Tag Archives: Supreme Court of India

ILN Today Post

MINIMISING CORPORATE LIABILITY OF DIRECTORS

Top three things to consider in India with regard to director liabilities / reporting to the board?

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Landowners are Also Consumers Qua the Builders: Supreme Court

  1. Introduction

The Supreme Court of India (“Supreme Court”) has recently laid down in Bunga Daniel Babu v. M/s Sri Vasudeva Constructions[1] (Casethat a land owner (“Appellant”) who entered into a Memorandum of Understanding (“MoU”) with a builder (“Respondent”) for development of his land by construction of a multi-story building, will be deemed to be a consumer within the definition of Section 2(1)(d) of the Consumer Protection Act, 1986 (“CPA”) despite the rider inserted by the amendment in 2002 thereto whereby the definition of consumer was amended to exclude from its purview any person who avails services for any commercial purpose. 

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Terminating Employees Not Easy Anymore for Schools

With strict regulations being implemented on schools from time to time, the Delhi schools have been saddled with another compliance to be followed before terminating services of their employees as has been clarified by the Supreme Court of India (“SC”) in its recent judgment passed in the matter of Raj Kumar vs. Director of Education & Others (“Judgment”). While considering in detail the provisions of the Industrial Disputes Act, 1947 (“ID Act”) and the Delhi School Education Act, 1973 (“DSE Act”) relating to termination of services of employees by schools, the SC interpreted Section 8(2)1 of the DSE Act which requires obtaining prior approval of the Director of Education (“DoE”) before passing any order of dismissal or termination of services of its employees by school. The SC in its Judgment has, inter alia, observed that Section 8(2) of the DSE Act is a procedural safeguard in favour of an employee to ensure that an order of termination or dismissal is not passed without the prior approval of DoE. 

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Is Imparting of ‘Education’ by Private Educational Institutions a ‘Public Function’ and its Implications

India has seen an exponential growth in the education sector and it holds an important place in the global education market. With 1.3 plus billion population, a market size of US$ 100 billion plus, more than 36,000 higher education institutions contributing 59.7 per cent of the market size, India has one of the largest higher education systems in the world*. With private sector taking a larger share of student enrolments every year, there is a huge potential for private equity participation in the education sector for sustained growth and delivery of quality education. However, this participation has also created unique challenges and one of such challenges is the amenability of educational institutions to the wider writ jurisdiction of the High Courts under Article 226 of the Constitution of India (“COI”) in its capacity of being an ‘authority’. 

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