50 Years to Bank Nationalisation Case: Rustom Cavasjee Cooper v. Union of India

first_imgColumns50 Years to Bank Nationalisation Case: Rustom Cavasjee Cooper v. Union of India Abhinav Kumar & Chetan Nagpal17 Jun 2020 2:03 AMShare This – xIn the wake of the COVID-19 lockdown, the hardest hit is the agrarian sector and the poorest strata of the society. Since the earnings have been low, induction of credit in the accounts of people seemed the only viable option in order to overcome the plight of the distressed. Many social security schemes have come to the rescue of the poors, but in the midst of all this what we need…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginIn the wake of the COVID-19 lockdown, the hardest hit is the agrarian sector and the poorest strata of the society. Since the earnings have been low, induction of credit in the accounts of people seemed the only viable option in order to overcome the plight of the distressed. Many social security schemes have come to the rescue of the poors, but in the midst of all this what we need to understand is that whatever schemes we hear today wouldn’t have been of much relevance had the banking culture not been promoted in India. In this respect 50 years ago, the Indra Gandhi government took a giant stride of Nationalisation of the Bank whose significance can be seen now in contemporary times when the current Government’s first five years were targeted to achieve financial inclusion through schemes like Jan Dhan Yojana. The decade of the 1960s was a phase of hardships for India. There was serious contemplation regarding the unity of the nation post Nehru’s death. The 1962 war with China and 1965 war with Pakistan adversely affected the nation. This was followed by severe droughts and the economy of the country was suffering. Low literacy rate was another problem and it was the first time since independence when the baton of leadership was being passed from Nehru to someone else. The Nationalisation was done with the aim of providing the more priortised sector with credit when most of the commercial banks preferred big businesses. Being such a big step for the economic betterment of the country it could not remain unaffected from giant speculations and controversies. In the year 1970 Hon’ble Supreme Court of India decided the most controversial Bank Nationalisation Case. After the Golaknath case, this was the second occasion where a case was decided by an 11-judge bench. This case was filled with many twists and turns. HOW BANK NATIONALIZATION WAS DONE After about two decades of India being officially called a democratic republic, the acting President of India, M. Hidaytullah in the year 1969 passed an ordinance to undertake 14 commercial banks with deposits more than 50 crores under its domain. Two days later, the Indra Gandhi government passed an act called Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969 with the same objectives as the ordinance with the sole purpose of benefiting the economy and to promote banking culture in India. Thus, through this act, the undertaking, rights and liabilities were hence transferred. Under Section 15(2) (e) of the Act, the Banks were entitled to carry on business other than banking. The new banks undertook the vacant possession of the 14 banks. Section 6 read with Section 11 of the Act provided for compensation of the takeover which was to be decided by an agreement, in the absence of which the matter would be heard by a tribunal and the compensation would be paid in securities over a course of 10 years. PLAINTIFF’S CONTENTION This is another classical case where Nani Palkhivala- ‘The Courtroom Genius’ mesmerised the bench with his brilliant erudition and eloquence. Rustom Cavasjee Cooper, the petitioner, was a shareholder in the Central Bank of India Ltd., the Bank of Baroda Ltd., the Union Bank of India Ltd., and the Bank of India Ltd., challenged the Act on several grounds. First, he claimed that the Legislature was not competent to pass the act as the state legislature had power to legislate on the matter and also acquisition of property did not include acquisition of an undertaking. Secondly, the act was violative of freedom guaranteed under Article 19(1)(f) and 19(1)(g) [Freedom to practise any profession], Article 301 and also of Article 31(2) of the Indian Constitution [Guarantee of compensation]. The Government was of the view that the petition was not maintainable because a shareholder cannot move a petition for infringement of rights of the company. The Petitioner was of the view that there was some ill intent behind promulgating an ordinance two days before Parliament came in session. COURT JUDGEMENT It is true that a shareholder or director cannot move such a petition on behalf of the company however it can move a petition if the fundamental rights of the person through that action are infringed. Thus, the petition was held maintainable. Secondly, the right to make laws on ‘banking’ was held within the legislative competence of the Parliament under Schedule 7 Entry 54 List I. The Parliament has the right for expropriation, and the right to acquire a “property” when given widest interpretation can include organisations etc. under schedule 7 Entry 42 List III. In the judgment, the judges gave preference to effect test rather than object test which means the effect of the legislation should be seen rather than the object with which it was passed overruling the 20-year-old A. K. Gopalan case theory of mutual exclusivity. Other than that, the Section 15(2)(e) of the Act was termed as ‘unreasonable’ by the court because it deprived the named banks from indulging in business related to ‘banking’. The court called it unreasonable because firstly the expropriation took away the assets and undertaking of the bank such that they are in a position to not even start a non-banking business and secondly the compensation to be paid was not on immediate basis under Section 6. The court even called the part as ‘discriminatory’ since other banks were allowed to operate normally. The court was however of the view that the said Act is not violative of Article 19(1)(f) i.e freedom to carry trade and business as the State always has the right to create an Absolute Monopoly. In Akadasi Padhan v. State of Orissa, the Supreme Court held that if the State creates a monopoly that “indirectly impinges on any other right”, it cannot be challenged. The other issue that needed to be addressed was regarding Article 31(2) of the Constitution which talked of the right to compensation for acquiring a property. The court post citing fourth amendment of the Constitution which gave for ‘fair’ and ‘just equivalent’ compensation, cited a 1969 case called, Tile State of Gujarat v. Shantilal Mangaldas wherein it said that the compensation paid must not be my principles of ‘just’ or ‘equivalent’ that is principles on which the compensation is determined may seem ‘just’ prima facie but it has got to be ‘adequate’. Thus, an appropriate principle should be established to determine the value of property. In the present scenario, the banks were not provided compensation according to any principles. The court said that the principle of valuation must be according to value of property in addition to other advantages connected with it. DISSENTING JUDGE Justice Ray was the only dissenting judge in the panel of 11 judges. The judgement came in the ratio 10:1. Firstly J. Ray said that the fact that ordinance was promulgated two days before Parliament came in session has nothing to do with the point that the President’s intention was mala fide. He further agreed with all the judges that the Act was not in violation of Article 19(1)(f) that is freedom to carry trade and occupation. Interestingly, he also had the view that the petitioner cannot approach the court since on behalf of a non-citizen (bank) whose rights have been violated. FURTHER DEVELOPMENTS By the decision rendered in the case, the Supreme Court declared the ordinance and the Banking Companies (Acquisition and Transfer of Undertaking) Act of 1969 as invalid and the action taken or deemed to have been taken in exercise of the powers under them was unauthorized. The court announced the judgement on 10th February, 1970, the effect of which was that the undertaking of the 14 banking companies, whose burners have been acquired by the Central Government reverted to the banking companies. Interestingly, with a view to resume control over the business of the banking companies, four days after the judgement the President again promulgated a similar ordinance modifying the provisions of the Act which were struck down by the Court. 25TH AMENDMENT TO THE INDIAN CONSTITUTION Post the judgement, an amendment to the constitution was made in the year 1971 which was proposed by H.R. Gokhale. Article 31 of the Indian Constitution underwent changes wherein the word ‘compensation’ was substituted with the word ‘amount’. Courts while defining the word ‘compensation’ considered it as the market value of the property however it was changed, by stating that the amount provided for acquiring the property must be ‘adequate’ and ‘just’. Secondly, Article 31C was added to the constitution which said that if directive principles of state policy contravene the fundamental rights, especially Article 19, then on this basis it cannot be challenged in court. It was indeed a very controversial point, however, in Kesavananda Bharati v. State of Kerala, this part was declared unconstitutional. In conclusion, this case is another classical example where Nani Palkhivala baffled everyone by his exceptional articulative skills in the courtroom which ultimately convinced the court to strike down the Banking Companies Act, 1969 and hence ensured the citizens that anything arbitrary or unjust cannot find a place in the Indian Laws. 50 years of this judgement shades various contours of ensuring constitutionalism in India.Views are personal only.  (Abhinav Kumar is Delhi based public policy expert & teaching at Law Centre, University of Delhi & Chetan is a pursuing BA LL.B from USLLS, IP University, Views expressed are personal, Email Id- [email protected] ) Next Storylast_img read more

NOTICE OF IVY TECH REGIONAL BOARD MEETING

first_imgNotice is hereby given that at 3:30 p.m. on Tuesday, January, 19, 2016, the Regional Board of Trustees of Ivy Tech Community College of Indiana-Southwest Region will hold an executive meeting. The regular meeting will immediately follow at 4:00 p.m. located at 3501 N First Ave, Evansville, IN to consider and take action on items presented on the meeting agenda. The regular meeting is open to the public.The Regional Board of Trustees is permitted under IC 5-14-1.5-6.1(b) to discuss the subjects listed below. For each subject, a reference to the applicable subdivision of IC 5-14-1.5-6.1(b) and a description of that subject are included.To discuss strategy with respect to collective bargaining, initiation of litigation, implementation of security systems, or the purchase or lease of real estate;(2) (B) Initiation of litigation that is either pending or has been threatened specifically in writing;(2)(D) The purchase or lease of real property by the governing body up to the time a contract or option to purchase or lease is executed by the parties;(5) To receive information about and interview prospective employees;(6)(A) With respect to any individual over whom the governing body has jurisdiction, to receive information concerning the individual’s alleged misconduct;(7) For discussion of records classified as confidential by state or federal statute;(9) To discuss job performance evaluations of individual employees. This subdivision does not apply to a discussion of the salary, compensation, or benefits of employees during a budget process.FacebookTwitterCopy LinkEmailSharelast_img read more

Clubs tasked to utilize disciplinary mechanism

first_imgFootball Clubs and members associated to them have been admonished to utilize the various bodies in the sport and its disciplinary mechanism rather than the use of the court of public opinion to address their grievances.According to Osei Tutu Agyemang, Chairman of the Ashanti Regional Football Association, who was speaking at ARFA’s Ordinary Congress in Kumasi on Wednesday, matters should not be prejudiced even before they get to the relevant bodies.“We should have faith in our setups. I appeal to all Clubs that they should address their grievances to the appropriate forums including the disciplinary committee instead of resorting to media outlets, which sometimes leads to problems,” the ARFA Chairman said.Taking stock of their finances, though the ARFA’s financial report showed a profit turnover, Osei Tutu explained that they regional body are faced with difficulties in retrieving fines and dues from the clubs.The ARFA Ordinary Congress also deliberated on how to contribute to the success of football in Ghana and measures to kick out hooliganism from football while promoting juvenile and women football in the region.Delegates were also schooled on the electronic registration and club licensing system. The ARFA ended the session by selecting former national team player Frimpong Manso, Samuel Otoo and Mallam Issah to join Osei Tutu Agyeman to represent the region at the up-coming Congress of the GFA.last_img read more

49ers commentary: Confident and brash 49ers defense proving team is legit

first_imgThe 49ers took a stiff uppercut from the Rams in the first quarter of their NFC West tilt on Sunday and merely smirked. The wry smile was from a team that sustained its opponent’s Sunday punch, and said blow didn’t even registering a single ounce of pain. It reeked of “Is that the best you got?”“They had one play on us early,” sensational 49ers rookie Nick Bosa said, referring to the Rams’ near brilliant seven-play 56-yard touchdown drive to open the game. “And once we made the adjustment, it …last_img read more

Buitendag lines up elite surf Tour place

first_img14 August 2012South Africans Bianca Buitendag and Sarah Baum maintained their challenge for coveted places on the 2013 ASP Women’s World Championship Tour (WCT) when they finished fifth and ninth respectively in the ASP six-star rated Paul Mitchell Supergirl Pro at Oceanside in California on Saturday.Competing in peaky, small waves of only half-a-metre to a metre in size, 18-year-old Buitendag built on her confidence-boosting victory in Peru a fortnight earlier by advancing through a strong field of WCT and Star Tour competitors to reach the quarterfinals.She bowed out in the last eight to world number five, Courtney Conlogue of the USA, to finish in fifth place overall. The result was worth 1 560 rankings points, the second highest haul of the year to date for Buitendag.RankingIt sees sees the South African maintain her number five ranking on the ASP Women’s Star Rankings but with an increased lead of 773 points over sixth ranked Rebecca Woods of Australia.Six women qualify for the WCT from the Star rankings annually and with three of the four women above her in the rankings – Conlogue, Malia Manuel and Paige Hareb – having already qualified for the 2013 ASP WCT through their elite tour results, Buitendag is now effectively in second spot.Sarah Baum also had a good run in the Supergirl Pro, winning her opening heat ahead of Buitendag and placing second behind Conlogue to reach the last 12 where she was eliminated by ASP world number six Malia Manuel and Buitendag.RisingBaum picked up 920 points for her ninth place result, which moved her up from twelfth to tenth in the rankings.With four of those ahead of her already qualified for the WCT, she currently sits in an effective sixth place and on the cusp of giving South Africa two girls amongst the world’s top 17 ranked female surfers on the 2013 ASP Women’s WCT.Rosanne Hodge, the only other South African competing at Oceanside and a former four-year WCT member, produced her best result of 2012 with a 13th place finish.She finished third behind Baum and Conlogue in their round 24 encounter, and her 13th place was worth 650 points, which lifted her to 28th in the rankings.ASP WOMEN’S STAR RANKINGS(After Paul Mitchell Supergirl Pro )Courtney Conlogue (USA) 11 810Sage Erickson (USA) 9 870Malia Manuel (Haw) 9 840Paige Hareb (NZ) 8 170Bianca Buitendag (RSA) 7 813Rebecca Woods (Aus) 7 040Sally Fitzgibbons (Aus) 7 000Pauline Ado (Fra) 6 890Sofia Mulanovich (Per) 6 050Sarah Baum (RSA) 5 490SAinfo reporterWould you like to use this article in your publication or on your website? See: Using SAinfo materiallast_img read more

Navigating the After Effects Secret Menu

first_imgDid you know that After Effects has a ‘secret menu’? In this post we’ll show you how to access this little known menu and modify it to fit your needs.Even if you are a skilled After Effects veteran you might be surprised to find out that there is a secret preference menu inside of AE.There are quite a few hidden treats inside of After Effects including a secret project, a mysterious sheep sound effect, and the cryptic Mask Embiggen effect. However, the only secret that actually serves a useful purpose is the secret menu. Let’s dive in…How to Access the After Effects Secret MenuWhile holding down “Shift” navigate to After Effects>Preferences>General. Click on ‘General’.Release the Shift key. You will now see the normal preferences with a new ‘secret’ category at the bottom of the Settings menu. Simply click on this ‘Secret’ category.What does the After Effects Secret Menu do?The settings are somewhat cryptic so lets break each one down….Disable Layer CacheWhen you RAM preview, After Effects not only renders out a preview-able video, but it also renders out information about each individual layer in the scene onto your memory (RAM). This is helpful because if you end up changing one layer and rendering again, theoretically it shouldn’t take as long.By selecting the checkbox next to Disable Layer Cache you are telling After Effects not to render out the information from each individual layer. This will lighten up your ongoing RAM load, but will result in each render taking longer (AE must rerender everything). It’s only advised to Disable Layer Cache if you’re working on a computer without a lot of RAM memory.Purge Every ‘X’ Frames During Make MoviePurging is the process of emptying your memory cache. By purging your RAM you will free up space for After Effects to do more rendering. By default, the ‘Purge Every X Frames During Make Movie’ is set to 0 (meaning it never happens), but if you move the slider you can change it to match your needs.For example, if you move your setting to 10, After Effects will empty the memory cache every time 10 frames are rendered. If your renders keep crashing you might want to start at a higher number like 15 and work your way closer to 1.Ignore Sequence Rendering Errors (Danger! Danger!)As the name implies, when you have the ‘Ignore Sequence Rendering Errors’ box checked After Effects will disregard errors during the rendering process. This can be helpful in some instances, like rendering image sequences, but it’s generally not a great idea to have this box checked. You can severely damage your computer’s hard drive, memory, and CPU by bypassing render errors.If you have any other questions regarding disk cache or rendering in After Effects, check out a few of the following resources:Clean Your After Effects Disk Cache – Creative DojoFree Up Inactive Memory – OSXDailyAfter Effects Secret Preferences – Sketchy PicturesDo you use any of these ‘secret’ After Effects settings? Let us know in the comments below!last_img read more

Bhim Tank murder case: 24 sentenced to life imprisonment in Punjab

first_imgA Punjab court on August 8 sentenced 24 accused to life imprisonment in the murder case of a 27-year-old Dalit man in Punjab’s Abohar in 2015. The court of Additional Sessions Judge Jaspal Verma pronounced the verdict in the brutal murder of Bhim Tank.Among the accused who were convicted and awarded life sentence were liquor baron Shiv Lal Doda and his nephew Amit Doda. They were convicted under sections 302 (murder), 120-B (conspiracy) and other relevant sections of the IPC, said Deputy District Attorney Vazeer Kamboj. Of total 26 accused, one identified as Vivek alias Vicky was awarded four year sentence while another was acquitted, Mr. Kamboj added. All the accused were present in the court when the judgement was pronounced. In December 2015, Tank and his associate Gurjant Singh were attacked with sharp-edged weapons at Shiv Lal Doda’s farmhouse in Ramsara, where they had gone to resolve a conflict with another group. Both were attacked by Doda’s henchmen.Tank later died at a hospital in Amritsar. Both the victims’ limbs were severed. The incident that took place during the previous Shiromani Akali Dal (SAD)-BJP regime had sparked outrage in the State and the Congress had then accused ruling Akalis of patronising Shiv Lal Doda who had owed allegiance to the SAD. He had unsuccessfully fought the 2012 assembly polls as an Independent.last_img read more

Israel election Netanyahu trails by a seat with majority votes counted

first_imgJerusalem: Israeli Prime Minister Benjamin Netanyahu’s Likud party trailed its main rival Blue and White by 31 to 32 seats Wednesday after an unprecedented repeat election, putting the country’s longest serving premier on a shaky ground and raising the possibility of a unity government. Israelis voted on Tuesday in their country’s second general election in five months after 69-year-old Netanyahu failed to form a governing coalition with a viable majority following April’s vote. Also Read – Saudi Crown Prince ‘snubbed’ Pak PM, recalled jet from USThe Central Election Committee (CEC) said that Blue and White party seemed to be taking a lead over Likud after 91 per cent votes were counted. As per figures shared by the CEC, the centre-left bloc now has 56 seats compared to Netanyahu-led bloc, comprised of right-wing and ultra-Orthodox parties, which is at 55 seats in the 120-member Parliament. The Joint List, an alliance of mostly Arab Israeli parties, also has gained a seat standing at 13. These numbers may change slightly when the votes of soldiers are counted later Wednesday and Thursday. Also Read – Record number of 35 candidates in fray for SL Presidential pollsThe secular Yisrael Beitenu party won 9 seats, making its leader and former defence minister Avigdor Lieberman the kingmaker in the elections, as predicted earlier in the exit polls. Meanwhile, Netanyahu’s office said the prime minister will not travel to New York next week for the UN General Assembly in the wake of the election results. Foreign Minister Yisrael Katz will speak at the UN General Assembly instead of Netanyahu, the prime minister’s spokeswoman said. On Wednesday morning, 61-year-old Lieberman, an ally-turned-rival of Netanyahu, asserted that he will not join any coalition. He said that “the picture is clear…There is only one option and it’s a broad liberal unity government” comprising of Likud, Blue and White and his own Yisrael Beitenu. The ultra-Orthodox Shas got nine seats. United Torah Judaism has 8, Yamina has 7, Labour-Gesher is at 6 and the Democratic Camp has 5. According to reports Netanyahu has rejected the idea of a coalition that would include the Joint List as a partner, saying there cannot be a government that relies on parties that praise and glorify bloodthirsty terrorists who kill our soldiers, our citizens, our children. Gantz, 60, on Wednesday told supporters that his party’s campaign had “completed the mission.” “We proved that the idea called Blue and White, an initiative that we started a few months ago, is a success, big-time, and it’s here to stay, Gantz was quoted as saying by the Times of Israel. Netanyahu called the snap election after failing to form a governing coalition with a viable majority after April’s vote. His remarkable victory in the April 9 polls securing him a record fifth term proved temporary in the face of a logjam between potential coalition partners over a military conscription bill governing exemptions for ultra-Orthodox Jewish seminary students. Lieberman had made it a condition of allying with ultra-Orthodox Jewish parties that they adopt a law aimed at having ultra-Orthodox Jews serve in the military like their secular counterparts.last_img read more

NCB nabs 6 Myanmarese nationals with over 1000 kg Ketamine

first_imgKolkata: The Kolkata Zonal Unit of Narcotics Control Bureau (NCB) has seized a huge quantity of anesthetic drug Ketamine and arrested six Myanmarese nationals who were detained by the Indian Coast Guard (ICG) at Port Blair. According to NCB officials, on Saturday morning an ICG unit from Port Blair informed NCB about some suspicious drug which was being smuggled through Indian waters by some Myanmarese nationals. It was also informed that ICG intercepted the smuggling vessel and brought it to Port Blair. Also Read – Bengal family worships Muslim girl as Goddess Durga in Kumari PujaNCB officials soon sent a team to Port Blair in the next available flight. During search, the ICG team found 57 gunny bags containing 20 packets having suspicious white crystalline substances. Immediately, all six passengers including the gunny bags were shifted to the ICG vessel. After the NCB officials arrived, the accused persons were handed over along with the seized packets. During field testing, NCB officials came to know that the substance was Ketamine. After weighing, it was found that the accused were smuggling 1,155 kg of the drug from Myanmar to Malaysia.last_img read more

JammuNew Delhi Pakistan on Tuesday handed over t

first_imgJammu/New Delhi: Pakistan on Tuesday handed over to India the body of a Border Security Force (BSF) sub-inspector who had drowned in a river along the International Border in Jammu last week, officials said. The body of Paritosh Mandal was found “deep inside” the neighbouring country’s territory and the Pakistan Rangers informed the BSF about the recovery, they said. Mandal, 54, went missing in the Aik Nallah in Arnia sector on September 28 when he and two other troopers were patrolling along the India-Pakistan International Border.last_img read more