Business Law

 Answer 1
Introduction

Lien is the right to retain the possession of the property of till the other person meets
the demands of the person in possession

The Lien under Contract Act, 1872 and Sale of Goods Act, 1930 entails legal right
that is put against the asset, which is utilized as collateral for a given debt.

The Sale of Goods Act, 1930 refers to the rights and duties of unpaid sellers along
with the rights and duties of the seller and the buyer. It is the onus of the buyer to pay
the price for the goods delivered if he fails to do so, the seller remains unpaid.

Concept and Application:

Lien acknowledges the right of one person to keep goods owned by another until the
possessor's claims against the owner have been satisfied. In the contract of bailment,
the bailee has a right to exercise the lien over the goods bailed to him.

According to Halsbury's law of England, "Lien is in its primary sense of right is one
man to retain that which is in his possession belonging to another until certain
demands of the person in possession are satisfied”.

Types / Kinds of Lien

    (i) Particular Lien

     (ii) General Lien

 (i) Particular Lien:

            Section 170 of the Indian Contract Act, 1872 confers on the Bailee, the right
of lien. It gives the right to retain possession only of goods for which the changes or
dues are pending. The right of lien can be successfully claimed when there has been
some improvement of the goods. This right can be claimed only in respect of goods
upon which labour or skill has been exercised by the Bailee.

       
   Example:

               Mr. Mehta delivers a rough diamond to Mr. Ayush, who is a jeweller for
cutting and polishing. Mr. Ayush is entitled to retain the stone till he is paid for the
services he has rendered.
 (ii) General Lien:

           Section 171 of the Indian Contract Act,1872 confers on Bailee the right of
General Lien.  It ensures that the right to possession is till the complete amount is
paid. This right can be claimed for any goods which have changed.

         Example:
The banker can keep the goods till the debt is cleared. Hence is referred to
as a general lien.
                
 The Sale of Goods Act, 1930 also deals with the rights and duties of the
unpaid sellers as well as the rights and duties of the seller and the buyer. If the
buyer fails to make payment, the seller is considered unpaid.
Sale of Goods Act
Under the Sale of Goods Act, 1930, an unpaid seller is a person/party who has not
been paid full price of the sold goods sold or if he has received a bill of exchange or
another negotiable instrument as conditional payment, the condition for the same has
not been fulfilled. section 45(1) of the Sale of Goods Act, 1930 defines unpaid seller.
The rights of an unpaid seller are given under the Sale of Goods Act based on the
position of the goods delivered and the performance of the seller:-

1. Right to lien:- The seller has the right to lien the goods until the fulfilment of the
price of the goods. The goods can be retained or possessed until complete
payment. The right to the lien of an unpaid seller is given under section 47 of the
Sale of Goods Act 1930. The unpaid seller can retain the possession under the
following conditions:-

• Goods are sold without any provision of credit.

• The time limit for credit expires

• When the buyer becomes bankrupt.

2. Part-delivery (Section 48)

When an unpaid seller makes part-delivery of the goods, then he may exercise his
right of lien on the remaining items. If there is any kind of agreement for deferring
part-delivery, then this is valid.

3. Termination of Lien (Section 49)

Subsection (1) of Section 49 of the Sale of Goods Act, 1930 mentions that an
unpaid seller loses his lien:

 When the goods are delivered to a carrier or bailee for transporting to the
buyer and the right of disposal of the goods is not reserved.
 When the goods are obtained lawfully by the buyer or his agent.
Examples:

 Mr. Mehta sells goods of Rs. 5,00,000 to Mr. Ayush on a credit of one month, but
after the expiry of one month he did not pay the price, here Mr. Mehta is said to be an
unpaid seller.
 Mr. Mehta sells goods of Rs. 5,00,000 to Mr. Ayush and Mr. Ayush issued a cheque
for payment, but it is dishonoured, here Mr. Mehta is said to be an unpaid seller.
 Mr. Mehta sells goods of Rs. 5,00,000 to Mr. Ayush on a credit of one month, but
after the expiry of one month he has paid only 1,00,000 the price, here Mr. Mehta is
said
to be an unpaid seller

RIGHTS OF AN
UNPAID SELLER

AGAINST AGAINST THE

GOODS BUYER

SUIT FOR
LIEN PRICE

STOPPAGE IN SUIT FOR

TRANSIT DAMAGES

SUIT FOR
RESALE
INTEREST

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 Conclusion:

The right to lien means to hold or possess the goods. Under section 47 of the
Sale of Goods Act 1930, the right to lien of an unpaid seller is defined. The unpaid
seller can keep the good in the following cases:

 If a person sells something to another, he is expecting some consideration for the

same by that person. If he has not received anything or received half of the price of
that goods, he is called an unpaid seller.
 If a person enjoys the rights on a property, he is also entitled to take some
responsibilities for the same. If an unpaid seller has not received the full price of the
goods, he can claim for the same by the buyer but before claiming he must perform
his duties towards that.
 Lien under contract act 1872 as the right to hold the goods bailed as security for a
general balance of the account. For example, the bailee has the right to keep any
goods bailed to him for any sum owed to him, whether it be for such goods or any
other goods.

 Answer 2

Introduction:

Under the National Green Tribunal Act, 2010, an authoritative body has been
set up for the speedy disposal of civil cases that are related to conservation of forests,
environmental protection, and other natural resources known as ‘The National Green
Tribunal’. Which contains 5 chapters, 38 Sections, and 3 schedules.
After the establishment of this forum, India became the third country in the world to
set up a specialized body for environmental protection. It is the first developing
country to set up a specialized environmental tribunal.

Concept and Application:

Objectives of National Green Tribunal (NGT)
The primary objectives of the NGT are as follows:

 Rapid and persuasive consent of cases that are specifically for the protection and
conservation of the environment, other natural resources, and forests.
 Assistance and reimbursement are given for any damages caused to people and
properties.
 Multi-disciplinary issues related to various environmental disputes are handled.
Structure of NGT
NGT consists of three major bodies namely:
 1. The Chairperson
2. The Judicial Members, and
3. The Expert Members.

Along with the above, there should be a minimum of 10 and a maximum of 20 full-time
Judicial as well as Expert members in the NGT.
 All the members are only eligible to work for five years, and reappointment is not
allowed.
 The chief justice of India appoints the Chairperson of the National Green Tribunal
(NGT) with support of the Central Government of India.
 The central government of India forms, the selection committee for appointing
judicial & expert members.

Judiciary plays an important function in the protection of the environment. Two of the
benchmark judgments are :

1. Art of Living Case on Yamuna Flood Plain

Judgment- In this case, it was presumed that the damage was caused to Yamuna flood
plains, due to the cultural festival organized in March 2016 by the Art of Living
Foundation of Sri Sri Ravi Shankar. The panel members of NGT investigated that the
organizers of the Art of Living Festival violated the environmental norms, and it has
severely damaged the food plane area at the bank of Yamuna River in Delhi. Earlier, the
Government of Delhi and Delhi Development Authority (DDA) has permitted the Art of
living festival organizers, but it was under some conditions. The NGT panel charged a
penalty of Rs. 5 Crore on the art of living foundation as environmental compensation
after befalling significantly on the foundation for not disclosing its full plans. The AOL
foundation was also alerted with the fact that in case of failure to pay the penalized
amount, the grant of Rs.2.5 crore which the ministry of culture is supposed to pay AOL
will be affected. AOL foundation expressed disappointment and claimed that they had
adhered to all environmental laws and norms. The Art of Living Foundation wanted to
appeal to the supreme court for further justice.

2. Samit Mehta v. Union of India & Ors

Judgment- In this case, an environmentalist applied the damage caused by the sinking of a
ship that was carrying coal, fuel oil, and diesel. Due to the sinking, a thick oil layer was
formed on the surface of the sea affecting the marine ecosystem. This case was registered
to understand the public importance and significance of environmental legislation. The
tribunal noticed the negligence. The sinking of the ship was the result of the negligence of
the prevailing party and upholding the principle of polluter pay. The forum has further
stated that it has the power to grant compensation for the costs incurred by the central
 government to clean the wrecks which may tender hazards to navigation and the marine
environment. It was advocated by the court, the “Precautionary Principle” and “Polluter
Pays Principle” and recognized the right to a clean environment as a fundamental right
under Article 21 of the Constitution of India which assures protection of life and personal
liberty. The committee mentioned that the ship sinking accident has led to the pollution of
the marine environment on three counts: (a) Dumping of the cargo on the ship, i.e., coal
into the sea; (b) Release of the Fuel oil stored onboard and the resultant oil spill caused by
it and (c) wreckage of the ship itself, which contained the materials. In the present case,
the ship used in the transport is unseaworthy and the respondents should have never used
the ship for transport purposes. Hence in this particular case, the sinking of the ship was
held equivalent to disposing of. Environmental compensation of Rs. 100 crores were
imposed. This is one of the biggest compensations ever made by a private entity to the
government.
Conclusion

Powers of NGT
NGT is an essential framework for the regulation of the environment and passing
strict orders on unsettled matters related to deforestation, pollution, waste
management, etc. The main advisers of the National Green Tribunal include:

 An optional mechanism for the resolution of disputes for environmental regulations is

provided by NGT.
 The burden of processing environmental matters is reduced in the higher courts.
 It provides a quick resolution for various environment-related disputes that are less
formal and less expensive.
 It controls environment-damaging activities. NGT assures the strict inspection of
the Environment Impact Assessment (EIA) process.
 NGT lends reliefs and compensations for any damages caused to properties or people.

The below-mentioned laws, related to the environment are used to resolve various
civil cases by the National Green Tribunal:

1. Water Act (Prevention and Control of Pollution), 1974

2. Water Cess Act (Prevention and Control of Pollution), 1977
3. Forest Act (Conservation), 1980
4. Air Act (Prevention and Control of Pollution), 1981
5. Biological Diversity Act, 2002
6. Environment (Protection) Act, 1986
7. Public Liability Insurance Act, 1991
The National Green Tribunal (NGT) is a major action taken by the Central
Government of India.
Ref: https://www.legalbites.in/national-green-tribunal-act-2010

 Answer 3a
 Introduction:
The term ‘Harassment’ is a form of discrimination. It includes any undesirable
physical or verbal behaviour that offends or humiliates anyone. The term is used for
an expanded range of objectionable behaviours. Generally, behaviour that
demeans, humiliates, or embarrasses a person, and is unexpected in terms of social
and moral acumen. Mental, as well as the physical well-being of a person, is affected
by such behaviour.

Concept and application:

Harassment can be categorized in various forms such as:

1. Mental  Harassment
2. Physical Harassment
3. Discriminatory Harassment
4. Sexual Harassment
5. Harassment based on race, gender, or religion
6. Emotional or Psychological Harassment
7. Cyberbullying or Online Harassment

 In the given scenario, based on below mentioned facts and actions of the
employee of a conglomerate company, it is very clearly stated that Jane is
facing harassment at the workplace :
 Few of the employees are hostile and offensive
 She has been made to sit in the office late despite completing her job
and she is filling her timesheet
 On numerous occasions she has been yelled at.
 The discussions during the meetings have veered and are covered with
innuendos, which she felt unwelcome to be part of.
 Few of the employees had insisted on taking her out for a private
dinner which she declined and thereafter her performance has been
rated ‘below average’

Below are a few Indian laws that deal with such forms of Harassment:

1.       The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.

To protect women from being sexually harassed at the workplace, the first legislation was
constitutionalized. The legislation has defined the term sexual harassment under section 2
and gives an inclusive definition stating that sexual harassment includes any one or more of
the following obnoxious acts or behavior such as:

 physical contact and advances; or

 a demand or request for a sexual favor; or
 making sexually colored remarks; or
 showing pornography; or
 any other unwelcome physical, verbal, or non-verbal conduct of sexual nature.

The law enforces the relevant practices to be followed at the workplace to prevent sexual
harassment. It also defines mechanisms to address the complaints, if any.

2. For harassment caused through unreasonable employment terms - Industrial

Disputes Act, 1947
3. For harassment caused through discrimination at the workplace:
Inequality/Unequal remuneration - Code on Wages, 2019 / Equal Remuneration
Act, 1976

Conclusion:

A safe workplace is a woman’s legal right. A gross violation of women's right to

equality and dignity is constituted by sexually harassing the individual. It can be
described mainly in two forms:

 Quid Pro Quo (literally ‘this for that)

- Implied or explicit commitment of preferential/detrimental nature in employment

- Hidden or expressed threat about her present or future status of employment

 Hostile Work Environment

- a hostile, terrifying, or an offensive work environment

- Embarrassing treatment likely to affect her health or safety

Sexual harassment is a violation of a woman’s fundamental right to equality, and this

right is protected by Articles 14 and 15 of the Constitution. Workplace sexual
harassment creates an insecure and hostile work environment, in turn adversely
affecting the socio-economic growth of women as they are discouraged to participate
in work. It is not only discrimination but also a violation of fundamental human
rights. It is offensive at a very personal level and in a way threatens the right to equal
opportunity and equal treatment of women at the workplace.

 Answer 3b
Introduction:

The complaint of sexual harassment at the workplace may be made in writing

to the internal committee or the local committee, if it is constituted . The committee
should be constituted within three months from the date of incident. If woman cannot
file a complaint in writing, then the committee shall render all reasonable assistance to
the woman for making the complaint in writing. when a disturbed woman is unable to
make a complaint on account of her physical or mental incapacity or death or
otherwise, her legal heir or such other person can make a complaint under section
3(1).

Concept and application:

PoSH is an act to forbid and give protection against Sexual Harassment of women at
the workplace.

It is mandated by law that every company with more than 10 employees must have
ICC:

■ A policy against sexual harassment

■ External member along with a trained ICC personal.
■ Mandatory training on sexual harassment should be conducted for all employees.

Internal committee or the local committee is constituted under this Act. Every
employer of the workplace is bound to compose in writing the internal complaints
committee. The internal committee should be constituted in all administrative units or
office.

Duties of the Employer

The Act clearly defines the duties of the employer in case of sexual harassment. Every
employer shall:

i) Provide a safe working environment at the workplace. Any person coming at the
workplace should also be safe.

ii) The penalty/consequences of sexual harassment should be displayed at noticeable

location at workplace along with the order constituting the Internal Committee.
iii)Workshops and awareness programs are organized at regular intervals to refine the
knowledge of employees regarding the provisions of the Act. Orientation programs
should be organized for the internal committee.

iv) For dealing with the complaint and conducting enquiry, necessary facilities should
be provided to the internal committee or the local committee.

v) The attendance of defendant and witnesses should be secured before the internal
committee or the local committee.

vi) The aggrieved woman is provided assistance ,if she chooses to file a complaint
under IPC or any other law for the time being in force.

vii) Action can be initiated against the executioner under IPC or any other law for the
time being in force.

viii) Sexual harassment can be treated as misconduct under the service rules and
initiate action for such misconduct.

ix) The timely submission of reports by the Internal Committee should be monitored.

x) In the annual report of the organization, the number of cases filed and disposed
under this Act, should be included. Alternatively, district officer can be intimated
about the number of cases.

Punishment for the Employer

If the employer fails to constitute an internal committee or violates or attempts to

violates or instigate the contravention of other provisions of this Act or any rules
made thereunder shall be punishable with a fine. If any employer who is convicted of
an offense punishable under this Act subsequently commits and is convicted of the
same offense, he shall be liable to:
i) Twice the punishment for same offence. Also, in case a higher punishment is
already provided under any other law, for the offense for which the accused is being
prosecuted, the court shall consider the same while awarding punishment.

ii) The local authority or the government can also consider withdrawal of cancel of
the license provided for business activity.
Conclusion:

The internal complaints committee (ICC) can suggest a range of actions

comprising of a warning, counselling, community service, suspension, withholding
promotion or terminating the employee as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act and Rules, 2013 (SH law).In
case of false allegation, the ICC can also act against the complainant. The Ministry of
Women & Child Development had published a handbook in 2015 on the SH Law,
depicting some examples of sexual harassment which can happen through SMS,
MMS, WhatsApp, etc. stating that the virtual world also falls under the definition of
workplace.