3 Mercantile Law Assignment Questions
3 Mercantile Law Assignment Questions
"Nothing herein contained shall affect any usage or ……….inconsistent with the
Act." it is completely bound by the customs, and it is not against the public policy.
So the legal body considered it and registered it as a legal obligation.
Similarly, we can understand all the principal sources of Mercantile Law only with
the Mercantile Law examples.
Hence, by observing the meaning of Mercantile, we came to know easily that the
scope of Mercantile is very wide, and each source of Mercantile Law plays a
predominant role. As it deals with all commercial activities of your company or an
individual, it is good to have sound knowledge of all other acts which are included
in the Mercantile Law.
Mercantile Law was the name given to that law which evolved in England from
the years of customs and rules between businessmen and traders relating to
their transactions, which evolved over the years. It gradually became part of the
Common Law of England.
Law Merchant: Law merchant is the main source of Mercantile law. It refers
to those customs and rules that apply to traders and businessmen on their
dealings and tradings with each other.
Statute Law: Statute law is that law that has been created by the
legislation. A statute is a formal act of the legislature in
written form. It has also become an important source of
Mercantile law.
The Principle of Equity: The principle of equity refers to a set of rules, which
neither originated from customs nor statutory law. Thus, equity rules were
formed on the basis of dictates of conscience which had been decided in the
courts of chancery.
Common Law: Common law consists of a body of rules, which have been
defined by customs, judicial decisions and old scholarly works in the law. It is
the unwritten law of English which applies to everyone in the
country. Common law, in this case, refers to the principles of law that have
been evolved by judges through their case judgments.
Before the year 1872, business transactions were regulated by the personal law
of individuals who were in involved in legal matters. During 1872, the Indian
Contract Act was brought into existence, which codified and recognised unified
principles of mercantile law. Since then, many Acts have been introduced to
regulate transactions that relate to monetary transactions, partnerships, the sale
of goods, etc.
The Indian mercantile law is heavily based on the English one. Although,
necessary changes made to suit the context of Indian conditions, local customs,
and rules.
The major acts that have been enacted by the Indian legislation which are
related to mercantile law are:
Judicial Decisions
Thus, judicial decisions or precedents often become new rules or laws. The
judicial decisions are universally considered as a source of law.
Customs and Trade Usages
A very large part of Indian Law has finally been codified. However, many
Indian statutes make special provisions. Thus, the effect of rules laid down in a
particular act is conditional to any special custom or usage of trade.
Let’s try and understand this with an example. Section 1 of the Negotiable
Instruments Act, 1881 says this. ‘Nothing herein contained…affects any local
usage relating to any instrument in any local language’.
The acceptance of the offer is the agreement to a request or proposal. The acceptance
can be oral or written, but it must be unequivocal and unconditional to have legal effect.
An offer, once accepted, becomes a binding contract.
For a contract to be legally binding, both parties must agree to the terms. There are two
ways that a person can accept an offer: by responding with an affirmative statement or
by performing the actions required by the proposal. If a person does not accept an offer
within a reasonable amount of time, then they may lose their right to do so at all.
The Indian Contract Act, 1872 governs India’s offer and acceptance of contracts. The
act applies to agreements made in India.
The act defines an offer as a proposal of an agreement communicated to the person
with whom it is proposed that the contract shall be concluded and accepted by him. It
also defines acceptance as an indication of willingness to terminate the agreement on
the terms offered.
Offer and Acceptance:
The Indian Contract Act, 1872 defines an offer as a proposal for a bargain that the
offeror may or may not be willing to conclude. The offeror has a right to withdraw or
cancel the offer at any time before the offeree accepts it.
If an offer is accepted, it becomes a contract and its terms bind both parties. The
intention is to become binding as soon as it is received by the person it addresses.
Once an offer has been accepted, it can’t be withdrawn without the consent of the
person who gets it.
The Indian Contract Act, 1872 has set out detailed provisions for the offer and
acceptance of an agreement. The act defines an offer as a promise to do or abstain
from doing anything, made with the intention that it shall become binding on the person
making it when accepted by the person to whom it is made.
An offer is not complete until communicated. It becomes a contract if an offer is
transmitted to the offeree either orally or in writing. It can be shared by post or any other
form of communication like a phone call, email, etc.
Every proposal must be communicated before becoming a contract. If you make an
offer and your counterpart does not know about it, you have not committed to anything
and cannot be held liable for breach of contract if the parties are refused.
Offer accepted
An offer is an expression of willingness by a party (the offeror) to be bound to specific
terms (or conditions) on the acceptance of those terms (or states) by another party (the
offeree).
Accepting an offer must be communicated to the person who made the offer so that the
person understands and generally in a way that can be unambiguously interpreted as
acceptance. If the terms of an offer are such that they cannot be accepted, then it is
said to be rejected.
Offers can be either definite or indefinite. A definite offer specifies the exact terms of the
offer, including the price and other material details. An indefinite offer does not define all
the terms but instead provides general information about the offer.
In general, the offer is communicated from one party to another. The other party must
then accept the offer for the contract to be legally binding.
An example of an offer and acceptance will be if a company offers a new customer a
discount on their first purchase of 50% or more. The customer accepts this offer by
making that purchase, and then they are obligated to pay that price for their purchase.
Types of Acceptance:
Expressed Acceptance: This type of acceptance is the person who offers the acceptance and makes it
clear that they are accepting. It can be verbal or written.
Implied Acceptance: This type of acceptance is when the person does not say no, but it is evident in their
actions that they are accepting.
Unspoken Acceptance: This type of acceptance is when a person does not say no, but it is unclear whether
they are accepting or not in their actions.
Conclusion:
For a contract to be valid, there must be an offer and acceptance between the parties
involved. It means that there needs to be an offer made by one party, which the other
party accepts. The contract can then come into existence when both parties have
fulfilled their obligations under the agreement.
Introduction
Contracts play an important role in our everyday life ranging from insurance policies to employment contracts. In
Fact, we enter into contracts even without thinking, for example, while buying a movie ticket or downloading an
app. The contract is oral or written agreements between two or more parties. Parties entering into a contract might
include individual people, companies, non-profits or government agencies. The whole process of entering into a
contract starts with an offer by one party, an acceptance by another party, and an exchange of consideration
(something of value). Let us take a look at the aspect of offer and acceptance.
Proposal or offer
The entire process of entering into a contract begins with the proposal or an offer made by one party
to another. The proposal must be accepted to enter into an agreement.
According to the Indian Contract Act 1872, proposal is defined in Section 2(a) as “when one person
will signify to another person his willingness to do or not do something (abstain) with a view to obtain
the assent of such person to such an act or abstinence, he is said to make a proposal or an offer.”
The offeror must express his willingness to do or abstain from doing an act. Only willingness is not
adequate. Or just an urge to do something or not to do anything will not be an offer.
An offer can either be positive or negative. It can be a promise to do some act, and can also be a
promise to abstain from doing any act/service. Both are valid offers.
The element of a valid offer
Here are some essentials which make the offer valid
Example
‘A’ proposes, to sell a car to ‘B’ at a certain price. Once ‘B’ receives the letter, the proposal communication is
complete.
Example
‘A’ invited ‘B’ to dinner and ‘B’ accepted the invitation. It is a mere social invitation. And ‘A’ will not be liable if
he fails to provide dinner to B.
Express Offer
An offer may be made by express words, spoken or written. This is known as Express offer.
Example
When ‘A’ says to ‘B’, “will you purchase my car for Rs 2,00,000”?
Implied Offer
An offer may be derived from the actions or circumstances of the parties.
Example
There is an implied offer by the transport company to carry passengers for a certain fare when a transport company
operates a bus on a particular route.
General Offer
A general offer is not made by any specified party. It is one that is made by the public at large. Any member of the
public can, therefore, accept the offer and have the right to the rewards/consideration.
Example
‘A’ advertises in the newspaper that whosoever finds his missing son would be rewarded with 2 lakh. ‘B’ reads it
and after finding the boy, he calls ‘A’ to inform about his missing son. Now ‘A’ is entitled to pay 2 lakh to ‘B’ for
his reward.
Specific Offer
It is the offer made to a specific person or group of persons and can be accepted by the same, not anyone else.
Example
‘A’ offers to sell his house to ‘B’. Thus, a specific offer is made to a specific person, and only ‘B’ can accept the
offer.
Difference between General Offer and Specific
Offer
General Offer Specific Offer
A general offer can be considered by any A specific offer can be accepted by only a specific
person. person.
Cross offer
Two parties make a cross-offer under certain circumstances. It means that both make the same offer at the exact time
to each other. However, in either case, the cross-offer will not amount to accepting the offer.
Example
‘A’ and ‘B’ both send letters to each other offering to sell and buy B’s house at the same time. This is the cross offer
made where one party needs to accept the offer of another.
Counter-offer
A counter-offer is an answer given to an initial offer. A counter-offer means that the original offer has been refused
and replaced by another. The counteroffer offers three choices to the original offerer; accept, refuse, or make another
offer.
Example
‘A’ agreed to sell the property to ‘B’ by a written document which stated “this offer to be left over until Friday 9
AM”. on Thursday ‘A’ made a contract to sell the property to ‘C’. ‘B’ heard of this from ‘X’ and on Friday 7 AM he
delivered to ‘A’ acceptance of his offer. Held ‘B’ could not accept A’s offer after he knew it had been revoked by
the sale of the property to C.
Acceptance
The Indian Contract Act 1872 defines acceptance in Section 2 (b) as “When the person to whom the proposal is
made signifies his assent thereto, the offer is said to be accepted. Thus the proposal when accepted becomes a
promise.” An offer can be revoked before it is accepted.
As specified in the definition, if the offer is accepted unconditionally by the offeree to whom the request is made, it
will amount to acceptance. When the offer is accepted it becomes a promise.
Example
‘A’ offer to buy B’s house for rupees 40 lacs and ‘B’ accepts such an offer. Now, it has become a promise.
When an offer is accepted and it becomes promise it also becomes irrevocable. No legal obligation created by an
offer.
Types of Acceptance
Expressed Acceptance
If the acceptance is written or oral, it becomes an Expressed Acceptance.
Example
‘A’ offers to sell his phone to ‘B’ over an email. ‘B’ respond to that email saying he accepts the offer to buy.
Implied Acceptance
If the acceptance is shown by conduct, It thus becomes an Implied acceptance.
Example
The Arts Museum holds an auction to sell a historical book to collect charity funds. In the media, they advertise the
same. This says that a Mere Invitation to an Offer as per Indian Contract Act, 1872.
The invitees offer for the same. Offer is expressed orally, so the offer to buy is an Express Offer, but by striking the
hammer thrice the final call is made by the auctioneer. This is called Implied Acceptance.
Conditional Acceptance
A conditional acceptance also referred to as an eligible acceptance, occurs when a person to whom an offer has been
made tells the offeror that he or she is willing to accept the offer provided that certain changes are made to the
condition of the offer. This form of acceptance operates as a counter-offer. The original offeror must consider a
counter-offer before a contract can be established between the parties.
Conclusion
Examination of offer and acceptance is a standard contract law method used to assess whether a two-party
arrangement exists. An offer is a sign of their willingness to agree on certain terms from one person to another. If
there is an express or implied agreement, a contract will then be formed. A contract is said to come into being when
the acceptance of an offer has been told to the offeror by the offeree.
The communication of the offer shall be complete when it comes to the knowledge of the person to whom the offer
is made and the communication of the acceptance shall be complete when the acceptance is put in a course of
transmission to the offeror. Therefore, offer and acceptance are the essential elements of a contract and in either
case, it should be done on the basis of one’s free will and with the intention of concluding a legally binding
agreement.
References
1. https://blog.ipleaders.in/definition-essentials-offer-acceptance/
2. https://thefactfactor.com/facts/law/civil_law/contract_laws/indian_contract_act/communication-of-
acceptance/2575
3. https://law.freeadvice.com/general_practice/contract_law/kind_acceptance.htm
4. https://www.toppr.com/guides/business-laws/indian-contract-act-1872-part-i/acceptance/
5. https://www.legalbites.in/offer-and-acceptance/
Indian Contract Act 1872: Part I
If the parties are talking face-to-face this is not a problem. The communication
happens in real time and the offer and acceptance will be communicated on the
spot, creating no confusion.
But often times in business the communication occurs via letters and emails
etc. So, in this case, the timeline of communication is important.
Communication of Offer
Section 4 of the Indian Contract Act 1872 says that the communication of the
offer is complete when it comes to the knowledge of the person it has been
made to. So when the offeree (in case of a specific offer) or any member of the
public (in case of a general offer) becomes aware of the offer, the
communication of the offer is said to be complete.
So when two people are talking, face-to-face or via telephone, etc the
communication will be complete as soon as the offer is made. Example if A
tells B he will fix his roof for five thousand rupees, the communication is
complete as soon as the words are spoken.
Let us take the same example. A writes to B offering to fix his roof for five
thousand rupees. He posts the letter on 2nd July. The letter reaches B on 4th July.
So the communication is said to complete on 4th July.
Communication of Acceptance
Mode of Acceptance
Timing of Acceptance
Revocation of Offer
The Indian Contract Act lays out the rules of revocation of an offer in Section
5. It says the offer may be revoked anytime before the communication of the
acceptance is complete against the proposer/offeror. Once the acceptance is
communicated to the proposer, revocation of the offer is now not possible.
Let us take the same example of before. A accepts the offer and posts the letter
on 10th July. B gets the letter on 14th July. But for B (the proposer) the
acceptance has been communicated on 10th July itself. So the revocation of offer
can only happen before the 10th of July.
Revocation of Acceptance
Section 5 also states that acceptance can be revoked until the communication of
the acceptance is completed against the acceptor. No revocation of acceptance
can happen after such date.
Ans: Yes. The acceptor can revoke the offer until the communication of the
acceptance is complete against the said acceptor. Such communication is
complete when the proposer receives the letter of acceptance. So in the time
frame between posting the letter and the letter being received by the proposer,
the acceptor can revoke the acceptance.
What is Acceptance?
According to the Indian Contract Act, 1872, an offer is deemed to be completed
only when it is followed by an acceptance from the party/parties to whom the
offer has been made. Let’s make it more clear through acceptance meaning,
examples, conditions and rules of acceptance.
Acceptance Meaning
As per the Indian Contract Act 1872, Section 2 (b), acceptance is defined as
“When the person to whom the proposal has been made signifies his assent
thereto, the offer is said to be accepted. Thus the proposal when accepted
becomes a promise.”
When an offeree (person to whom the offer is made) gives his unconditional
consent to the offer made to him by the offeror, it is considered as an acceptance
given by the offeree. Acceptance is important for an offer to be considered
complete and to become a promise. Let’s give you an example of the same.
Example
A makes an offer to B for buying his house for 50 lakh. B agrees to this offer.
This is called acceptance of the offer.
An offer before acceptance does not create any legal obligations between the
parties but once the offer is accepted, it becomes a promise and it is irrevocable.
This means that after acceptance is given by the offeree, it creates legal
obligations between the concerned parties, with respect to the offer made. Once
acceptance is given and communicated, it cannot be withdrawn or revoked.
However, the offer can be revoked before acceptance is given.
There are two types of bill acceptances: general acceptance and qualified
acceptance. When widespread acceptance is unqualified and unconditional, it is
referred to as absolute acceptance.
Section 73 clearly states that the party who has suffered, since the other
party has broken promises, can claim compensation for loss or damages
caused to them in the normal course of business. Such damages will not
be payable if the loss is abnormal in nature, i.e. not in the ordinary course
of business.
1] Recession of Contract
When one of the parties to a contract does not fulfil his obligations, then the
other party can rescind the contract and refuse the performance of his
obligations.
As per section 65 of the Indian Contract Act, the party that rescinds the contract
must restore any benefits he got under the said agreement. And section 75
states that the party that rescinds the contract is entitled to receive damages
and/or compensation for such a recession.
Such damages will not be payable if the loss is abnormal in nature, i.e. not in
the ordinary course of business. There are two types of damages according to
the Act,
This means the party in breach will actually have to carry out his duties
according to the contract. In certain cases, the courts may insist that the party
carry out the agreement.
So if any of the parties fails to perform the contract, the court may order them
to do so. This is a decree of specific performance and is granted instead of
damages.
For example, A decided to buy a parcel of land from B. B then refuses to sell.
The courts can order B to perform his duties under the contract and sell the land
to A.
4] Injunction
Quantum meruit literally translates to “as much is earned”. At times when one
party of the contract is prevented from finishing his performance of the contract
by the other party, he can claim quantum meruit.
So he must be paid a reasonable remuneration for the part of the contract he has
already performed. This could be the remuneration of the services he has
provided or the value of the work he has already done.
The laws relating to civil proceedings are governed by the Contracts Act, while
the rules relating to orders and certain functions are governed by the Special
Benefit Act, 1963.
Remedies for Contract Violations
If a promise or Agreement is broken by any parties involved we call it a Breach of
Contract. Therefore if one of the parties does not comply with the terms of the
Agreement or does not fulfil its obligations under the terms of the Contract, that is
a Breach of Contract. There are several Remedies for Contract Breach available
from the Victim. Let's take a look.
Contract Reduction
If one of the Contractors does not fulfil his or her obligations, then the other party
may withdraw the Contract and deny the performance of his or her obligations.
Such damages will not be paid if the loss is not natural in nature, i.e. not in the
normal course of business. There are two types of damage in terms of the Act,
Discontinued Damage: Sometimes Contract parties will agree to the
amount payable in the event of a Breach. These are known as liquidated
damages.
Unintended Injury: Here the amount payable for Breach of Contract is
assessed by the courts and any other relevant authorities.
So the court may issue an injunction suspending the Contractor from doing
something he has promised not to do. In a restraining order, the court suspends
the action and by order, will suspend the continuation of the illegal act.
Quantum Meruit
Quantum meruit means "earned money". Sometimes when one part of a
Contract is prevented from completing its Contract performance by another, it
may require quantum suitability.
So he should be paid a fair wage for part of the Contract he has made. This
could be the reward for the work he did or the amount of work he did.
B. Special Damages
Special damages are those damages that are collectable for the loss
arising on account of some special or uncommon circumstances. That is,
they undue the natural and probable consequences of the Breach of the
Contract.
D. Nominal Damages
These damages are in little quantity. They’re awarded merely to
acknowledge the correctness of the party to say damages for the Breach
of the Contract. Sometimes, the damages aren't associated with an
adequate remedy for Breach of the Contract. In such cases, the Court
could, at the suit of the party not in Breach, direct the party in Breach to
hold out his promise as per the terms of the Contract. This can be referred
to as the precise performance of the Contract.
If two parties are involved in a situation where a contract is required and in case one
party is not able to fulfil those requirements then it is known as breach of contract. It can
happen in both oral and written contracts. Several remedies for breach of contract are
issued by the law that people can follow.
It is possible that concerned parties involved in the agreement can solve the breach
between themselves or in certain specific conditions they can also involve the legal
methods such as court. In these cases, remedies for breach of contract are advised.
What Are The Various Types Of Breaches?
There can be different types of breach contracts such as material breaches, actual
breaches, anticipatory breaches or a minor breach. All of them involve different
conditions and address various issues. They are mentioned below:
1. Anticipatory: It involves anticipation by one of the involved parties, this type of breach may occur expressively
or through the conduct. The concerned party will communicate that they are going to commit a breach.
2. Actual: In case one of the parties involved in the contract is not able to meet the requirements or refuses to
abide by the conditions in the contract then it is formerly known as an actual breach of contract.
When one of the involved parties breaches the contract then another party can choose
to disobey conditions given in the contract. In case one of the parties participating in the
contract does not obey the rules then it stands cancelled. The concerned parties can file
a legal case for the damages that occurred. This suit is preferred to obtain damages
that occurred and act as a remedy for breach of contract.
When the court gives the restraining order it is known as an injunction. The court can
ask a person not to do a certain specific act. In case a person performs an act even
after the injunction the aggrieved party can file a case for the injunction. The suit can be
temporary or permanent depending upon the condition of the aggrieved parties.
When the court gives a particular remedy for breach of contract to both the parties
involved so that they can perform the activities according to the contract. Suit for
performance is one of the most common suits.
Quantum Meruit is defined as those contracts signed for the reasonable values of
services. When an employer hires a particular individual for an activity and if it is left
incomplete or is not performed properly then the employer can file this suit. Additionally,
the law also states that the employer must pay the employee the amount for the
services performed. In case the employee is under the express contract for a certain
specific amount then they cannot abandon the contract and the suit for the quantum
meruit is applied.
Ordinary damages: It occurs when the damages occur naturally through the breach.
Liquidated damages and penalties: In certain specific cases some contracts can
address the breaching conditions and penalties related to it. If such contracts break then
the party causing the breach must pay the amount mentioned in the contract to the
other concerned party.
Special damages: The concerned party must prove that it loses according to the
contract and claim the damages.
Nominal damages: It is a small remedy given in certain specific cases for the breach.
Vindictive damages: This breach addresses the mental and emotional suffering of the
concerned party. Generally, legal procedures such as court may take care of these
cases.
Conclusion
Breach of contract is a legal procedure introduced to protect the rights of the involved
parties. With the increase in technologies, people are using specialized methods to
break contracts. Breach of contract is a legal procedure and laws of the court should be
followed properly.
In case one of the parties is not satisfied with the contract they can break it within three
days. If the contract is broken without any prior information then the involved parties are
eligible to take legal actions. You can contact the legal professionals so that they can
explain the remedies for breach of the contract properly.
In this time of globalisation, people are now focusing on developing a safer and more
beautiful world for the future generation, demanding sustainable development.
Sustainable development is a concept that has been developed to fulfil the current
needs without harming the future ability.
This is a critical issue of the present time. Due to regular changes in climate,
economics, culture, and society, the world environment is getting affected severely.
Therefore, all the countries should focus on sustainable development that prevents
further adverse effects on the environment. Our future generation is affected drastically
by environmental pollution. So, if the countries fail to maintain sustainability, it may
destroy the future world.
Society
Socially sustainable development is related to people and society. It is a concept that
describes equal human rights and improved living conditions. In another aspect, social
sustainability development refers to healthier and livable lifestyle development. It may
include aspects related to wellness, community empowerment, health, and safety.
Environment
Environmental sustainability is a concept that is most popular in sustainable
development. When natural resources and capital get protected and preserved, it is
called environmental sustainability development. It includes soil, water, fuel, and other
natural resources. In order to maintain the long-term stability of these resources and the
environment, environmental sustainability development is paramount.
Economy
It is the most straightforward concept to understand. This pillar focuses on utilising the
resources and not over-exploiting them to generate profits. It helps to keep the capital
stable and develop the economic aspects.
Culture
Cultural sustainability is the new pillar of sustainable development. In 2010, culture was
added as an essential pillar of the sustainability concept. It is the fourth pillar of
sustainable development.
Culture defines different values, aspirations, and beliefs of a community. This kind of
development only occurs when all the other three aspects stay protected. Protecting
culture and characteristics aims to develop the future generation holistically.
Environmental issues
· Biodiversity loss
· Himalayan urbanisation
· Resource depletion
· Environment degradation
Economic issues
· Heavy population
· Unemployment
· Slew improvement
· Lack of industries
Social issues
· Corruption
· Illiteracy
· Poverty
· Women’s safety
· Sanitisation
· Lack of education
· Healthcare issues
Cultural issues
· Caste system
· Gender inequality
· Communism
· Child abuse
These are the few issues India is trying to address with appropriate measures.
Sustainable Goals
The sustainable development goals are also known as SDGs, which the United Nations
adopted in 2015. This idea has been developed for protecting the planet, ending
poverty, and ensuring that people enjoy prosperity and peace by 2030. There are 17
SDGs, and those goals are:
GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic Growth
GOAL 9: Industry, Innovation and Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and Communities
GOAL 12: Responsible Consumption and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong Institutions
GOAL 17: Partnerships to achieve the Goal
India’s progress in sustainability
India has taken various actions in order to achieve all 17 goals and sustain its
development. Some of the proactive initiatives are the Swachch Bharat mission for
sanitation and cleanliness; and the green skill development program, Namami Gange
Program, CAMPA, and National Mission for Green India, for keeping the environment
green. There are also national river conservation programs and schemes on the
conservation of natural resources and ecosystems.
Conclusion
"Sustainable development is development that meets the needs of the present, without
compromising the ability of future generations to meet their own needs."
The concept of sustainable development can be interpreted in many different ways, but at its core is an approach to
development that looks to balance different, and often competing, needs against an awareness of the
environmental, social and economic limitations we face as a society.
All too often, development is driven by one particular need, without fully considering the wider or future impacts.
We are already seeing the damage this kind of approach can cause, from large-scale financial crises caused by
irresponsible banking, to changes in global climate resulting from our dependence on fossil fuel-based energy
sources. The longer we pursue unsustainable development, the more frequent and severe its consequences are
likely to become, which is why we need to take action now.
Living within our environmental limits is one of the central principles of sustainable development. One implication of
not doing so is climate change.
But the focus of sustainable development is far broader than just the environment. It's also about ensuring a strong,
healthy and just society. This means meeting the diverse needs of all people in existing and future communities,
promoting personal wellbeing, social cohesion and inclusion, and creating equal opportunity.
If sustainable development focuses on the future, does that mean we lose out now?
Not necessarily. Sustainable development is about finding better ways of doing things, both for the future and the
present. We might need to change the way we work and live now, but this doesn't mean our quality of life will be
reduced.
A sustainable development approach can bring many benefits in the short to medium term, for example:
Savings - As a result of SDC scrutiny, government has saved over £60m by improving efficiency across its estate.
Health & Transport - Instead of driving, switching to walking or cycling for short journeys will save you money,
improve your health and is often just as quick and convenient.
The way we approach development affects everyone. The impacts of our decisions as a society have very real
consequences for people's lives. Poor planning of communities, for example, reduces the quality of life for the
people who live in them. (Relying on imports rather than growing food locally puts the UK at risk of food shortages.)
Sustainable development provides an approach to making better decisions on the issues that affect all of our lives.
By incorporating health plans into the planning of new communities, for instance, we can ensure that residents
have easy access to healthcare and leisure facilities. (By encouraging more sustainable food supply chains, we can
ensure the UK has enough food for the long-term future.)
We all have a part to play. Small actions, taken collectively, can add up to real change. However, to achieve
sustainability in the UK, we believe the Government needs to take the lead. The SDC's job is to help make this
happen, and we do it through a mixture of scrutiny, advice and building organisational capacity for sustainable
development.
“Earth provides enough to satisfy every man’s needs, but not every man’s greed.”- Mahatma
Gandhi
The sustainable development is now deeply embedded in both National and International
scenario, it is a big Global problem; therefor India has also keen concern on the protection of
environment, development and sustainable development. The depletion of natural sources,
industrialization, and urbanization, development of science and technology and also
tremendous growth of population are major threat to human survival. Ecology is common
heritage for all human being the need of society increase day by day and its effect on the
natural sources and environment, natural sources are limited and irrecoverable. Therefore it is a
pious, moral and legal obligation and duty on Government, judiciary and citizens of India to
protect, conserved and preserved the natural resources and environment with sustainable
development .The Indian judiciary and Government have emerged as most important tool for
promoting sustainable development with protection of environment and natural sources.
Introduction:
Sustainable Development is a multidimensional concept. It is widely accepted as a new policy
goal to govern human life .The etymological meaning of sustainable development is any
development which is on-going. It evokes the idea of preservation and nurturing.
Social, economic and environment all these components concept of sustainable development.
Origen of Concept- The term sustainable development was coined at the time of the Cocoyoc
Declaration on Environment and Development in the early 1970’s. Since than it has become a
trade mark of international organization dedicated to achieve beneficial development.
But For the first time, the doctrine of “Sustainable Development” was discussed in the
Stockholm Declaration of 1972. Thereafter, in 1987, the World Commission on Environment and
Development submitted its report, called “Our Common Future”, which is also known as
Brundtland G.H.Brundtland the prime minister of Norway chaired the commission, where in
an effort was made to link economic development and environment protection. In 1992, Rio
Declaration on Environment which is regarded as a significant and a milestone set anew
agenda and Development codified the principle of Sustainable Development.
The doctrine of ‘Sustainable Development’ had come to be known in 1972 in the Stockholm
declaration. It had been stated in the declaration that:
“Man has the fundamental right to freedom, equality and adequate conditions of life, in an
environment of a quality that permits a life of dignity and wellbeing and he bears a solemn
responsibility to protect and improve the environment for present and future generation–.”
But the concept was given a definite shape in a report by world commission on environment,
which was known as ‘ our common future’. This definition emanates from Our Common
Future,also knownas the Brundtland Report of the World Commission on Environment and
Development in 1987.
“Development that meets the needs of the present without compromising the ability of
the future generations to meet their own needs”.
1. a) Inter-Generational Equity: The principle talks about the right of every generation to
get benefit from the natural resources. Principle 3 of the Rio declaration states that: The
right to development must be fulfilled so as to equitably meet developmental and
environmental needs of present and future generations. “The main object behind the
principle is to ensure that the present generation should not abuse the non-renewable
resources so as to deprive the future generation of its benefit”.
2. b) The Precautionary Principle-
This is the most important principle of ‘Sustainable Development’. Principle 15 the Rio
declaration states that: “In order to protect the environment, the precautionary approach shall be
widely applied by States according to their capabilities. Where there are threats of serious or
irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing
cost-effective measures to prevent environmental degradation.”
The Principle 16 of the Rio declaration states that ’National authorities should endeavour to
promote the internalization of environmental costs and the use of economic instruments, taking
into account the approach that the polluter should, in principle, bear the cost of pollution, with
due regard to the public interest and without distorting international trade and investment.
It is quite obvious that the object of the above principle was to make the polluter liable not only
for the compensation to the victims but also for the cost of restoring of environmental
degradation. Once the actor is proved to be guilty, he is liable to compensate for his act
irrelevant of the fact that whether he’s involved in development process or not.
Development comes through industrialization, urbanization & science and technology which in
turn the main factor behind the degradation of environment. To resolve the issue, the experts
worldwide have come up with a doctrine called ‘Sustainable Development’, there must be
balance between development and ecology. Sustainable Development maintains a balance
between development and the environment. It promotes inter-generational equity, i.e. better
quality of life for present and future generations. The benefit from development ought to be
equated with the impact on the environment for such development. While development is
important or in fact necessary?. The basic concept of sustainable development aims to maintain
a balance between economic advancement while protecting the environment in order to meet
the needs of the present as well the future generations.
The principle of 10 of Rio declaration, 1992 states that “Environmental issues are best
handled with participation of all concerned citizens, at the relevant level. At the national level,
each individual shall have appropriate access to information concerning the environment that is
held by public authorities, including information on hazardous materials and activities in their
communities, and the opportunity to participate in decision-making processes. States shall
facilitate and encourage public awareness and participation by making information widely
available. Effective access to judicial and administrative proceedings, including redress and
remedy, shall be provided.”
Indian Parliament also passed various laws effecting and regulating the environmental issues.
Legislative enactments were always with the principles of economic, social security and
sustainable development.
The Constitutional Mandates of Environmental Jurisprudence the role played by the Supreme
Court in using the Constitutional provisions especially Article 21 in order to provide environment
related justice will be evaluated. As has been pointed out by Justice Kirpal “Article 142 afforded
the Supreme Court considerable power to mould its decisions in order that complete justice
could be done.” 1 Hence it assumed a primal position in the Indian environmental legal system
by holding that environmental degradation in a number of ways violates constitutional
provisions. One of the most innovative parts of the Constitution of India is that right to enforce
the fundamental rights which is itself a fundamental right under Article 32 of the Constitution.
The decisions of the Supreme Court shall be binding on all lower Courts of India (Article 141 of
the Constitution).Clean and healthy environment is the basic need of human being which can
be ensured with ecological balance which has been made possible by judicial activism and
foresight of Courts of India- specially supreme court and various high courts. These judicial
pronouncements have given new jurisprudence and dimension to environmental protection by
adopting the doctrine of Sustainable Development.
The Rio Declaration on Environment and Development (1992): Over the years the Supreme
Court and High courts have been playing pivotal role for protection of environment and
sustainable development. Public interest litigation cases have been played vital role in the
decision of most of the environmental cases. The Supreme Court and also various High Courts
have landmark judgements for protection of environment & sustainable development and its
various principles.
One of the most significant parts of the Constitution of India is that right to enforce the
fundamental rights is itself a fundamental right under Article 32 of the Constitution as it has been
recognised as one of the fundamental right under Article 21.
In the case of Vellore Citizen Welfare Forum v. Union of Indiathe doctrine of Sustainable
Development was implemented for the first time by the Supreme Court. The Petitioners therein
had filed a petition in public interest litigation against the pollution caused by discharge of
untreated effluent by the tanneries and other industries in the river Palar in the State of Tamil
Nadu. In the instant case, the Supreme Court held that the precautionary principle and polluter
pays principle are a part of the environmental law of India. The court also held that:
“Remediation of the damaged environment is part of the process of ‘Sustainable Development’
and as such polluter is liable to pay the cost to the individual sufferers as well as the cost of
reversing the damaged ecology”. The judgment marked all efforts to maintain a harmony
between environment and development.
But before Vellore Citizen’s case, the Supreme Court has in many cases tried to keep the
balance between ecology and development. In Rural Litigation and Entitlement Kendra
Dehradun v. State of Uttar Pradesh, 7which was also known as Doon valley case, was the first
and unique case of ecological imbalances and environmental degradation of India where
issues related to environment and ecological balance was brought up. Two orders were given
by the Court one in 1985 and the other in 1987 in which the Supreme Court It is a social
obligation and let us remind every Indian citizen that it is his fundamental duty as enshrined in
Article 51 A (g) of the Constitution.” highlighted the fact that India citizens have the fundamental
of protecting the environment under Article 51A (g).
Dispute arose over lime mining in the Shivalik hilly areas. The Supreme Court after much
investigation, ordered the stopping of mining work and held that this would undoubtedly cause
hardship to them, but it I s a price that has to be paid for protecting and safeguarding the right of
the people to live in healthy environment with minimal disturbance of ecological balance and
without avoidable hazard to them and to their cattle, homes and agricultural land and undue
affection of air, water and environment.”
After that, the Supreme Court interpreted and implemented the doctrine of Sustainable
Development that“in Narmada Bachao Andolan vs. Union of Indiaobserved
that “Sustainable Development means what type or extent of development can take
place, which can be sustained by nature or ecology with or without mitigation”.
In T.N. Godavaraman Thirumulpad vs. Union of India, the Supreme Court said “as a
matter of preface, we may state that adherence to the principle of Sustainable Development is
now a constitutional requirement. How much damage to the environment and ecology has got to
be decided on the facts of each case. In Indian Council of Enviro-Legal Action vs. Union of
India, the Apex Court held: “while economic development should not be allowed to take place at
the cost of ecology or by causing widespread environment destruction and violation; at the
same time, the necessity to preserve ecology and environment should not hamper economic
and other developments“. Hence, importance has been given both to development and
environment and the quest is to maintain a fine balance between environment and economic
development.
The Supreme Court of India emphasised on the need to set up specialised environment courts
for the effective and expeditious disposal of cases involving environmental issues, since the
right to healthy environment has been construed as a part of right to life under Article 21 of the
Constitution.
The first case that can be discussed in respect to the Courts interpretation of Article 21 is MC
Mehta v Union of India or the Oleum Gas Leak Case. A writ was filed under Article 32 on the
event of leakage of Oleum gas from one of the units Shri Ram Foods and Fertilizers Industries.
The primary issue dealt with in this case was the scope of Article 21 and 32 of the Constitution.
And application for enforcement of right to life a “hyper-technical” approach cannot be adopted
which would defeat the goal of justice. “Right to life means a life of dignity to be lived in proper
environment free from danger of diseases or infections. In this case Supreme Court established
the rule of absolute liability and held that if any damage is caused due to hazardous or
dangerous activity than the sufferer is liable to be compensated. Further, the Court also
observed that the claim for compensation under Article 21 is sustainable. In respect to Article 32
the Court observed that the ambit of Article 32 is extremely broad and it allows the Courts to
force new remedies and to formulae new strategies to enforce fundamental right
The case Chhetriya Mukti Sangharsh Samiti v State of UP was one of the earliest cases where
the right to environment was linked to right to life. In this case the Supreme Court unequivocally
held that “every citizen has a fundamental right to have the enjoyment of quality of life and living
as contemplated by Article 21 of the Constitution. Anything which endangers or impairs by
conduct of anybody either in violation or degradation of laws, the quality of life or living of people
is entitled to be taken recourse of Article 32 of the Constitution’.
Another noteworthy case that can be mentioned is Indian Council for The Indian Environ-Legal
Action v Union of India. In this case writ was filed under Article 32 on behalf of villagers
alleging that dangerous chemicals were being emitted by private companies and this violated
the right to life of the villagers. The Court found that the sludge released by the companies was
toxic in nature and it made the water in the wells and streams unfit for human consumption. The
Court held in this instant case that if Companies flagrantly violated the right to life of individuals
then the Court has a right under Article 32 of the Constitution to intervene to protect the right to
life and liberty of the citizens.
Similarly, in Subhash Kumar v. State of BiharThe Supreme Courtobserved that “The right to
life is a fundamental right under Article 21 of the Constitution, and it includes the right of
enjoyment of pollution-free water and air for full enjoyment of life. If anything endangers or
impairs that quality of life in derogation of laws, a citizen has the right to have recourse to Article
32 of the Constitution…”
Another important judgment that has to be discussed in this regard is MC Mehta v Union of
India, In this case it was alleged that the foundries, and hazardous industries as well as
refineries in Mathura where emitting sulphur dioxide which when combined with oxygen in the
presence of atmospheric moisture was transformed into sulphuric acid or acid rain which was
corroding the marbles of the Taj Mahal. A PIL was filed accordingly and it was further contended
that refinery emissions, vehicular traffic, etc. polluted the ambient air around the Taj Trapezium
(TTZ). The Supreme Court held that the emissions resulted in the violation of the right to life of
people living in the TTZ and also damaged a prestigious monument like the Taj.
The Supreme Court in Samatha v State of Andhra Pradesh, held thatIt is the duty to ensure
that the industry or enterprise do not denude the forest to become menace to human existence
nor a source to destroy flora and fauna and biodiversity.
Similarly, the apex court inAmarnath Shrine, in Re vs. Union of India and
Others, explained that the doctrine of Sustainable Development and precautionary principle
have been applied where development was necessary, but not at the cost of environment”
appropriate balance between the various activities of the states very foundation of socio-
economic security and proper environment of the right to life. “And this balance to be made by
the courts to ensure the protection of environment and forests.
The Indian Government and Indian judiciary, both are playing vital role in developing the
principle of sustainable development by protecting, preserving, and conserving the environment
and natural sources. Article 21. Right to clean and healthy environment has been interpreted as
a part and parcel of right to dignified life of people of India by the Indian judiciary specially our
apex court.
Indian judiciary is playing very pivotal role to make safe environment and bring an equilibrium
between ecology and sustainable development.
A lot has been done legally and judicially to protect environment, but still we are lacking far
behind from our goal.Preservation and protection of the environment and keeping the ecological
balance unaffected is a mission which is not only for Governments and judiciary but also for
every citizen of India, it is a pious, social ,moral and legal obligation on every Indian citizens, it
is also their fundamental duty as enshrined in Article 51 A (g) of the Indian Constitution. It is an
opportunity to come together and achieve the goal of” Sustainable Development “as envisaged
by the U.N. Millennium Goals of 2000and declared by the Rio de Janeiro- Submit on
Sustainable Development (1992,2012), the Johannesburg Conference on Sustainable
Development (2002) .