[SANSKAR COLLEGE OF ENGINEERING AND TECHNOLOGY,

COI NOTES GHAZIABAD]

UNIT – 3
BASIC INFORMATION ABOUT LEGAL
SYSTEM
Law
1. The term law is very diverse in nature. In today’s world, it is essential to have an effective legal system
for the orderly function of social life and the existence of mankind.
2. It is essential for everyone to be aware of the law of the land to avoid any unethical behavior.
3. The term ‘Law’ has been derived from the Teutonic phrase ‘Lag’ meaning ‘specific’.
4. In layman’s language law means, “The system of rules which a particular country or community
recognizes as regulating the actions of its members and which it may enforce by the imposition of
penalties”.

Major Functions of Law

Some of the major functions of law are listed below :
1. To deliver justice.
2. To provide equality and uniformity.
3. To maintain impartiality.
4. To maintain law and order.
5. To maintain social control.
6. To resolve conflicts.
7. To bring orderly change through law and social reform

Souces of Law
1. Sources of law are the origins of laws, the binding rules that enable any state to govern its territory.
2. The term “source of law” may sometimes refer to the sovereign or to the seat of power from which
the law derives its validity.
3. The sources of law are classified into the following categories :
A. Custom :
1. Custom can simply be explained as an established mode of social behavior within a community.
2. All customs cannot be accepted as sources of law. The courts have laid down some essential tests for
customs to be recognized as valid sources of law. These tests are :
i. Antiquity : In order to be legally valid customs should have been in existence for a long time.
ii. Continuous : A custom to be valid should have been in continuous practice.
iii. Exercised as a matter of right : Custom must be enjoyed openly and with the knowledge of the

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community.
iv. Reasonableness : A custom must conform to the norms of justice and public utility.
v. Morality : A custom which is immoral or opposed to public policy cannot be a valid custom.
B. Judicial precedent :
1. Judicial precedent refers to previously decided judgments of the superior courts, such as the High
Courts and the Supreme Court, which judges are bound to follow.
2. System of judicial precedent is based on the hierarchy of courts
3. This binding character of the previously decided cases is important, considering the hierarchy of the
courts established by the legal systems of a particular country.
4. In the case of India, this hierarchy has been established by the Constitution of India.
C. Legislation :
1. The term ‘legislation’ is derived from the Latin word legis which means 'law' and latum which means
“to make”.
2. Legislation is backed by the authority of the sovereign, and it is directly enacted and recognised by the
State.
3. The legislation is considered as a primary source of law in India. Legislation has a wide ambit and it is
used to regulate, authorize, to enable, to provide funds, to prescribe, to sanction, grant, declare or to
restrict.
4. The legislature is framed by the parliament in the form of new acts, new laws, repeal and amendment
of old laws.
5. Legislation is further divided into two parts :
i. Supreme Legislation : It is the parent law that originates from the sovereign strength of the nation. It
cannot be repealed, annulled or managed by other legislative authority.
ii. Subordinate Legislation: The subordinate legislations are dependent on the supreme legislation for
their validity and existence.

Court structure in India

1. Courts in India are divided into three categories : the Supreme Court, High Courts, and District Courts.
2. The decisions given by the Supreme Court are binding on all the courts throughout the territory of
India.
3. While the decision given by the High Courts are binding on the subordinate courts within the
jurisdiction of that particular High Court.
4. Following flow chart explains the court structure in India :

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Hierarchy of Criminal Justice System

Hierarchy of Civil Judicial System

Acts of parliament
1. Acts of parliament, sometimes referred to as primary legislation, are texts of law passed by the
legislative body of a jurisdiction (often a parliament or council).

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2. Parliament, through an Act of Parliament, can allow someone else or some body to make
enactment.
3. An Act of Parliament makes the system of a specific or particular law and tends to contain an
outline of the purpose for the Act.
4. By delegating the legislation by Parliament to the Executive or any subordinate, it empowers
different people or bodies to integrate more details to an Act of Parliament.
5. Parliament along these lines licenses others to make laws and guidelines through delegated
legislation.
6. The enactment made by authorize person must be made as per the reason set down in the Act
of Parliament.

Process of Law enacted in Parliament

1. The ministry drafts a text of the proposed law, which is called a ‘Bill’, after calling comments
from other ministries, and even from the public. The draft is revised to incorporate such inputs
and is then vetted by the Law Ministry.
2. It is then presented to the Cabinet for approval.
3. After the Cabinet approves the Bill, it is introduced in Parliament.
4. In Parliament, it goes through three Readings in both Houses.
5. During the First Reading the Bill is introduced. The introduction of a Bill may be opposed and the
matter may be put to a vote in the House.
6. After a Bill has been introduced, the Bill may be referred to the concerned Departmentally
Related Standing Committee for examination.
7. The Standing Committee considers the broad objectives and the specific clauses of the Bill
referred to it and may invite public comments on a Bill. It then submits its recommendations in
the form of a report to Parliament.
8. In the Second Reading (Consideration), the Bill is scrutinized thoroughly. Each clause of the Bill is
discussed and may be accepted, amended or rejected. The government, or any MP, may
introduce amendments to the Bill. However, the government is not bound to accept the
Committee's recommendations.
9. During the Third Reading (Passing), the House votes on the redrafted Bill.
10. If the Bill is passed in one House, it is then sent to the other House, where it goes through the
second and third readings.
11. After both Houses of Parliament pass a Bill, it is presented to the President for assent. He/She
has the right to seek information and clarification about the Bill, and may return it to Parliament
for reconsideration.
12. After the President gives assent, the Bill is notified as an Act.

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Common Law
1. The Common Law is a body of law derived from judicial decisions known as case laws, rather
than from statutes.
2. The Common Law derived its authority from the universal consent and practice of the people
from time immemorial.
3. This system of jurisprudence initially originated in England.
4. Common Law is unintelligible until expressed in a judgment.
5. It includes those rules of law which derive their authority from the statement of principles found
in the decisions of courts.
6. This system of law includes tradition, custom and usage, fundamental principles and modes of
reasoning.
7. Yes, the common law is applicable in India.

Principles taken from decisions of judges to constitute binding legal rules

1. Judicial precedent or decisions is a process which is followed by the judges to take the decision.
2. In Judicial precedent, the decision is taken by following the similar cases happened in the past.
3. So judicial decision is based on the principle of stare decisis i.e. “stand by the decision already
made”.
4. The reason why a precedent is recognized is that the verdict of the judiciary is assumed to be
correct.
5. The use of precedents helps the litigant gain confidence in the judicial system.
6. The administration of the judicial decision becomes just and fair.

General Principle of Doctrine of Judicial Precedent:

There are two rules that apply to the doctrine of judicial precedents:
1. The first rule says that a court which is lower in a hierarchy is completely bound by the decisions
of courts which are above it.
2. The second rule states that higher courts are bound by their own decision in general in matters of
related to precedence.

General court structure and hierarchy in India

1. The Indian judicial system is a single integrated system.

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2. The Constitution of India divides the Indian judiciary into superior judiciary (the Supreme Court
and the High Courts) and the subordinate judiciary (the lower courts under the control of the
High Courts).
3. The Supreme Court of India is the apex court of the country. It is presided by the Chief Justice of
India.
4. There are twenty-four High Courts in the country.
5. Each state has one High Court, although some High Courts have jurisdiction over multiple states
and Union Territories. For example, the Guwahati High Court exercises jurisdiction over the
states of Assam, Nagaland, Mizoram and Arunachal Pradesh.
6. For administrative convenience, states are further sub-divided into districts, each of which has
its own District Court.
7. Barring a few states, the original jurisdiction for both civil and criminal cases vests with the
District Court.
8. The judicial system also consists of tribunals and commissions which are established under, and
to deal with, specific statutes.

Court hierarchy in India :

District Court in India

1. The district courts of India are the local district courts of the State governments for every district
or for one or more districts together.
2. These Courts administer justice in India at a district level.
3. The highest court in each district is that of the District and Sessions Judge.
4. District and Sessions Judge is the principal court of original civil jurisdiction besides the High
Court of the State.
5. The district court is also a court of Sessions when it exercises its jurisdiction on criminal matters
under the Code of Criminal procedure.
6. The district court is presided over by one District Judge appointed by the state Governor with on
the advice of state chief justice.

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7. In addition to the district judge there may be a number of Additional District Judges and
Assistant District Judges depending on the workload.
8. The Additional District Judge and the court presided have equivalent jurisdiction as the District
Judge and his district court.

District consumer forum in India

1. To provide simple, speedy and inexpensive redressal of consumer disputes, the CPA envisages a
3-tier quasi-judicial machinery at the National, State and District levels.
2. District Consumer Dispute Redressal Forum, known as District Forum, deals with complaints
involving costs and compensation less than Rs. Twenty Lakh.
3. Consumers can file different types of complaints depending on their specific grievance by
visiting the Consumer Court at the district level along with the documents required for filing the
complaint.
4. Following is a list of documents that the prospective complainants need to carry with them to
the Consumer Court at the time of filing the complaint :
A. Consumer Case (CC) :
i. Fee for making complainant,
ii. Complaint with affidavit,
iii. Supporting documents in favour of the complaint e.g., receipt, voucher etc.
iv. Limitations, if any (2 years from cause of action)
v. Index
B. Miscellaneous Application (MA) :
i. Miscellaneous application with affidavit
ii. Supporting documents in favour of miscellaneous application
iii. Index
C. Criminal Petition (CP) :
i. Index
D. Interlocutory Application (IA) :
i. Complaint with affidavit
ii. Supporting documents in favour of the complaint e.g., receipt, voucher etc.
iii. Limitations, if any (2 years from cause of action)
iv. Fee for making complaint
v. Index
E. Execution Application (EA) :
i. Execution application with affidavit
ii. Certified copy of impugned order(s)
iii. Limitations, if any
iv. Index

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Tribunal
1. Tribunal is a quasi-judicial institution that is set up to deal with problems such as resolving
administrative or tax-related disputes.
2. A Tribunal, generally, is any person or institution having an authority to judge, adjudicate on, or
to determine claims or disputes.
3. Tribunals were not part of the original constitution; it was incorporated in the Indian
Constitution by 42nd Amendment Act, 1976.
4. It performs a number of functions like :
i. Adjudicating disputes,
ii. Determining rights between contesting parties,
iii. Making an administrative decision,
iv. Reviewing an existing administrative decision and so forth.
Need of Tribunal :
1. To overcome the situation that arose due to the pendency of cases in various Courts.
2. The tribunals perform an important and specialised role in justice mechanism.
3. They take a load off the already overburdened courts.
4. They hear disputes related to the environment, armed forces, tax and administrative issues.

High Courts in India

1. The highest judicial court in a state is the High Court.
2. It is termed as the second-highest in the country after Supreme Court of India.
3. Currently, India has 25 High Courts established in different states of the country.
4. The jurisdictions of a High Court are :
i. Original Jurisdiction
ii. Power of Superintendence
iii. Court of Record
iv. Appellate Jurisdiction
5. The work of most high courts primarily consists of appeals from lower courts and writ petitions
in terms of Articles 226 and 227 of the constitution.

Supreme Court of India

1. The Supreme Court of India is the country's highest judicial court. It is the final court of appeal in
the country.
2. The Chief Justice of India is the head and chief judge of the Supreme Court and the court
consists of a maximum of 34 judges.
3. It takes up appeals against the verdicts of the High Courts, other courts and tribunals.

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4. It settles disputes between various government authorities, between state governments, and
between the centre and any state government.
5. It also hears matters which the President refers to it, in its advisory role.
6. The law that Supreme Court declares is binding on all the courts in India and on the Union as
well as the state governments.
7. The jurisdiction of the SC is of three types :
i. Original
ii. Appellate
iii. Advisory
8. Supreme Court upholds the rule of law and also guarantees and protects citizens' rights and
liberties as given in the Constitution. Therefore, the Supreme Court is also known as the
Guardian of the Constitution.

Arbitration
1. Arbitration is a private arrangement of taking disputes to a less adversarial, less formal and
more flexible forum and abiding by judgment, instead of carrying it to normal court.
2. Arbitration can be chosen by the parties either by way of an agreement or through the
reference of the Court.
3. The parties in arbitration select a qualified expert known as an arbitrator.
4. The process of dispute resolution through arbitration is confidential.
5. The decision rendered by an arbitrator is known as an arbitral award.
6. The arbitral award is binding on the disputing parties.
7. Once an arbitral award is rendered, it is recognised and enforced akin to a court pronounced
judgment.

Types of Arbitration :
1. Domestic Arbitration : An arbitration with Indian parties, where the place of arbitration is in
India and rules applicable are Indian.
2. Foreign Arbitration : An arbitration where proceedings are conducted outside India and the
award needs to be enforced in India.
3. Ad-hoc Arbitration : An arbitration which is governed by parties themselves.
4. Institutional Arbitration : An arbitration where parties select a particular institution. This
institution in turn selects an arbitrator and lay out the rules applicable to arbitration.
5. Statutory Arbitration : An arbitration which is mandatorily imposed on the parties by operation
of a particular law or statute, applicable to them.
6. International Commercial Arbitration : An arbitration in which at-least one of the disputing
parties is a resident of a country other than India.

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Rights and duties of Arbitrators

1. An arbitrator must accept his appointment in writing. Such acceptance may be made by signing
the arbitration agreement.
2. An arbitrator must conduct the arbitration with due expeditiousness and undertake measures
on time in order to avoid any delay of the proceedings.
3. Unless agreed otherwise, the parties may discharge by their consent an arbitrator that fails to
perform his duties, or does not perform them in a timely manner.
4. An arbitrator has the right to reimbursement of expenses and a fee for the work completed,
unless he has waived these rights in writing.
5. If an arbitrator has determined the amount of his own expenses and fees, his decision does not
bind the parties unless they accept it.

Arbitration and Conciliation Act of 1996

1. The Arbitration and Conciliation Act of 1996 is the relevant legislation that governs the process
of arbitration in India.
2. The statute provides for an elaborate codified recognition of the concept of arbitration.
3. The Indian Arbitration and Conciliation Act of 1996 is modelled on the United Nations
Commission on International Trade Law (UNCITRAL).
4. The Arbitration and Conciliation Act, 1996 has ushered a new era of dispute resolution for
domestic and commercial legal issues.
5. The Arbitration and Conciliation Act, 1996 was introduced in order to attract the ‘international
mercantile community’.

Contract law
1. The Indian Contract Act is the law governing contracts in India.
2. According to the Indian Contract Act, 1872, an agreement that is enforceable by law is a
contract.
3. An agreement is a promise. All agreements are not contracts.
4. Agreements must meet certain criteria - like consideration, parties must be competent, free
consent between parties, lawful object in order to qualify as a contract.
5. It is important that the persons to a contract should also have the intention and mindset to
enter into contract. Essential elements of a contract:
1. Offer/Proposal and Acceptance:
i. When one person signifies to another his willingness to do or not to do certain things, it is
called an Offer.
ii. The person making the proposal or offer is called the offeror and the person to whom the
offer is made is called the offered.
iii. The offer given must be with an intention to create a legal relationship.
2. Consideration :

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i. Consideration means ‘something in return’ for the offer.

ii. Consideration can be in the nature of an act or forbearance.
iii. The general rule is that, an agreement without consideration is void and not enforceable by
law because in such cases, one party is getting something from the other without giving
anything to the other.
iv. There should always be a mutual consideration. In other words, each party must give and
also take.
3. Capacity to Contract :
i. Any person who is a major, i.e., above 18 years of age, is competent to enter into a contract
and minors are not competent to enter into a contract.
ii. A person should also have a sound mind and should not be disqualified by any law in force.
4. Consent :
i. When two persons agree on the same thing in the same sense, it is termed as consent.
ii. Consent should be free and not caused by coercion, undue influence, misrepresentation,
fraud or mistake.
iii. If consent is obtained by the influence of any one of the above said it becomes voidable.
5. Unlawful Agreements :
i. If the object of the agreement is to perform an unlawful act, then the contract is
unenforceable.
ii. The object of the agreement should not be illegal, immoral or opposed to public policy.
6. Contingent Contract :
i. Contingent contract is a contract to do something or not to do something on the happening or
non-happening of an event, which is collateral to the contract.
ii. Contingent contracts cannot be enforced until the uncertain future event happens.
iii. If the uncertain future event becomes impossible, contingent contracts become void.
7. Discharge of Contract :
i. Discharge means termination of the contractual relations of the parties to the contract.
ii. Discharge of a contract may be done by the following ways:
a. Discharge by Performance;
b. Discharge by Agreement or Consent;
c. Discharge by Impossibility of Performance;
d. Discharge by Lapse of time;
e. Discharge by Operation of law;
f. Discharge by Breach of contract.
8. Damages:
i. Monetary compensation given to the affected party for the loss or injury caused to him due to
the breach is called damages.
ii. The objective of awarding damages by the court is to put the injured party in the same
position as he would have been if the contract had not been breached.

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Tort
1. ‘Tort’ means a ‘wrong’ and it originates from Latin word ‘tortum’, which means ‘twisted’ or
‘crooked’.
2. In law, tort is defined as a civil wrong or a wrongful act, of one, either intentional or accidental,
that results in the injury or harm to another who in turn has recourse to civil remedies for
damages or a court order or injunction.
3. There are three kinds of wrongs in tort law - intentional tort, negligence and strict liability.
I. Intentional Tort :
i. An intentional tort requires the claimant to show that defendant caused the injury on
purpose.
ii. Furthermore, the claimant must show that he or she suffered a particular
consequence or injury, and that the defendant's actions caused the consequence or
injury.
II. Negligence :
i. The basic understanding of negligence is that wrong-doer or the defendant has been
careless in a way that harms the interest of the victim or the claimant.
III. Strict Liability :
i. Strict liability torts do not care about the intention or carelessness of the defendant
when the defendant caused the injury.
ii. The claimant does not have to establish any sort of or level of blame attributable to
the defendant based on the intention or the degree of carelessness.

Various laws relating to workplace in India

Indian laws relating to workplace :

1. Factories Act, 1948 :

i. The Factories Act, 1948 lays down provisions for the health, safety, welfare and service
conditions of workmen working in factories.
ii. It contains provisions for working hours of adults, employment of young persons, leaves,
overtime, etc.
iii. It applies to all factories employing more than 10 people and working with the aid of power,
or employing 20 people and working without the aid of power.
iv. It covers all workers employed in the factory premises directly or through an agency.
v. Some provisions of the Act may vary according to the nature of work of the establishment.
2. Industrial Employment (Standing Orders) Act, 1946 :
i. The Industrial Employment (Standing Orders) Act, 1946 (the IESO Act) is applicable to every
industrial establishment wherein 100 or more workmen are employed or were employed on any
day of the preceding twelve months.

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ii. The IESO Act aims to bring uniform terms and conditions of service in various industrial
establishments.
3. Shops and Commercial Establishments Act :
i. The Shops and Commercial Establishments Act(s) of the respective States generally contain
provisions relating to registration of an establishment, working hours, overtime, leave, privilege
leave, notice pay, working conditions for women employees, etc.
ii. The provisions of the Shops and Commercial Establishments Act apply to both white collar
and blue-collar employees.
4. Contract Labour (Regulation & Abolition) Act, 1970 :
The main objectives of the Contract Labour (Regulations & Abolition) Act, 1970 (the Contract
Labour Act) are :
i. To prohibit the employment of contract labour.
ii. To regulate the working conditions of the contract labour, wherever such employment is not
prohibited.
iii. The Contract Labour Act is not applicable to establishments in which work only of an
intermittent or casual nature is performed.
iv. The Contract Labour Act prohibits the employment of contract labour on jobs that are
perennial in nature. For such jobs, permanent employees need to be employed.
5. The Employee’s Compensation Act, 1923 :
i. The Employee’s Compensation Act, 1923 (the EC Act) aims to provide financial protection to
workmen and their dependents in case of any accidental injury arising out of or in course of
employment and causing either death or disablement of the worker by means of compensation.
ii. This Act applies to factories, mines, docks, construction establishments, plantations, oilfields
and other establishments.
6. Weekly Holiday Act, 1942 :
i. The Weekly Holiday Act, 1942 provides for the grant of weekly holidays to persons employed
in shops, restaurants and theatres.
ii. The Act provides that every shop shall remain entirely closed on one day of the week.
7. The Mines Act, 1952 :
i. The Mines Act, 1952 aims to secure safety and health and welfare of workers working in the
mines.
ii. The Mines Act provides that persons working in the mine should not be less than 18 years of
age.

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