Session1:

Indian Contract Act was made in 1872. There are pre adopted laws too even after we are sovereign.
2013 sexual harassment act came in. What about before that?

There were Vishakha Guidelines came from Supreme Court. There is provision in the law that
judiciary body can take decisions on the topics which are not covered in the law.

Laws are amended, removed and new ones are coming in continuously.

There is common law, judgements which make up the law.

Rule of law: which has to be followed.

Indian Contract Act:

 You cannot force people into the contract, you need consent
 Pro-quid-pro- always has to be some consideration
 Contracts cannot be for illegalities
 Coercion is not allowed.
 If someone cannot perform, they can pay an equivalent amount i.e. damage fees.

Elements has to be seen. Which are Offer, Acceptance, Consideration, Capacity, Consent, Intention
to Create legal Relationships, Certainty, Possibility of Performance.

Offer + Acceptance = Promise

Promise + Consideration = Agreement

Only agreements which are enforceable are the contracts. We want any commercial contract to take
place. Not only written contracts are enforceable, written are also allowed. We look at issue of law
and issue of fact (did it happen or not happen). Higher courts always look at issue of law.

Session 7:

Lateral and horizontal kind of agreements. Abuse happens when a company is in a dominant
position. Competitive forces don’t affect them but they can affect the consumer. Two ways to be anti
competitive either abuse of dominant position or AAEC (Agreement). Anti competition has two or
more parties whereas abuse of dominant position is a one big firm in a dominant position.

You get a arbitrator who ensures there is a conversation between the two and also moderates the
conversation. The motive is to find a solution to the issue.

Predatory pricing: pricing in such a way that your competitors are unable to make the sale.
Predatory pricing comes under dominant position.

We have to check if there is a abuse there are many types of it.

CONSUMER PROTECTION ACT

You have this right as a consumer. Who is a consumer? Described in Section 2(d): buyer of the good
for some consideration, where consideration can be either paid in full or unpaid at the time or in
installments, it does not matter. Either we are using it for ourself or for someone else and if that
someone else is using the product after your approval then they are also the consumer. If you are
buying it for commercial use then you are not a consumer. In some cases you may require explicit
permission and in some you may not.

• Section 2(d): Consumer means any person who: • (i): Buys any good for consideration ...or • (ii)
hires or avails of any services for a consideration…

Cases to Refer:

BALA ENTERPRISES VS. CHIEF POST MASTER GENERAL

• Bala Enterprises sent cut and polished diamonds to M/s. Nofi Jewellers, Dubai by Speed Post
through the Foreign Post Office in Delhi. The consignments did not reach their destination. Bala
Enterprises filed a case for damages and compensation. According to the Foreign Post Office, the
diamonds, after completion of necessary formalities, were handed over to Emirate Airlines and were
to be airlifted by its flight No. EK-703 dated 26.11.1995. 25

• All was not well when the consignment reached Dubai Airport. Case of the Foreign Post Office thus
was that mischief took place only after the bag containing consignments had been handed over to
Emirate Airlines staff. Bala Enterprises applied to make Emirates Airlines a party to the case. This is
called ‘impleading’ the party. Can this be allowed?

JUDGEMENT: NATIONAL COMMISSION • It is difficult to understand how on the averment of the

Foreign Post Office, complainant can claim any cause of against Emirate Airlines. There was no
privity of contract between the complainant and the Emirate Airlines. … Complainant did not pay any
charges to the Emirate Airlines to carry the goods to Dubai.

K SYED MOHAMED COMPANY VS. PUNJAB NATIONAL BANK

• K. Syed Mohamed Company is based in Singapore. He has account with the Indian Bank, Singapore.
The Indian Bank in Singapore sent to the Punjab National Bank relevant documents for presentation
to the buyer in India. The Punjab National Bank failed to do this.

JUDGEMENT: NATIONAL COMMISSION

• It is not the bank of the complainant (Company) and there is no consideration, which passed
through the complainant to the opposite party (PNB) to hold the opposite party (PNB) guilty of
negligence and thus deficiency in service. This complaint fails.

R. BALRAJ VS. GRINDLAYS BANK AND THE STATE BANK OF INDIA

FACTS • Mr. Budhar has a bank account with the Grindlays Bank, Bombay Branch. He requested the
bank to make ‘Telegraphic Transfer’ of money to his brother T. Balraj in his account in the State Bank
of India, Kaveripattinam. The Grindlays Bank in Bombay transferred the money through the State
Bank of India in Mumbai. By mistake, the State Bank of India sent the money to its Dharmapuri
District Branch. It was a telegraphic transfer to expeditiously receive money, Mr. Balraj received the
money after two and half months. • Mr. Balraj moved the State Commission against the Grindlays
bank and the State Bank of India claiming compensation for negligence and deficiency in service.
Cont…

JUDGEMENT: NATIONAL COMMISSION

• Neither the complainant nor his brother … had hired the services of the State Bank of India at any
time for any consideration. There was no privity of contract or hiring of the services of the State
Bank of India. The State Bank of India acted only as agent of the Grindlays Bank in effecting transfers
and is thus not responsible to the complainant or his brother …. The complainant is not a consumer
qua the State Bank of India., therefore fails on this short groA consumer means any person who
hires or avails of any service for consideration. It cannot be said on the facts established on record
that the complainant is a consumer who has hired the services of the State Bank of India for
consideration. The complaint against the State Bank of India und and is hereby dismissed.

GAUHATI COOPERATIVE URBAN BANK LIMITED VS. SANTOSH KUMAR TEWARI

FACTS

• Santosh Kumar Tewari, in response to an advertisement, applied in the prescribed form for
allotment of equity shares of Rs. 10/- each of Tata Elaxi Ltd. He was unsuccessful in getting the
allotment. The company sent refund vouchers, through its banker, the Gauhati Cooperative Urban
Bank Limited. The refund voucher was an account payee cheque in favour of Santosh Kumar Tewari.
It appears that the Bank did not send the cheque by registered post. The next Mr. Tiwari learnt was
that the cheque was encashed from one of their branches. Another person had managed to get
possession of the cheque, created an account pretending to be Mr. Tewari and encashed the
cheque. This had happened to several people.

• The Reserve Bank of India investigated the fraud. According to its investigations, in most of the
cases the branch officials of the Banks had not strictly followed guidelines/instructions for opening
new account and which facilitated fraudulent encashment. The Reserve Bank of India had advised
that as per the existing instructions the Banks are expected to reimburse the genuine
investors/account holders.

JUDGEMENT: NATIONAL COMMISSION

• Hiring of services for consideration is a condition precedent to make a person consumer. The
complainants (Tiwari and others) had to establish the hiring of the services for consideration. In fact
no evidence was led by the complainants before the State Commission that the services of the
Appellant or other Banks were hired by the complainants for consideration. … 38 BANK OF INDIA VS .
H.C.L. LIMITED 39 FACTS • HCL Ltd. is engaged in the business of manufacturing, leasing and selling
computers. It entered in an agreement with Dealwell Estates Pvt. Ltd. to supply it computer
equipment. Towards supply of equipment, HCL Ltd. got DealWell Ltd. to arrange an irrevocable bank
guarantee in its favour. DealWell arranged for this with the Bank of India. The Company invoked the
bank guarantee and asked the Bank to make the payment. The bank refused to make the payment.
The HCL Ltd. filed a complaint before the State Commission claiming deficiency in service. The case
has come before the National Commission in appeal. The bank has raised the contention that the
Company there is no privity of contract and thus, the company is not a consumer.

JUDGEMENT: NATIONAL COMMISSION • The bank guarantee got issued by the Firm (DealWell) from
the Bank favouring the Company (HCL). Company is therefore clearly the beneficiary of the contract
of service that is entered into between the Firm and the Company and, therefore, the Company falls
under the definition of "consumer" as given in Section 2(1)(d) of the Act. 41

MUMBAI GRAHAK PANCHAYAT VS. DR. RASHMI B. FADNAVIS

FACTS • Dr. Fadnavis, gynaecologist, operated upon Mrs. Pilanker, who died immediately after the
operation. It was a case of medical negligence. The anaesthetist was arranged by Dr. Fadnavis. The
State Commission gave an order that there was no privity of contract between the Anaesthetist and
the patient. Thus, even if the Anaesthetist was negligent, the patient would not have a claim against
him. The case came before the National Commission.

We can also hire services or a product. Same case either you buy it or you approve someone else to
use it.

What about a hybrid: when a consumer uses the product for personal use as well as for commercial
use. If the product is bought for both but primarily for the purpose of earning a livelihood as self-
employment then they are the exception from commercial purpose.

Key Words: Self-employment, Earning a livelihood, uses for himself/herself.

Can a company be called a consumer: Yes, but they should pay the consideration or make a promise
to pay it.

No privity of contract:

We have to look at what is being questioned that is question of law. Was there a service? Is the
service being paid a consideration?

For goods we look at the word “defect” for a service we look at “deficiency” and lastly prices,
escalation of prices from MRP is something you have to be protected against.

Complaint has to be in writing otherwise it is not considered.

Consumer Rights:

There are many laws and many are good but there is a lack of awareness and the faith in the law is
very low at times. There is a time limit for a redressal of consumer protection act: 21 days

Two years for raising a complaint from the time the problem had happened.

You can file a complain for a deficiency or a defect.

Wilful act or happens by the way. Services are divided as completely free, partly free and free for
underprivileged.

IT ACT: It is still evolving. It has recognized digital signatures. Universal pass for COVID- can be used
for travelling. Electronic records which do not exist physically but only in electronic databases. 498e:
dowry which is a non-bailabe offence.
Session 8:

Bank has a lot of information on us: mobile numbers, address, financial transactions. It can be used
by someone for spamming, or our credit card numbers. Recently someone reported that their pan
card had been used to take a small loan on their name which has affected their credit score, digital
reputation. Someone can impersonate you. Bank requires this data.

The act states that if you are handling some sensitive personal data, negligent in maintain
reasonable security practices and that has led to a wrongful loss or gain to someone. Then you are
liable to pay the compensation.

If something is freely available in the public domain then it is not a sensitive information.

There has to be authorization if you want to decrypt any information.

LABOUR LEGISLATIONS

Unilateral decision: there is no discussion on it. Promoters’ lifestyle did not change but they had let
go of many employees.

It is stated that labour should not exceed working in the factory for more than 8 hours which is to
avoid economic exploitation and physical exertion. Always ask the question what evil does it seem to
avert. Women should not work between 11-6, it is trying to avoid unsafe work spaces because at
night it is difficult to monitor.

Ad hoc is a temporary position. Equal pay for equal work should be there but the quality of work can
differ. No distinction is allowed on health and safety. Company undercounts the contract workers
and makes changes in their JDs to pay them less. Onus of proof is on the person who is asking for
equality.

Right to life means right to life with dignity, the law for sexual harassment has come from this act.

PUDR vs. the Union of India- Shanti’s case.

Force of economic condition is also forced labour.

Effect of increase in maternity leave to 6 months: leave for pay is the issue, organizations are
discouraging for women to apply or they are considering these things while hiring them.

Directive Principles of State Policy (DPSP)

Interpretation of the statutes:

Constitutional values will guide the interpretation of statute first and foremost.

If an already existing case is their it will become a binding nature.

English law: Those interpretations can still be used.

Unions can be formed by anyone but it is not formed because we feel we’ll be targeted and there is
no need.

29 national level labour laws can be made into 4 codes now. Which has been passed by both rajya
sabha and lok sabha. Rules have also been created for them however notification hasn’t happened
which means it is still ambiguous.
Session 9:

9 hours and 48 hours a week one can work. Factories act is a central act and shops and
establishment differs state wise.

Factories act and contract labour act is applicable to all the establishments. Differentiation in salary
comes not only from the kind of work they do but also from the level on which they belong to. Shops
and establishment act is similar to factories act the difference is factories act includes manufacturing
process is happening (Physical element is involved)

You are employing 10 people with power or 20 w/o power. You can register as a factory when you
fulfil these conditions- 9 hours a day and 48 hours a week, one day of in every 7 days, for every 5
hours of working you need half an hour break included in the 9 hours a day.

You can make the employee go over 9 hours and 48- it should be properly notified, they have to be
paid proper wages which is double and it should be notified.

Factories act also says that women can not work at night. 10-7 not allowed.

Women are actually disadvantaged because of this: so they said if proper conditions are there and
safety is ensured then with the consent of women they can work.

Women cannot work in hazardous work.

Contract workers can only be taken in non-core activity.

The code on wages: payment of wages act talks about how the payment has to made, when it has to
made what all are the deductions that can take place. Advisory board is new, manner of raising claim
is new.

Dearness allowance is compensation for the money which is lost due to inflation. Statutory bonus is
governed by law, it states this much has to be paid.

Now PF and other heads are based on basic pay and thus the employers want to keep this number
low so that the other heads do not increase.

Subsistence allowance is given to an employee on him/her being suspended (if an enquiry or is being
set up against) based on the number of days of suspension.
Minimum wages: Stated by every state, also the central scheme of MGNREGA also is there, but in
few, the problem of this minimum wage being higher than central minimum wage is there, so the
concept of floor wage is introduced.
Now every state can bring out their new minimum wage list but in no way can this be lower than the
floor wage. If a state has a minimum wage higher than floor wage then, the higher one is considered.

Under bonus: even wages wont be paid for under sexual harrasment

Now a new thing in code is inspector-cum-facilitator, earlier it was just inspector.