Latest news with #ContractAct
New Indian Express
13-07-2025
- Politics
- New Indian Express
Trial delays forcing innocents to spend years in prison: Chief Justice of India Justice BR Gavai
HYDERABAD: Stating that India and the legal system are facing unique challenges that require urgent attention, Chief Justice of India Justice BR Gavai on Saturday asserted that the country has the talent to find solutions. Speaking at the 22nd Annual Convocation of NALSAR University of Law, the CJI said: 'Delays in trials can sometimes last decades. There are cases where individuals have been declared innocent after spending years in jail as undertrials. Our best talent can help resolve such issues.' Justice Gavai noted the disparity in perceptions surrounding legal graduates, saying a student from a national law school in a metro city is often considered better placed than one from a smaller university. 'This is not necessarily because of skill, but perception. It is unfair, but real. We need to confront it, not accept it,' he said. The CJI stressed the importance of core legal subjects such as the Constitution, Contract Act, Code of Civil Procedure and Criminal Law, stating that there is no shortcut to legal knowledge and no alternative to knowing the basics. He also referred to the rapid changes in law due to emerging areas like artificial intelligence and data privacy. Addressing the growing trend of pursuing foreign degrees, the CJI said such qualifications have become symbols of validation. 'If you wish to go, go. It teaches you how the world thinks. But go with scholarship and funding. Go with purpose, not pressure. I see young lawyers taking loans of `50–70 lakh for this. Do not put yourself or your family under such a burden. A foreign degree alone is not a stamp of your worth.' Justice Gavai said the trend also reflects a deeper structural concern, that of a lack of confidence in India's postgraduate legal education and research. 'If we want to keep our best minds or bring them back, we must create nurturing academic environments, offer transparent and merit-based opportunities, and most importantly, restore dignity and purpose to legal research and teaching in India.' SC Judge Justice PS Narasimha, CM A Revanth Reddy, Acting CJ of the Telangana HC were present.
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Business Standard
20-06-2025
- Business
- Business Standard
Man compensated for lost airline baggage: 'Landmark' win for consumers
The Delhi State Consumer Commission last month asked low-cost airline SpiceJet to pay Rs 2 lakh compensation to a passenger for losing his checked-in baggage that contained gold jewellery and expensive clothes. Legal experts believe the case could shape how airlines handle compensation claims. 'This case holds significant importance for consumers, particularly concerning their rights when engaging with service providers such as airlines. It firmly establishes that service providers cannot unilaterally impose terms and conditions without ensuring they are adequately brought to the consumer's notice,' said Chirag Gupta, associate partner at law firm Alpha Partners. Gupta said the airline failed to show that liability-limiting conditions were properly disclosed. 'This judgment reaffirms a fundamental duty of care upon service providers for goods entrusted to them, acting as bailees,' he said. Hidden disclaimers Alay Razvi, managing partner at Accord Juris, said the commission's ruling (On May 27) clarifies disclaimers must be clearly disclosed. 'Terms significantly affecting liability like 'no valuables in checked baggage' must be clearly and prominently communicated, not buried in fine print,' Razvi said. Airlines are obliged to deliver baggage safely, said Razvi. 'A failure to do so is actionable as a deficiency in service. Even standard airline claims like liability per kg can be overridden by consumer commissions upholding statutory rights and broader standards of fairness.' Razvi noted that 'compensation isn't limited to tangible losses, mental agony from such incidents can fetch substantial damages,' referring to the Rs 1.5 lakh awarded for mental harassment in the SpiceJet case. Legal principles Harsh Khabar, an advocate at the Delhi High Court, explained the legal framework applied by the commission 'The District and State forums emphasised the onus to take care of the goods is upon the bailee under Sections 151 and 152 of the Contract Act, 1872,' he said. The case illustrates how operators 'cannot take advantage of terms and conditions to give a lesser compensation than the damage incurred by the customer,' especially when such terms are not reasonably visible. 'The operator of the airline is solely responsible for the handling of the baggage and the same should be done diligently. The aggrieved consumer need not claim only the actual damages incurred, but can also claim mental harassment caused by the loss of such goods,' said Khabar Business Standard reached out to SpiceJet for a response to the Commission's ruling and related queries, but the airline did not respond till the time of publishing.
The Star
18-06-2025
- Politics
- The Star
Warisan can sue defectors RM10mil but may not get full amount, says lawyer
KOTA KINABALU: Parti Warisan can pursue legal action against those who betray the party but may not get the RM10mil they seek, says a lawyer. Datuk Roger Chin said while the party can sue if they choose, any chance of success would depend on contractual validity and whether the RM10mil penalty is considered "reasonable." He said the case involving former PKR vice-president Zuraida Kamaruddin sets the legal precedent. In the case, the KL High Court ruled that Zuraida had signed a legally binding bond promising RM10mil if she defected and ordered her to pay the party that amount. However, the Court of Appeal deemed the sum as "unreasonable and extravagant" under Section 75 of the Contract Act, and reduced it to RM100,000 (minus costs). "This ruling confirms that while bonding candidates is legally permissible, courts will significantly reduce penalties considered punitive or out of proportion," said Chin, who is also former Sabah Law Society president. He said Warisan president Datuk Seri Mohd Shafie Apdal's recent statement that party candidates would be asked to sign a loyalty pledge and defectors would be sued RM10mil is a mirror of the PKR bond He said courts would evaluate two key criteria – the validity of the contract (i.e. the bond must be properly signed, with informed consent) and the reasonableness of the sum, which the court would compare to actual losses incurred. "Based on the Zuraida precedent, RM10mil would almost certainly be deemed excessive," Chin said. On Tuesday (June 17), Shafie warned that Warisan candidates contesting in the upcoming Sabah state election who act against the party would face a RM10mil penalty.
New Straits Times
20-05-2025
- Automotive
- New Straits Times
Lemon law on the table to protect car buyers
KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry has drafted a cabinet paper proposing amendments to the Consumer Protection Act 1999 to include "lemon law" provisions, aimed at bolstering consumer rights in the automotive industry. Deputy Minister Fuziah Salleh told the New Straits Times that the paper will be submitted for policy approval at the cabinet level before amendments to the act are implemented. She said the ministry is currently obtaining feedback from relevant ministries and agencies, such as the Finance Ministry, the Attorney-General's Chambers, Economy Ministry, Transport Ministry and Investment, Trade and Industry Ministry. Fuziah said this follows the completion of a six-month legal study on lemon law, conducted from June to November last year. The study was initiated to assess and recommend the necessary steps to be taken to enhance consumer protection in the automotive industry. "Based on the findings of the study, the ministry concluded that there is a need to establish a specific legal framework such as a lemon law to address issues and limitations related to consumer protection in the automotive industry. "Since the Consumer Protection Act already provides mechanisms for remedies and dispute resolution in line with the fundamental principles of lemon law, the ministry is of the view that it is appropriate for these legal principles to be integrated through amendments to the act. "This would strengthen the existing provisions and establish new regulations that will outline more detailed procedures or mechanisms for dispute resolution, particularly for compensation claims involving new vehicles. "Integrating these principles through amendments to the act is seen as a practical and effective approach," she said. Currently, there are four existing legislations with lemon law features namely the Consumer Protection Act, the Contract Act, the Sale of Goods Act and Hire-Purchase Act 1967.
Mint
20-05-2025
- Business
- Mint
Jumping jobs? A Supreme Court judgement just made it tough, especially for freshers
In a development that has the potential to lower attrition rates across industries, a Supreme Court judgement late last week allowed employers to enforce a service bond. The court order clarified that companies can mandate a minimum tenure and recover training costs from employees who leave prematurely without worrying that it will violate the country's contract law. The judgment stemmed from a dispute where an employee–Prashant B. Narnaware of Vijaya Bank–was required to pay ₹2 lakh as 'liquidated damages' for quitting his job before completing a mandatory three-year service. While the Karnataka High Court ruled in favour of Narnaware, the apex court reversed the judgement in its order on 16 May. 'From the prism of employer-employee relationship, technological advancements impacting nature and character of work, re-skilling and preservation of scarce specialized workforce in a free market are emerging heads in the public policy domain which need to be factored when terms of an employment contract is tested on the anvil of public policy," the court said in its order that has been seen by Mint. Also read: Beyond the layoffs: Startup hiring cools as AI, money worries sweep businesses The order further stated that the service bond in Vijaya Bank's appointment letter did not constitute a 'restraint of trade"–a legal principle enshrined in Section 27 of the Contract Act that typically prohibits agreements restricting someone's right to practice a lawful profession–and was also not opposed to public policy. Experts said the ruling would pave the way for both public and private sector firms to incorporate and enforce such clauses to protect their training costs and curb early attrition, as long as they keep the terms reasonable and accurately estimate the costs involved. For instance, 'training bonds'–meant for freshers and junior roles–are already popular in the IT and ITeS sector. Typically ranging from six months to a year with amounts between ₹50,000 and ₹1 lakh, these bonds cover the costs of training new employees and are also used when employees are sent abroad for projects, recognizing the exposure and experience gained. The latest order will see widespread adoption of such practices beyond the IT and ITeS sector, experts said. Also read: Code junkies make way for AI pros as skills landscape shifts 'The employer can implement such a term of employment and enforce it in case of breach by the employee, by recovering the costs incurred including for training," said Vikram Shroff, partner for employment law at AZB & Partners, while adding that companies need to ensure that 'conditions imposed are reasonable in nature and are not treated as restraint of trade". At the same time, lawyers point out that it cannot be a penalty. 'The amount payable under bond is not a penalty, as penalty is non-enforceable. It would be in the nature of liquidated damages, which assumes general pre-estimate of damages," noted Arka Majumdar, employment law partner at Argus Partners. The judgement comes at a time when hiring is going through a sluggish period but companies remain vulnerable to losing their top talent. During the pandemic and for a year after that, attrition was at record highs with employees moonlighting, juggling counter offers and leaving within months. The latest order will impact quick exits in many firms, if applied. 'Pursuant to the latest judgement, employers across sectors may now feel more confident about including such provisions in their contracts, but it remains critical that these are carefully drafted," said Anshul Prakash, partner for employment labour and benefits at law firm Khaitan & Co. Also read: Mark My : You are now reporting to your colleague or your junior! Prakash pointed out that a bond period of one-three years and compensation reflecting actual training costs or a reasonable estimate is 'likely to be enforceable". The amount should not be disproportionate to the employee's salary or arbitrary. Both private and public sector firms are likely to follow suit. 'While the order pertains to PSUs, it is not limited to PSUs only and it could lead to private players reworking their employment contracts," said Adil Ladha, partner at Saraf and Partners. 'What constitutes training costs and how much should be recoverable in case of an early exit will be decided by companies on their own and, therefore, employees must pay attention to such clauses." However, Majumdar of Argus Partners expects public and private sector service bonds to be assessed differently, with courts applying more scrutiny to private sector bonds.
