LEGAL ASPECTS OF

BUSINESS
 WHY INDIAN LEGAL SYSTEM?
Relevance and importance of regulatory institutions in laying out the framework for
business
Introduction to the Indian legal system, salient features of the Constitution of India,
Structure of Judiciary, Executive and the Legislature
3 I’s of legal environment
Union, State and Concurrent list – impact on business
Difference between applicable and governing laws
Difference between criminal and civil laws
Alternate Dispute Resolution and Arbitration
 CONSTITUTION OF INDIA
Supreme law of India
Framework defining fundamental political principles,
establishes the structure, procedures, powers, and duties
of government institutions, and sets out fundamental
rights, directive principles, and the duties of citizens.
PREAMBLE
WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India
into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to
secure to all its citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity; and to promote among them all
FRATERNITY assuring the dignity of the individual and the unity and integrity
of the Nation;
IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949,
do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS
CONSTITUTION.
 PREAMBLE
Opening words ‘We the people of India……..”
Unambiguous terms that the constitution has been
adopted enacted and given to themselves by the people of
India
PREAMBLE
SOVEREIGN- No more dependant on Foreign power UN
Membership Commonwealth of Nations
Difference between applicable and governing laws
SOCIALIST- 42nd amendment advocates state ownership
of means of Production, distribution and exchange.
Nationalisation of Banks, Insurance companies,
Acquisition land
PREAMBLE
SECULAR – does not recognise any religion
DEMOCRATIC-Greek word
Demos-people, kratos- authority
Representative democracy
REPUBLIC- a form of Government where the Head of
the State is an elected person
 PREAMBLE
Justice-Social, Political and Economic
Harmonious reconcilement of individual conduct with
general welfare
Abolition of all form of inequities
Justice from the stand pint of economic force
Universal adult suffrage
PREAMBLE

LIBERTY of thought, expression, belief, faith and

worship;
EQUALITY of status and of opportunity
 PREAMBLE
FRATERNITY assuring the dignity of the
individual and (means a spirit of
brotherhood) the unity and integrity of the
Nation
UNION, STATE AND
CONCURRENT LIST OF
CONSTITUTION
www.mea.gov.in
Importance of constitutional list (Schedule VII)
Illustration – power companies
 3 I’S

Institution
Instruments Fair
Accountable
Individuals with discretionary Transparent
powers
 DEMOCRACY

Seventh largest (by area) and the second most

populous country in the world, with roughly 1/6th of
its population, of about a billion and a quarter
world's largest democracy.
 FUNDAMENTAL RIGHTS- PART
3
Article 13 Laws inconsistent with or in derogation of the
fundamental rights
(1) before the commencement of this Constitution if they are
inconsistent they will be void upto the inconsistency
(2) State shall not make any law which takes away
or abridges the rights conferred by this Part and any law made
in contravention of this clause shall, to the extent of the
contravention, be void
FUNDAMENTAL RIGHTS
Right to Equality
Prohibition of discrimination on grounds of
religion, race, caste, sex or place of birth.
Equality of opportunity in matters of public
employment.
Protection of certain rights regarding freedom of speech, etc.
Protection of life and personal liberty.
FUNDAMENTAL RIGHTS
Freedom of trade and profession 19(1)(g) 19(6)
Which also talks about the state monopoly over
business
Prohibition of traffic in human beings and forced
labour.
Prohibition of employment of children in factories,
etc
DIRECTIVE PRINCIPLES OF
STATE POLICY
Article 39. Certain principles of policy to be followed by the State.-
The State shall, in particular, direct its policy towards securing-

(a) that the citizens, men and women equally, have the right to an adequate means of
livelihood;
(b) that the ownership and control of the material resources of the community are so
distributed as best to subserve the common good;
(c) that the operation of the economic system does not result in the concentration of
wealth and means of production to the common detriment;
(d) that there is equal pay for equal work for both men and women;
(e) that the health and strength of workers, men and women, and the tender age of
children are not abused and that citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength;
(f) that children are given opportunities and facilities to develop in a healthy manner and
in conditions of freedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment.
 ARTICLE 43. LIVING WAGE,
ETC., FOR WORKERS.-
The State shall endeavour to secure, by suitable legislation or economic
organization or in any other way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent
standard of life and full enjoyment of leisure and social and cultural
opportunities and, in particular, the State shall endeavour to promote
cottage industries on an individual or co-operative basis in rural areas.
DIRECTIVE PRINCIPLES OF
STATE POLICY
Article 43A. Participation of workers in management of
industries.-

The State shall take steps, by suitable legislation or in any other

way, to secure the participation of workers in the management of
undertakings, establishments or other organisations engaged in any
industry
Difference between Civil and Criminal Law
Why commercial contracts are a branch of civil laws
Procedural and substantive laws