MUMBAI: In a significant ruling, the Bombay high court has laid down a substantial point of law, saying the liability towards an employee engaged by a contractor or managing agent is on the principal employer.
The court recently upheld the decision of 'Mumbai Commissioner for Workmen's Compensation' to award monetary relief to a worker, who died in an accident despite the fact that he was not employed by the principal employer but by a contractor.
Justice A H Joshi was hearing an appeal filed by United Assurance Company Ltd, which challenged the award of compensation to a driver who was hired by M G M Motors to transport vehicles on behalf of Mahindra & Mahindra Ltd (M&M).
The Judge noted that this being an appeal under The Employees' Compensation Act, the appellant has to substantiate the challenge on substantial questions of law.
He directed the appellant's advocate K V Vitonde to pin point and address the court on substantial question of law whether a principal employer would be liable to pay compensation to a worker employed by a managing agency.
Admittedly, the victim was not employed by M&M, a top auto firm, which owned the vehicles. The victim was rather employed by M G M Motors to whom the work/contract for transport of vehicles was entrusted by the auto company.
The vehicles were required to be transported by a driver, Sureshkumar Parasnath Singh, engaged by M G M Motors on behalf of M&M. Thus, the HC held the liability towards an employee engaged by contractor or a managing agent is on the principal employer (in this case M&M).
It was suggested that since the driver was engaged by M G M Motors, the appellant (United India Assurance) does not have the liability towards payment of compensation.
The HC, however, said it is not proved that due to any terms of contract between the two sides, the liability towards employees' compensation was to be borne by M G M Motors.
Irrespective of terms, the employee concerned is seen to be entitled to receive the compensation, the Judge remarked and dismissed the appeal finding no merit in it.
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Tuesday, May 14, 2013
HC raps Punjab govt for inaction against Honey Singh for "Main hoon Balatkari " song
Punjab government on Tuesday received rap on its knuckles from the Punjab and Haryana high court for not taking any action against Punjabi rapper Honey Singh, who is in storm of controversy for singing lewd song.
"Why the Punjab government has not taken cognizance of "Main hoon Balatkari "song sung by Honey Singh, even though it attracts the provisions of Section 294 IPC, which is a cognizable offence?" "If you go through the article published in The Times of India, compiling such lewd songs, which has been attached with the petition, your head will hang with shame." remarked the acting chief justice, Jasbir Singh with utmost anguish and pain.
"We are sure, you would not be able to go through the complete song "Main hoon Balatkari", a visibly annoyed Justice Rakesh Kumar Jain told the Punjab government counsel.
Taking up the case on Tuesday, division bench comprising acting chief justice Jasbir Singh and Justice Rakesh Kumar Jain, also directed the Punjab government to take appropriate action against the singer for the vulgar song.
Meanwhile, singer Honey Singh, who was directed by the HC on April 25 to appear before it, could not appear before the court on account of non-completion of summoning process.
The HC thereupon directed that fresh summons shall be served on him through ordinary post, registered post as well as through e-mail to ensure his presence before the HC on July 4.
During the hearing of the case, HC also observed "song of Honey Singh, available on youtube, indicates that it was sung at a concert in Gurgaon. Thus, it cannot be said that no action can be taken against its singer as it could possibly be uploaded on youtube from any where in the world."
Thereafter, bench ordered to implead the Haryana government as well as UT administration as respondents in this case asking them to take action in accordance with law on the issue of vulgar songs.
The matter had reached before the HC through a public interest litigation (PIL) filed by NGO called HELP of Nawanshar in Punjab seeking directions to set up some effective mechanism for curbing the menace of obscene/vulgar/lewd songs from the state of Punjab. PIL filed through advocate H C Arora had submitted that all limits of decency are being violated by such songs. Arora referred to provisions of section 294 of Indian Penal code (IPC), according to which singing of lewd/ obscene songs at public places is an offence.
HC advice to youth
Turning towards a large number of young people who had gathered inside the court room on Tuesday, the bench gave them also a bit of advice - "These young men have come to the HC for seeing Honey Singh. They should rather boycott such singers who sing lewd and obscene songs. These young men should realize that our culture is being spoiled by such vulgar songs."
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SC slams Centre for providing security to Ambani
NEW DELHI: Centre's decision to provide 'Z' category security to the richest Indian Mukesh Ambani on Wednesday drew flak from the Supreme Court which asked why such people are given security cover by the government when the common man is feeling unsafe.
The apex court ticked off the government for giving protection to such people when the common man in the country is unsafe because of lack of security and said that a five-year-old girl would not have been raped if there was proper security in the capital.
The bench reasoned that the rich can afford to hire private security personnel.
"We read in newspapers that ministry of home has directed providing for CISF security to an individual. Why is state providing security to such person?" a bench headed by Justice GS Singhvi said without taking the name of Ambani.
"If there is threat perception then he must engage private security personnel," the bench said adding, "Private businessmen getting security is prevalent in Punjab but that culture has gone to Mumbai."
The bench, however, said that "We are not concerned about the security of X,Y,Z persons but about the security of common man".
The bench was hearing a petition filed by a Uttar Pradesh resident on misuse security cover and red beacon provided by the government to people.
Government's decision to provide Z had evoked sharp criticism from Left parties following which it was clarified that he will foot the expenses for this estimated to be Rs 15-16 lakh per month.
The business tycoon is the new entrant to the 'Z' category VIP security club after the Union home ministry had recently approved an armed commando squad following threat perceptions.
Consumer is king': SC clears hurdles for FDI in retail
The Supreme Court on Wednesday cleared the hurdles for the implementation of FDI in multi-brand retail sector saying that the "consumer is king and if that is the philosophy working behind the policy then what is wrong?"
The apex court said the policy aimed at "throwing out" the middleman, who are "curse to Indian economy" and "sucking" it, has to be "welcomed".
A bench headed by Justice RM Lodha said the policy does not suffer from any unconstitutionality or illegality requiring it to be quashed.
"This court does not interfere in the policy matter unless the policy is unconstituional, contrary to statutory provisions or arbitrary or irrational or there is total abuse of power.
"The impugned policy cannot be said to suffer from any of the vires," the bench, also comprising justices Madan B Lokur and Kurien Jospeh, held while dismissing a PIL challenging the notification on the FDI in multi-brand retail sector.
Before pronouncing the order, the bench said the policy was for the benefit of the consumer, farmers and the retailers with the objective to eliminate middlemen.
"Consumer is the king and if that is the philosophy working behind the policy what is wrong. The policy is to free the economy from the middleman. Middleman is sucking our economy. These are suckers to be thrown out for direct benefit of consumers. If that is the objective of the policy what is wrong with it.
"The middleman is a curse to Indian economy. They work as sucker and they have to be thrown out and that is the object of the policy and you have to welcome it," the bench said and added that the policy would bring choice for the consumers who are the real king.
The bench in its order said "it is thus left to the choice of state governments whether or not to implement policy to allow FDI upto 51 per cent in multi-brand retail".
It rejected the contention that departement of industrial policy and promotion (DIPP) under its business rule was not empowered to make policy pronouncment.
The apex court further said there was no merit in the contention that the Centre has no authority to formulate FDI policy and the PIL filed by advocate ML Sharma has to be dismissed as "there is no challenge to the amendements in Foreign Exchange Management (transfer or issue of security by a person, resident, outside India) Regulations, 2000, by which FDI in multi-brand retail sector was allowed.
While upholding the policy, the bench said, "We have carefully considered the submission made by petitioners and the challenge is not founded on any material".
During the hearing, the bench said the policy of FDI in multi-brand retail was discussed and debated in detail in both Houses of Parliament before it was voted in favour of the government.
The bench noted that the policy was prepared after detail study of the economy of developing countries like China, Brazil, Argentina, Singapore, Indonesia and Thailand where FDI is permitted upto 100 per cent, local retailers co-exist along with organised retail and are integral in the organised retail chain.
In the order, the bench accepted the submission made by the Centre in its affidavit in which it said that the decision to allow FDI in multi-brand retail is a policy formulated by the Government of India in conformity with FEMA 2000.
While formulating the policy, the primary focus was to benefit the consumer by enlarging the choice of purchase at more affordable prices and by eradicating the traditional trade intermediaries/middleman to facilitate better access to the market (ultimate retailer) for the producer of goods.
The affidavit had said farmers will also benefit significantly from the option of direct sales to organised retailers.
The apex court also noted that a study commissioned by the World Bank shows that the average price that a farmer receives for a typical horticulture product is only 12-15 per cent of the price the consumer pays at the retail outlet.
Profit realisation for farmers selling directly to organised retailers is about 60 per cent higher than that received from selling in the 'mandi'.
The affidavit had said these aforesaid views are supported through the findings of a study instituted by government on the subject of 'Impact of organised retailing on the unorganised sector', through the Indian Council for Research on International Economic Relations (ICRIER), submitted in May 2008.
Consumer is king': SC clears hurdles for FDI in retail
The Supreme Court on Wednesday cleared the hurdles for the implementation of FDI in multi-brand retail sector saying that the "consumer is king and if that is the philosophy working behind the policy then what is wrong?"
The apex court said the policy aimed at "throwing out" the middleman, who are "curse to Indian economy" and "sucking" it, has to be "welcomed".
A bench headed by Justice RM Lodha said the policy does not suffer from any unconstitutionality or illegality requiring it to be quashed.
"This court does not interfere in the policy matter unless the policy is unconstituional, contrary to statutory provisions or arbitrary or irrational or there is total abuse of power.
"The impugned policy cannot be said to suffer from any of the vires," the bench, also comprising justices Madan B Lokur and Kurien Jospeh, held while dismissing a PIL challenging the notification on the FDI in multi-brand retail sector.
Before pronouncing the order, the bench said the policy was for the benefit of the consumer, farmers and the retailers with the objective to eliminate middlemen.
"Consumer is the king and if that is the philosophy working behind the policy what is wrong. The policy is to free the economy from the middleman. Middleman is sucking our economy. These are suckers to be thrown out for direct benefit of consumers. If that is the objective of the policy what is wrong with it.
"The middleman is a curse to Indian economy. They work as sucker and they have to be thrown out and that is the object of the policy and you have to welcome it," the bench said and added that the policy would bring choice for the consumers who are the real king.
The bench in its order said "it is thus left to the choice of state governments whether or not to implement policy to allow FDI upto 51 per cent in multi-brand retail".
It rejected the contention that departement of industrial policy and promotion (DIPP) under its business rule was not empowered to make policy pronouncment.
The apex court further said there was no merit in the contention that the Centre has no authority to formulate FDI policy and the PIL filed by advocate ML Sharma has to be dismissed as "there is no challenge to the amendements in Foreign Exchange Management (transfer or issue of security by a person, resident, outside India) Regulations, 2000, by which FDI in multi-brand retail sector was allowed.
While upholding the policy, the bench said, "We have carefully considered the submission made by petitioners and the challenge is not founded on any material".
During the hearing, the bench said the policy of FDI in multi-brand retail was discussed and debated in detail in both Houses of Parliament before it was voted in favour of the government.
The bench noted that the policy was prepared after detail study of the economy of developing countries like China, Brazil, Argentina, Singapore, Indonesia and Thailand where FDI is permitted upto 100 per cent, local retailers co-exist along with organised retail and are integral in the organised retail chain.
In the order, the bench accepted the submission made by the Centre in its affidavit in which it said that the decision to allow FDI in multi-brand retail is a policy formulated by the Government of India in conformity with FEMA 2000.
While formulating the policy, the primary focus was to benefit the consumer by enlarging the choice of purchase at more affordable prices and by eradicating the traditional trade intermediaries/middleman to facilitate better access to the market (ultimate retailer) for the producer of goods.
The affidavit had said farmers will also benefit significantly from the option of direct sales to organised retailers.
The apex court also noted that a study commissioned by the World Bank shows that the average price that a farmer receives for a typical horticulture product is only 12-15 per cent of the price the consumer pays at the retail outlet.
Profit realisation for farmers selling directly to organised retailers is about 60 per cent higher than that received from selling in the 'mandi'.
The affidavit had said these aforesaid views are supported through the findings of a study instituted by government on the subject of 'Impact of organised retailing on the unorganised sector', through the Indian Council for Research on International Economic Relations (ICRIER), submitted in May 2008.