be personally liable for his wrongful act
or omission done without its authority but would not be liable for any other partner’s wrongful
act or omission.26
d. Liability of partner by holding out: If a person who is not a partner in the LLP, represents to
the outside world by words spoken or written or by his conduct, or knowingly himself to be
represented that he is a partner in a certain LLP, he is then estopped from denying his being a
partner, and is liable as a partner in that LLP to any one who has on the faith of such representation
granted credit to the LLP.27

Example: Where Dhokhebaj represents to Sharif that he is a partner in the LLP, while actually
he is not a partner, and on the faith of this representation Sharif gives credit to the LLP, and
the LLP becomes insolvent, Sharif can make Dhokhebaj liable on the basis of ‘holding out’ and
Dhokhebaj is estopped from denying that he is a partner in the LLP.
e. Deceased Partners Liability: The deceased partner is liable only for liabilities undertaken during
his life time. Thus after a partner’s death the business is continued in the same LLP’s name, the
continued use of that name or of the deceased partner’s name as part thereof shall not of itself
make his legal representative or his estate liable for any act of the LLP done after his death.28
f. Unlimited Liability in case of Fraud: In the event of an act carried out by an LLP, or any of its
partners, with intent to defraud creditors of the LLP or any other person, or for any fraudulent
purpose, the liability of the LLP and partners who acted with intend to defraud creditors or for
any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the
LLP. However, in case any such act is carried out by a partner, the LLP will be liable to the same
extent as the partner unless the LLP can prove that such act was without the knowledge or the
authority of the LLP.29
10.2.16 Whistle Blower
The LLP act provides that the Court or Tribunal may reduce or waive penalty leviable against any
partner or employee of an LLP in case such partner or employee has provided useful information
during investigation of such LLP for finding out the offence. No such partner or employee shall be
discharged, demoted, suspended, threatened, harassed or in any other manner discriminated

against
the terms and conditions of his LLP employment merely because of his providing information to the
court or Tribunal.30 A whistle blower who helps in the conviction of the guilty will thus be protected.
10.2.17 Contribution
a. Nature of Contribution: A contribution of a partner may consist of tangible, movable or
immovable or intangible property or other benefits to the LLP, including money, promissory
notes, other agreements to contribute cash or property, and contracts for services performed or
to be performed.31
b. Accounting of Contribution: The monetary value of contribution of each partner shall be

accounted
for and disclosed in the accounts of the LLP in the prescribed manner.32 The contribution of a
partner shall be valued by a practising Chartered or Cost accountant or by an approved value
drawn from the panel maintained by the Central Government.33
c. Obligation to Contribute: The obligation of a partner to contribute money or other property
or other benefit or to perform services for an LLP shall be as per the LLP agreement.34 In the
absence of any provision to the contrary in the LLP agreement, all partners are entitled to share
equally in the capital, profits and losses of the LLP.35
d. Right of a creditor to enforce the original obligation against partner: A creditor of an LLP,
which extends credit or otherwise acts in reliance on an obligation described in that agreement,
without notice of any compromise between partners, may enforce the original obligation against
such partner.36
10.2.18 Maintenance of Books of Account, other Records and Audit
a. Duty to maintain proper books at registered office: The LLP maintain prescribed37 proper books
of accounts relating to its affairs for each year of its existence on cash basis or accrual basis and
according to double entry system of accounting and shall maintain the same at its registered
office. The books of account shall be preserved for a period not less than eight years from the
date on which they are made.38
b. Duty to prepare a statement of account and solvency: Every LLP must within a period of six
months from the end of each financial year, prepare a statement of account and solvency for
the said financial year as at the last day of the said financial year in prescribed form and such
statement must be signed by the designated partners of the LLP.39
c. Duty to file statement of account and solvency: Every LLP must file within a period of thirty
days from the end of six months from the end of each financial year with the ROC along with
the prescribed fees. This is required to be filed every year.40
d. Duty to get accounts audited: The accounts of LLP shall be audited in accordance with prescribed
rules unless exempted by the Central Government.41
10.2.19 Annual Return
Every LLP must file an annual return duly authenticated with the ROC within sixty days of closure
of its financial year in prescribed form and manner alongwith prescribed fees.42
10.2.20 Partner’s Transferable Interest
a. Partner’s right to transfer interest: The rights of a partner to a share of the profits and losses
of the LLP and to receive distributions in accordance with the LLP agreement are transferable
either wholly or in part.
b. Effect of transfer: The transfer of any right by any partner does not by itself cause the
disassociation
of the pertner or a dissolution and winding up of the LLP.
c. Restriction on transferee or assignee: The transfer of right does not by itself, entitle the transferee
or assignee to participate in the management or conduct of the activities of the LLP, or access
information concerning the transactions of the LLP.43
10.2.21 Winding up (dissolution) of LLP
a. Meaning of Winding up:
i. An LLP being an artificial person cannot die a natural death. An LLP comes into existence
by a legal process known as incorporation and likewise ceases to exist also by another legal
process called winding up (dissolution).
ii. The winding up of an LLP is a process by which the life of an LLP is brought to an end and
its property administered for the benefit of its members and creditors. An administrator,
called the liquidator, is appointed and he takes control of the LLP, collects its assets, pays
debts and finally distributes any surplus among the members in accordance with their rights.
At the end of winding up, the LLP will have no assets or liabilities.
b. Modes of Winding up: The act provides the following two modes of winding up of the LLP:
i. Voluntary winding up
ii. Compulsory winding up by the National Company Law Tribunal (NCLT).44

c. Voluntary winding up of LLP
i. Resolution to wind up: Any LLP may be wound up voluntarily if the LLP passes a resolution
to wind up the LLP with approval of at least three fourth of the total number of its partners.
Provided that where the LLP has creditors, the winding up shall not take place unless
approval of such creditors takes place. A copy of the resolution is to be filed with the ROC
within thirty days of passing of such resolution.45
ii. Commencement: A voluntary winding up shall be demed to commence on the date of passing
of the resolution for voluntary winding up.46
iii. Declaration of Solvency: The majority of its designated partners (being not less than two)
shall make a declaration of solvency (in form No. 2) verified by an affidavit. This declaration
is to the effect that the LLP has no debt or that it will be able to pay its debts infull within
such period as may be specified in the declaration, but not exceeding one year from the
commencement of the winding up. This statement shall also declare that the LLP is not
being wound up to defraud any person. Such a statement is accompanied by a statement of
Assets and Liabilities for the period commencing from the date upto which the last account
was prepared and ending with the latest practicable date immediately before the making
of the declaration duly attested by at least two designated partners. It is also accompanied
by a valuation report of the assets of the LLP prepared by a valuer. This is required to be
delivered to the ROC for registration within fifteen days immediately preceding the date of
passing of the resolution for winding up of LLP.47
iv. Approval of Creditors: The LLP is required to obtain approval of creditors in the prescribed
manner.48
v. Publication of Resolution: The LLP is required to give notice of the resolution by advertisement
in a newspaper circulating in the district where the registered office or the principal office
of the LLP is situated within fourteen days of the receipt of creditors consent.49
vi. Appointment and Removal of LLP Liquidator: The LLP with the consent of majority of
partners through resolution shall appoint an LLP Liquidator and fix his remuneration within
thirty days of passing of resolution of voluntary winding up [refer to 10.2.21 (c) (i)], where
LLP has no creditors, or filing of notice intimating the decision of winding up (pursuant to
Rule 8), where it has creditors. The LLP liquidator may be removed by the partners of the
LLP where his appointment is made by the LLP and, by the creditors, where his appointment
is approved or made by creditors.50
vii. Notice of Appointment of LLP Liquidator: The LLP shall give notice to the ROC of the
appointment of, or any vacancy occurred by death, resignation, removal or otherwise of, the
LLP Liquidator indicating the name and particulars of that LLP Liquidator within ten days
of such appointment or change.51
viii. Cessation of Powers of designated partner or partners: On the appointment of an LLP
Liquidator, all the powers of the partners shall cease, except for the purpose of giving notice
of such appointment of the LLP Liquidator to the ROC.52
ix. Duties of LLP Liquidator: The LLP liquidator shall:
a. Perform such functions and discharge such duties as are determined from time to time
by the LLP or its creditors.
b. Settle the list of creditors or partners which shall be prima-facie evidence of the liability
of the persons named therein to be creditors or partners.
c. Obtain approval of partners or creditors of LLP, for any purpose he may consider
necessary.
d. Maintain regular and proper books of accounts and the partners or the creditors or any
officer authorised by the Central Government may inspect such books of accounts.
e. Pay the debts of the LLP and shall adjust the rights of the partners among themselves.
f. Observe due care and diligence in the discharge of his duties.53
g. Report quarterly on the progress of winding up of the LLP to the partners or creditors
which shall be made before the end of the following quarter.54
x. Costs of voluntary winding up: All costs, charges and expenses properly incurred in the
winding up, including the fee of the LLP Liquidator, shall, subject to the rights of secured
creditors, if any, and workmen, be payable out of the assets of the LLP in priority to all other
claims.55
xi. Dissolution of LLP: As soon as the affairs of an LLP are fully wound up, the LLP Liquidator
shall prepare a report stating the manner in which the winding up has been conducted and
property has been disposed off, finally winding up accounts and explanations, (in the form 9)
showing that the property and assets of the LLP has been disposed off and its debts fully
discharged or discharged to the satisfaction of the creditors and thereafter seek approval of
the partners or the creditors of the LLP, on the said report and the final winding up accounts
and explanation in the meeting of partners or creditors.56
xii. Distribution of Property of LLP: Subject to the provisions in respect of overriding preferential
payments, the assets of an LLP shall, on its winding up, be applied in satisfaction of its
liabilities pari passu and, shall, unless the LLP agreement otherwise provides, be distributed
among the partners according to their rights and intersrs in the LLP.57
d. Compulsory Winding up by the NCLT:
i. Grounds for Winding up: An LLP may be compulsorily wound up by the NCLT on the
following grounds:
a. If the LLP decides by a petition that LLP be wound up.
b. If the LLP has acted against the interest of the sovereignty and integrity of India, the
security of the state or public order.
c. If the LLP has made a default in filing with the ROC the statement of account and
solvency or annual return for any five consecutive financial years.
d. If, for a period of more than six months, the number of partners of the LLP is reduced
below two.
e. If, the NCLT is of the opinion that it is just and equitable that the LLP be wound up.
Examples, dead lock in management or disapperance of substratum, or fraudulent

purpose or LLP has become a mere buble.58
ii. Who can file Petition for Winding up of an LLP: An application to the NCLT for the winding
up of an LLP shall be by a petition presented by any of the following:
a. The LLP or any of its partners,
b. Any secured creditors, including any contingent or prospective creditors,
c. The ROC,
d. Any person authorised by the Central Governement in that behalf.
e. The Central Government or a State Government.59
iii. Liquidator’s Appointment: For the purposes of winding up of an LLP by the NCLT, there
shall be a liquidator who may be either an ‘Official Liquidator’ or a Liquidator appointed by
an order of the NCLT from the panel maintained by the Central Government. Provided that
in the absence of any such order, the Official Liquidator shall become or act as Liquidator.60
iv. Commencement of Winding up by the NCLT: In this case winding up commences at the
time of presentation of winding up petition.61
e. Provisional Applicable to Every Mode of Winding up:
i. Debts of all descriptions to be admitted to proof: In every winding up (subject, in the case
of insolvent LLP to the application in accordance with the provisions of the Act, of the law
of insolvency), all debts payable on a contingency, and all claims against the LLP, present or
future, certain or contingent, ascertained or sounding only in damages, shall be admissible
to proof against the LLP, as just estimate being made, so far as possible, of the value of such
debts or claims as may be subject to any contingency or may sound only in damages, or for
the same other reason may not bear a certain value.62
ii. Powers of LLP Liquidator or liquidator: The LLP liquidator or liquidator may:
a. With the sanction of the NCLT, when the LLP is being wound up by the NCLTs or
b. With the sanction of a resolution by three fourths of total number of partners of the LLP
and prior approval of the NCLT, in the case of voluntary winding up:
i. pay any class of creditors in full;

ii. make any compromise or arrangement with creditors or pesons claiming to be
creditors, or having or alleging themselves to have any claim, present or future,
certain or contingent, against the LLP, or whereby the LLP may be rendered liable;
or
iii. compromise any money due from partners including outstanding, unrealised or
unrecovered contribution, debt, and liability capable of resulting in a debt, and
any claim, present or future, certain or contingent, ascertained or sounding only in
damages, subsisting or alleged to subsist between the LLP and a partner or other
debtor or person apprehending liability to the LLP, and all questions in any way
relating to or affecting the assets or liabilies or the winding up of the LLP, on such
terms as may be agreed, and take any security for the discharge of any such debt,
liability or claim, and give a complete discharge in respect thereof.63
iii. Statement that an LLP is in Liquidation: Every invoice,order for goods or business letter in
which the name of the LLP appears, shall contain a statement that the LLP is being wound
up.64
iv. Books and Papers of LLP to be Evidence: All books and papers of the LLP shall be primafacie
evidence of the truth of all matters purporting to be recorded therein.65
v. Inspection of Books and Papers by Creditors and Partners: Any creditor or partner of the
LLP may inspect the books and papers of the LLP only in accordance with, and subject to
manner and conditions specified in Part VI (of the rules).66
vi. Disposal of Books and Papers of LLP:
a. When the affairs of an LLP have been completely wound up and it is about to be dissolved,
its books and papers and those of the LLP Liquidator may be disposed of as follows:
i. in the case of winding by NCLT, in such manner as the NCLT directs; and
ii. in the case of voluntary winding up, in such manner as the LLP approves it by
three-fourth of the total number of partners with the prior approval of the secured
creditors.
b. After the expiry of five years from the dissolution of the LLP, no responsibility shall
devolve on the LLP, the LLP Liquidator or any person to whom the custody of the books
and papers has been entrusted, by eason of any book or paper not being forthcoming
to any person claiming to be interested therein.
c. The Central Government may, by notification direct, for such period (not exceeding five
years from the dissolution of the LLP) as the Central Government thinks proper the
prevention of the destruction of the books and papers of an LLP which has been wound
up and of its LLP Liquidator.
10.3 Section – 3: Alternative Dispute Resolution
10.3.1 Introduction
Whenever there are disputes between the parties, recourse is taken to a court of law for the
settlement
of such disputes. Such a course of action is time consuming, expensive and burdensome. There are
over four and half million cases pending in various Indian courts.”67 It takes in many cases years
or in some cases decades to get the court decision. Then the hierarchy of courts, delays the final
decision as the affected parties go in appeal to the higher courts. After globalization and
liberalization,
multinational companies doing business in India are not always happy to get the disputes settled
through law courts. They want quick, less expensive and simple modes of settlement of disputes.
Hence alternative disputes resolution (ADR) system is necessary. Even statute like Code of Civil
Procedure, 1908 was amended in 1999 to provide for settlement of disputes outside the court.”68
10.3.2 Modes of ADR
The most common modes of ADR are:
a. Negotiation
b. Arbitration
c. Conciliation or mediation
d. Tribunals
e. Lok-Adalats
10.3.3 Negotiation
This is the most simple mode of ADR. When parties themselves, agree/negotiate to settle the
disputes,
without the help / assistance of any third party, it is negotiation. Since there is an agreement arrived
at out of negotiation between the parties, the parties generally give due regard to the outcome. It
may be oral or in writing. Generally parties, in order to bring clarity reduce the settlement into
writing. A family dispute of property or amount and payment of debt if settled through negotiation
of parties, are examples of negotiation.
10.3.4 Arbitration
a. Meaning of Arbitration: Arbitration involves the determination of a mater in dispute by the
judgment of one or more persons, called arbitrators, who in case, of differences usually call in
an ‘Umpire’ to decide between them. An arbitration is the reference of a dispute or difference
between parties for determination, after hearing both sides in a judicial manner, by arbitrator(s).
The essence of arbitration is that some dispute is referred by the parties for settlement to a
tribunal/person of their own choosing instead of a court. In popular parlance, arbitration may
be defined as a private process set up by the parties’ as a substitute for court litigation to obtain
a decision on their disputes.
b. Types of Arbitration: Main types of arbitration are:
i. Domestic;
ii. International;
iii. Ad-hoc;
iv. Institutional;
v. Specialized; and
vi. Statutory.
c. Law governing arbitration: The process of arbitration is governed by theArbitration and
Conciliation Act, 1996 (the Act). The Act extends to whole of Indian and has been brought into
force with effect from Twenty Second August, 1996. The Act is broadly based on the modal law on
arbitration adopted by the United Nations Commission on International Trade Law (UNCITRAL)
d. Arbitration agreement and its essentials: The Act defines arbitration agreement as” an agreement
by the parties to submit to arbitration all or certain disputes which have arisen or which may
arise between them in respect of a defined legal relationship whether contractual or not.69 The
essentials of an arbitration agreement are:
i. It must be in writing.
ii. It must have all the essential elements of a valid contract.
iii. It must refer a dispute, present or future, between the parties.
iv. It may be in the form of an arbitration clause or in the form of a separate agreement.It is not
necessary that an arbitrator should be named in the arbitration agreement.
e. Arbitral Tribunal: The’ Arbitral Tribunal’means a‘sole arbitrator’or a ’panel of arbitrators”.70
f. Arbitrator: A person of any nationality who is appointed by the parties themselves by their
mutual consent to act as a judge to decide their dispute out of court is called an arbitrator. The
person who is so appointed must also give his consent to act as an arbitrator. The Act gives the
parties the freedom to fix the number ·of arbitrators, provided that such number shall not be
an even number. If they fail to determine the number of arbitrators, the arbitral tribunal shall
consist of a sole arbitrator.71
g. Grounds for challenging the appointment of arbitrators: There are two grounds for challenge:
i. Circumstances exist that give rise to justifiable doubts as to his independence or impartiality:
or
ii. He does not possess the qualifications agreed to by the parties.
iii. An arbitrator shall disclose in writing:
a. Direct or indirect existence of any past or presnet relationship with or interest in any of
the parties or in relation to the subject matter in dispute, whether financial, business,
professional or other kind, which is likely to give rise to justifiable doubts as to his
independence or impartiality; and
b. Circumstances which are likely to affect his ability to devote sufficient time to the
arbitration and in particular his ability to complete the entire arbitration within a period
of twelve months.72
h. Rules and procedure for conduct of arbitration proceedings: Important aspects of rules and
procedure for conduct of arbitration proceedings are:
i. Arbitrator shall treat all the parties with equality and shall give full opportunity to each
party to present his case.73
ii. Arbitrator is neither bound by the Code of Civil Procedure, 1908, nor by the Indian Evidence
Act, 1872. Thus he is not bound to follow the procedure as followed by a court. Parties are
free to agree on the procedure. If the parties fail to decide on the procedure, the arbitrator
can follow such procedure as it considers appropriate.74
iii. Parties are free to agree on the place of arbitration. Where the parties have not agreed, the
arbitrator may determine the place of arbitration.
iv. Parties are free to decide the language to be used in the arbitral proceeings.
v. Statement of claim and defence is to be made within the period of time agreed by the parties
or determined by the arbitrator. While making a statement or claim, the facts supporting it
are to be stated. The points in issue are to be identified. The relief or remedy sought is to
be stated. All relevant documents are to be submitted. The claim and reply once filed may
be amended or supplemented subsequently. The time table and modalities of hearing and
written proceedings are determined by the arbitrator. He may appoint one or more experts
to examine specific issues and report to him. Issues are decided in accordance with the terms
of the contract and usage of trade applicable to the transactions. In situation involving more
than one arbitrator, the decision is taken as per the majority view.
i. Arbitral award: A judgment or final decision of arbitrator on matters referred to him is called
the ‘arbitral award’ or ‘award’. The arbitrator’s authority ceases as soon as award is made. Some
of the other rules relating to award are:

i. It must be in writing and be made on stamp paper of appropriate value.
ii. It must be certain and not vague.
iii No time limit is fixed for making an award but there should not be undue delay.
iv. It must be signed by the arbitrator(s).
v. It must state the reasons upon which it is based.
vi. The arbitrator may make an ‘interim award’ and thereafter final award.
vii. After an award is made, a signed copy is delivered to each party.
vii. An arbitral award shall be final and binding on the parties.
j. Advantages of arbitration: The main advantages of arbitration are:
i. Avoidance of publicity.
ii. Simplicity of procedure.
iii. Avoidance of delay and uncertainty involved in appeals.
iv. Reduction of expenses.
v. Less time consuming.
vi. Decision by a technical expert.
vii. Social efficacy.
viii. Candour in presenting facts and figures.
k. Disadvantages of arbitration: The two main disadvantages of arbitration are:
i. If it is based on biased or incompetent arbitrator.
ii. Informality of the procedure.
l. International Arbitration Centre: An international arbitration centre has been setup at New
Delhi under the New Delhi International arbitration Centre Act, 2019 to manage the domestic
and international arbitration in the country.
10.3.5 Conciliation or Mediation
For the first time the concept on ‘Conciliation’ is given statutory recognition by the Arbitration
and Conciliation Act, 1996. This concept is based on conciliation rules adopted by UNCITRAL. In
conciliation, an impartial third party, the conciliator, assists the parties to a dispute in reaching a
mutually agreed settlement of the dispute. Mediation and conciliation are interchangeable
expressions.
In mediation the parties have the freedom to agree as they please and the mediator decides
nothing,
advises as to nothing. He helps parties agree, without himself reaching or announcing a conclusion
or decision. He shall be guided by the principles of objectivity, fairness and justice. The conciliator is
not bound by the Code of Civil Procedure or the Indian Evidence Act. The conciliator may conduct
the proceedings in such a manner as he considers appropriate taking into account:
a. The circumstances of the case.
b. The wishes the parties may express, including any request by a party that the conciliator hear
oral statements; and
c. The need for the speedy settlement of dispute.The settlement agreement duly signed by the
parties
and authenticated by the conciliator has the same status and effect as if it is an arbitral award
on agreed terms on the substance of the dispute rendered by an arbitral tribunal. The settlement
agreement can be enforced as a decree of court. The conciliator and the parties are required
to keep confidential all matters relating to conciliation proceedings.75 Parties to a conciliation
proceedings are not to resort to initiating arbitral or judicial proceedings on the same dispute
during the continuance of conciliation proceedings.76
10.3.6 Tribunals
Disputes may be referred to tribunals for settlement rather than courts. This is provided in the
relevant statutes. Examples are Motor Accidents Claims Tribunal, Labour Tribunal or Industrial
Disputes Tribunal. The advantages of this step are speed, less expensive, no procedural tangle and
at times no need of even representation by lawyers.
10.2.7 Lok Adalats
When disputes are referred to Lok Adalat for settlement, it is done in accordance with the provisions
of the Legal Services Authorities Act, 1987. Examples are Bijli Adalat, Telephone Adalat etc.
10.4 Section – 4: Law Relating to Sexual Harassment
“Women forgive injuries, but never forget slights.”
— Haliburton
10.4.1 Introduction
In India there is so far no national legislation dealing with sexual harassment. Amendments to the
laws on sexual violence enacted in the last two decades have failed to cover sexual harassment.
However, the issue of sexual harassment of women at workplace is now covered under a separate
Act. (See paragraph 10.4.3)
10.4.2 Existing Laws in India - Which can be used in Cases of Sexual
Harassment
Some of the laws which cover sexual harassment are given below:
a. Indian Penal Code
i. Section 294, IPC - Obscene acts and song: Whoever; to the annoyance of others:
a. Does any obscene act in any public place or
b. Sings, recites or utters any obscene song, ballad or words in or near any public place
shall be punished with imprisonment of either description for a term which may extend
to three months or with fine or both. (Cognisable, bailable and triable offence).
ii. Section 354, IPC: Assault or criminal force to a woman with the intent to outrage her modesty
- whoever assaults or uses criminal force to any woman, intending to outrage or knowing it
to be likely that he will there by outrage her modesty, shall be punished with imprisonment
of either description for a term which may extend to two years, or with fine or both.
iii. Section 375 to 376 D of IPC - Sexual offences: which covers rape, its punishment and
intercourse by different people in different circumstances and punishment thereof.
iv. Section 509, IPC - Word, gesture or act intended to insult the modesty of a woman: whoever
intending to insult the modesty of any woman utters any word, makes any sound or gesture,
or ‘exhibits any object intending that such word or sound shall be heard, or that such gesture
or object shall be seen by such woman, or intrudes upon the privacy of such woman, shall
be punished with simple imprisonment for a term which may extend to one year, or with
fine, or both. (Cognisable and bailable offence)
b. Industrial Disputes Act - Rule 5 Schedule 5: Cases can be (and have been) argued on the basis
of unfair labour practices listed in this schedule. Such cases can be filed if any employee suffers
unfair dismissal or denial of employment benefits as a consequence of the rejection of sexual
advances. In Shehnaz Mudbhatkal v. Saudi Arabian Airlines - Shehnaz was subjected to sexual
harassment by her boss in 1985, and dismissed when she complained to higher authorities. Her
case was won in 1996 when the Bombay Labour Court judged it to have been a case of unfair
dismissal under the Industrial Disputes Act. It ordered her re-instatement with full back payment,
perks and promotions.
c. Civil Suit: Can be filed for damages under tort laws. That is, the basis for filing the case would
be mental anguish, physical harassment, loss of income and employment caused by the sexual
harassment.
d. The Indecent Representation of Women (Prohibition) Act (1987): Although it is not known to
have been used in cases of sexual harassment, the provisions of this act have the potential to be
used in two ways. First, if an individual harasses another with books, photographs, paintings,
films, pamphlets, packages, etc. containing ‘indecent representation of women’, they are liable
for a minimum sentence of two years. Second, a ‘hostile working environment’ type of argument
can be made under this act. Section 7 (Offences by companies) - holds companies where there has
been ‘indecent representation of women’ (such as the display of pornography) on the premises
guilty of offences under this Act. (Cognisable, bailable offence; with a minimum sentence of two
years).
10.4.3 The Sexual Harassment of Women at Work Place (Prevention,
Prohibition and Redressal) Act, 2013 (The Act)
a. Introduction: Women at work place often become victims of sexual harassment cases. Sexual
harassment results in violation of the fundamental rights of a woman to equality under articles
Fourteen and Fifteen of the Constitution of India and her right to life and to live with dignity
under article Twenty One of the Constitution and right to practise any profession or to carry
on any occupation, trade or business which includes a right to a safe environment free from
sexual harassment. The protection against sexual harassment and the right to work with dignity
are universally recognised human rights by international conventions such as Convention on
the Elimination of all Forms of Discrimination against Women, which has been ratified by the
Government of India on Twenty Fifth June, 1993. The Supreme Court of India in a decided case77
also reaffirmed that sexual harassment at work place is a form of discrimination against women
and provided guidelines to address the issue pending the enactment of a suitable legislation.
b. Extent and Commencement: The act extends to the whole of India and brought into force with
effect from 9-12-201378
c. Prevention of Sexual Harassment: No woman shall be subjected to sexual harassment at any
work place. Sexual harassment includes any one or more of the unwelcome acts or behaviour
(wheather directly or by implication) namely physical contact or advances; or a demand or request
for sexual favours; or making sexually coloured remarks; or showing pornography; or any other
unwelcome physical, verbal or non-verbal conduct of sexual nature. The following circumstances
may amount to sexual harassment:
i. Implied or explicit promise of preferential or detrimental treatment in her employment; or
ii. Implied or explicit threat about her present or future employment status; or
iii. Interference with her work or creating an intimidating or offensive or hostile work environment
for her; or
iv. Humiliating treatment likely to affect her health or safety.79
d. Constitution of Internal Complaints Committee: Every employer of a workplace shall, by an
order in writing, constitute an ‘Internal Complaints Committe’.
The internal committee shall consist of the following members nominated by the employer,
namely:
i. A Presiding Officer - who shall be a woman employed at a senior level;
ii. Not less than two members from amongst employees preferably committed to the cause of
women or who have had experience in social work or have legal knowledge;
iii. One member from amongst non-governmental organisations or associations committed to
the cause of women or a person familiar with the issues relating to sexual harassment;
Provided that at least one-half of the total members so nominated shall be women.80
e. Constitution of Local Complaints Committee81: The appropriate government may notify a District
Magistrate or Additional District Magistrate or the Collector or Deputy Collector as a District
Officer for every District to exercise powers or discharge functions under the Act. Every District
officer shall constitute in the district concerned, a committee to be known as the Local Committee
to receive complaints of sexual harassment from establishments where the Internal Committee
has not been constituted due to having less than ten workers or if the complaint is against the
employer himself. The district officer shall designate one nodle officer in every block, taluka
or tehsil in rural areas and ward or municipality in the urban area, to receive complaints and
forward the same to the concerned Local Committee within seven days. The Local Committee
shall consist of the following members to be nominated by the District Officer, namely -
i. A chairperson to be nominated amongst the eminent women in the field of social work and
committed to the cause of women;
ii. One member to be nominated from amonsgt the women working in block, taluka or tehsil
or ward or municipality in the district;
iii. Two members, to be nominated amongst such non-governmental organisations or associations
committed to the cause of women or a person familiar with the issues relating to sexual
harassment. Provided that one of the nominees should preferably, have a background of law
or legal knowledge. Provided further that at least one of the nominees shall be a woman
belonging to the scheduled castes or the scheduled Triber or the other backward classes or
minority community notified by the Central Government.
iv. The concerned officer dealing with the social welfare or women and child development in
the district, shall be an ex-officio member.
f. Complaint82
i. Complaint of sexual harassment: Any aggrieved woman many make, in writing, a complaint
of sexual harassment at workplace to the Internal or Local Committee within three months
from the date of incident and incase of series of incidents, within three months of the last
incident.
ii. Conciliation: The Internal Committee or the Local Committee may, before initiating an inquiry
and at the request of the aggrieved woman take steps to settle the matter between her and
the respondent through conciliation. Provided that no monetary settlement shall be made as
a basis of conciliation. Where a settlement has been arrived at the Internal Committee or the
Local Committee shall record the settlement and forward the same to the employer or the
District Officer to take action as specified in the recommendation. Copies of the settlement
shall be given to the aggrieved woman and the respondent.
iii. Inquiry of the complaint: When no conciliation has been arrived or that any term or condition
of the settlement has not been complied with by the respondent the Internal Committee or
the Local Committee shall proceed to make inquiries into the complaint. These committees
shall have the same powers as are vested in the civil court.
g. Enquiry into Complaint83
i. Action during Pendency of Inquiry: During the pendency of an inquiry, on a written request
made by the aggrieved woman, the Internal or Local Committee, may recommend to the
employers to:
a. Transfer the aggrieved woman or the respondent to any other workplace, or
b. Grant leave to the aggrieved woman upto three months; or
c. Grant such other relief to the aggrieved person as may be prescribed.
The leave granted to the aggrieved woman shall be in addition to the leave she would be
otherwise entitled.
The Act also provides that the employer shall implement the recommendations and send the
report of such implementation to the Internal or Local Committee.
ii. Inquiry report: On the completion of an enquiry, the Internal or the Local Committee shall
provide a report of its findings to the employer or to the District Officer, as the case may be,
and such report shall be made available to the concerned parties. In case the inquiry or the
Local Committee arrives at the conclusion that the allegation against the respondent has not
been proved, it shall recommend to the employer or to the District Officer, that no action is
required to be taken in the matter. In case the relevant committee arrives at the conclusion
that the allegation against the respondent has been proved, then, it shall recommend to the
employer or the District Officer -
a. To take action for sexual harassment as a misconduct in accordance with the provision
of the service rules applicable to the respondent or where no such service rules have
been made, in such manner as may be prescribed; and
b. To deduct from the salary or wages of the respondent such sum consider appropriate
to be paid to the aggrieved woman or to her legal heirs, as it may determine. In case
the employer is unable to make such deduction from the salary of the respondent due
to his being absent from duty or cessation of employment, it may direct the respondent
to pay such compensation to the aggrieved woman.
The Act also provides that the employer or the District Officer shall act upon the
recommendation within sixty days of its receipt by him.
iii. Punishment for false or malicious complaint and false evidence: Where the Internal or the
Local Committee arrives at a conclusion that the allegations against the respondent is false or
malicious or the aggrieved woman or any other person making the complaint has produced
any forged or misleading document or that during the enquiry any witness has given false
evidence or produced any forged or misleading document, then, it may recommend to the
employer or the District Officer to take action in accordance with the provisions of the service
rules applicable to such person and where no such service rules exist, in such manner as
may be prescribed by rules.
iv. Determination of Compensation: For the purpose of determing the compensation to be paid
to the aggrieved woman, [see 10.4.3g (ii) (b)] the Internal or the Local Committee shall have
regard to -
a. the mental trauma, pain, suffering and emmotional distress caused to the aggrieved
woman;
b. the loss in the career opportunity due to the incident of sexual harassment;
c. medical expenses incurred by the victim for physical or psychiatric treatment;
d. the income and financial status of the respondent; and
e. feasibility of such payment in lumpsum or in instalments.
v. Prohibition of publication or making known contents of complaint and inquiry proceeding:
Not withstanding anything contained in the Right to Information Act, 2005, the contents of the
complaint [see 10.4.3f] the identity and addresses of the aggrieved woman, respondent and
witnesses, any information relating to conciliation, and enquiry proceedings, recommendations
of the Internal or Local Committee and the action taken by the employer or the District Officer,
shall not be published, communicated or made known to the purblic, press and media in
any manner.
vi. Appeal: The Act provides that any person aggrieved by the recommendations may prefer an
appeal to the Court or Tribunal, within ninety days of the recommendations.
h. Miscellaneous: The Act also provides for the following:
i. Duties of employer;84
ii. Duties and Powers of the District Officer;85
iii. Committee to submit annual report and employer to include information in annual report;86
iv. Power of appropriate Government to make the rules;87
v. Power to remove difficulties.88
10.4.4 Some Cases of Sexual Harassment

Fantry Mei Jaswal, an officer of the central services, struggled to have her complaint against her
former boss, Kailash Sethi, taken seriously. The sexual harassment consisted of Sethi coming into her
office from time to time for coffee and a chat, once entering the room in his shorts just after playing
golf, on one occasion, she asked Sethi, “is there anything else I can bring, Sir?” regarding a brief, and
he responded with, “Get your make-up kit along”. Jaswal felt ‘humiliated’ after this incident, which
led to the filing of a complaint of sexual harassment.89 In July 2005, the Supreme Court upheld the
conviction of former Director General Police of Punjab, K.P.S Gill, for outraging the modesty of a
woman IAS officer, Rupen Deol Bazaz. In this case, Bazaz was verbally assaulted at a dinner party
and when she tried to leave, she was slapped by Gill on her posterior in front of all the other guests.
“The laws assist those who are vigilant, not those who sleep over their rights.”
— Legal maxim
10.5 Section – 5: Right to Information
10.5.1 Introduction
It has taken India more than 80 years to transition from the repressive climate of the Official Secrets
Act, 1923 to one where citizens can demand the right to information. The right to information has
been recognized as a fundamental human right, which upholds the inherent dignity of all human
beings. The right to information is crucial for democracy. It is essential to ensure accountability and
good governance. The greater the access of the citizen to information, the greater the
responsiveness
of government to community needs. Without information, people cannot exercise their rights as
citizens or make informed choices.
10.5.2 Historical Development of Law on Right to Information (RTI)
Demand for a law on right to information has been made by citizenry, the Press Council of India
and non-government organizations like Consumer Education Research Council (CERC). In 1997, a
conference of chief ministers resolved that the Central and State Governments would work together
on
transparency and the right to information. ,Tamil Nadu was the first state to pass legislation in 1997
on RTI - followed by Goa in the same year. Other states which passed law on RTI are Rajasthan in
2000, Karnataka in 2000, Delhi in 2001 and Maharashtra in 2002. There was also a Central
Government
Act known as the Freedom of Information Act, 2000. Finally the Central Government enacted the
Right to information Act,2005 (hereinafter referred to as the Act).
10.5.3 Some Salient Aspects of the Act
a. When does it come into force?: It came into force on the 12th October, 2005 (120th day of its
enactment on 15th June, 2005). Some provisions have come into force with immediate effect viz.
obligations of public authorities [S. 4(1)], designation of Public Information Officers and Assistant
Public Information Officers [S. 5(1) and 5(2)], constitution of Central Information Commission
(S. 12 and 13), constitution of State Information Commission (S.15 and 16), non-applicability of
the Act to Intelligence and Security Organizations (S. 24) and power to make rules to carry out
the provisions of the Act (S. 27 and 28).90
b. Who is covered?: The Act extends to the whole of India91
c. What does information mean?: Information means any material in any form Including records,
documents, memos, e-mails, opinions, advices, press releases, circulars, orders, log books, contracts,
reports, papers, samples, models, data material held in any electronic form and information
relating to any private body which can be accessed by a public authority under any other law
for the time being in force92 but does not include “file notings” (except those on development
and social matters).
d. What does right to information mean?: RTI means right to information accessible under the Act
which is held by or under the control of any public authority and includes the right to -
i. Inspect works, documents, records.
ii. Take notes,extracts or certified copies of documents or records.
iii. Take certified samples of material.
iv. Obtain information in form of printouts, diskettes, floppies, tapes, video cassettes or in any
other electronic mode or through printouts.93
v. All citizens shall have the right to information.94

e. What does a “public authority” mean?: It means any authority or body or institution of self
government established or constituted.
i. By or under the Constitution;
ii. By any other law made by Parliament;
iii. By any other law made by State Legislature;
iv. By notification issued or order made by the appropriate Government and includes any -
a. Body owned, controlled or substantially financed.
b. Non-government organization substantially financed directly or indirectly by the
appropriate government.95
f. What are the obligations of public authority?: It shall publish within one hundred and twenty
days of the enactment of the act (i.e. upto 12th October, 2005):
i. The particulars of its organization, functions and duties;
ii. The powers and duties of its officers and employees;
iii. The procedure followed in its decision making process, including channels of supervision
and accountability;
iv. The norms set by it for the discharge of its functions;
v. The rules, regulations, instructions, manuals and records used by its employees for discharging
its functions;
vi. A statement of the categories of the documents held by it or under its control
vii. The particulars of any arrangement that exists for consultation with, or representation by
the members of the public, in relation to the formulation of policy or implementation there
of:
viii. A statement of the boards, councils, committees and other bodies consisting of two or more
persons constituted by it. Additionally, information as to whether the meetings of these
are open to the public, or the minutes’ of such meetings are accessible to the public;
ix. A directory of its officers and employees;

x. The monthly remuneration received by each of its officers and employees, including the
system of compensation as provided in its regulations;
xi. The budget allocated to each of its agency, indicating the particulars of all plans, proposed
expenditures and reports on disbursements made;
xii. The manner of execution of subsidy programmes, including the amounts allocated and the
details and beneficiaries of such programmes;
xiii. Particulars of recipients of concessions, permits or authorizations granted by it;
xiv. Details in respect of the information, available to or held by it, reduced in an electronic
form;
xv. The particulars of facilities available to citizens for obtaining information, including the
working hours of a library or reading room, if maintained for public use;
xvi. The names, designations and other particulars of the Public Information Officers.
xvii. Such other information as may be prescribed; and thereafter update it every year.96
g. Who are Public Information Officers (PIOs)?: PIOs are officers desitnated by the public
authorities in all administrative units or offices under it to provide information to the citizens
requesting for information under the Act. Any officer, whose assistance has been sought by the
PIO for the proper discharge of his or her duties, shall render all assistance and for the purpose
of contraventions of the provisions of this Act, such other officer shall be treated as a PIO.
h. What are the duties of a PIO?: A PIO shall carry out the following duties:
i. He shall deal with requests from persons seeking information and where the request cannot
be made in writing, to render reasonable assistance to the person to reduce the same in
writing.
ii. If the information requested for is held by or its subject matter is closely connected with
the function of another public authority, the PIO shall transfer, within five days, the request
to that other public authority and inform the applicant immediately.
iii. PIO may seek the assistance of any other officer for the proper discharge of his/her duties.

iv. PIO, on receipt of a request, shall as expeditiously as possible, and in any case within thirty
days of the receipt of the request, either provide the informtion on payment of such fee as
may be prescribed or reject the request for any of the reasons specified in sections 8 or 9
of the Act.
v. Where the information requested for concerns the life or liberty of a person, the same shall
be provided within forty eight hours of the receipt of the request.
vi. If the PIO fails to give decision on the request within the period specified, he shall be
deemed to have refused the request.
vii. Where a request has been rejected, the PIO shall communicate to the requester - A) the
reasons for such rejection, B) the period within which an appeal against such rejection may
be preferred: and C) the particulars of Appellate Authority.
viii. PIO shall provide information in the form in which it is sought unless it would
disproportionately divert the resources of the Public Authority or would be detrimental
to the safety or preservation of the record in question.
ix. If allowing partial access, the PIO shall give a notice to the applicant, informing:
a. That only part of the record requested, after severance of the record containing
information which is exempt from disclosure, is being provided;
b. The reasons for the decision, including any findings on any material question of fact,
referring to the material on which those findings were based;
c. The name and designation of the person giving the decision;
d. The details of the fees calculated by him or her and the amount of fee which the
applicant is required to deposit; and
e. His or her rights with respect to review of the decision regarding non-disclosure of
part of the information, the amount of fee charged or the form of access provided.
x. If information sought has been supplied by third party or is treated as confidential by that
third party, the PIO shall give a written notice to the third party within five days from the
receipt of the request and take its representation into consideration.

xi. Third party must be given a chance to make a representation before the PIO within ten
days from the date of receipt of such notice.
i. What is not open to disclosure?: The following is exempt from disclosure:
i. Information, disclosure of which would prejudicially affect the sovereignty and integrity
of India, the security, strategic, scientific or economic interests of the State, relation with
foreign State or lead to incitement of an offence.
ii. Information which has been expressly forbidden to be published by any court of law or
tribunal or the disclosure of which may constitute contempt of court;
iii. Information, the disclosure of which would cause a breach of privilege of Parliament or
the State Legislature;
iv. Information including commercial confidence, trade secrets or intellectual property, the
disclosure of which would harm the competitive position of a third party, unless the
competent authority is satisfied that larger public interest warrants the disclosure of such
information;
v. Information available to a person in his fiduciary relationship, unless the competent authority
is satisfied that the larger public interest warrants the disclosure of such information;
vi. Information received in confidence from foreign government;
vii. Information, the disclosure of which would endanger the life or physical safety of any
person or identify the source of information or assistance given in confidence for law
enforcement or security purposes;
viii. Information which would impede the process of investigation or apprehension or prosecution
of offenders;
ix. Cabinet papers including records of deliberations of the Council of Ministers, Secretaries
and other officers;
x. Information which relates to personal information the disclosure of which has no relationship
to any public activity or interest, or which would cause unwarranted invasion of the privacy
of the individual;
xi. Notwithstanding any of the exemptions listed above, a public authority may allow access to
information, if public interest in disclosure out weighs the harm to the protected interests.97
j. Is partial disclosure allowed?: Only that part of the record which does not contain any information
which is exempt from disclosure and which can reasonably be severed from any part that contains
exempt information, may be provided.98
k. Who is excluded?: Central Intelligence and Security agencies specified in the Second Schedule
like Intelligence Bureau, Research and Analysis Wing. Directorate of Revenue Intelligence, Central
Economic Intelligence Bureau, Directorate of Enforcement, Narcotics Control Bureau, Aviation
Research Centre, Special Frontier Force, Border Security Force, Central Reserve Police Force,
Indo- Tibeten Border Police, Central Industrial Security Force, National Security Guard, Assam
Rifles, Sashastra Seema Bal, Director General of Income Tax (Investigation), National Technical
Research Organisation, Financial Intelligence Unit, India; Special Protection Group, Defence
Research and Development Organisation, Boarder Road Development Board, National Security
Council Secretariat, Central Bureau of Investigation, National Investigating Agency, National
Intelligence Grid, and Strategic Forces Command. Agencies specified by the State Governments
through a notification will also’ be excluded. The exclusion, however, is not absolute and these
organizations have an obligation to provide information pertaining to allegations of corruption and
human rights violations. Further, information relating to allegations of human rights violations
could be given but only with the approval of the Central or State Information Commission, as
the case may be.99
l. What is the application procedure for requesting information?:
i. Apply in writing or through electronic means in English or Hindi or in the official language
of the area, to the PIO, specifying the particulars of the information sought for.
ii. Reason for seeking information are not required to be given;
iii. Pay fees as may be prescribed (if not belonging to the below poverty line category).
m. What is the time to get the information and fees payable?:

i. Thirty days from the date of application;
ii. Forty eight hours for information concerning the life and liberty of a person;
iii. Five days shall be added to the above response time, in case the application for information
is given to Assistant Public Information Officer;
iv. If the interests of a third party are involved then time limit will be forty days (maximum
period + time given to the party to make representation);
v. Failure to provide information within the specified period is a deemed refusal;
vi. Application fees to be prescribed which must be reasonable. If further fees are required,
then the same must be intimated in writing with calculation details of how the figure was
arrived at. Applicant can seek review of the decision on fees charged by the PIO by applying
to the appropriate Appellate Authority. No fees will be charged from people living below
the poverty line. Applicant must be provided information free of cost if the PIO fails to
comply with the prescribed time limit.
n. What could be the ground for rejection?:
i. If it is covered by exemption from disclosure.100 [See 10.5.3.i]
ii. If it infringes copyright of any person other than the State.101
o. How is Central Information Commission constituted?:
i. Central Information Commission to be constituted by the Central Govemment through a
Gazette Notification;
ii. Commission includes 1 Chief Information Commissioner (CIC) and not more than ten
Information Commissioners (IC) who will be appointed by the President of India;
iii. Oath of Office will be administered by the President of India according to the form set out
in the First Schedule;
iv. Commission shall have its Headquarters in Delhi. Other offices may be established in other
parts of the country with the approval of the. Central Government.
v. Commission will exercise its powers without being subjected to directions by any other
authority.102
p. What is the eligibility criteria and what is the process of appointment of CIC/ IC?:
i. Candidates for CIC/IC must be persons of eminence in public life with wide knowledge
and experience in law, science and technology, social service, management, journalism,
mass media or administration and governance.
ii. CIC/IC shall not be a Member of Parliament or Member of the Legislature of any State or
Union Territory. He shall not hold any other office of profit or connected with any political
party or carrying on any business or pursuing any profession.
iii. Appointment Committee includes Prime Minister (Chair), Leader of the Opposition in the
Lok Sabha and one Union Cabinet Minister to be nominated by the Prime Minister.
q. What is the term of office and other service conditions of CIC/IC?:
i. CIC / IC shall be appointed for such term as may be prescribed by Central Government or
till he attains the age of sixty five years, whichever is earlier;
ii. CIC/IC is not eligible for reappointment;
iii. Salary and allowances of the CIC and IC shall be such as may be prescribed by Central
Government. This will not be varied to the disadvantage of the CIC/IC during service.103
r. How is the State Information Commission constituted?:
i. The State Information Commission will be constituted by the State Government through a
Gazette notification. It will have one State Chief Information Commissioner (SCIC) and not
more than ten State Information Commissioners (SIC) to be appointed by the Governor.
ii. Oath of Office will be administered by the Governor according to the form set out in the
First Schedule.
iii. The headquarters of the State Information Commission shall be at such place as the State
Government may specify. Other offices may be established in other parts of the State with
the approval of the State Government.
iv. The Commission will exercise its powers without being subjected to any other authority.
s. What is the eligibility criterion and what is the process of appointment of State Chief
Information Commissioner/State Information Commissioners?: The Appointments Committee
will be headed by the Chief Minister. Other members include the Leader of the Opposition in the
Legislative Assembly and one Cabinet Minister nominated by the Chief Minister. The qualifications
for appointment as SCIC/SIC shall be the same as that for Central Commissioners. The salary
of the State Chief Information Commissioner will be such as may be prescribed by the Central
Government.104
t. What are the powers and functions of Information Commissions?:
i. The Central Information Commission / State Information Commission has a duty to receive
complaints from any person:
a. Who has not been able to submit an information request because a PIO has not been
appointed;
b. Who has been refused information that was requested;
c. Who has received no response to his/her information request within the specified time
limits;
d. Who thinks the fees charged are unreasonable;
e. Who thinks information given is incomplete or false or misleading; and
f. Any other matter relating to obtaining information under this law.
ii. Power to order inquiry if there are reasonable grounds.
iii. CIC/SCIC will have powers of Civil Court such as:
a. Summoning and enforcing attendance of persons, compelling them to give oral or
written evidence on oath and to produce documents or things;
b. Requiring the discovery and inspection of documents;
c. Receiving evidence on affidavit;
d. Requisitioning public records or copies from any court or office;
e. Issuing summons for examination of witnesses or documents;
f. Any other matter which may be prescribed.

iv. All records covered by this law (including those covered by exemptions) must be given to
CIC/SCIC during inquiry for examination.
v. Power to secure compliance of its decisions from the Public Authority includes:
a. Providing access to information in a particular form;
b. Directing the public authority to appoint a PIO/ APIO where none exists;
c. Publishing information or categories of information;
d. Making necessary changes to the practices relating to management, maintenance and
destruction of records;
e. Enhancing training provision for officials on RTI;
f. Seeking an annual report from the public authority on compliance with this law;
g. Require it to compensate for any loss or other detriment suffered by the applicant;
h. Impose penalties under this law or
i. Reject the appltcation.105
u. What is the reporting procedure?:
i. Central Information Commission will send an annual report to the Central Government on
the implementation of the provisions of this law at the end of the year.The State Information
Commission will send a report to the State Government.
ii. Each Ministry has a duty to compile reports from its Public Authorities and send them to
the Central Information Commission or State Information Commission, as the case may be.
iii. Each report will contain details of number of requests received by each Public Authority,
number of rejections and appeals, particulars of any disciplinary action taken, amount of
fees and charges collected etc.
iv. Central Government will table the Central Information Commission report before Parliament
after the end of each year. The concerned State Government will table the report of the
State Information Commision before the Vidhan Sabha (and the Vidhan Parishad wherever
applicable).106
v. What is the role of Central/State Governments?:
i. Develop educational programmes for the public especially disadvantaged communities on
RTI.
ii. Encourage Public Authorities to participate in the development and organization of such
programmes.
iii. Promote timely dissemination of accurate information to the public.
iv. Train officers and develop training materials.
v. Compile and disseminate a User Guide for the public in the respective official language.
vi. Publish names, designation, postal addresses and contact details of PIOs and other information
such as notices regarding fees to be paid, remedies available in law if request is rejected
etc.107
w. Who has the Rule making power?: Central Government, State Governments and the Competent
Authority as defined in S. 2(e) are vested with powers to make rules to carry out the provisions
of the Act.108
x. Repeal: The Freedom of Information Act, 2000 is repealed.109
10.5.4 Conclusion
The Act is an important piece of legislation giving valuable RTI to all persons of India. Since the
time the Act has come into force it has been used by many to get information from various public
authorities. Every day on an average, over 4800 RTI applications are filed.
10.6 Law Relating to Environmental Protection
“The supreme reality of our time is the vulnerability of our planet.”
-John F. Kennedy
10.6.1 Introduction
The development of Indian environment law has happened, for the most part, over the last five
decades. The beginnings of Indian environment law were sown at the United Nations Conference
on the Human Environment held at Stockholm in June 1972, where India was a participant. In that
conference, realization had dawned that a framework of laws was necessary to deal with
environmental
hazards that would result from the stage of development that India was entering in 1970s.
10.6.2 Legislative Initiative
a. General: There were provisions in legislations which indirectly addressed environmental problems,
like the provision. on fouling of waters in the Indian Penal Code.110 1860. Later, some legislations
directly addressed environmental problems, like the Factories act, 1948 as amended from time
to time.
b. The Constitutional Framework: The Constitution (Forty-Second Amendment) Act, 1976 (w.e.f
3-1-1977) introduced principles of environmental protection in an explicit manner into the
Constitution through Articles 48A.111 (Obligated the State to protect and improve the environment)
and 51A(g)112 (obligated citizens to undertake the same responsibilities). As far as legislative
power was concerned, the Amendment also moved the subject of “forests” and “protection of
wild animals and birds” from the State List to the Concurrent List. The Stockholm conference
has been referred to in the Indian Legislation The Air (Prevention and Control of Pollution) Act,
1981 and the Environment Protection Act, 1986 - as a result of effective applications of Article 253
of the Constitution, which gives the Parliament the power to make laws implementing India’s
international agreements.
c. The Statutory Framework: The first legislation which specifically addressed the environmental
problem was the Water (Prevention and Control of Pollution) Act, 1974 (In short Water Act). This
was followed by another of its kind, the Air (Prevention and Control of Pollution) Act, 1981 (In
short Air Act). The Environment (Protection) Act, 1986 hereinafter referred to as the EPA is a
comprehensive law in the nature of an umbrella legislation. The National Green Tribunal Act,
2010 was enacted to provide appeal in respect of all environmental matters.
10.6.3 Salient Features of Water and Air Acts
a. The Water Act envisages the setting up of central and state boards for the prevention and control
of water pollution. The task of these bodies, among others, is the prevention and control of the
discharge of water into streams or wells, as also to lay down effluent standards to be complied
with by industries. The two important functions of the state boards are: to lay down the standards
of pollution and to make consent order for polluting trade and sewage effluent into streams.
The boards have been granted ample powers of investigation, inspection, sample collection and
testing, and also, the power to prosecute the violators of the Act. The boards are also given the
powers to carry out themselves, certain works relating to the prevention of pollution.
b. The Air Act deals with the control of emission of noxious substances from industries and
automobiles. However, it applies only to specified industrial processes, in notified areas, called
the’ air pollution control areas’ (APCA). The functions under this Act are entrusted to the central
and state boards created under the Water Act. The State Government, after consultation with
the state board, issues a notification, declaring a particular area as an ‘Air Pollution Control
area’. The specified industries to which this Act applies are given in the Schedule. The specified
industries in the APCA have to seek consent from the board, to emit noxious substances.
c. After the enactment of the Air Act, the central board became the Central Water and Air
Prevention
of Pollution Control Board. Similarly, the state boards became the State Pollution Control Boards.
10.6.4 Salient Features of Water (Prevention and Control of Pollution)
Cess Act, 1977
If the government has to administer the prevention and control of pollution, the question that arises
is who should pay for the cost of administration. In other words, an industry gets profit from its
operations, while the people get pollutants. Who has to pay to ensure that in the process of making
profits, people do not get pollutants? The Water (Prevention and Control of Pollution) Cess Act,
1977, partially answers this question.
This Act levies a cess on specified industries and local authorities. The cess depends on the amount
of water consumed and the nature of pollution the process causes. The rationale for this provision
is that if fresh water is to be taken in by the industries and local authorities, and polluted water is
to be discharged, why should they not pay for diminishing the value of water? This levy contributes
towards the expenses of the central and state boards for prevention and control of water pollution.
Fifteen industries have been specified under this Act. The list includes, among others, the petroleum
industry, chemical industry, paper industry, fertilizer industry and processing of animal or vegetable
products industry. Local authorities are seen as taking in fresh water, distributing it to the people,
and in the end, discharging sewage. This Act encourages the installation of treatment plants. It gives
a
rebate of twenty five per cent in cess to those who install a treatment plant. This Act is implemented
by the central board in the union territories and the state boards in the states.
This Act provides for the installation of equipment to measure water consumption. It guards against
double imposition of levy. The cess evaders can be imprisoned for up to a term of six months or
fined up to Rs. 1,000, or both. The cess applies differentially, depending on the nature of pollution.
10.5.5 Salient Features of EPA
The EPA was passed for the protection of environment, regulation of discharge of pollutants,
handling
of hazardous substances, speedy response in the event of accidents threatening environment and
deterrent punishment to those who endanger human environment, safety and health. It extends to
the whole of India113 and has come into force from 19 November, 1986.
a. This Act is not only for protection of environment but it is also more effective and bold measure
to tackle the problem of pollution as compared to all the previous laws in this regard. Under this
Act, the Central Government has been empowered to take all appropriate measures to establish
an effective machinery to achieve the objectives of Act:
b. The Act enables the Central Government to take all such measures as it deems necessary or
expedient for the purpose of protecting and improving the quality of the environment and
preventing, controlling and abetting environmental pollution.114 The Central Government is also
empowered to constitute an authority for exercising the power vested in it115 and to frame rules
for that purpose.116
c. The Act has adopted a new position with regard to the question of locus standi so that now even
a citizen has the right to approach a court, provided he has given notice of not less than sixty
days of the alleged environmental offence and his intention to make a complaint to the Central
Government or the competent authority.
d. The Act strengthens the penal provisions. The maximum penalty for contravention of the Act
has been increased to imprisonment upto five years or fine upto one lakh rupees or both. If, the
failure or contravention continues beyond a period of one year after the date of conviction, the
offender shall be punishable with imprisonment for a term which may extend to seven years.117
e. The Central Government has been given the powers to collect samples of air, water, soil or other
substances as evidence at the offences under the Act.118
f. The Act applies to the pollution generated by the government agencies as well and where an
offence under this Act has been committed by any department of government, the Head of the
Department shall be deemed to be guilty of the offence and liable for action under the Act unless
he proves that the offence was committed without his knowledge to the commission of such
offence.119
g. A special procedure can be prescribed for handling hazardous substances and no person can
handle such substances except in accordance with such procedure and after complying with such
safeguards as may be prescribed.120
h. The Central Government has been vested with powers of entering and inspecting any place
through any person or agency authorized by it.121
i. The Act also authorizes the Central Government to issue direction for the closure, prohibition or
regulation of any industry, operation or process. It also authorizes the Central Government to
stop or regulate the supply of electricity or water or any other service directly without obtaining
a court order.122
j. The rule making powers are broad and include the following areas, regarding which rules can
be made:
i. Standard of quality of air, water and soil for various areas and purposes.
ii. Maximum permissible level of pollutants for different areas.
iii. Procedures and safeguards for the handling of hazardous substances.

iv. Prohibition and restrictions on handling of hazardous substances.
v. Prohibition and restrictions on location of industries.
vi. Procedures and safeguards for the prevention of accidents which may cause environmental
pollution.
Following the rule making powers, the Central Government has made several rules. These include
the Environment (Protection) Rules, 1984. Hazardous Wastes (Management and Handling) Rules,
1989 and Manufacture, Storage and Import of Hazardous Chemical Rules, 1989.
10.6.6 Salient Features of the Nationa Green Tribunal Act
a. Objectives of the Act: The National Green Tribunal Act, 2010 (The Act) was enacted for the
effective
and expeditious disposal of cases relating to environmental protection and conservation of forests
and other natural resources including enforcement of any legal right relating to environment
and giving relief and compensation for damages to persons and property.
b. Commencement of the Act: The Act has been brought into force on Eighteenth October, 2010.123
c. Establishment of Tribunal: The Central Government shall establish National Green Tribunal to
exercise the jurisdiction, powers and authority cinferredon such Tribunal by or under the Act.124
d. Composition of Tribunal: The Tribunal shall consist of -
i. a chairperson;
ii. not less than ten but not more than twenty Judicial Members;
iii. not less than ten but not more than twenty Expert Members.125
e. Jurisdiction, Pwers and Proceedings of the Tribunal:126
i The Tribunal shall have jurisdiction over all civil cases where a substantial question relating to
environment is involved. A time limit of six months is laid down within which the application
for adjudication of dispute shall be entertained by the Tribunal.
ii. The Tribunal may provide relief, compensation and restitution.
iii. The Tribunal have appellate jurisdiction in respect of an order or decisions made under the
Water (Prevention and Control of Pollution) Act, 1974, Forest (Conservation) Act, 1980, Air
(Prevention and Control of Pollution) Act, 1981, environment (Protection) Act, 1986, and the
Bio Diversity Act, 2002. The Act provides a time limit of thirty days within which the appeals
may be filed before the Tribunal.
iv. The Tribunal shall not be bound by the procedure laid down in the Code of Civil Procedure,
1908 and the Indian Evidence Act, 1872, but shall be guided by the principles of natural justice.
The Tribunal shall have the same powers as are vested in a Civil Court. All proceedings
before the Tribunal shall be deemed to be judicial proceedings.
v. The Tribunal shall, while passing any order, decision or award, apply the principles of
sustainable development, the precautionary principle and the pollutor pays principle.
vi. Any person aggrieved by any award, decision or order of the Tribunal, may file an appeal
to the Supreme Court within ninety days from the date of communication of the award,
decision or order of Tribunal, to him.
f. Penalty127: Whoever fails to comply with any order, award or decision of the Tribunal, shall be
punishable with imprisonment for a term which may extend to three years, or with fine which
may extend to ten crore rupees, or with both. In case the failure or contravention continues, with
additional fine which may extend to twenty five thousand rupees for every day during which
such failure or contravention continues after conviction for the first such failure or contravention.
g. Miscellaneous:
i. Bar of Jurisdiction by Civil Court128
ii. Members and staff of Tribunal to be public servants129
iii. Protection of action taken in good faith130
iv. The Act to have over riding effects131
v. Power of the Central Government to make rules132
10.6.7 Some Court Cases on Environment Protection
a. Running of a workshop in a residential colony was considered to be an act of causing nuisance
and injury to the health of the citizens.133
b. Pollution of air was caused when smoke was emitted from the chimney of a bakery in such a
manner that it was injurious to health, safety and convenience of the people living in the close
proximity of the bakery.134
c. The court handled the matter concerning failure of a municipality to prevent the discharge from
an alcohol plant of malodorous fluids into the public streets.135
d. Wheat thrasher and cotton grinding cause air pollution. Their operation producing day and
night offensive suffocating dust storms was reported to have resulted in serious cough and skin
diseases.136
e. Right to healthy environment and its protection and the right to development are group rights.
The court confirmed the payment of compensation to the victims of oleum gas.137
f. Although the leather industry is a major foreign exchange earner for India and provided
employment, it does not mean that this industry has the right to destroy the ecology, degrade
the environment or create health hazards.138
g. The Supreme Court of India held that prior approval for the additional leasehold land, given in
1994, is quashed and the government shall take over the area and restore it to its original condition.
Span Motels will pay compensation to restore the environment, and the various constructions
on the bank of the river Beas must be removed and reversed. Span Motels must show why a
pollution fine should not be imposed, pursuant to the polluter pays principle. Regarding the
land covered by the 1981 lease, Span Motels shall not encroach upon any part of the river basin.
In addition, this motel shall not discharge untreated effluents into the river. This ruling is based
on the public trust doctrine, under which the government is the trustee of all natural resources
which are by nature meant for public use and enjoyment. The court reviewed public trust cases
from the United States and noted under English common law this doctrine extended only to
traditional uses such as navigation, commerce and fishing, but how the doctrine is now being
extended to all ecologically important lands, including freshwater, wetlands and riparian forests.
The court relied on these cases to rule that the government committed patent breach of public
trust by leasing this ecologically fragile land to Span Motels when it was purely for commercial
uses.139
h. The court noted the finding in the Oleum Gas Leak Case II under which an enterprise that is
engaged in a hazardous or inherently dangerous activity, which results in harm to anyone,
is strictly and absolutely liable to compensate all those who are affected by the accident. The
court also endorsed the polluter pays principle, under which the financial costs of preventing
or remedying damage lie with those who cause the pollution.140
i. The Supreme Court said that in exercising powers under Article 142 of the Constitution and in
assessing the needs of “complete justice” of a cause or matter, the apex court will take note of
the express prohibitions in any substantive statutory provision based on fundamental principles
of public policy and regulate the exercise of its power and discretion accordingly, and awarded
the compensation.141
10.6.8 Conclusion
The environmental protection is composed of a harmonious blend of initiatives from the legislature,
the executive and the judiciary. Law relating to environment protection provide some semblance or
consistency between national and global environmental standards.
SUMMARY
Section - 1 Law Relating to Partnership
Partnership is the relation between persons who have agreed to share the profits of a business
carried on by all or any of them acting for all. Essential elements of a partnership are 1- Agreement,
2- Two or more persons, 3- Carrying on a business, 4- Sharing of profits, and 5- Mutual agency.
Persons who have entered into partnership with one another are called individually ‘partners’
and collectively a firm, and the name under which their business is carried on is called the ‘firm
name’. A partnership firm is not a person in the eyes of law. Registration of firm is optional.
Rights of a partner are, 1- To take part in business, ~- To express views on business matters,
3- Access to accounts, 4- Share profits, 5- Interest on capital, 6- Interest on advances, 7- To be
indemnified, 8- To use partnership property, 9- Agent of firm, 10-To permit introduction of

new partner, 11-To retire, 12 -Not to be expelled , and 12-Outgoing partner to share subsequent
profits. Duties of a partner age: 1 General duties like to be just and faithful to other, to render
true accounts, to carry on the business of the firmto to the greater common advantage and to
provide full information to all partners, 2- To indemnity for loss caused due to fraud or willful
neglect, 3- To attend diligently, 4- Not to claim remuneration, 5- To contribute to losses, 6- To
use firm’s property for business, 7- To account for personal profits, 8- To account for profits
in competing business, 9- To act with authority, 10- Joint and several liability for acts of firm,
and 11- Not to assign his partnership rights.
A firm is reconstituted when there is a change in the composition of its partners without
affecting the continuity of the firm. There are two types of dissolution, 1- Dissolution of firm,
and 2- Dissolution of partnership. Dissolution of firm may take place in two modes, 1- Without
court order, and 2-Dissolution by the court.
Section - 2 Law Relating to LLP
LLP means a partnership formed and registered under the LLP Act, 2008. The characteristics
of LLP are that it is a body corporate, an artificial legal person, has a seperate legal entity,
perpertual existence, common seal and limited liability.
There are many differences between LLP and traiditional partnership. The
Incorporation(Registration)
of an LLP is done by the ROC and for this certain documents are submitted to the ROC. Any
individual, an Indian company, any other LLP and a foreign LLP or foreign company can be
partners in the LLP. Every LLP shall have minimum two partners and there is no maximum limit.
Every LLP is required to have at least two designated partners who should obtained DPIN. It
is not mandatory to have an LLP agreement but it is desirable to have one. The LLP agreement
lays down the mutual rights and duties of the partners and their rights and duties in relation
to the LLP. Every partner is an agent of LLP but not of other partners. A whistleblower who
helps in the conviction of the guilty is protected under the Act. The obligation of a partner to
contribute money or other property or other benefit to perform services for LLP shall be as per
the LLP agreement. The LLP is required to maintain proper books of account at its registered
office. The LLP has a duty to prepare a statement of account and solvency and also to get its
accounts audited. Any LLP can be found up either voluntarily or compulsorily by the NCLT.
The Act Lays down the procedure for both these types of winding up.
Section - 3 Alternative Dispute Resolution (ADR)
The most common modes of ADR are, 1- Negotiation, 2- Arbitration, 3- Conciliation or mediation,
4- Tribunals, and 5- Lok-adalat. Negotiation is when parties themselves agree to settle the
dispute without the help of any third party.
Arbitration involves the determination of a matter in dispute by the judgement of one or more
person(s), called arbitrator(s), who in case of differences usually call in an umpire to decide
between them. The law governing arbitration and conciliation is contained in the Arbitration
and Conciliation Act, 1996. Arbitration agreement is defined as ‘an agreement by the parties to
submit to arbitration all or certain disputes which have arisen or which may arise between them
in respect of a defined legal relationship whether contractual or not. This agreement must be in
writing. The Act lays down rules and procedure for the conduct of arbitration proceedings. An
arbitrator gives his verdict which is known as arbitral award. This award must be in writing,
certain, signed and state the reasons upon which it is based. A copy of the award is given to
all parties. The award is final and binding.
Conciliation or mediation involves an impartial third party, the conciliator assists the parties to
a dispute in reaching a mutually agreed settlement of the dispute. He helps third parties agree.
Disputes can also be settled by tribunals, This is provided in the relevant statutes. Example is
Motor Accidents claims Tribunal.
Disputes can also be settled by Lok Adalats. This is done in accordance with the provisions of
the Legal Services Authority Act, 1987.
Section - 3 Law Relating to Sexual Harassment
In India there is no exclusive legislation dealing with sexual harassment. The existing laws,
some sections of IPC, (Section 294, 354 to 509) and the Indecent Representation of Women
(Prohibition) act, 1987 are not adequate. The Supreme Court in Vishakha’s case had laid down
that sexual harassment at the workplace is a form of discrimination and provided guidelines to
address the issue pending enactment of suitable legislation. The Central Government enacted
the Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act,
2013 (The Act). The Act extends to the whole of India. The Act defines as to what is covered
in sexual harassment and what circumstances will amount to sexual harassment. The act also
provides for the:
a. Constitution of Internal Complaints Committee and Local Complaints Committee,
b. Who can make complaint and how it can be made,
c. Enquiry of the complaint,
d. Various actions to be taken during pendency of enquiry,
e. What action to be taken on the completion of the enquiry,
f. Punishment for false and malicious complaints and false evidence,
g. Determination of compensation,
h. Prohibition of Publication for making known contents of complaint and enquiry proceedings,
i. Appeal by the aggrieved person, and
j. Some miscellaneous matters like duties of employer, District Officer, annual report and for
the appropriate Government to make rules and remove difficulties.
Section - 4 Right to Information
The right to information is a fundamental human right. It is essential for good governance. A
few states like Tamil Nadu and Goa (1997), Rajasthan and Karnataka (2000), Delhi (2001) and
Maharashtra (2002) had passed legislation in respect to Right to Information (RTI). The Central
Government enacted the RTI, Act 2005 (The Act). The Act has come into force on 12 october’ 2005.
It is applicable to the whole of India. Information means any material in any form which can
be accessed by a public authority. RTI means any information accessible under the Act which
is held by or under the control of any public authority. Public authority means any authority
constituted by or under the constitution, or any other law made by Parliament or State Legislature
or by notification issued by the appropriate government. All public authorities are requiredto
publish various things as given in the Act and particularly the names, designations and other
particulars of the Public Information Officers (PIO) by 12 october 2005. PIO’s shall primarily
deal with request from persons seeking information and other related functions. Information
as covered in Section 8 and 9 of the Act is exempt from disclosure. Similarly central intelligence
and security agencies like IB, R&A W, BSF, ITBP, CISF, NSG, Assam Rifles, Sashastra Seema Bal,
SPG, DRDO, BRO, CBI, NIA and agencies specified by State Governments are excluded. Any
person seeking information is required to apply in writing with prescribed fees. Information
should be furnished within thirty days. Central Government shall constitute Central Information
Commission with Chief Information Commissioner and Information Commissioner and State
Governments shall constitute State Information Commission with State Chief Information
Commissioner and State Information Commissioners. The Powers and functions of Information
Commissions are as laid down in the Act and mainly to act as appellate authorities from the
orders of PIO. Information Commissions will send annual reports to the respective Governments.
The Central State Governments are to promote timely dissemination of accurate information
and user’s guide to the public. The Act gives valuable right of information to the people of India
and has been extensively used by many to get information from various public authorities.
Section - 5 Law Relating to Environment Protection
Some legislations like Indian Penal Code indirectly addressed and Factories Act directly
addressed environmental problems. The Constitution of India introduced principles of
environmental protection by introducing Articles 48A and 51A (g) by the Constitution (Forty
Second Amendment) Act, 1976. The other legislations are the Water (Prevention of Pollution) Act,
1974, the Air (Prevention and Control of Pollution) Act 1981 and the Environment (Protection)
Act 1986. Thereafter the National Green Tribunal Act, 2010 was enacted to provide an appellate
tribunal to decide cases and hear appeals arising out of environment cases.
The Water Act envisages the setting up of central and state boards for the prevention and control
of water pollution. The Air Act deals with the control of emission of noxious substances from
industries and automobiles. The Water (Prevention and Control of Pollution) Cess Act, 1977
levies a cess on specified industries and local authorities. This levy contributes towards the
expenses of the central and state boards for prevention and control of water pollution.
The Environment (Protection) Act was passed for the protection of environment, regulation
of discharge of pollutants, handling of hazardous substances, speedy response in the event of
accidents threatening environment and deterrent punishment to those who endanger human
environment, safety and healthy. Salient features of this Act show that this is in the nature of
an umbrella legislation and many rules have been made under the Act.
The National Green Tribunal Act, 2010 was enacted for the effective and expeditious disposal
of cases relating to environmental protection. The Tribunal shall have jurisdiction over all civil
cases relating to environment. The Tribunal have appellate jurisdiction in respect of order or
decisions made under various laws concerning environment. From the orders of the Tribunal,
appeal can be filed to the Supreme Court.
Some court cases decided by the Supreme Court and High Courts lay down principles of
environmental jurisprudence.
REVIEW QUESTIONS
True or False
1. A money lender getting a share in the profits of the firm for the sum lent is a partner in the
firm.
2. A partner is an agent of other partners in a partnership firm
3. Permanent incapacity of partner is not a ground for dissolution of partnership.
4. There is no designated partner in the LLP.
5. LLP can be wound up by NCLT.
6. An arbitration award directing Z to pay a sum of money but mentioning no date for payment.
7. An arbitration award that one of the parties shculd deliver up certain specified goods and several
books, without naming the books.
8. There is no national legislation dealing with sexual harassment of woman at workplace.
9. The Right to Information Act, 2005 is applicable only in respect of public authorities.
10. There is no appeal provided in the Right to Information Act, 2005.
11. The United Nations Conference on the Human Environment held at Stockholm in 1972 was the
beginning of Indian Environment Law.
12. The Environment (Protection) Act, 1986 is in the nature of an umbrella legislation.
Practical Problems
1. X, the lessee and manager of a theatre enters into an agreement for the performance of a play
at his theatre, with Y, the manager of a theatrical company. The terms of the agreement provide
that X would provide the theatre, pay for the lighting and pay bills and would receive 60 per
cent of the receipts, and Y would receive the remaining 40 per cent. State whether the aforesaid
relationship amounts to partnership between X and Y or not.
2. A and B are partners of a trading firm. A borrows Rs. 40000 from C in the name of the firm
without the knowledge of B. A spends the amount for his own purpose. Can C hold B liable for
Rs.40000?
3. A, B and C carry on partnership business. A dispute about partnership accounts is referred to
arbitration by A and B. Is the reference competent?
4. A is appointed as sole arbitrator by B and C to settle some dispute between them. A accepts
some bribe from B and gives verdict in favour of B. C discovers this after two months. Can C
ask for the setting aside of the award?
Test Questions
1. Define partnership. What are its essential features?
2. Discuss the rights and duties of partners.
3. Explain the meaning of ‘dissolution of a partnership firm’. When does dissolution of firm take
place.
4. How an LLP is incorporated?

5. Write short notes on:
a. Voluntary Winding up of LLP.
b. Compulsory winding up of LLP.
6. Define the term ‘arbitration’, What is an arbitration agreement? Discuss the requisites of a valid
arbitration agreement.
7. Describe briefly the procedure for conduct of arbitration proceedings. What is an arbitral award?
8. What is the meaning of the term ‘Conciliation’? Discuss briefly its procedure.
9. What is sexual harassment? What provisions have been laid down by the Supreme Court. How
is Internal Complaints Committee constituted?
10. Give the salient aspects of the Right to Information Act, 2005.
11. What are the important legislative initiatives in India regarding environmental protection?
12. Give salient aspects of the Environment (Protection) Act, 1986.
Answers
True or False
1. False
2. True
3. False
4. False
5. True
6. True (The
amount will be
payable within a
resonable time).
7. False (for want of
certainity)
8. False
9. True
10. False
11. True
12. True
Practical Problems
1. No, the participation in profit is not the decisive test of partnership.
2. Yes, C can hold B liable.
3. No, As all the parties interested in the matter of dispute are not ad-idem on the question
of reference, the reference is invalid and the’ award’ will not bind even the consenting
parties.
4. Yes, C can ask for the setting aside of the award.
1Section 4 of the Indian Partnership Act, 1932 .
2Section 2 (b) of the Indian Partnership Act,
1932.
3Section 4 of the Indian Partnership Act, 1932.
4Section 2 (i)(h) of the Limited Liability Partnership
Act, 2008.
5Section 15 of the LLP Act, 2008

15Section 5 and 2(1)(d) of the LLP Act, 2008
18Section 7(6) of the LLP Act, 2008
19Ministry of Corporate Affairs General Circular
dated 8-7-2011
33Rule 23(2) of the LLP Rules 2009
35Para 2 of First Schedule to the LLP Act, 2008
37Rule 24 of the LLP Rules 2009
38Section 34(1) of the LLP Act, 2008 read with
Rule 24(3) of the LLP Rules 2009

44Rule 4 of the LLP (Winding up and Dissolution)
Rules 2012
Rules 2012
46Rule 6(1) of the LLP (Winding up and Dissolution)
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
REFERENCES
Rules 2012
Rules 2012
56Rule 19(1) of the LLP (Winding up and
Dissolution) Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
Rules 2012
67Chief Justice of India stated as published in
the Times of India, New Delhi Edition dated
18.7.2021.
68A new section 89 and related rules have been
introduced in Code of Civil Procedure, 1908
by the Civil Procedure Code (Amendment)
Act, 1999.
69Section 7 of the Arbitration and Conciliation
Act, 1996.
70Section 2 (i) (d) of the Arbitration and Conciliation
Act, 1996.
Act, 1996.
Act, 1996 as amended by Act 3 of 2016, S.7
(wef. 23.10.2015)
Act, 1996
Act, 1996.
Act, 1996.
Act, 1996.
77Vishaka & Ors. V State of Rajasthan R Ors.
[1997(7) Sec 323].
78Section 1 of the Sexual Harassment of Woman

at Work Places (Prevention, Prohitition and
Redressal) Act, 2013 (hereinafter referred to
as the Act).
79Section 3 and Section 2(n) of the Act.
80Section 4 of the Act.
81Section 5 to 8 of the Act.
89Extracted from the article ‘No Sex Please’
by Gayatra Sharma downloaded from internet.
90Section 1 (3) of the Right to Information Act,
2005.
91Section 1 (2) of the Right to Information Act,
2005.
92Section 2 (f) of the Right to Information Act,
2005.
93Section 2 (j) of the Right to Information Act,
2005.
94Section 3 of the Right to Information Act, 2005.
95Section 2 (h) of the Right to Information Act,
2005.
96Section4 (i) (b) of the Right to Information

Act,2005.
97Section 8 of the Right to Information Act, 2005.
98Section 10 of the Right to Information Act,2005.
99Section 24 of the Right to Information Act,
2005.
2005.
2005.
2005.
103Section 13 and 16 of the Right to Information
Act, 2005.
104Sections 15 & 16 of the Right to Information
Act, 2005.
Act, 2005.
2005.
2005.
Act, 2005.
109Section 31 of Right toInformation Act, 2005.
110Sections 277, 278, 430,431 and 432 of the
Indian Penal Code.

111Article 48A of the Constitution which is a part
of Directive Principles of State Policy reads as
follows. “48A. Protection and improvement of
environment and safeguarding of forests and
wild life- The State shall endeavour to protect
and improve the environment and to safeguard
the forests and wildlife of the country”.
112Article 51A (g) of the Constitution which is a
part of the Fundamental Duties reads as follows:
51 A-Fundamental duties-It shall be the duty
of every citizen of India ..........................
(g) to protect and improve the natural environment
including forests, lakes, rivers and wild life,
and to have compassion for living creatures
.........................”.
113Section 1 (2) of the Environment (Protection)
Act, 1986.
114Section 3 (1) of the Environment (Protection)
Act, 1986.
115Section 3(3) of the Environment (Protection)
Act, 1986.
116Sections 6 & 25 of the Environment (Protection)
Act, 1986.
117Section15 of the Environment (Protection)
Act, 1986.
118Section 11 of the Environment (Protection)
Act, 1986.
Act, 1986.
Act, 1986.
Act, 1986.
Act, 1986.
123Section 1(2) of the National Green Tribunal Act,
2010 read with 502, 569(E) dated 18.10.2010
124Section 3 of the NGT Act, 2010
126Section 14 to 25 of the NGT Act, 2010
127Section 26 to 28 of the NGT Act, 2010
133Gothan Construction Corporation v. A.K.
Ghosh = AIR 1968 Cal. 91.
134Gobind Singh v. Shanti Swarup = AIR 1979
SC 143.
135Ratlam Municipality v. Virdhichand = AIR
1980 SC 1622.
136Tarsem Singh v. Mukund Singh Mistri =
1981 CC Cases 232 and Ramlal v. Bari Singh

= 1982 CC cases 189.
173Oleum Gas Leakage Case = (1986) 2 SCC
176.
138Vellore Citizens Welfare Forum v. Union of
India = AIR 1996 SC 2715.
139M.C. Mehta v. Kamal Nath and Others =
(1997) 1 SCC 388.
140Indian Council for Enviro-Legal Action v.
Union of India = (1996) 3 SCC .212.
141Union Carbide Corporation v. Union of India
(Bhopal case - III) = AIR 1992 SC 248.

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 273

Chapter 10 Some Other Legal Aspects Relating to Business

Chapter 10: Some other Legal Aspects Relating to Business  275

aspects of law relating to partnership alternative dispute resolution, sexual harassment,

sections. After reading the chapter you should be able to understand:

 Section - 1 Law relating to Partnership:

 What is partnership and its essential elements.

 Meaning of partner, firm, nature and registration of firm.

 Rights and duties of partner.

 Reconstitution and dissolution of firm.

 Section - 2 Law relating to Limited Liability Partnership:

 Definition and characterstics of Limited Liability Partnership (LLP)

 Distinciton between LLP and traditional partnership

 Incorporation (Registration) of LLP

 Partners and designated partners of an LLP

 Maintenance fo Books of Account and Audit

 Section - 3: Alternative Dispute Resolution (ADR)

 Various modes of ADR.

Some other Legal Aspects

their own way..”

—Oliver Wendell Holmes

10.2 Law relating to Limited Liability

10.3 Alternative Dispute Resolution (ADR)

10.4 Law relating to Sexual Harassment

10.5 Right to Information

10.6 Law relating to Environment Protection

276  Business Law for Managers

 Advantages and disadvantages of arbitration.

 Tribunals and Lok-adalats,

 Section - 4: Law relating to Sexual Harassment

 What amounts to sexual harassment

 Historical development of law on right to information.

 Salient aspects of the Right to Information Act, 2005.

 Section - 6: Law relating to Environment Protection

 Legislative initiative i.e. constitutional and statutory framework. Salient features of

Water and Air Act and Environment (Protection) Act.

10.1 Section – 1: Law Relating to Partnership

Partnership Act, 1932 (the Act). It extends to the whole of India.

10.1.2 Definition of Partnership

carried on by all or any of them acting for all.1

10.1.3 Essential Elements of a Partnership

An analysis of the definition of partnership reveals the following essential elements.

activities or for a particular venture or for a short duration.

Chapter 10: Some other Legal Aspects Relating to Business  277

share it too since a loss represents a negative profit.

each partner is a principal for he is bound by the acts of other partners.

10.1.4 Meaning of “Partner”, ‘Firm’, and ‘Firm name’

10.1.5 Nature of a Partnership Firm

partners constituting it.

10.1.6 Registration of Firms

get registered anytime, i.e. at the time of formation or anytime thereafter.

10.1.7 Rights of a Partner

a. Right to take part in business

b. Right to express views on business matters

c. Right of access to accounts

e. Right to interest on capital

f. Right to interest on advances

h. Right to use partnership property

i. Right as agent of firm

Section - 1 Law relating to Partnership:

What is partnership and its essential elements.

Meaning of partner, firm, nature and registration of firm.

Rights and duties of partner.

Reconstitution and dissolution of firm.

Section - 2 Law relating to Limited Liability Partnership:

Definition and characterstics of Limited Liability Partnership (LLP)

Distinciton between LLP and traditional partnership

Incorporation (Registration) of LLP

Partners and designated partners of an LLP

Maintenance fo Books of Account and Audit

Section - 3: Alternative Dispute Resolution (ADR)

Various modes of ADR.

Advantages and disadvantages of arbitration.

Tribunals and Lok-adalats,

Section - 4: Law relating to Sexual Harassment

What amounts to sexual harassment

Historical development of law on right to information.

Salient aspects of the Right to Information Act, 2005.

Section - 6: Law relating to Environment Protection

Legislative initiative i.e. constitutional and statutory framework. Salient features of