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Fourth Semester

CASE COMMENT
FOURTH SEMESTER
3YDC LL.B.

P.Chandra Sekhar LL.M.,SET.,NET.,

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Fourth Semester
Labour Law-II
1. A worker leaves his work place after his duty hours. He returns after one hour to pick
up his articles. He received injury in an accident at the time of taking his articles. The
employer of the factory refused to pay compensation. Decide.
1

2
3

Facts of the Case / A worker leaves his work place after his duty hours. He returns
Statement of Facts
after one hour to pick up his articles. He received injury in an
accident at the time of taking his articles. The employer of the
factory refused to pay compensation.
Related Topic
This problem is related to in the course of or during the course of
employment.
Framing of Issues
1. Whether the accident was occurred within the course of
employment?
2. Whether worker can he claims compensation?
3. Whether worker returns after one hour to pick up his articles
is come under in the course or during the course of
employment?
Answering the Issues 1. Answering to the first issue accident was not occurred within
the course of employment.
2. Answering to the second issue worker cant claim compensation
3. Answering to the third issue after one hour he came for taking
his articles is not come under within the course of employment.
Provision of Law
In the course of or during the course of employment : The
accident must arise out of and in the course of an employment.
Therefore, the personal injury by accident must arise both out of as
well as in the course of a workman's employment. The expression 'in
the course of employment' means in the currency of the employment,
The test is in the course of discharge of duties incidental to the contract
of service. The employee must show that he was at the time of the
accident engaged in employer's business or in furthering with business
and was not doing something for his own benefit or accommodation,
that he was doing something in discharge of his duty to his employer
directly or indirectly imposed upon him by his contract of service
It is wider than arising out of employment. It means duration of
employment (period of time) in which the employment continuous.
The duration of employment commences, when he reaches the place
of employment and ends, when he leaves the place of employment.
Following instances illustrate on this point :
(i) All movements of the workman from one place to another
whether within the premises or outside the premises in

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connection with the employment.
(ii) Tea break, lunch break, break for rest etc. (as held in
Pruce vs. Davey).
(iii) If the employer provides transport to and fro from home
and place of work, the journey or transit period comes
under in the course of employment (Holmes vs. Great
Northern Rly.)
6

Relevant Case laws

Indian News Chronicle Ltd. vs. Mrs. Lazarus (1952, 3 FJR, 190).
In this case, the workman in the course of his duties, had to go
frequently into heating room and thereafter to cooling room. One
night, he went to cooling room and got pneumonia and died. It was
held that the injury was one arising out of employment and the
employer was held liable to pay the compensation.
State of Rajasthan vs. Ram Prasad and Another, (2001) I L.L.J. 177
(SC) : In this case, the workman died due to natural lightning
while working at the site. It was held by the Supreme Court that in
order that a workman may succeed in his claim for compensation it is
not doubt true that the accident must have casual connection with
the employment and arise out of it, but if the workman is injured
as a result of natural force of lightning though it in itself has no
connection with employment of deceased Smt. Gita, the employer
can still be held liable if the claimant shows that the employment
exposed the deceased to such injury. In the present case the deceased
was working on the site and would not have been exposed to such
hazard of lightning had she not been working so. Therefore the
appellant was held liable to pay compensation.
Trustees, Port of Bombay vs. Yamunabai , (AIR 1952, Bom. 382): In
this case, a bomb placed in the premises of a workshop by
some unknown person exploded and caused injury to a workman. It
was held that the workman was not responsible for placing of the
bomb, and the injury due to its explosion was caused at the time
and place at which he was employed, therefore the injury was the
result of an accident arising of his employment. The rule is that if a
particular accident would not have happened to a workmen had he
not been employed to work in the particular place and condition, it
would be accident arising out of the employment.

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7

Ratio Decidendi

8
9

Decision
Conclusion

The reason for the decision is worker returns after one hour to
pick up his articles. Worker received injury in an accident at the
time of taking his articles.
He cant claim compensation.
The employee must show that he was at the time of the accident
engaged in employer's business or in furthering with business and was
not doing something for his own benefit or accommodation, that he
was doing something in discharge of his duty to his employer
directly or indirectly imposed upon him by his contract of service.

2. An agriculture labourer died of snakebite while working in the field of his employer. He
was irrigating the sugar cane crops. The employer claimed that he was not workman
before the Workmens Compensation Commissioner. Decide.
1

2
3

Facts of the Case / An agriculture labourer died of snakebite while working in the
Statement of Facts
field of his employer. He was irrigating the sugar cane crops. The
employer claimed that he was not workman before the Workmens
Compensation Commissioner.
Related Topic
This problem is related to definition of Workman
Framing of Issues
1. Whether agricultural labourer can be considered as a
workman?
2. Whether labourer died within the employment?
3. Whether dependants can claim compensation under workmen
(Employees)compensation act ?
Answering the Issues
1. Answering to the first issue agricultural labourer can be
considered as a workman.
2. Answering to the second issue labourer died within the course
of employment.
3. Answering to the third issue dependants can claim
compensation under workmen(Employees) compensation act.
Provision of Law
Workman : According to Section 2 (1) (n) workman means
any person who is :
(A) A railway servant as defined in Clause (34) of Section 2
of the Railways Act, 1989 except those who are
permanently employed in any administrative district or

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sub-divisional office of a railway. Out of this class
also if a person is employed in any capacity as is
specified in Schedule II he will be a workman.
(AA) Any person who is (a). A master, seaman or other member of the crew of a
ship ;
(b) A captain or other member of the crew of an aircraft
(c) A person recruited as driver, helper, mechanic,
cleaner or in any other capacity in connection with a
motor vehicle,
(d) A person recruited for work abroad by a company,
And who is employed outside India in any capacity as is
specified in Schedule II and the ship, aircraft or motor
vehicle, company, as the case may be, is registered in
India, or :
(B) (a) Any person who is employed in any such capacity as is
specified in Schedule II, whether the contract of
employment was made before or after the passing of
this Act and whether such contract is express or
implied, or oral or in writing;
(b) Where the workman is dead any reference to a
workman shall include his dependants as defined in this
Act.
The following are not workman :
Any person working in the capacity of a member of the Armed
Forces of the Union of India. To determine whether a person other
than a railway servant is a workman or not, a reference to Schedule

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II is necessary.
6

Relevant Case laws

Ratio Decidendi

8
9

Decision
Conclusion

Illustration1: A, a driver who met with accident and died while


he was returning from workshop. The dependants can claim
compensation from owner of the vehicle.
Illustration2: X, a mechanic who met with accident and died
while he was doing the test drive of the customers vehicle. The
dependants can claim compensation from owner of the workshop.
The reason for the decision is here the labourer was working in the
field of sugar cane owned by employer.
The dependants can claim compensation
It was concluded that an employer, an employee and a contract of
employment between them. In other words, employment means a
contract of service between the employer and employee wherein the
employee agrees to serve the employer under his control and
supervision.

3. X an employer filed a writ petition in Supreme Court challenging of Minimum wage act
and it affects the fundamental right of the employer guaranteed under Article 19 (i) (g).
Decide
1

2
3
4

Facts of the Case / X an employer filed a writ petition in Supreme Court challenging
Statement of Facts
of Minimum wage act and it affects the fundamental right of the
employer guaranteed under Article 19 (i) (g).
Related Topic
This problem is related Constitutionality of Minimum wages act.
Framing of Issues
1. Whether Minimum wages act violates the Art.19 (1) (g)?
2. Whether Minimum wages is unconstitutional legislation?
3. Whether X can challenge the Act?
Answering the Issues
1. Answering to the first issue Minimum wages act does not
violates the Art.19 (1) (g).
2. Answering to the second issue Minimum wages act
constitutionally valid.
3. Answering to the third issue X cant challenge the Act?
Provision of Law
Constitutional validity of the Minimum Wages Act :
TheMinimum Wages Act, 1948 was passed in pursuance of the
draft convention for fixation of minimum wages adopted at the
International Labour Conference held at Geneva in 1928. However,
there had been a controversy as to the question whether the
Minimum Wages Act, 1948 is violative of Article 19 (i) (g) of the

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Constitution ? Article 19 (i) (g) of the Constitution guarantees to
all citizens the right to practice and profession or to carry on any
occupation, trade or business.
The constitutional validity of the Minimum Wages Act is attacked
on the ground that it violates the freedom of trade or
business guaranteed under Article 19 (i) (g) of the Constitution
since the Act affects harshly and even oppressively a particular
class of employers, who for purely economic reasons are unable
to pay the minimum rate of wages fixed by the authorities under
the Act, but have absolutely no dishonest intention of
exploiting their workers; Hence, the employer might find it
difficult to carry on business on the basis of Minimum wages.
(V) Salient Features of the Act: Following are the notable
features of the Minimum Wages Act, 1948 (i) This Act provides for the fixation of : (a) minimum time
rate of wages ; (b.) a minimum piece rate ; (c) a
guaranteed time rate ; and (d) an overtime rate, for
different occupations, localities or classes of work and
for adults, adolescents, children and apprentices.
(ii) The minimum rate of wages under the Act may consist
of :
(a) a basic rate of wages and a cost of living allowance ;
or
(b) basic rate of wages with or without the cost of living
allowance and the cash value of the concessions in
respect of essential commodities supplied at
concessional rates ; or
(c) an all-inclusive rate.
(iii) The Act requires that wages shall be paid in cash,
although it empowers the appropriate Government to
authorize the payment of minimum wages, either wholly
or partly in kind in particular cases.
(iv) It lays down that the cost of living allowance and the
cash value of concessions in respect of supplies of
essential commodities at concessional rates shall be
computed by the competent authority at certain
interval. In case of undertakings controlled by the
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Union Territories and the Central .Government, the
Director, Labour Bureau is the competent authority.
(v)

Relevant Case laws

Ratio Decidendi

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Decision
Conclusion

The Act empowers the appropriate Government to fix


the number of hours of work per day, to provide .for a
weekly holiday and the payment of overtime wages in
regard to any Scheduled employment in respect of which
minimum rates of wages have been fixed under the Act.

Bijay Cotton Mills Ltd vs. State ofAjmer, (AR 1955, SC 3) on the
ground that, the Act, while fixing the wages beyond the
permissible limits, affects the fundamental right of the employer
guaranteed under Article 19 (i) (g). The Supreme Court rejected
this contention and upheld the validity of the Minimum Wages
Act. The Court also made it clear that, the act is designed to fulfill
the constitutional mandate, embodied in the Article 43 under the
Directive Principles of State Policy. Article 43 of the Constitution
requires the State, shall try to Secure by suitable legislation,
ensure all members of the working class, a decent standard of life.
Therefore, the Act is not violative of Article 19 (i) (g). In other
words, it is constitutionally valid.
Malyalam Plantations Ltd vs. Kerala Slate, (1976, I LU 114
(HC).The concept of minimum wages was to be dynamic. There is
no reason to assume that fair wages fixed years ago should
continue to be fair wages for all time, and any fixation of
minimum wages should be taken not as minimum wages but as
fair wages because it is above the fair wages once fixed
The reason for the decision is the intention of the legislature is to
protect the interests of the workmen.
The Minimum wages Act is constitutionally valid
It was concluded that Article 43 of the Constitution requires the
State, shall try to Secure by suitable legislation, ensure all
members of the working class, a decent standard of life.

4. The employer in the instant case provided free transport from factory to their houses;
when the bus was returning from the factory met with an accident caused the death of 7
employees to the houses. The dependants of the employees claims compensation under
Workman (Employee) Compensation Act .Decide.
1

Facts of the Case / The employer in the instant case provided free transport from
Statement of Facts
factory to their houses; when the bus was returning from the

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2
3

Related Topic
Framing of Issues

Answering the Issues

Provision of Law

factory met with an accident caused the death of 7 employees to


the houses. The dependants of the employees claims compensation
under Workman (Employee) Compensation Act .
This problem is related to theory on notional extension
1. Whether the employees within the course of employment?
2. Whether theory of notional extension can be applicable here?
3. Whether employer should liable to pay the compensation ?
1. Answering to the first issue employees with in the course
of employment.
2. Answering to the second issue theory of notional extension can
be applicable.
3. Answering to the third issue employer should liable to pay the
compensation.
Generally, the work of a workman commences, when he
reaches the place of work, and comes to an end when he leaves the
place of work, after completing his work. The period of going to
place or work and returning home from place of work, is
generally excluded for the purpose of computing out of and in the
course of employment. Eg. ; Traveling to and fro from residence
to place of employment is prima facie not within the course of
employment.
However, there are certain circumstances in which the period
of during the course of employment is extended to both the
periods required to reach the place of employment and to return
home from the place of employment. In such cases, if the
workman meets with an accident i.e., without reaching the place
of employment or even after leaving the place of employment, it
is treated as out of and in the course of employment. This principle
imposing liability on employer by extending such period is
called "The Theory of Notional Extension". This situation
arises, where the Employer provides conveyance/transport
facilities to the workmen/employees.
"The Theory of Notional Extension" : This theory did not
define any guidelines nor proper rules have been evolved. The
Courts are adapting this theory taking into consideration, the
circumstances of the case. Thus, the facts and circumstances play
an important role in applying this theory, to determine the nature of
the accident i.e., whether or not arose out of and in the course of
employment. The relevant case law given below enlighten on the

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point.
6

Relevant Case laws

Holmes vs. Great Northern Railway, (1900 2, QB 409) : In


this case it was held that, it is in the course of employment, if the
means of transport is provided by the Employer.
S. S. Mfg. Co, vs. Bai Valu Raja, (AIR 1958, SC 881) : In this
case, a workman employed in a salt works while returning home
after finishing his work had to go by a public path, then through
a sandy area in the open public and finally across a creek through
a ferry boat. The workman, while crossing the creek in a public
ferry boat which capsized due to bad weather, was drowned. It
was held that on the facts of the case the accident could not be
said to have arisen out of and in the course of employment while
crossing the creek in as much as the theory of notional extension
could not extend to the point where the boat capsized. When a
workman is on a public road or a public place or on a public
transport he is there as any other member of the public and is
not there in the course of his employment unless the very
nature of his employment makes it necessary for him to be there.
The proximity of the place of accident to the place of work is
irrelevant for this purpose. Even the notional extension of the
place of employment terminates when the workman reaches a
public road where the members of the public have a right to
exercise whatever right they have.
Indian Rare Earths Ltd. vs. Subaida Beevi, (1981 1 LU 293):
It was held in this case that, it is within the course of employment
if the accident takes place while proceeding to factory or
returning home, if there is a nexus between the circumstances of
the accident and the employment.
General Manager best vs. Mrs Agnes, (AIR 1953, Cat. 143):
The employer in the instant case provided free transport from
depot to their houses, The driver met with an accident and died
after 5 days. Held that the accident occurred in the course of
employment.

Ratio Decidendi

Decision

The reason for the decision is while applying the theory on


notional extension to this matter.
They can claim the compensation under Workman (Employee)
Compensation Act

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Conclusion

It was concluded that there are certain circumstances in which the


period of during the course of employment is extended to both the
periods required to reach the place of employment and to return
home from the place of employment

Family Law-II
1. A, Hindu by Ramu died leaving behind his wife-W two sons S1 and S2, two daughters
D1, and D2 father and mother; At the time of his death he left the property Rs. 1.2 lacs
as self acquired property. Distribute.
1

Facts of the Case


Statement of Facts

Related Topic

Provision of Law

/ A, Hindu by Ramu died leaving behind his wife-W two sons


S1 and S2, two daughters D1, and D2 father and mother; At
the time of his death he left the property Rs. 1.2 lacs as self
acquired property.
This problem is related to general rules of Hindu intestate
Succession.
Meaning and scope: Literally succession means a series or a
chain. Legally succession means a chain of persons who have
a right to take property. The Hindu Succession Act, 1956,
governs the rules relating to succession. The Act provides a
uniform rules for all the Hindus. All these rules are based on
the principle of propinquity i.e. preference of heirs on the basis
of proximity or nearness of relationship. Succession opens at
the time of the death of the person. The idea behind
succession and inheritance (by birth right) is to keep some one
to be the owner of the property. The rules of succession
determines who are the heirs, rules of preference among
relations, the manner of distribution, disqualifications of heirs,
mode of devolution (decentralisation, delegation, transfer)
Jujjavarapu Yesurao v. Nadakuduru Kamala Kumar and
others 2007 (5) ALD 140 The Court held that the Hindu
Succession Act,1956 does not apply to a person who is a
Muslim,Christian, Parsee or Jew.
Classification of succession: The law of succession is
classified in to two categories. They are:
1. Testamentary succession

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2. Intestate succession
1. Testamentary succession: The testator is free to transfer
his property by writing a will. A person who made the will is
called testator. He can determine a scheme of distribution of
his property after his death. Therefore, the succession made by
the testator by way of will is called testamentary succession.
The testator has full freedom to transfer his property in any
manner he likes. The property may be distributed to not only
to relatives but also to others.
S Sundaresa Pai v. Sumangala T Pai 2002-AIR(SC)-0-317
The Court held that uneven distribution can not make the will
invalid.
2. Intestate succession: Intestate means a person dying
without making a will. Succession of property in the absence
of will is called intestate succession. When a person dies
without indicating how his property is to be disposed of on his
death, such property shall be distributed among his relatives in
accordance with the law of inheritance. The nearest relatives
would take that property i.e. heirs. Hence intestate succession
is based on the law of inheritance. It prescribes the rules
relating to the distribution of property on the basis of
relationship.
4

Analysis of the problem

Wife (W): wife is a class-I heir she will get the share.
Sons (S1, S2): Sons are class-I heir they will get the share.
Daughters (D1, D2): Daughters are class-I heir they will get
the share.
Mother: Mother is a class-I heir she will get the share.

Solution

Father: Father is a class-II heir he wont get anything in the


presence of Class-I heirs.
The total value of the property of Ramu 1.2 laks(1,20,000)
The following are the heirs are available for the purpose of
distribution of property
Wife (W)

: 20,000.00

Sons
S1

: 20,000.00

S2

: 20,000.00

Daughters
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D1

: 20,000.00

D2

: 20,000.00

Mother

: 20,000.00

Father

0.00

(Class-II heir)
---------------Total

1,20,000.00
----------------

Rupess One lakh Twenty Thousand only

2. Distribute the property of James a intestate Christian under following circumstances

Widow, Son and Daughter.


Widow, Father.
Widow.

Facts of the Case


Statement of Facts

/ Distribution the property of James a intestate Christian

under following circumstances


Widow, Son and Daughter.
Widow, Father.
Widow.

Related Topic

Provision of Law

This problem is related to general rules of Christian


Succession.
Christian succession comes under the purview of the
Indian Succession Act, 1925.
Widow: According to Section 33 the widow succeeds the
property of a male intestate as shown below:
1. If the deceased has left a widow but has also left any
lineal descendants, one-thirds of his property shall
belong to his widow, and the remaining two-thirds shall
go to his lineal descendants.
2. If he has left no lineal descendant, but has left persons
who are of kindred to him, one-half of his property
shall belong to his widow, and the other half shall go to

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Analysis of the problem

those who are kindred to him.


3. If he has left none who are of kindred to him, the whole
of his property shall belong to his widow.
Lineal descendants: According to Section 34 where the
intestate has left no widow, his property shall go to his lineal
descendants or to those who are of kindred to him, not being
lineal descendants, according to the rules hereinafter
contained; and, if he has left none who are of kindred to him, it
shall go to the Government.
Widower: According to Section 35 a husband surviving his
wife has the same rights in respect of her property, if she dies
intestate, as a widow has in respect of her husband's property,
if he dies intestate.
Father: When there are no lineal descendants, after deducting
the share of the widow her half share the remaining half share
goes to the father.
Mother: If the father is dead, the mother takes the whole of
the property when there are no brothers and sisters or their
children after deducting widows half share.
Surviving children: According to Section 37 where the
intestate has left surviving him a child or children, but no more
remote lineal descendant through a deceased child, the
property shall belong to his surviving child, if there is only
one, or shall be equally divided among all his surviving
children.
Grandchildren: According to Section 38 where the intestate
has not left surviving him any child but has left a grandchild or
grandchildren and no more remote descendant through a
deceased grandchild, the property shall belong to his surviving
grandchild if there is only one, or shall be equally divided
among all his surviving grandchildren.
1) Widow :1/3
2) Son:1/3
3) Daughter :1/3
1) Widow:1/2
2) Father :1/2
1) Widow: Total share

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5

Solution

If the property value assumes 6 lacs


I) Under first case
1) Widow :1/3 (2 lacs)
2) Son:1/3 (2 lacs)
3) Daughter :1/3 (2 lacs)
II) Under second case
1) Widow :1/2 (3 lacs)
2) Father:1/2 (3 lacs)
II) Under third case
1) Widow : Total Share (6 lacs)

3. P a Hindu male dies intestate leaving behind mother who remarried X after the death of
T" father, one predeceased son's widow who remarried Y after the death of P's son, one
daughter and son and daughter of predeceased daughter's daughter. Distribute his
property under Hindu Succession (Amendment) Act 2005.
1

Facts of the Case


Statement of Facts

/ P a Hindu male dies intestate leaving behind mother who


remarried X after the death of T" father, one predeceased son's
widow who remarried Y after the death of P's son, one
daughter and son and daughter of predeceased daughter's

Related Topic

Provision of Law

daughter.
This problem is related to Hindu Succession (Amendment) Act
2005
Changes brought by the Hindu Succession (Amendment)
Act, 2005
1. The Act abolished the prevention of disintegration of
agricultural holdings or the fixation of ceiling for the
devolution of tenancy rights provided under Section 4
(2) HSA, 1956
2. The Act treats daughter as coparcener by birth and
confers all rights in the same manner as the son.
Section 6
3. The Act abolished the ancient doctrine of pious
obligation
4. The Act omitted Section 23 of HSA, 1956 which

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5.

6.

7.

Analysis of the problem

1.

2.

3.
4.
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disentitles a female heir to seek partition in dwelling


house
The Act omitted Section 24 of HSA, 1956 which
provides any heir who is related to an intestate as the
widow of a predeceased son, the widow of a
predeceased son of a predeceased son or the widow of
a brother shall not be entitled to succeed the property of
the intestate as such widow if on the date the
succession opens, she has remarried.
The Act inserted the words disposed of by him or by
her in Section 30 and thus facilitated any Hindu male
or female to dispose of by will or other testamentary
disposition any property in accordance with the
provision of the Indian Succession Act, 1925 or any
other law for the time being in force and applicable to
Hindus.
The Act added four heirs (13-16) as Class I heirs under
Section 8. They are;
13. Son of a predeceased daughter of a predeceased
daughter
14. Daughter of a predeceased daughter of a
predeceased daughter
15. Daughter of a predeceased son of a predeceased
daughter
16. Daughter of a predeceased daughter of a
predeceased son
Mother who remarried X after the death of T" father:
Section 24 of HSA, 1956 Certain widows disqualified
to inherit the property if she remarries at the time of
partition, now it was removed so mother will get the
share.
One predeceased son's widow who remarried Y after
the death of P's son
Section 24 of HSA, 1956 Certain widows disqualified
to inherit the property if she remarries at the time of
partition, now it was removed so Predeceased sons
widow will get the share.
One daughter
Daughter will get the share
Son of predeceased daughter's daughter
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Fourth Semester
The Hindu Succession(Amendment) Act,2005 added
four heirs as class-I heirs among four Son of
predeceased daughter's daughter
5. Daughter of predeceased daughter's daughter
The Hindu Succession(Amendment) Act,2005 added
four heirs as class-I heirs among four daughter of
predeceased daughter's daughter
5

Solution

Mother who remarried X after the death of T"

father:1/5
One predeceased son's widow who remarried Y after

the death of P's son:1/5


One daughter :1/5
Son of predeceased daughter's daughter:1/5
Daughter of predeceased daughter's daughter:1/5

4. Sita a Hindu female dies intestate leaving behind her husband, mother, father and sister.
At time of her death Sita was having Rs. 60,000 worth of property given by her parents
as marriage gift and Rs. 50,000 worth of property given by her husband. Distribute the
property among the legal heirs.
1

Facts of the Case


Statement of Facts

/ Sita a Hindu female dies intestate leaving behind her


husband, mother, father and sister. At time of her death Sita
was having Rs. 60,000 worth of property given by her parents
as marriage gift and Rs. 50,000 worth of property given by

Related Topic

Provision of Law

her husband.
This problem is related to general rules of succession to the
property of females
Prior to the enactment of the Hindu Succession Act, 1956 a
female Hindu had two kinds of properties namely Stidhan and
womens estate. Over Stridhan, she had full ownership and on
her death it devolved on her heirs. In respect of the property
which she acquired as womens estate, her position was that of
owner but her power of alienation was limited. On her death,
such property devolved not on her own heirs but upon the next

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heirs of the last full owner.
Section 14 of the Hindu
Succession Act, 1956 removed the distinction between
Stridhan and womans estate and converts existing womans
estate into absolute property of Stridhan by conferring on her,
absolute rights. Thus it has enlarged the limited estate into
absolute interest in accordance with the principles of the
Constitution.
According to Section 14 any property possessed by a female
Hindu whether acquired before or after the commencement of
this Act, shall be held by her as full owner thereof and not as a
limited owner.
According to Section 15 the property of a Hindu female is
categorised under the following heads;
1. The property inherited by a female from her father or
mother
2. The property inherited by a female from her husband or
father in law and
3. The property obtained from any other source, by
inheritance of otherwise.
According to Section 15(1) the property of a Hindu female
dying intestate shall devolve as per the rules set out in Section
16 of the Act. They are;
a. Firstly, upon the sons and daughters, children of
predeceased son or daughter, husband
b. Secondly, upon the heirs of the husband
c. Thirdly, upon the mother and father
d. Fourthly, upon the heirs of the father and
e. Lastly, upon the heirs of the mother.
According to Section 16 the property of a Hindu female dying
intestate shall devolve as per the following rules. They are;
Rule 1: According to this rule the order of priority among the
five groups of heirs mentioned in Section 15(1) and its clauses
(a) to (e).
Heirs belonging to the same group take
simultaneously. This rule, however, does not speak about the
quantum of shares to be taken by any group.
Rule 2: According to this rule where children and eligible
grandchildren coexist the distribution of property will be per
stirpes and not per capita.
Rule 3: According to this rule a legal fiction whereby property
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Analysis of the problem

actually belonging to one deceased person is presumed to be


that of another deceased person who died earlier.
Husband: He will get the share because he is in first priority
Mother: She will get the share because she is in third priority
Father: He will get the share because she is in third priority
Sister: She may not get the share because sister is not

Solution

mentioned in Section and its clauses from (a) to (e).


Sita was having Rs. 60,000 worth of property given by her
parents as marriage gift and Rs. 50,000 worth of property
given by her husband. Now both Sixty Thousand and Fifty
Thousand will becomes her absolute property.
Husband: 36,666.66
Mother:

36,666.66

Father:

36,666.66

Sister:

Total : 1,10,000.00 (One Lakh Ten Thousand only)

Taxation Law
1. AB & Co entered into a contract with CD & Co for supply of materials. However as
dispute arose between them AB & Co terminated the contract with CD & Co on
account of which it received Rs. 2,00,000 as compensation. The assessing officer
raised a demand to pay tax on the amount treating it as a Revenue receipt. Decide.
The instant problem can be answered by
1. Giving the definition of Capital Receipt
2. Giving the definition of Revenue Receipt
3. Difference between the capital and revenue expenditure
4. Answering the question.

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An amount referable to fixed capital is a capital receipt whereas a receipt referable to circulating
capital would be a revenue receipt.

The objective of Income-tax Act is to tax only income and items, which are construed as income.
Generally, revenue receipts are always considered as income chargeable to tax unless specifically
exempted.

Salary, interest, rent, commission etc., are revenue receipts chargeable to tax.

Though share of income received by a partner from a firm is revenue receipt, it is not taxable
since it is exempted under section 10(2A). On the other hand, capital receipts are not chargeable
to tax except when specifically provided in law. Receipts such as loan, corpus donations,
compensation for termination of a source of income are normally considered as capital receipt
and therefore not chargeable to tax. However, compensation for termination of employment
received from an employer is chargeable to tax, inspite of having the character of capital receipt,
as it is specifically provided under section 17(3). Similarly, compensation received by an agent
for termination of the agency is a capital receipt but it is specifically provided as chargeable to
tax under section 289(ii)(c).
The distinction between a capital receipt and a revenue receipt should be perceived based on the
facts and circumstances of each case. Factors such as the basis of measurement, the quantum of
periodicity, the nomenclature used by the parties, nature of the transaction etc are not final and
conclusive in judging a receipt as revenue or capital.
In Kamakshya Narain Singh Vs.CIT income was compared to the fruit of a tree or the crop of a
field. If we consider fruit as income, the tree becomes the source of such income. In the same
manner it can be said that when employment is the source, salary is the income. Similarly when
a house property is the source, rent is the income. Income, therefore, should be construed to
refer to periodical monetary return with regularity or some sort of a expected regularity from a
known or definite source. Nevertheless, even a casual and not recurring receipt may have the
characteristics of income and consequently become chargeable to tax.
Difference between capital receipt and revenue receipt:

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1.

Any amount received towards fixed capital or for fixed asset is a capital receipt whereas

2.

any amount received towards circulating capital or for floating asset is a revenue receipt.
Any receipt towards substitution of a source of income is a capital receipt whereas any

receipt towards substitution of income is a revenue receipt.


3. The amount received as a compensation for surrender of any rights of ownership is a
capital receipt whereas compensation received as a loss for future profit is revenue
receipt.
4. Ex: Premium on issue of new shares if a capital receipt whereas sales tax collected from
purchase of goods, annuities, royalties etc is a revenue receipt.
Solution: In this problem the Assessing officer raised a demand treating the income as Revenue
Receipt.
Receipt in substitution of a source of income is a capital receipt. Therefore, the amount received
by AB & Co from CD & Co for premature termination of an agency contract is a capital receipt
and hence exempted. The demand of the Assessing officer is not tenable.

2. Rickey Ponting, an Australian cricketer has been coming to India for 100 days every
year since 1997-98
(a) Determine his residential status for the assessment year 2012-130
(b) Will your answer be different if has been coming to India for 110 days instead of 100
days every year.
The above problem can be answered by analysing the provisions of Residential Status along with
its legal implications.
Total income of an assessee cannot be computed unless we know his residential status in India
during the previous year. According to the residential status, the assessee can either be:
i.
ii.

Resident in India; or
Non-resident in India.

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However, individual and HUF if resident in India will be either:
(a) Resident and Ordinarily resident in India. Or
(b) Resident but not Ordinarily resident in India.
When an Individual is said to be resident in India:
An individual is said to resident in India if he satisfies any one of the following two conditions:
(1) He is in India for a period or periods amounting in all to 182 days or more in the relevant
previous year; or
(2) He is in India for 60 days or more during the relevant previous year and has been in India
for 365 days or more during 4 previous years immediately preceding the relevant
previous year.
Exceptions:
(1) In case of an individual, who is a citizen of India and who leaves India in any previous
year for the purpose of employment outside India, the period of 60 days shall be
substituted by 182 days.
(2) In case of an individual, who is a citizen of India, or is a person of Indian origin, who
being outside India, comes on a visit to India in any previous year, the period of 60 days
in the second condition shall be substituted by 182 days.
When an Individual is said to be resident and ordinarily resident in India:
An individual who is resident in India, shall be resident and ordinarily resident in India if he
satisfies both the following conditions(a) He has been resident in India for at least 2 out of 10 previous years immediately
preceding the relevant previous year And
(b) He has been in India for 730 days or more during seven previous years immediately
preceding the relevant previous year.
When an individual is said to be resident but not ordinarily resident in India:
An Individual who is resident in India is said to be not ordinarily resident in India if he does
not satisfy any or both of the conditions.
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When an individual is said to be non-resident in India:
An individual is said to be a not-resident, if he is not a resident in Indiai.e. none of the
conditions.
Solution
(a) Rickey Ponting satisfies the second condition of Category A because he is in India for
more than 60 days during the relevant previous year and for 400 days during four years
preceding the relevant previous year. Therefore, he is a resident.
Further, in this case, although he satisfied the first condition of category B of being resident for
at least 2 out of 10 preceding previous years but he does not satisfy the second condition of
category B as during 7 years preceding the previous year, he is in India for only 700 dyas. He
shall, therefore, be a resident but not ordinarily resident in India.
(b) Yes. He will, in this case, be resident and ordinarily resident in India. He satisfied both
conditions of category B as he was in India for 770 days in the last seven years and he
was resident for at least 2 previous years out of 10 previous years immediately preceding
the relevant previous year.
3. X a Government servant was sent on deputation abroad. He was given certain
allowances which he claimed as exemption which was subsequently rejected by the
Assessing Officer. Decide.
The Instant problem can be answered by analysing the definition of allowances, taxable
allowances and exempted allowances. Allowance is a fixed monetary amount paid by the
employer to the employee for meeting some particular expense, whether personal or for the
performance of his duties. These allowances are generally taxable and are to be included in the
gross salary unless a specific exemption has been provided in respect of any such allowance
Specific exemptions in respect of allowances are provided under the following sections:
(i)
(ii)

House Rent Allowance Section 10(13A)


Specific/notified special allowances-section 10(14)

The above allowances shall be exempt either in full or up to a certain limit and the balance, if
any, shall be taxable and thus included in gross salary
House Rent Allowance

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House situated in Delhi, Mumbai,

House situated in any other city

Chennai and Kolkatta(Minimum of the following)


(i)
(ii)

Allowance actually received or


Rent paid in excess of 10% of

(i) Allowance actually received or


(ii) Rent paid in excess of 10% of

Salary or
(iii)

salary

50% of salary

(III) 40% of salary

Prescribed allowances which are exempt to certain extent


(i)

(ii)

Special allowances for performance of official duties: These allowances are not in
the nature of a perquisite within the meaning of section 17(2) and are specifically
granted to meet expenses wholly, necessarily and exclusively incurred in the
performance of duties of an office or employment of profit. These allowances will be
exempt to the extent such expenses are actually incurred for that purpose.
Allowances to meet personal expenses: These allowances are granted to the
employee to meet his personal expenses wither at the place where the duties of his
office or employment of profit are ordinarily performed by him or at the place where
he ordinarily resides. These allowances are exempt to the extent prescribed.

Special Allowances which are exempt to the extent of actual amount received or the amount
spent for the performance of the duties of an officer or employment of profit, whichever is less
(a)
(b)
(c)
(d)
(e)

Travelling allowance
Daily allowance
Conveyance allowance
Helper allowance
Academic allowance etc.,

ALLOWANCES WHICH ARE EXEMPT IN CASE OF CERTAIN PERSONS


(i)
(ii)
(iii)
(iv)

Allowances to a citizen of India, who is a Government employee, rendering services


outside India.
Allowances to High Court Judges under section 22A(2) of the High Court Judges Act,
1954.
Sumptuary allowance given to High Court and the Supreme Court judges.
Allowances received by an employee of UNO from his employer.

ALLOWANCES WHICH ARE FULLY TAXABLE

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Fourth Semester
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)

Dearness Allowance
City Compensatory Allowance
Medical Allowances
Lunch Allowance/tiffin allowance
Servant allowance
Overtime allowance
Warden allowance
Non-practising allowance
Family allowance.

Solution:
By analysing the above provisions , it is understood that allowances to a citizen of India, who is a
government employee , rendering services outside India is exempted and the decision of the
Assessing Officer is not tenable.

4. XYZ co was incorporated in the year 2011-12. While filing its tax return for the
Assessment year 2012-13, the company claimed certain deductions with respect to rent,
rates, taxes, repairs and insurance for buildings, machinery , plant and furniture as
admissible which was rejected by the Assessing Officer. Decide the validity of rejection
by the Assessing officer in the light of the Income tax Act.
The instant problem comes under the head Profits and gains of business or profession.
Normally a business entity can claim certain allowable deductions.
RENT, RATES, RAXES, REPAIRS AND INSURANCE FOR BUILDINGS(Section 30)
In respect of the business premises used by the assessee, the deduction is available in computing
the income from business for the following items:
(a) Where the premises are occupied by the assessee in his capacity as tenant, the rent paid
for such premises would be deductible. In cases where the assessee has also undertaken
to bear the cost of repairs as part of the terms of his tenancy agreement, the amount of
expenses actually incurred by him on account of repairs would also be deductible.
(b) If the assessee occupies premises not in the capacity of a tenant but as its owner, a lessee
or licensee, the expenses incurred on current repairs to the premises would be deductible.

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(c) The assessee is also entitled to deduct any amount paid by him on account of land
revenue, local rates or municipal taxes in respect of the premises.
(d) Any premium paid in respect of insurance against risk of damage or destruction of the
premises, is also deductible.
REPAIRS AND INSURANCE OF MACHINERY, PLANT AND FURNITURE (Section 31)
Income from business or profession should be computed after allowing deductions under section
31 in respect of repairs and insurance of the machinery, plant or furniture used for the purpose of
business or profession. The deduction allowable would cover the amount of expenses on account
of current repairs and also the amount of premium paid in respect of insurance of the machinery,
plant or furniture against risk of damage or destruction thereof.
The assessee is entitled for deduction in respect of repairs and insurance of these assets only if
these assets have been actually used for the purpose of the business of the assessee during the
accounting year the profits of which are subjected to tax.
Thus, if the assets used in some business, income of which is not chargeable to tax, the assessee
cannot claim deduction in respect of these expenses against the income from someotherbusiness,
the profits of which are taxable.The simple test that must be constantly borne in mind is that as a
result of the expenditure which is claimed as an expenditure for repairs, what is really being done
is to preserve and maintain an already existing asset.
DEDUCTIONS: In respect of rent, rates, taxes, repairs and insurance for premises, used for the
purposes of the business or profession, the following deductions shall be allowed:
(a) Where the premises are occupied by the assessee:
(i)
As a tenant-the rent paid for such premises; and further if he has undertaken to
bear the cost of repairs to the premises, the amount paid on account of such
(ii)

repairs;
Otherwise than as a tenant-the amount paid by him on account of current repairs

to the premises.
(b) Any sum paid on account of land revenue, local rates or municipal taxes.
(c) Any insurance premium paid in respect of insurance against risk of damage or destruction
of the premises.

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In respect of machinery, plant or furniture used for the purpose of business, the following
deductions are allowable:
(a) Amount paid on account of current repairs,
(b) Any insurance premium paid in respect of insurance against risk of damage or destruction
of the plant and machinery or furniture.
Solution:
In the light of the above, the company claim deduction and the decision of the Assessing officer
is not tenable.
Intellectual Property Law
1. Ramu is trading in baniyans under the trademark Villan. The mark has catched the
market reputation. This is noticed by Somu and started his business in same goods as
that of Rarau but used the trademark 'Villa. Ramu filed a suit against Somu for
infringement of his own trademark, It appears that Ramu's trademark in not registered
Decide.
1

2
3
4

Facts of the Case / Ramu is trading in baniyans under the trademark Villan. The
Statement of Facts
mark has catched the market reputation. This is noticed by Somu
and started his business in same goods as that of Rarau but used
the trademark 'Villa. Ramu filed a suit against Somu for
infringement of his own trademark, It appears that Ramu's
trademark in not registered.
Related Topic
This problem is related to infringement of unregistered trademark
Framing of Issues
1. Whether Ramu registered trademark of Villan?
2. Whether Somu committed any infringement of trademark?
3. Whether Ramu is having any remedy ?
Answering the Issues
1. Answering to the first issue Ramu does not registered the
trademark.
2. Answering to the second issue somu doesnt commit any
infringement.
3. Answering to the third issue being unregistered trademark
holder he cant claim any remedy.
Provision of Law
Trademark is a form of intellectual property that gives an
exclusive right to the owner of the trademark. Trademark is a
distinctive sign or symbol. A trademark may be is a word, phrase,
symbol or design, or combination of words, phrases, symbols or
designs is used in the course of trade which identifies and

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Fourth Semester
distinguishes the source of the goods or services of one enterprise
from those of others.
Objectives of trademark: The main objective of trademark is to
ensure certain minimum safeguards of the rights of the proprietor
of trademark.

Trademark helps the consumers to identify the

source of products or services and to distinguish the trademark


owner's goods and services from those of others. The trademark
offers protection to the proprietor of the trademark against
unauthorized use of the mark, thereby entitling him to earn
monetary gain from his intellectual property.
Functions of trademark: Under modern business conditions a
trademark performs the following four functions. They are;
1. It identifies the products and its origin
2. It guarantees its unchanged quality
3. It advertises the products
4. It creates an image for the products
According to Section 27, no person shall be entitled to institute
any proceeding to prevent, or to recover damages for the
infringement of an unregistered trademark

Relevant Case laws

Infringement of registered trademark: A registered trademark


will be infringed if a person in the course of trade, in relation to
the same goods for which the mark is registered, uses without
authority the same mark or a deceptively similar mark. The use
must be use as a trademark. According to Section 27(1), the
proprietor of a registered trademark is entitled to take action;
a. to prevent infringement of the registered trademark or
b. to recover damages for the infringement of registered
trademark
Illustration1: X is trading in petroleum jelly under a registerd
trademark Vaseline. The mark has catched the market
reputation. This is noticed by Y and started his business in same
goods as that of X but used the trademark Vsselinee . In this
case the Y infringed the trademark.

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Illustration2: A is trading in batteries under the trademark

Everday. The mark has catched the market reputation. This is


noticed by B and started his business in same goods as that of A
but used the trademark Everyday. Ramu filed a suit against Somu
for infringement of his own trademark. In this case the B infringed
the trademark .
7
8
9

2
3

Ratio Decidendi

The reason for the decision is trademark was not registered so


cant claim any remedy here.
Decision
Though the trademark was unregistered Ramu cant claim
compensation.
Conclusion
It was concluded that no person shall be entitled to institute any
proceeding to prevent, or to recover damages for the infringement
of an unregistered trademark
2. Raju a mechanical engineer holds a patent on a Motorcycle. Krishna a brother of Raju
working in the same company rectified the inherent defects of the motor cycle and
further improved the model. Can Krishna get a patent on the new improved Motor
cycle ?
Facts of the Case / Raju a mechanical engineer holds a patent on a Motorcycle.
Statement of Facts
Krishna a brother of Raju working in the same company
rectified the inherent defects of the motor cycle and further
improved the model. Krishna wants to get a patent on the new
improved Motor cycle.
Related Topic
This problem is related Patent of addition.
Framing of Issues
1. Whether Krishna can get a new patent?
2. Whether patent was granted for improvements made by the
existing patent product?
3. Whether Krishna violated the violation of intellectual property
rights ?
Answering the Issues
1. Answering to the first issue Krishna cant get a new patent
2. Answering to the second issue patent was not granted for
improvements made by the existing patent product.
3. Answering to the third issue Krishna violated the violation of
intellectual property rights.
Provision of Law
Patent is a form of intellectual property that gives an exclusive
right to the inventors on their inventions. The term patent derived
from the Latin term patere, which means to lay open i.e., to make
available for public inspection. Patent means a grant made by a
Government that confers upon the creator of an invention the sole
right to make, use and sell that invention for a set period of time.
Examples of particular species of patents for inventions include

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Fourth Semester
biological patents, business method patents, chemical patents and
software patents.
Patent is a grant made by a Government that confers upon the
creator of an invention the sole right to make, use and sell that
invention for a set period of time. The object of granting a patent
is to encourage and develop new technology and industry. The
patents are two kinds as per the definition given under the Act.
They are;
1.

Process patent: Process patent means that when a


substance is invented or produced, a patent is not granted
to the substance itself but it is only the method or the
process of manufacture of a substance that is granted a
patent. Therefore in this kind of patent, the patent is
granted to the process but not to the product.

2.

Product patent: A product can be patented if it is new


and useful. Patent can be granted to the product or an
article invented, but not for the process or method of
manufacture of a product. Therefore, in this kind of
patent, it is the product that is covered and protected.
Patents of addition:
Patent of addition is related to
improvements or modifications made to a patented invention. A
patent of addition cannot be granted before the main patent is
granted. If the main patent is revoked, the patentee may request
the conversion of the patent of addition into an independent patent
for the remainder of the term of the main patent, subject to the
payment of maintenance fees. Patents of addition have the same
term as patents for the main invention.
6

Relevant Case laws

Bajaj Auto Limited Vs.TVS Motor Company Limited SLP (C)


No. 13933 of 2009: According to the Bajaj Auto Limited
(hereinafter the appellant), it was granted IndianPatent No. 195904
in respect of a patent application titled An Improved Internal
combustion engine working on four stroke principle with a
priority date of 16th July 2002. The patent was granted on 7 th
July, 2005.
Features of the invention are:
a.Small displacement engine as reflected by a cylinder bore

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Ratio Decidendi

8
9

Decision
Conclusion

diameter between 45 mm and 70 mm.


b. Combustion of lean air fuel mixtures;
c. Using a pair of spark plugs to ignite the air fuel mixture at a
predetermined instant. There are inherent and explicit
contradictions in the stand of the applicant as it is seen in the
various documents relied un by the applicant for protection of its
Patent No.195904.
The Respondents, M/s. TVS Motor Company Limited announced
to launch motor bikes of 125-CC on 14 th December 2007 under
the trade mark 'FLAME'. The motorcycle was powered with a lean
burn internal combustion engine of bore size 54.5 mm with a twin
spark plug configuration, which according to the Bajaj Auto Ltd.,
infringes its patent. The use of two spark plugs in an IC engine
with three valves was a prior art and therefore, the applicant
cannot seek patent for the use of two spark plugs in an IC engine,
and in order to avoid the said situation, the applicant has resorted
to an art of deception
The reason for the decision is Krishna cured some inherent defects
of the existing bike
He cant get a patent for that bike.
It was concluded that Patent of addition is related to improvements
or modifications made to a patented invention. A patent of
addition cannot be granted before the main patent is granted.

3. Razajee wrote Ramayana is English and one Balu byname translated it into Tamil and
published by a popular publisher without the permission of Razazee, How far Balu
and the publisher responsible in their liability ? Decide.
1

2
3

Facts of the Case / Razajee wrote Ramayana is English and one Balu byname
Statement of Facts
translated it into Tamil and published by a popular publisher
without the permission of Razazee, and he instituted the
proceedings against Balu and Publisher.
Related Topic
This problem is related to infringement of copyright.
Framing of Issues
1. Whether translation of a book needs a permission of original
author?
2. Whether Balu committed any violation of copyright?
3. Whether Razee can initiate the proceedings against the Ablu
and publisher ?
Answering the Issues
1. Answering to the first issue translation of a book needs a
permission of original author.
2. Answering to the second issue Balu committed violation of

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Fourth Semester

Provision of Law

copyright
3. Answering to the third issue Razee can initiate the proceedings
against the Ablu and publisher.
Copyright is a form of intellectual property that gives an exclusive
right to the creators of literary, dramatic, musical works, computer
programme, artistic work, cinematograph film and sound
recordings for a certain time period. The creators of these works
gets copyright immediately after expression and requires no
formal registration. Copyright law protects the expressions of
ideas but not the ideas.
Literary work: Section 2(o) of the Copyright Act, 1957 defines
the term literary work. According to this section, literary work
includes computer programmes, tables and compilations including
computer databases. Computer programmes are protected under
the Copyright Act. They are treated as literary works. In
determining whether a work is entitled to copyright protection a
rough practical test is What is worth copying is prima facie worth
protecting. In the case of a literary work copyright means the
exclusive right;

To reproduce the work


To issue copies of the work to the public
To perform the work in public
To communicate the work to the public
To make cinematograph film or sound recording in respect
of the work
To make any translation of the work
To make any adaptation of the work
Copyright applies to both published and unpublished literary
works. If a literary work is published within the life time of the
author the copyright term is for the life time of the author plus 60
years. Literary work covers work which is expressed in print or
writing irrespective of the question whether the quality of style is
high.
Infringement means breach or violation. The owner of a
copyright work has the exclusive right to do certain acts such as
publication, performance of his work, reproduction, sale of the
work etc. If any person does any of these acts without authority he
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6

Relevant Case laws

Ratio Decidendi

Decision

Conclusion

will be committing an infringement of the copyright in the work.


Eastern Book company v Navin J.Desai, the question involved
was whether there is any copyright in the reporting of the
judgment of a court. The Delhi High court observed: It is not
denied that under section 2(k) of the Copyright Act, a work which
is made or published under the direction or control of any Court,
tribunal or other judicial authority in India is a Government work.
However, in case, a person by extensive reading, careful study and
comparison and with the exercise of taste and judgment has made
certain comments about judgment or has written a commentary
thereon, may be such a comment and commentary is entitled to
protection under the Copyright Act.
Khajanchi Film Exchange v state of MP the appellants
apprehending the violation of their copyright in the film, prayed
for the writ of Mandamus without first exhausting the
alternative remedy available under the Copyright Act. The
Division Bench of the Madhya Pradesh High Court Observed:
There is no dispute in the submission that it is the duty of police to
be watchful in the area and detect crime and punish the criminal in
accordance with law. But the petitioners did not complain that any
stage nor did they seek action from other functionaries of the
State. They ask for mandamus without putting the grievance
before the respondent and seeking their reaction. The writ petition
was filed 16 days before the release of the film. Therefore, petition
was filed on mere apprehension that appellants would be deprived
of their rights which did not exist when claim for mandamus was
made. Mandamus can be granted only when default, commission,
or omission takes place which had not happened in this case.
The reason for the decision is he must take the permission form
the author while he was translating the book
He is liable for penalty because he infringed the copyright of the
Razee.
The owner of a copyright work has the exclusive right to do
certain acts such as publication, performance of his work,
reproduction, sale of the work etc.

4. A engaged in manufacturing and selling of shoes and soles known as article "007",
which has distinctive shape, design, configuration and surface pattern originated by
A. B another trader started, manufacturing and .selling a shoes and. soles bearing
similar shape, design, features and surface pattern, is an obvious imitation of A's
design. A used for an interim injunction against B. B submitted that A himself is the
pirator-of the registered design of "Carona Shoe Company Pvt Ltd". Decide.
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Fourth Semester
1

2
3
4

Facts of the Case / A engaged in manufacturing and selling of shoes and soles
Statement of Facts
known as article "007", which has distinctive shape, design,
configuration and surface pattern originated by A. B another
trader started, manufacturing and .selling a shoes and. soles
bearing similar shape, design, features and surface pattern, is
an obvious imitation of A's design. A used for an interim
injunction against B. B submitted that A himself is the piratorof the registered design of "Carona Shoe Company Pvt Ltd".
Related Topic
This problem is related to infringement of designs.
Framing of Issues
1. Whether A registered its shoe design?
2. Whether claim of B is tenable or right?
3. Whether B committed any violation here ?
Answering the Issues
1. Answering to the first issue A is not register his shoe
design.
2. Answering to the second issue B claim is not tenable
3. Answering to the third issue B violated the design law because
he knows that it was the design of Carona Shoe Company Pvt
Ltd.
Provision of Law
Industrial design rights are defined as the part of the intellectual
property rights which confers the rights of exclusivity to the visual
designs of objects which are generally not popular utilitarian. It
safeguards the appearance, style, design of the industrial object
such as spare parts, textiles, furniture. When the consumers take
decision to buy any article, they look into the not only the practical
utility of the article but also visual appearance. Generally
consumers buy articles which are attractive to their eyes.
They are significantly influenced by the aesthetic aspect and the
visual appeal of the article. The law protecting designs was
governed by the Designs Act, 1911 which has now been replaced
by the Designs Act, 2000. It came into force with effect from 11 th
May 2001.
Infringement of design: During the existence of copyright in any
design it shall not be lawful for any person to do the following acts
without the consent or licence of the registered proprietor of the
design.
Remedies against the piracy of registered design: Two
alternative remedies are available against the piracy of registered
design out of which the proprietor has to elect one of these two
remedies. According to Section 53(2)(a) if any person acts in
contravention of Section 53, he shall be liable to pay the registered
proprietor of the design a sum not exceeding Rs 500 for every

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Fourth Semester

Relevant Case laws

contravention recoverable as a contract debt, but the total sum


recoverable in respect of any one design shall not exceed Rs 1000.
According to Section 53(2)(b) the proprietor may bring a suit for
the recovery of damages for any such contravention, and for an
injunction against the repetition thereof. In case he succeeds, he
will be entitled to recover such damages as may be awarded by the
Court and restrain the defendant in terms of the injunction granted
by the Court.
B.K. Plastic Industries v. Jayantilal Kalidas Sayani ( AIR 1972,
Cal 339)
In this case, the petitioner applied for the registration of patent in
respect of a 'Picnic Set' made of plastic. After making the said
application the petitioner started manufacturing and marketing for
commercial purposes the said products. The respondent, one J. K.
Savani of Bombay also known as Jayantilal Kalidas ,was also
marketing the said design thereby infringing the said patent
granted to the petitioner. The court held that even if a design which
is original but is published earlier than the date of registration, it
loses its novelty or newness on the date of registration and hence,
it may be cancelled or revoked. A person is not entitled to take any
one of the grounds as set out in sub-clauses (I) (II) and (III) of
clause A of sub-section 1 to section 51 of the Designs Act 1911,
since the word ' or' stands between the sub-clauses, as the ground
for cancellation or revocation of registration of a design. All the
grounds must be taken in the application for cancellation of

Ratio Decidendi

Decision

Conclusion

registration.
The reason for the decision is A himself is a pirator of another
company
It was held that in this case both the parties are the pirators of the
shoe design.
It was concluded that During the existence of copyright in any
design it shall not be lawful for any person to do the following acts
without the consent or licence of the registered proprietor of the
design.

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Fourth Semester
Land Laws
1. Ramu leased out his land to Somu for a period of 10 years for running cotton
business on a monthly rent of Rs. 10,000. Somu used the same land for the purpose
of running a Bar. Ramu wants to cancel the lease after one yearDecide.
1

2
3
4

Facts of the Case / Ramu leased out his land to Somu for a period of 10 years for
Statement of Facts
running cotton business on a monthly rent of Rs. 10,000. Somu
used the same land for the purpose of running a Bar. Ramu
wants to cancel the lease after one year
Related Topic
This problem is related to termination of lease.
Framing of Issues
1. Whether Somu bound by his agreement of lease?
2. Whether Somu violated the lease agreement?
3. What is the remedy is available for Ramu ?
Answering the Issues
1. Answering to the first issue Somu bound by his agreement
of lease.
2. Answering to the second issue Somu violated the lease
agreement.
3. Answering to the third issue Ramu can terminate the contract of
lease.
Provision of Law
According to Section 105 of the Transfer of Property Act, 1882
lease is a transfer of a right to enjoy an immovable property for a
certain time or in perpetuity. According to Section 105 a lease of
immovable property is a transfer of a right to enjoy such property,
made for a certain time, express or implied, or in perpetuity, in
consideration of a price paid or promised, or of money, a share of
crops, service or any other thing of value, to be rendered
periodically or on specified occasions to the transferor by the
transferee, who accepts the transfer on such terms. The transferor
is called lessor, the transferee is called lessee and the consideration
is called rent. Thus in case of lease only right to enjoyment is
transferred but not the right to ownership.
Essentials
1. The parties
2. The subject-matter
3. The express or implied contract
4. The transfer of right to enjoyment
5. The duration of lease
6. The consideration
7. The registration
Registration is compulsory for the following leases:
a. Leases from year to year
b. Leases for a term exceeding one year
c. Leases reserving an yearly rent

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Fourth Semester
d. Leases which are permanent in nature
Registration is optional for the following leases:
a. Leases from month to month
b. Leases for a term of one year
c. Lease for a term of less than one year
Termination of lease: Determination or termination of lease
means closing the contract of lease. The legal relation between the
lessor and the lessee comes to an end after determination of lease.
According to Section 111 the lease may be terminated in the
following ways. They are;
Sec. 111 (a)

By expiry of time

Sec. 111 (b)

By happening of a specified event

Sec. 111 (c)

By termination of lessors interest

Sec. 111 (d)

By merger

Sec. 111 (e)

By express surrender

Sec. 111 (f)

By implied surrender

Sec. 111 (g)

By forfeiture

Sec. 111 (g)(1)

By breach of express condition by lessee

Sec. 111 (g)(2)

By denial of landlords title

Sec. 111 (g)(3)

By insolvency of the lessee

Sec. 111 (h)


6

Relevant Case laws

Ratio Decidendi

8
9

Decision
Conclusion

By expiry of notice to quit

Illustration1:X leased out his house to Y for a period of 5


years for running a hotel on a monthly rent of Rs. 10,000. Y
used the same house for the purpose of running a Prostitution.
X can terminate lease at any time.
Illustration2: A leased out his house to B for a period of 2
years for residential purpose on a monthly rent of Rs. 5,000. B
used the same house for selling of smuggled goods. A can
terminate lease at any time.
The reason for the decision is Somu breached the expressed
condition in the lease
It was held that Ramu can terminate the lease
It was concluded that termination of lease can be made if the
lesses violates the express condition fixed by the lessor.

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Fourth Semester

2. Government of A.P has assigned 100 acres of land in a village at Tirupati to a group of
five Daiits. One of the Daiits sold his share of assigned land to another Dalit of same
village possessing only one acre of wet land. Discuss the legitimacy of the sale.
1

2
3
4

Facts of the Case / Government of A.P has assigned 100 acres of land in a village at
Statement of Facts
Tirupati to a group of five Daiits. One of the Daiits sold his
share of assigned land to another Dalit of same village
possessing only one acre of wet land.
Related Topic
This problem is related to alienation of assignment of land.
Framing of Issues
1. Whether Dalit can transfer his assigned land to anybody?
2. Whether the sale made by the Dalit is valid?
Answering the Issues
1. Answering to the first issue Dalit cant alienate his
assigned land to any other person.
2. Answering to the second issue no sale is not valid.
Provision of Law
The Andhra Pradesh Land (Prohibition of Transfers) Act, 1977 is a
protective legislation which came into force on 21-1-1977. The
Act prohibits transfer of lands assigned to land-less poor persons
for the purpose of cultivation or as house-sites and provides for
restoration of such transferred lands to the original assignees and
also for punishment to the persons acquiring such lands. Assigned
land means a land assigned by the Government to the landless
poor persons subject to the condition of non-alienation.
Assignment of Government land means grant of land at the
disposal of Government to individuals or institutions and firms
either on payment of value or free of cost.
Salient features: For the purpose of curbing the alienations of
assigned lands by the assignees to other persons and again
becoming landless poor persons, the Act was passed to ameliorate
the economic conditions of the weaker sections as envisaged under
Article 46 of the Constitution. Section 2 of the Act defines the
assigned land and Clause (6) of Section 2 defines transfers.
Section 3 prohibits transfer of assigned lands and declares any
transfer as null and void. Section 4 provides for the consequences
of breach of provisions of Section 3, i.e., to take action for

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Fourth Semester
resumption of land and restore the same to landless poor persons.
Section 5 prohibits registration of assigned lands.

Section 7

provides for penalty and Section 9 empowers the Government to


make rules. Hence, alienation of these lands to any other person
other than another landless poor is punishable under the Act. The
punishment for the violation of law under this act is six months
imprisonment and a fine up to Rs 2000/- to Rs 5000/Prohibition of transfer of assigned lands: Section 3 (1) of the
Act prohibits transfer of any land assigned to a landless poor
person by way of sale, gift, mortgage, exchange, lease or
otherwise and no right or title in such assigned land shall vest in
any person acquiring the land by such transfer which transaction
shall be deemed never to have taken place. A mortgage in favour
of Central Government, or the State Government or any Local
Authority or any registered Co-operative Society or any Bank
shall not be regarded as alienation.
Exception: Section 5: However the prohibition is not applicable
if the assigned land is purchased by another landless poor for a
valuable sale consideration from the original assignee or his
6

Relevant Case laws

transferee.
Illustration: Government of A.P has assigned 10 acres of land in
a village at Tirupati to a group of five Daiits. One of the Daiits
sold his share of assigned land to another land less Dalit of

Ratio Decidendi

same village. Here the transfer is valid.


The reason for the decision is assigned land cant alienate to

8
9

Decision
Conclusion

anybody.
It was held that the sale is invalid.
The assigned lands cant be transferred but prohibition is not
applicable if the assigned land is purchased by another landless
poor for a valuable sale consideration from the original assignee or
his transferee.

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Fourth Semester
3. The state government transferred mining rights in a scheduled area to one of its
corporations. One of the tribals residing in that area intends to challenge it as a
yiolative of the A.P. Scheduled Land Transfer Regulation. What are the chances of
success ?
1

2
3

Facts of the Case / The state government transferred mining rights in a scheduled
Statement of Facts
area to one of its corporations. One of the tribals residing in that
area intends to challenge it as a yiolative of the A.P. Scheduled
Land Transfer Regulation.
Related Topic
This problem is related A.P.Sheduled Land transfer regulation.
Framing of Issues
1. Whether government can transfer the mining rights to the
corporation?
2. Whether tribal can challenge the permission?
3. Whether petitioner can succeed in this matter ?
Answering the Issues
1. Answering to the first issue government cant transfer the
mining rights to the corporation.
2. Answering to the second issue tribal can challenge the
permission.
3. Answering to the third issue petitioner can succeed in this
matter.
Provision of Law
The Andhra Pradesh Scheduled Areas Land Transfer
Regulation, 1959
The Scheduled areas in the country are not governed by the same
laws as in the rest of the country, and they are directly
administered under the laws made by the Executive as per
provisions contained in the 5th Schedule to the Constitution of
India. Andhra Pradesh Schedule Areas Land Transfer Regulation,
1959 is a piece of legislation which protects the tribal lands in the
agency areas. The preamble of the Regulation says that this
Regulation is to regulate the transfers of land in the Scheduled
Areas of the East Godavari, West Godavari, Visakhapatnam
Srikakulam, Adilabad, Warangal, Khammam and Mahaboobnagar]
districts of Andhra Pradesh.
In this context transfer means mortgage with or without
possession, lease, sale, gift, exchange or any other dealing with
immovable property, made inter vivos i.e., between two living
person.
Object and purpose: These Regulations are framed to prevent
the exploitation of tribals by non-tribals and alienation of
agricultural land of tribals being passed on to non-tribals. It could
never have been the intention of the framers of Constitution that

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Fourth Semester
no economic activity should take place in the scheduled areas or
that the tribals should always remain isolated from the main
stream of society.
Meaning of scheduled area: According to Para 6 of the Fifth
Schedule to the Constitution Scheduled area means such areas as
the President may by order declare to be Scheduled areas. The
President has the following incidental powers. They are;
a. Direct that the whole or specified part of a Scheduled Area
shall cease to be a scheduled area or a part of such an area
b. Increase the area of any scheduled area in a state after
consulting the Governor of that State
c. Alter, but only by way of rectification of boundaries of any
scheduled area and
d. To declare any part of the State as part of scheduled area etc.
Validity of transfer of immovable property by a Scheduled
Tribe: According to Section 3 of the Regulation any transfer of
immovable property situated in the Agency tracts by a person,
whether Scheduled Tribe or not, would become absolutely null and
void. However such a transfer of immovable property would be
valid, if it is transferred to either a Schedule Tribe or a society
registered or deemed to be registered under the Andhra Pradesh
Cooperative Societies Act, 1964, which is composed solely of
members of the Scheduled Tribes.
6

Relevant Case laws

Samatha v. State of Andhra Pradesh AIR 1997 SC 3297 Borra


reserved forest area along with its environs consisting of 14
villages, is the notified scheduled area in Ananthagiri Mandal of
Visakhapatnam District of Andhra Pradesh. The State Government
granted mining leases in this area to several non-tribal persons.
The appellants filed petitions against the State Government and
mining lessees contending that the area in which mining leases
were granted was a notified scheduled area, and the mining leases
are against the Regulation, 1959 and also against the Forest Act,
1980. The Supreme Court cancelled the mining licenses.
Ramaiah v. Ahmed Badruddin and Another 1989(1) APLJ 452
the sale of land situated in Scheduled area by a non-tribal to
another non-tribal was held to be a void transaction. A person in
possession, though his possession is unlawful is entitled to protect
his possession until he is evicted by due process of law and seek
relief of injunction.

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Fourth Semester
7

Ratio Decidendi

8
9

Decision
Conclusion

The reason for the decision is this area is scheduled area i.e. meant
for tribals.
It was held that the minig lease can be cancelled
It was concluded that According to Section 3 of the Regulation
any transfer of immovable property situated in the Agency tracts
by a person, whether Scheduled Tribe or not, would become
absolutely null and void.

4. A landlord dies without writing a will leaving behind 100 acres of land. He has no
legal heirs. One lady said to a concubine claims the whole of the property. What will
happen to his property ?
1

2
3
4

Facts of the Case / A landlord dies without writing a will leaving behind 100 acres
Statement of Facts
of land. He has no legal heirs. One lady said to a concubine
claims the whole of the property.
Related Topic
This problem is related to doctrine of escheat.
Framing of Issues
1. Whether concubine claims the property of landlord?
2. Whether government can claim the property?
Answering the Issues
1. Answering to the first issue concubine cant claims the
property of landlord.
2. Answering to the second issue government can claim the
property.
Provision of Law
Escheat means reversion of property to the Government or State
in the absence of legal heirs or claimants. The power of a state to
acquire title to property for which there is no owner. In other
words, any property which has no owner shall be vested in the
Government. The Government is entitled to dispose of such
property. The According to this doctrine the property should not
be left ownerless. e.g., A dies without a will or heir, his property
will be transferred to the Government. The transferred property
can be claimed back by relatives if they have a worthwhile case.
The most common reason that an escheat takes place is that an
individual dies intestate, i.e., without a valid will indicating who is
to inherit his or her property, and without relatives who are legally
entitled to inherit in the absence of a will. A state legislature has
the authority to enact an escheat statute.
Escheat under Hindu Law and Muslim Law: According to
Section 29 of the Hindu Succession Act, 1954, when there is no
qualified heir to succeed the property, it would pass on to the
Government. According to Muslim law, the estate of an heirless

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Fourth Semester
Muslim would pass on to the Government and shall be used for the
benefit of the Muslims only.
Escheat under Constitution of India: Article 296 deals with the
property accruing by escheat or lapse or as Bona Vacantia.
According to this article any property in the territory of India
which if this Constitution had not come into operation, would have
accrued to His Majesty or. as the case may be to the Ruler of an
Indian State by escheat or lapse, or as Bona Vacantia for want of a
rightful owner, shall, if it is property situate in a State, vest in such
State, and shall, in any other case, vest in the Union. Provided that
any property which at the date when it would have so accrued to
His Majesty or to the Ruler of an Indian State was in the
possession or under the control of the Government of India or the
Government of a State shall, according as the purposes for which
it was then used or held were purposes of the Union or of a State,
vest in the Union or in that State. In this Article, the expression
Rulers and Indian State have the same meanings as in Article
363.
Bona Vacantia: Bona Vacantia means ownerless goods. Bona
Vacantia is a common law doctrine in the United Kingdom under
which ownerless property passes by law to the Crown. It has
largely replaced the doctrine of escheat, which had a similar effect
in relation to feudal tenures. The term Bona Vacantia can also be
expressed as abandoned property.
The Andhra Pradesh Escheats and Bona Vacantia Act, 1974
provides for the determination, custody and disposal of property
vested in the State of Andhra Pradesh by escheat or lapse or as
Bona Vacantia for want of a rightful owner and of unclaimed
property. This Act is a socio-economic legislation. It contains 17
Sections divided into 5 Chapters.
Section 11: Procedure for declaring property to be escheat or
bona Vacantia. As soon as may be after the property is taken into
his custody under Section 9, the local officer shall publish a notice
in such manner as may be prescribed, calling upon the persons
who may have any claim to such property to prefer their claims to
such property in the prescribed form within three months from the
date of publication of the notice.
6

Relevant Case laws

P. Leslie & Co. v. Violet Ouchterlong Wapshare AIR 1969 SC


843 (849) the Supreme Court held that the property of an intestate

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Fourth Semester

Ratio Decidendi

Decision

Conclusion

who died without leaving any lawful heir, and also the property of
a dissolved corporation shall pass to the Government by escheat or
Bona Vacantia.
Rex v. Attorney-General of British Columbia (1924) Appeal
Cases 213 (PC), it was observed that when there is no private
persons entitled, the Crown takes such property.
G. Narsimha Reddy v. State of A.P 1987 (2) ALT 46 (NRC) the
Court held that without conducting any enquiry as contemplated
under Section 12 of the Act, the authorities cannot just come to a
conclusion that particularly property is an Escheat or Bona
Vacantia.
The reason for the decision is concubine cant be treated as legal
heir.
The government becomes the owner of the 100 acres land of
intestate.
It was concluded that In other words, any property which has no
owner shall be vested in the Government.

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Page 44

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