Coi Module 3
Coi Module 3
MODULE-3
INTRODUCTION AND BASIC INFORMATION
ABOUT LEGAL SYSTEM
Sources of Law
Sources of Law
The term law is very diverse in nature. It is essential to have an effective legal system for the
orderly function of social life and the existence of mankind. It is very important to understand
that the law of every land is derived from the sources so one has to know what are the sources
of law before getting into any concept of law. India derives its laws from a variety of sources
and they are as follows:
1. Legislation as one of the sources of law -
The term 'Legislation' is derived from the Latin words 'Legis' meaning regulation and 'latum'
which means making. 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. The legislature is framed by the
parliament in the form of new acts, new laws, repeal and amendment of old laws. The
procedure for this is prescribed in the constitution of India.
2. Customs as one of the other sources of law-
Customs is an established mode of social behaviour within a community. It is one of the main
and oldest sources of law in India. According to Roscoe Pound, customary regulations
comprises:
● Law formulated by customs of famous motion.
● Law formulated through judicial choice.
● Law formulated with the aid of doctrinal writings and clinical discussions for legal
standards.
3. Judicial Precedents is another one of the most important sources of law in India-
Judicial Precedents lays on the doctrine 'stare decisis', it simply means adhering and relying
on earlier decisions made by the courts; i.e., for instance if high court decides on a particular
case and a similar situation comes to the lower court, the lower court will treat the case alike
and pass the judgement same as done by the high court. This is because the high court has set
a precedent for the lower court and the lower court are bound to follow it.
4. Justice, Equity and Good Conscience -
This principle is applied only in cases where the judges feel that the law seems to be
inadequate or out of date or unjust. In such cases the judges make decisions based on equity,
good conscience, fairness and justice using their common-sense.
5. Conventional Law - International Treaties/Agreements /Conventions - With the
emergence of globalisation, there was an increased need for world countries to interact
with one another, this means that there is a requirement for world countries to be bound by a
single set of laws. Such laws are made by the way of treaties, agreements, etc., and these are
harmonized by the United Nations. Countries who are members of the United Nations have to
accept such rules or norms laid down by the organization, and abide by such rules and also
such members also have to frame laws in conformity with such rules and hence International
conventions have an important role in framing new laws or making amendments to existing
laws.
All these sources play a very important role in different changes and decisions made for
justice.
Types of Law
There are various kinds of laws in India. These laws are interconnected with each other and
form a hybrid legal system. Indian legal system consists of civil law, common law, criminal
law along with customary or religious laws regulating personal laws of followers of each
religion. However, laws in India can be broadly categorized into four categories: Common
Law, Criminal Law, Civil Law and Statutory Law.
1. Common Law- Common Law originated in England and came to India when East India.
Company came to the country. As the name suggests, it is common to all. The Common Law
is also known as judicial precedent or judge-made law or case law. So, it is a body of law that
derives its origin from judicial decisions of the cases decided by the courts. In the UK, when
a case was brought up in the court of law and the decision was given by the judge then that
decision was taken as a precedent for future cases. Article 141 of the Constitution of India
states that "the law declared by the Supreme Court shall be binding on all courts within the
territory of India." Hence, it can be said that the Indian legal system has a wide application of
Common Law.
2. Criminal Law - Criminal law is a body of rules that defines various acts prohibited by the
State because they harm and threaten public safety, called "offences" and provides
punishment for committing such offences. These acts are considered as offences against
society as a whole and not just an individual. In India, Criminal law is basically dealt by, the
Indian Penal Code, 1860; Code of Criminal Procedure, 1973; and the Indian Evidence Act,
1872.
3. Civil Law- The Civil Law consists of a body of rules which provides procedures, and
judicial precedents to help in resolving the various non-criminal disputes. These disputes are
either between individuals or organization. The objective of Civil Law is to resolve dispute
and disagreements between individuals by providing compensation to the aggrieved. Civil
law emphasizes more on dispute resolution than punishment. Civil law can be further
subdivided into four categories: Law of Torts, Family Law, Contract Law and Property Law.
a. Law of Torts - A tort is a civil wrong, done by one person or to another, which results in
injury or property damage and monetary compensation is given to the injured party. There are
three categories of torts: negligence, intentional tort, and strict liability.
b. Family Law- Family law is the branch of civil law that deals with marriage, divorce, child
custody, adoption, etc and any other issues and disputes of families. Different religions have
their own personal laws in this regard, for example, Hindu law, Muslim law, Christian law,
Parsi law etc. The cases relating to this law is dealt with by the family courts and not civil
courts.
c. Contract Law - Contract Law in India is provided under The Indian Contract Act, 1872
which deals with all kinds of contract, oral or written. The Indian Contract Act, 1872 contains
provisions related to the validity of a contract, its discharge and provides penalties for breach
of the contract. In other words, contract law is the branch of civil law that deals with
agreements between two or more parties and when one party violates any of the terms and
conditions of the contract, it is known as "breach of contract" a civil wrong.
d. Property Law - Property Law is the branch of civil law that deals with all kinds of
property, personal property or real estate/property, tangible or intangible, movable or
immovable. Personal property is a class of property that can include any asset other than real
estate. Personal property basically consists of movable property like vehicles, furniture,
jewellery etc. This is tangible in nature. Intangible, on the other hand, includes intellectual
property like copyright, patent etc. and bonds, stocks etc.
4. Statutory Law - Statutory law is also known as legislative law or national law or
municipal law. It is made by the government (national and state legislature) to
regulate the conduct of its people. Legislation can make law on its own to counter
any present or future problems. The legislation does not need any case to be brought
in the court of law to make a law and set precedent. The statutory law comes into
existence by codification and a process is followed for it to become a law. First, it is
proposed as a bill in the legislation, which then, if passed, gets signed by the executive
(Governor in the case of state and President in the case of the country) and becomes an Act.
For example, the Information Technology Act, 2000, Motor Vehicles Act, 1988 etc.
Constitutional Provisions
District Courts in India
The District Courts of India are the local district courts of the State governments in India
for every district or for one or more districts together taking into account the number of
cases, population distribution in the district. These Courts administer justice in India at a
district level. The highest court in each district is that of the District and Session Judge.
District and Sessions Judge is the principal court of original civil jurisdiction besides the
High Court of the State and which derives its jurisdiction in civil matters primarily from the
code of civil procedure. The district court is also a court of Sessions when it exercises its
jurisdiction on criminal matters under the Code of Criminal procedure. The district court is
presided over by one District Judge appointed by the state Governor with on the advice
of state chief justice.
In addition to the district judge there may be a number of Additional District Judges and
Assistant District Judges depending on the workload. The Additional District Judge and the
court presided have equivalent jurisdiction as the District Judge and his district court.
Tribunals
Tribunal is a quasi-judicial institution that is set up to deal with problems such as resolving
administrative or tax-related disputes. It performs a number of functions like adjudicating
disputes, determining rights between contesting parties, making an administrative
decision, reviewing an existing administrative decision.
● The term 'Tribunal' is derived from the word "Tribunes', which means 'Magistrates
of the Classical Roman Republic'.
● Tribunal is referred to as the office of the 'Tribunes' i.e., a Roman official under
the monarchy and the republic with the function of protecting the citizen from
arbitrary action by the aristocrat magistrates.
● A Tribunal, generally, is any person or institution having an authority to judge,
adjudicate on, or to determine claims or disputes - whether or not it is called a tribunal
in its title.
Need of Tribunal
● To overcome the situation that arose due to the pendency of cases in various Courts,
domestic tribunals and other Tribunals have been established under different Statutes,
hereinafter referred to as the Tribunals.
● The Tribunals were set up to reduce the workload of courts, to expedite decisions and to
provide a forum which would be manned by lawyers and experts in the areas falling
under the jurisdiction of the Tribunal.
● They hear disputes related to the environment, armed forces, tax and administrative
issues.
Tribunals were not part of the original constitution, it was incorporated in the Indian
Constitution by 42nd Amendment Act, 1976.
o Article 323-A deals with Administrative Tribunals.
o Article 323-B deals with tribunals for other matters.
● Under Article 323 B, the Parliament and the state legislatures are authorised to provide
for the establishment of tribunals for the adjudication of disputes relating to the following
matters:
o Taxation, Foreign exchange, import and export, Industrial and labour, Land reforms,
Ceiling on urban property, Elections to Parliament and state legislatures, Food stuff, Rent
and tenancy rights, Environment.
Articles 323 A and 323 B differ in the following three aspects:
o While Article 323 A contemplates the establishment of tribunals for public service
matters only, Article 323 B contemplates the establishment of tribunals for certain other
matters (mentioned above).
o While tribunals under Article 323 A can be established only by Parliament
tribunals under Article 323 B can be established both by Parliament and state legislatures
with respect to matters falling within their legislative competence.
o Under Article 323 A, only one tribunal for the Centre and one for each state or two or
more states may be established. There is no question of the hierarchy of tribunals,
whereas under Article 323 B a hierarchy of tribunals may be created.
● Article 262: The Indian Constitution provides a role for the Central government in
adjudicating conflicts surrounding inter-state rivers that arise among the state/regional
governments.
Tribunals in India
Administrative Tribunals
Administrative Tribunals was set-up by an act of Parliament. Administrative Tribunals Act,
1985. It owes its origin to Article 323 A of the Constitution.
o It adjudicates disputes and complaints with respect to recruitment and conditions of
service of persons appointed to the public service and posts in connection with the affairs
of the Union and the States.
● The Administrative Tribunals Act, 1985 provides for three types of tribunals:
o The Central Government establishes an administrative tribunal called the Central
Administrative Tribunal (CAT).
o The Central Government may, upon receipt of a request in this behalf from any State
Government, establish an administrative tribunal for such State employees.
o Two or more States might ask for a joint tribunal, which is called the Joint Administrative
Tribunal (JAT), which exercises powers of the administrative tribunals for such States.
● There are tribunals for settling various administrative and tax-related disputes, including
Central Administrative Tribunal (CAT), Income Tax Appellate Tribunal (ITAT),
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Competition
Appellate Tribunal (COMPAT) and Securities Appellate Tribunal (SAT), among
others.
Central Administrative Tribunal
It has jurisdiction to deal with service matters pertaining to the Central Government
employees or of any Union Territory, or local of other government under the control of the
Government of India.
o The CAT was set-up on 1 November 1985.
o It has 17 regular benches, 15 of which operate at the principal seats of High Courts
and the remaining two at Jaipur and Lucknow.
o The tribunal consists of a Chairman, Vice-Chairman and Members. The Members are
drawn, both from judicial as well as administrative streams so as to give the Tribunal
the benefit of expertise both in legal and administrative spheres.
State Administrative Tribunal
● Article 323 B empowers the state legislatures to set up tribunals for various matters like
levy, assessment, collection and enforcement of any of the tax matters connected with
land reforms covered by Article 31A.
Water Disputes Tribunal
The Parliament has enacted Inter-State River Water Disputes (ISRWD) Act, 1956 have
formed various Water Disputes Tribunal for adjudication of disputes relating to waters of
inter-State rivers and river valleys thereof.
Armed Forces Tribunal (AFT)
● It is a military tribunal in India. It was established under the Armed Forces Tribunal Act,
2007.
● It has provided the power for the adjudication of disputes and complaints with respect to
commission, appointments, enrolments and conditions of service in respect of
persons subject to the Army Act, 1950, The Navy Act, 1957 and the Air Force Act,
1950.
● Besides the Principal Bench in New Delhi, AFT has Regional Benches at Chandigarh,
Lucknow, Kolkata, Guwahati, Chennai, Kochi, Mumbai and Jaipur.
o Each Bench comprises of a Judicial Member and an Administrative Member.
● The Judicial Members are retired High Court Judges and Administrative Members
are retired Members of the Armed Forces who have held the rank of Major General/
equivalent or above for a period of three years or more.
National Green Tribunal (NGT)
The National Environment Tribunal Act, 1995 and National Environment Appellate
Authority Act, 1997 were found to be inadequate giving rise to demand for an institution to
deal with environmental cases more efficiently and effectively.
As a result, NGT was formed as a special fast-track, comprising of judges and environment
experts to ensure expeditious disposal of cases.
● The National Green Tribunal was established in 2010 under the National Green
Tribunal Act 2010.
● It was setup for effective and expeditious disposal of cases relating to
environmental protection and conservation of forests and other natural resources.
● The Tribunal is mandated to make and endeavour for disposal of applications or appeals
finally within 6 months of filing of the same.
● New Delhi is the Principal Place of Sitting of the Tribunal and Bhopal, Pune, Kolkata
and Chennai shall be the other four places of sitting of the Tribunal.
The reason for the implementation of this act was the need for a separate judiciary body for
different states. The British Government, therefore, decided to abolish the then-existing
Supreme Court and Sadar Adalat and replaced it with High Court.
Certain rules and eligibility criteria were set for the appointment of a Judge in any High Court
and later after independence as per Article 214 of the Indian Constitution, it was declared that
every Indian State must have their own High Court.
Newest High Court of India - Andhra Pradesh is the recent state to have the High Court.
High Court was established in Andhra Pradesh on 1st January 2019.
Constitution of High Court - Under the British rule, each High Court has a Chief Justice
and maximum 15 other judges. But later certain changes were brought about in the
composition of the High Court in India:
● Every High Court shall have a Chief Justice appointed by the President
● Unlike before, there was no fixed number of Judges who could be appointed for each
High Court.
● Additional Judges can also be appointed for the clearance of cases pending in the court.
But their tenure cannot exceed more than two years.
No one above the age of 62 years can be appointed as a Judge of High Court. There is no
uniformity among the High Courts regarding the number of Judges they will have. A smaller
state shall have less number of judges in comparison to a larger state.
A High Court Judge is appointed by the President of India. He may consult the Governor of
the State, the acting Chief Justice of India and Chief Justice of that particular state's High
Court.
A High Court judge is also transferred to other High Courts. This decision is dependent on
the Chief Justice of India.
There are certain eligibility criteria that need to be fulfilled to be appointed as a judge in any
High court in India. Any of the given qualifications must be fulfilled:
1. The person should have been a Barrister for more than five years.
2. Has been a civil servant for over 10 years along with serving the Zila court for at least
3 years.
3. A person who has been a pleader for over 10 years in any High Court.
The law states that every state must have a separate High Court, however, there still are
certain states that do not have an individual High Court. For example - both Punjab and
Haryana come under the jurisdiction of Punjab.
High Court sitting at Chandigarh. Besides, there is a common High Court for seven states -
Assam, Nagaland, Manipur, Tripura, Meghalaya, Arunachal Pradesh and Mizoram.
Supreme Court In India
The Supreme Court of India is the highest judicial court and the final court of appeal
under the Constitution of India, the highest constitutional court, with the power of judicial
review.
● The Regulating Act of 1773 established the Supreme Court at Calcutta, with full
power & authority.
● It was established to hear and determine all complaints for any crimes in Bengal, Bihar
and Orissa.
● The Supreme Courts at Madras and Bombay were established by King George III in
1800 and 1823 respectively.
● The India High Courts Act 1861 created High Courts for various provinces and
abolished Supreme Courts at Calcutta, Madras and Bombay and also the Sadar Adalats
in Presidency towns.
● These High Courts had the distinction of being the highest Courts for all cases till the
creation of Federal Court of India under the Government of India Act 1935. The
Federal Court had jurisdiction to solve disputes between provinces and federal states and
hear appeal against Judgements from High Courts.
● After India attained independence in 1947, the Constitution of India came into being on
26 January 1950. The Supreme Court of India also came into existence and its first
sitting was held on 28 January 1950.
● The law declared by the Supreme Court is binding on all Courts within the territory of
India.
Constitutional Provisions
● The Indian constitution provides for a provision of Supreme Court under Part V (The
Union) and Chapter 6 (The Union Judiciary).
● Articles 124 to 147 in Part V of the Constitution deal with the organisation,
independence, jurisdiction, powers and procedures of the Supreme Court.
● The Indian constitution under Article 124(1) states that there shall be a Supreme Court
of India constituting of a Chief Justice of India (CJI) and, until Parliament by law
prescribes a larger number, of not more than seven other Judges.
Organisation of Supreme Court
● According to Supreme Court (Number of Judges) Bill of 2019, The Supreme Court
consists of thirty-four judges (one chief justice and thirty three other judges). The
Parliament is authorised to regulate them.
Appointment of Judges
● The Judges of the Supreme Court are appointed by the President. The CJI is appointed
by the President after consultation with such judges of the Supreme Court and high courts
as he deems necessary.
● The other judges are appointed by the President after consultation with the CJI and such
other judges of the Supreme Court and the high courts as he deems necessary. The
consultation with the Chief justice is obligatory in the case of appointment of a judge
other than Chief justice.
● The senior most judge of the Supreme Court is appointed as the Chief Justice of India.
The Supreme Court ruled in the Second Judges Case (1993) that the senior most judge
of the Supreme Court should alone be appointed to the office of the Chief Justice of
India.
Oath or Affirmation
● A person appointed as a judge of the Supreme Court, before entering upon his office, has
to make an oath before the President, or some other person appointed by him for this
purpose. In his oath, a judge of the Supreme Court swears:
● to bear true faith and allegiance to the Constitution of India;
● to uphold the sovereignty and integrity of India;
● to duly and faithfully and to the best of his ability, knowledge and judgement to perform
the duties of the Office
● without fear or favour, affection or ill-will; and
● to uphold the Constitution and the laws.
Tenure of Judges
The Constitution has not fixed the tenure of a judge of the Supreme Court. However, it makes
the following three provisions in this regard:
Removal of Judges
● A judge of the Supreme Court can be removed from his office by an order of the
President. The President can issue the removal order only after an address by Parliament
has been presented to him in the same session for such removal.
● The address must be supported by a special majority of each House of Parliament (i.e. a
majority of the total membership of that House and a majority of not less than two-thirds
of the members of that House present and voting). The grounds of removal are two-
proved misbehaviour or incapacity.
● The Judges Enquiry Act (1968) regulates the procedure relating to the removal of a
judge of the Supreme Court by the process of impeachment. No judge of the Supreme
Court has been impeached so far.
The salaries, allowances, privileges, leave and pension of the judges of the Supreme Court
are determined from time to time by the Parliament. They cannot be varied to their
disadvantage after their appointment except during a financial emergency.
Ad hoc Judge
● When there is a lack of quorum of the permanent judges to hold or continue any session
of the Supreme Court, the Chief Justice of India can appoint a judge of a High Court
as an ad hoc judge of the Supreme Court for a temporary period. He can do so only
after consultation with the Chief Justice of the High Court concerned and with the consent
of the president. He enjoys all the jurisdiction, powers and privileges (and discharges the
duties) of a judge of the Supreme Court.
Procedure of Court
The Supreme Court can, with the approval of the President, make rules for regulating the
practice and procedure of the court.
The Supreme Court is the highest court of appeal, the guarantor of the fundamental
rights of the citizens and guardian of the Constitution.
o Therefore, its independence becomes very essential for the effective discharge of the
duties assigned to it. It should be free from the encroachments, pressures and
interferences of the executive (council of ministers) and the Legislature (Parliament). It
should be allowed to do justice without fear or favour.
The Constitution has made the following provisions to safeguard and ensure the
independent and impartial functioning of the Supreme Court:
o Mode of appointment
o Security of tenure
o Fixed service conditions
o Ban on practice after retirement
o Power to punish for its contempt
o Freedom to appoint its staff.
Jurisdiction and Powers of Supreme Court
Original Jurisdiction
The Supreme Court decides disputes between different units of the Indian Federation. More
elaborately, any dispute between:
Appellate Jurisdiction
● The Supreme Court hears appeals against the judgements of the lower courts. It enjoys a
wide appellate jurisdiction like - Appeals in constitutional matters, Appeals in civil
matters, Appeals in criminal matters.
Advisory Jurisdiction
The Constitution under Article 143 authorises the President to seek the opinion of the
Supreme Court in the two categories of matters:
● On any question of law or fact of public importance which has arisen or which is likely to
arise.
● On any dispute arising out of any pre-constitution treaty, agreement, engagement or other
similar instruments.
Judicial review is the power of the Supreme Court to examine the constitutionality of
legislative enactments and executive orders of both the Central and state governments. On
examination, if they are found to be violative of the Constitution, they can be declared as
illegal, unconstitutional and invalid (null and void) by the Supreme Court.
With the steep growth in the number of laws and the number of cases, the Court system is
under great pressure. In order to reduce the heavy demand on Court time, efforts need to be
made to resolve the disputes by resorting to Alternative Dispute Resolution Methods before
they enter the portals of the court.
Alternative Dispute Resolution (ADR) is the procedure for settling disputes without
litigation.
The Arbitration, Mediation, Negotiation and Conciliation are tools of Alternative Dispute
Redressal (ADR) System.
Arbitration- Arbitration is a process similar to informal trial in which a neutral third party
or parties render a decision based on the merits of the case. In the Indian context the scope of
the rules for the arbitration process are set out broadly by the provisions of the Arbitration
and Conciliation Act, 1998. The parties may agree to have the decision be binding or
non-binding.
Mediation- A collaborative process where a mediator works with the parties to come to a
mutually agreeable solution. It is usually non-binding.
Conciliation - Conciliation is a less formal form of arbitration. This process does not
require an existence of any prior agreement. Any party can request the other party to
appoint a conciliator. One conciliator is preferred but two or three are also allowed. Parties
may submit statements to the conciliator describing the general nature of the dispute and the
points at issue. The conciliator may request further details, may ask to meet the parties, or
communicate with the parties orally or in writing. Parties may even submit suggestions for
the settlement of the dispute to the conciliator.
When it appears to the conciliator that elements of settlement exist, he may draw up the terms
of settlement and send it to the parties for their acceptance. If both the parties sign the
settlement document, it shall be final and binding on both.
The process of arbitration can start only if there exists a valid Arbitration Agreement
between the parties prior to the emergence of the dispute. Agreement must be in writing.
The contract, regarding which the dispute exists, must either contain an arbitration clause or
must refer to a separate document signed by the parties containing the arbitration agreement.
Any party to the dispute can start the process of appointing arbitrator and if the other party
does not cooperate, the party can approach the office of Chief Justice for appointment of an
arbitrator. There are only two grounds upon which a party can challenge the appointment of
an arbitrator - reasonable doubt in the impartiality of the arbitrator and the lack of proper
qualification of the arbitrator as required by the arbitration agreement. A sole arbitrator or
panels of arbitrators so appointed constitute the Arbitration Tribunal.
There is very little scope for judicial intervention in the arbitration process. If a party
wants to challenge the jurisdiction of the arbitration tribunal, it can do before the tribunal
itself. If the tribunal rejects the request, there is little the party can do accept to approach a
court after the tribunal makes an award. Section 34 provides certain grounds upon which a
party can appeal to the principal civil court of original jurisdiction for setting aside the award.
Once the period for filing an appeal for setting aside an award is over, or if such an appeal is
rejected, the award is binding on the parties.
Advantages
Arbitration promises privacy. In a civil court, the proceedings are held in public.
Arbitration provides liberty to choose an arbitrator, who can be a specialist in the subject
matter of the dispute.
Thus, arbitrators who are sector specialists can be selected who resolve the dispute fairly and
expeditiously. The venue of arbitration can be a place convenient to both the parties.
Likewise the parties can choose a language of their choice.
● The rules governing arbitration proceedings can be defined mutually by both the parties.
● A court case is a costly affair. The claimant has to pay advocates, court fees, process fees
and other incidental expenses. In arbitration, the expenses are less and many times the
parties themselves argue their cases. Arbitration involves few procedural steps and no
court fees.
● Arbitration is faster and can be expedited. A court has to follow a systematic procedure,
which takes an abnormally long time to dispose off a case.
Arbitration Allowed- Partnership, All Civil Matters, Construction Project, Insurance, Time
Based Debts.
Contract Law
● A Contract is a Legally Enforceable Agreement.
● Contract is created orally or in writing with consent of parties who are bound by its terms.
● In case of Breach of Contract, parties may go to the Court to resolve dispute and plaintiff
can sue for damages or specific performance of contract.
● Many aspects of daily life involve contracts like buying property, products or services
with terms and conditions, applying for loan, employment related paperwork etc.
● Indian contract 1872 regulates and validates contract/ agreements.
● Types: Void Contract, Voidable Contract, Illegal Contract and Unenforceable Contract.