Monday, 9 June 2014

The Law of Medical Negligence in India


Introduction
Medical Negligence has been the subject of much pondering and thought given by courts in India. The judicial approach has been progressive and each judgment has been a landmark in its own way. The purpose of this article is to examine the major case laws on the subject and analyse the approach followed with respect thereto.
Normally, a medical man is not responsible to god or man for such evil consequences of his prescriptions or surgical operations as they are entirely beyond his will and therefore independent of his control. If, on the other hand, his mistakes arise from his ignorance or want of skill, he is blameable in as far as he is the willful cause of such ignorance, he should have either known better or, not, knowing better, he should not have undertaken the case for which he was not qualified. [1] 
Meaning.- Medical Negligence is a medical malpractice. Depending upon the consequences, medical negligence may constitute a violation of either civil or criminal law.
            Literally, the word ‘medical’ means something relating to the science of medicine or to the treatment of illness and injuries. The word ‘Negligence’ means failure to take proper care over something. Medical negligence would mean a breach of duty of care, which results in damage.
            Definition.- Medical negligence is the breach of the duty owed by a doctor to his patient to exercise reasonable care and skill, which results in some physical, mental or financial disability.
            Proof.- For medical negligence to be proved, it must be shown that.-
(a)    the doctor had a duty of care to the patient;
(b)   the doctor was in ‘breach’ of that duty, i.e. failed in that duty;
(c)    that the patient suffered damage as a result.
Normally, the task of proving negligence rests upon the person bringing the action. An exception to the rule that the “burden of proof rests on the plaintiff is in cases where the facts are so obvious that the onus is shifted to the doctor to prove that his own negligence did not contribute to this state of affairs. This doctrine is known as ‘res ipsa loquitur’ or ‘the facts speak for themselves’.
            The universally acknowledged definition of negligence was given by Baron Alderson in Blyth v. Birmingham Waterworks –“Negligence is the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs would do, or doing something which a prudent and reasonable man would not do.” In the medical context, negligence on the part of a medical practitioner is the omission to do something which a reasonably competent medical practitioner, guided by such medical knowledge and practice as is commonly known at the time and at the place when he practices and further guided by such other considerations which ordinarily regulate the conduct of reasonably competent medical practitioners, would do, or doing something which a reasonably competent medical practitioner would not do.
            Legal aspect.- A medical practitioner professes or promises to use reasonably competent skill and care in the exercise of his act when he accepts a patient. During the course of his treatment or operation, should he fail to exercise the reasonable skill and care expected of a reasonably competent practitioner at that time, he becomes liable to be charged with negligence, where his patient is injured as a result of his treatment or operation.
            Degree of competency of the doctor.- A doctor must possess a reasonable degree of proficiency and he must apply that proficiency with a reasonable degree of diligence. No doctor is expected to possess all current medical knowledge nor be able to apply all known diagnostic and therapeutic techniques. However, a doctor of a particular status as regards grading and experience is expected to have a standard of knowledge and capability corresponding to his position in the profession.
Types of Negligence.-
1.                          Criminal.- In order to hold a medical practitioner criminally responsible for the death of his patient, it must be established that his negligence or incompetence was such that it showed utter disregard for life and safety of others in a manner that amounts to a crime against the state. Such conduct may, therefore be punished under criminal law. The degree as well as the kind of negligence is examined to prove whether or not the act of negligence or incompetence constitutes a crime under provisions of the law such as s.304 A, Indian Penal Code.
2.                          Civil.- In civil negligence the kind as well as the degree of negligence is such that it gives a right for compensation. In order to establish civil negligence, it is not necessary to prove that there was gross negligence.

Cases involving Criminal Liability
Criminal cases in this area are fewer than civil ones for obvious reasons. Unless the circumstances hold the doctor to be culpable beyond doubt, criminal punishment cannot be meted out.
One of the earliest criminal cases taken cognizance of by the Honourable Supreme Court is Juggankhan v. State of Madhya Pradesh[2]. A registered Homeopath administered 24 drops of stramonium and a leaf dhatura to the patient suffering from guinea worm who died as a result. He had no knowledge of the effect of such substance. An inference of being rash and negligent was drawn against him. The accused was held guilty under s.304A,I.P.C and sentenced to two years rigorous imprisonment.
Cases involving Tortious Liability
It has been accepted beyond doubt that medical negligence gives rise to tortious liability on part of the doctor and hospital. However, legal opinion has been divided on the basis of the kindof damages to be awarded.
One of the earlier cases in which general damages were awarded was Dr. Lakshman Balkrishna Joshi v. Dr. Trimbak Bapu Godbole and Anr[3]. While performing reduction of the fracture the doctor used excessive force without giving anesthetic. The said treatment resulted in cerebral embolism or shock resulting in the patient’s death.
The doctor was held guilty of negligence. Appeal was filed first to the High Court and then by special leave to the Supreme Court. The appeal was dismissed and appellant held guilty. General damages of Rs.3,000 were awarded.
The Supreme Court even reversed a decision of the National Commission in Poonam Verma Vs. Ashwin Patel and Ors[4]. A doctor entitled to practice homeopathy only, prescribed an allopathic medicine to the patient, due to which the patient died.
The National Commission did not hold the doctor guilty but on appeal the Supreme Court held that doctor’s conduct amounted to negligence per se. Damages for negligence worth Rs.3,00,000 were directed to be paid to the wife of the deceased.
In Achutrao Haribhau Khodwa and Others Vs. State of Maharashtra and Others[5] Rs.36,000 was granted as damages. A mop (towel) was left inside the body of the patient during sterilization operation leading to her death. Gross dereliction of duty was established by the Trial Court. High Court reversed the judgment. On appeal against the order of the High Court, Supreme Court found that the negligence of the hospital authorities was clearly established and that the State was vicariously liable to pay the damages. Decree of the trial court was restored.
Interim relief was granted in the case of A.S.Mittal and Anr Vs. State of U.P and Ors.[6] Under a social service programme an eye-camp was conducted. All the patients suffered from irreversible damage to their eyes due to the common contaminating source of saline. A public interest litigation was brought before the court. Guidelines were issued by the Government for the conduct of eye-camps. Though negligence was not clearly established, the Court ordered relief for the victims on humanitarian grounds. Interim relief of Rs.5,000 was paid to each of the victims along with additional interim relief of Rs.12,500.
Recent Judgments
In recent judgments the Honourable Court has been generous in granting compensation to the patients.
The Supreme Court has risen to the occasion and granted exemplary damages in Spring Meadows Hospital and others v. Harjot Ahluwalia[7]. Nurse administered wrong injection to the minor without conducting a sensitivity test to check for adverse reactions on the patient. Child suffered a cardiac arrest and hospital authorities did not have the necessary facilities. Child was rendered in a vegetative state for life. National Commission held that there was deficiency in service and that the parents of the minor were also entitled to compensation as beneficiaries of service.  Appeal made by hospital authorities to the Supreme Court was dismissed. Rs.12.5 lakhs were awarded as compensation to the minor and Rs. 5 lakhs to his parents.
In State of Haryana and Ors v. Smt.Santra[8] the Court held that failure of sterilization operation performed by doctor amounts to negligence. Appeal was against the order of the District Court was filed to the High Court and then by special leave to the Supreme Court. The appeals were dismissed. Damages worth Rs.54,000 with interest at the rate of 12% p.a. from the date of judgment to the date of payment.
In Sobhag Mal Jain v. State of Rajasthan and Ors.[9] Excessive bleeding of the patient after delivery could not be controlled due to negligence of the doctors. After repeated requests also the doctors did not attend to the patient.
Writ petition filed to determine the compensation of compensation to be paid to the husband of the deceased. By applying the multiplier method, compensation of Rs.6,62,000 was awarded to be paid within 30 days from receipt of the order and if not paid within the said time-limit interest at the rate of 12% p.a. would be charged.
In Samira Kohli v. Dr. Prabha Manchanda & Anr[10], the doctor was ordered to refund all payments received from the patient with interest @ 10% p.a. from the date of payment till the date of re-payment along with a sum of Rs.25,000/- as compensation. It was alleged that the doctor was negligent in treating the patient and removed her uterus and ovaries without her consent. Consent was given by patient only for diagnostic procedure and not for therapeutic treatment. Performing of a different surgery was held to be an unauthorized invasion and interference with the patient’s body, which amounted to deficiency in service.
Damages for negligence valued at Rs.10,00,000/- and interest @ 6% p.a. from date of judgment to date of payment by the Bombay High Court in Anita Nagindas Parekh and Others v.. Dr. Anil C. Pinto.[11] Doctor was held responsible for negligence while conducting the surgery, which lead to the death of the patient.
The Delhi High Court awarded Rs.12,47,488 is awarded as damages, along with interest at the rate of 10% p.a. on Rs.10,47,488 with effect from March 1, 2000 till payment is made and on Rs.2 lakhs from the date of the judgment till payment is made in Sudha Garg v. Union of India and Ors[12]. Negligence in performance of UGIE (Upper Gastro Intestinal Endoscopy) resulting in damage to esophagus, leading to infection in lungs and pus formation. Failure in both diagnosis and treatment amounted to negligence. 
Failure of tubectomy operation was considered a deficient service in State of Haryana and Ors v. Sudesh[13]. Negligence of doctor was established and damages granted. Aggrieved by the order, appeal was made to the High Court. Appeal was dismissed. Damages to the tune of Rs.1 lakh were awarded.




[1] PGA, Moral principles and Medical Practice, Editorial, Antiseptic, July 1927, pp 367-70.
[2] AIR 1965 SC 831
[3] AIR 1969 SC 128
[4] AIR 1996 SC 2111
[5] AIR 1996 SC 2377
[6] AIR 1989 SC 1570
[7] AIR 1998 SC 1801
[8] AIR 2000 SC 217
[9] AIR 2006 Raj 66
[10] Appeal (civil) 1949 of 2004
[11] O. O. C. J. Suit No.510 of 1985,
[12] 156 (2009) DLT 498
[13]  (2009)3 PLR 636

Sunday, 8 June 2014

CHILD LABOUR (PROHIBITON AND REGULATION) ACT, 1986


For the purpose of this Act “child” means any person who has not completed 14th year of age.

Prohibition of employment of children in certain occupations and processes (Sec 3, 4)

No child shall be employed/permitted to work in any of the occupations set forth in Part A of the Schedule or in any workshop wherein any of the processes set forth in Part B of the Schedule is carried on.

This section will not apply to any workshop wherein any process is carried on by the occupier with the aid of his family or to any school established by, or receiving assistance or recognition from the Government.

Central Government may, by giving not less than 3 (three) months notice in the Official Gazette of its intention to do so, add any occupation/process to the Schedule.

Child Labour Technical Advisory Committee (Sec 5)
Central Government may appoint a Committee to be called the Child Labour Technical Advisory Committee (hereinafter “the Committee”) to advise the Government for the purpose of addition of occupations/premises to the Schedule.
Committee to consist of Chairman and other members not exceeding 10 to be appointed by the Central Government.

Regulation of Conditions of Work for Children (Secs 6-13)
Provisions shall be applicable to those establishments in which none of the occupations or processes mentioned in Part A and B of the Schedule is carried on.
No child shall be required or permitted to work for a period of more than 3 hours at a stretch without a break for 1 hour and the period of work including the interval for rest shall not exceed 6 hours including the time spent in waiting for work on any day.
No child shall be required or permitted to work between 7 p.m and 8 a.m.  
No child shall be required or permitted to work overtime.
No child shall be required or permitted to work in any establishment on a day in which he is already working in any other establishment.
Every child shall get a holiday on one day of the week and the occupier will specify such day by a notice permanently exhibited in a conspicuous place in the establishment and such day shall not be altered by the occupier more than once in three months.
If any dispute arises between an Inspector and an occupier as to the age of the child who was employed or permitted to work by him in an establishment, the question shall, in the absence of certificate of age being provided by a medical authority, be referred by the Inspector for decision to the prescribed medical authority.
Every occupier shall maintain a register in respect of children employed, to be available to the Inspector for inspection at all times during working hours showing:
Name and date of birth of every child employed or permitted to work;
Hours and periods of work of any child and the intervals of rest to which he is entitled;
Nature of work of any such child;
Other prescribed particulars.
Every railway administration, every port authority and every occupier shall cause to be displayed in a conspicuous and accessible place a notice in the native language and In English containing an abstract of prohibition of child labour and the penalty thereof.
The appropriate Government may make rules regarding health and safety ("appropriate Government" means, in relation to an establishment under the control of the Central Government or a railway administration or a major port or a mine or oilfield, the Central Government, and in all other cases, the State Government).
Without prejudice to the generality of the foregoing provisions, the said rules may provide for all or any of the following matters, namely:--
(a) Cleanliness in the place of work and its freedom from nuisance;
(b) Disposal of wastes and effluents;
(c) Ventilation and temperature;
(d) Dust and fume;
(e) Artificial humidification;
(f) Lighting;
(g) Drinking water;
(h) Latrine and urinals;
(i) Spittoons;
(j) Fencing of machinery;
(k) Work at or near machinery in motion;
(l) Employment of children on dangerous machines;
(m) Instructions, training and supervision in relation to employment of children on dangerous machines;
(n) Device for cutting off power;
(o) Self-acting machines;
(p) Easing of new machinery;
(q) Floor, stairs and means of access;
(r) Pits, sumps, openings in floors, etc.;
(s) Excessive weights;
(t) Protection of eyes;
(u) Explosive or inflammable dust, gas, etc.;
(v) Precautions in case of fire;
(w) Maintenance of buildings; and
(x) Safety of buildings and machinery.

Penalties (Sec 14)
Whoever employs or permits any child to work in contravention of the provisions of this Act, shall be punishable with imprisonment for a term which shall not be less than 3 months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both.
Whoever, commits a like offence afterwards shall be punishable with imprisonment for a term which shall not be less than 6 months and which may extend to 2 years.
Whoever fails to give notices or fails to maintain registers or fails to comply with any provisions of this Act shall be punishable with imprisonment which may extend to one month  or with fine which may extend to ten thousand rupees or with both.

Procedure related to offences (Sec 16)
Any person, police officer or Inspector may file a complaint of commission of any offence under this Act.
No court inferior to that of a Metropolitan Magistrate or  a Magistrate of first class shall try an offence under this Act.




Service Agreement


A service agreement is entered into between two parties among which one is the customer and one is the service provider. It could be for providing any kind of service, e.g., internet service provider. A service agreement should typically contain the following clauses:

Scope of Services
The most important clause since it defines what the scope of services should be.

Term of Agreement
The duration of the agreement.

Fees
Relates to commercial terms and conditions.

Termination Clause
Will include various grounds for termination including breach of contract; termination by mutual consent, bankruptcy/insolvency of the service provider, etc.

Confidentiality
Will provide that any confidential information provided by the customer to the service provider shall be protected from unauthorized disclosure to third parties.

Indemnity
The Service Provider will indemnify the customer in case of any loss arising due to deficiency in the service provided by them.

Force Majeure
Will provide that the parties will be excused from performing their obligations in case of acts of God and other circumstances that are beyond the control of the parties. A time period maybe mentioned during which the parties may be required to wait and see if the situation is capable of being rectified, say three months.

Representations and Warranties
Parties make typical representations and warranties stating that they have all the requisite corporate approvals and authorisations to enter into the agreement.

Sub-contracting
There may be a clause allowing or not allowing sub-contractors to be hired by the Service Provider. The Service Provider may be asked to take prior permission from the customer before appointing sub-contractors.

Dispute Resolution
Arbitration maybe recommended as a means to resolve any dispute that may arise with respect to the Agreement. The Arbitration clause shall direct how the arbitrators are to be appointed; what will be the procedure followed by them; that their award shall be binding upon the parties, etc.

Standard Clauses like Severability, Amendments, Exclusivity, Jurisdiction, etc.


Pledge under the Indian Contract Act

Definition
The bailment of goods as security for payment of a debt or performance of a promise is called a “pledge.” The bailor is in this case called the “pawnor” and the bailee the “pawnee.” (Sec 172)

Pawnee’s right of retainer
The pawnee may retain the debt, not only for payment of the debt or the performance of the promise, but for the interest of the debt, and all necessary expenses incurred by him in respect of the possession or the preservation of the goods pledged (Sec 173).

The pawnee shall not, in the absence of contract to the contrary, retain the goods pledged for any debt or promise other than the debt or promise for which they are pledged (Such contract shall be presumed, in the absence of anything to the contrary, to be for subsequent advances made by the pawnee) (Sec 174).

Pawnee can recover extraordinary expenses (Sec 175)
The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for preservation of the goods pledged.

Pawnee’s Right where Pawnor makes Default (Sec 176)
If the pawnor makes default in payment of the debt or performance, at the time stipulated, the pawnee may bring a suit against the pawnor and retain the goods pledged as a collateral security; or he may sell the goods on giving the pawnor reasonable notice of such sale.   

In case the proceeds of the sale are less than the amount due in respect of the debt or promise, the pawnor is still liable to pay the balance. If the proceeds of the sale are greater, the pawnee shall pay the surplus to the pawnor.

Defaulting pawnor’s right to redeem (Sec 177)
If a time is stipulated for payment of the debt or performance of the promise, and the pawnor makes default in payment, he may redeem the goods at any subsequent time before the actual sale of them; but he must, in addition, pay any expenses which may have arisen from his default.

Pledge by mercantile agent (Sec 178 and 178A)
Where a mercantile agent is, with the consent of the owner, in possession of the goods or the documents of title to goods, any pledge made by him, when acting in the ordinary course of business, as valid as if it was expressly authorized by the owner;
Provided that the pawnee acts in good faith and has not at the time of the pledge notice that the pawnor has no authority to pledge. 

When the pawnor has obtained possession under a contract voidable under Sec 19 or 19A of the Indian Contract Act, but the contract has not been rescinded at the time of pledge, the pawnee acquires a good title.
Provided that the pawnee acts in good faith and has not at the time of the pledge notice of the pawnor’s defect of title.

Pledge where pawnor only has a limited interest (Sec 179)

Where a person pledges goods in which he only has a limited interest, the pledge is valid to the extent of the interest. 

 

Saturday, 7 June 2014

Adoption Laws in India

“Adoption” means the process through which the adopted child is permanently separated from his biological parents and becomes the legitimate child of his adoptive parents with all the rights, privileges and responsibilities that are attached with the relationship. [s.2(aa) of the Juvenile Justice Act as amended in 2006]
The very purpose of any adoption proceedings is to affect this new status of relationship. As a result of the decree of adoption; the child, to all intents and purposes, becomes the child of the adoptive parent.
Adoption is so widely recognized that it can be characterized as an almost worldwide institution with historical roots traceable to antiquity.
A child can be adopted under Hindu Adoption and Maintenance Act, 1956 and Juvenile Justice (Care and Protection) of Children Act, 2000 (last amended in 2006).

Origin and Development of Adoption

Adoption in Hindu mythology - The object of adoption was to secure performance of funeral rights and to preserve the continuation of one’s pedigree. A ‘Dattak Homam’ made the relationship lawful and gave complete rights of name and inheritance to the son. Boys were given in adoption and a female could not take a child in adoption excepting a widow who could adopt a boy in the name of her late husband. Adoption was applicable to Hindus. Muslims, Jews and Parsis were out of its purview, though the church accepted adoption as a part of its canon law and gave the adopted child the full status of a biological child. On 21 December, 1956, this custom of adoption among the Hindus was given a legal status through enactment of Hindu Adoption and Maintenance Act, 1956.
Adoption among Muslims - Today, some Muslims do adopt children in India but since there is no law to make their adoption legal, the adoption remains informal.
Adoption and Christians - The canon law does not bar or prohibit Christians from adopting a child. But since there is no law on adoption for Christians in India, they have to resort to the Guardians and Wards Act, 1890.
Rising trends.-The concept and practice of adoption in India has changed considerably from the past. Adoption in earlier times was parent - centered, the needs of the parents being the chief consideration. But from the beginning of the 1960s alterations have taken place at the social, legal and practice levels of adoption. Adoption is considered the best substitute for children deprived of their biological families.

Foster Care and Adoption
Foster care provides temporary substitute care for children. It is different from adoption where the child severs all ties with his own natural parents. In foster care, the child is placed in another family for a short or extended period of time depending on the circumstances. The child’s own parents usually visit regularly and eventually after rehabilitation, the child may return home. When the family is undergoing a temporary crisis like death of a parent or sudden disease, children experience a lot of tension and stress. They maybe needed to be detached from their natural homes to prevent neglect. Children can be placed in foster care families.

Sponsorship and Adoption
Sponsorship provides supplementary support to families who are unable to meet educational and other needs of their children. Sponsorship helps to send the child to school, provide medical aid and at the same time stay in touch with the family of birth. It is an excellent way in which society can help parents who are not in very favorable positions by extending their helping hand.

Indian Adoption Laws
  1. Hindu Adoption and Maintenance Act, 1956 - Only statute in force specifically governing adoption in children and its ambit is confined to Hindus in India (s.2 defines who are considered Hindus for the application of the Act).
  2. The Juvenile Justice (Care and Protection of Children Act), 2000 – Juvenile Justice Act, 2000 contains provisions relating to rehabilitation and social integration of children. s.40 of the Act provides that rehabilitation and social integration of a child shall begin during the stay of the child in a children’s home or special home by:
a.       Adoption;
b.      Foster care;
c.       Sponsorship and
d.      Sending the child to an after-care organization.
  1. The Guardians and Wards Act, 1890. - The Act is indirectly invoked by other communities also to become guardians of children during minority. The statute does not deal with adoption as such. It concerns mainly with guardianship and is to be read along with respective personal laws, or as ancillary to the latter. However, it must be noted that the process is not equivalent to adoption; it would only give the child the status of a ward.
  2.  The Hindu Minority and Guardianship Act, 1956. - The Act reforms and codifies the law relating to guardianship of minors. This Act also applies only to Hindus.
  3. The Hindu Succession Act, 1955 and The Indian Succession Act, 1925. – They govern succession and inheritance rights. 


Hague Convention on Inter-Country Adoption


International Scenario -
Article 19(1) of The United Nations Convention on the Rights of the Child provides that States Parties shall take all appropriate legislative, administrative, social and educational measures to protect the child from all forms of physical or mental violence, injury or abuse, neglect or negligent treatment, maltreatment or exploitation, including sexual abuse, while in the care of parent(s), legal guardian(s) or any other person who has the care of the child.
Many national and international instruments have played a dominant role in popularizing the practice of adoption. Among these the ones noteworthy of mention are The National Policy for Children, 1974; The United Nations Declaration on the Rights of the Child, 1959 and most importantly The United Nations Convention on the Rights of the Child, 1989. Article 20 of The United Nations Convention on the Rights of the Child, states that children temporarily or permanently deprived of family environment, shall be entitled to protection and assistance provided by the State and that State Parties should in accordance with their national laws ensure alternative care for such a child. Such care could include, inter alia foster placement, kafalah of Islamic law, adoption or institutional placement. The focus of adoption has shifted from the needs of the parents to the rights of the child in the family.

Hague Convention on Inter-Country adoption, 1993

The Convention recognizes that for full and harmonious development of his or her personality, the child should grow up in a family environment, in an atmosphere of happiness, love and understanding. The Convention also states that the objectives of inter-country adoption should be in the best interests of the child, with respect to their fundamental rights and to prevent abduction, sale and traffic in children.

Salient features of the Hague Convention.-
a)      Child should be adoptable.
b)      Possibilities of placement of child within the State have been given due consideration.
c)      Consent from required persons, institutions and authorities has been given in legal form who have been counseled about the legal effects of adoption.
d)     The consents have not been induced by any payment or compensation.
e)      Consideration has been given to the child’s wishes.
f)       There will be a Central Authority in each contracting State.
g)      Persons residing in one contracting state, who wish to adopt a child habitually resident in another contracting state, shall apply to the Central Authority in the State of their habitual residence.
h)      Report will be made by the Central Authority of the receiving State to determine if the applicants are eligible and suited to adopt.
i)        Report shall be transmitted to the Central Authority of State of origin.
j)        If the Central Authority of the State of origin is satisfied that the child is adoptable, it shall prepare a report about the child’s identity, background, family history, social environment, medical history, any special needs of the child, etc.
k)      It shall be determined if the adoption is in the best interest of the child, with due consideration to the child’s ethnic, religious or cultural background.
l)        If after the transfer, placement is not in the interest of the child, child maybe withdrawn and either put to temporary care or a new placement or brought back if his or her interests so require.
m)    Competent Authority of a contracting state shall ensure that information held by them concerning child’s origin, in particular information of identity of parents as well as medical history, is preserved.
n)      No improper financial or other gain, only costs and expenses, and reasonable professional fees of those involved, maybe charged.
o)      Competent authorities shall act expeditiously.
p)      The Secretary General of Hague Convention on Private International Law shall at regular intervals convene a Special Commission in order to review the practical operation of the Convention.
q)      The Convention is open for signature by the States who were members of the Hague Convention.
r)       Any other State may accede to the Convention. Such accession shall have effect only as regards relations between acceding state and those contracting states which have not raised an objection in the 6 months after receipt of the notification. Such an objection may also be raised by the states at the time when they ratify, accept or approve the convention after an accession. Any such objection shall be notified to the depository.

Thursday, 5 June 2014

Nationalization of Coal Mines in India

The Parliament treated coal and coking coal separately for legislative purposes. The Coking Coal Mines (Emergency Provisions) Act, 1971 took over coking coal mines since coking coal was not being made available to the industry by the private sector. After further planning it was decided to take over all coal mines (including coking coal mines) under the Coking Coal Mines (Nationalization) Act, 1972 and the Coal Mines (Nationalization) Act, 1973 (“Nationalization Act”).

In 1972 the Central Government transferred the 226 (two hundred and twenty six) coking coal mines then existing to Bharat Coking Coal Limited, and a year later transferred the 711 (seven hundred and eleven) non-coking coal mines then existing to the Coal Mines Authority Limited, which later became Coal India Limited. [1]

The Coal Mines (Taking Over of Management) Act, 1973 : The Coal Mines (Taking Over of Management) Act, 1973 gave the Central Government right to take over the management of the coking and non-coking mines.

1976 Amendment: Termination of private lease, exemptions : Since many of the coal mines were located in remote places, in order to prevent the private sector from illegally mining, the Coal Mines (Nationalization) Amendment Act, 1976 was enacted. The amendment terminated all privately held leases in respect of coal mines, with the following exceptions:
a)      Captive mining by private companies engaged in production of iron and steel;
b)      Sub-lease for coal mining to private parties in isolated small pockets not amenable to economic development and not requiring rail transport.

1993 Amendment: Generation of power and washing of coal : Considering the need to augment thermal power generation and to create additional thermal power capacity during the VII Plan period, the Government decided to allow participation by the private sector. The Nationalization Act was further amended with effect from June 9, 1993 to allow coal mining for captive consumption for generation of power, washing of coal obtained from a mine and other end uses to be notified by the Government from time to time, in addition to the existing provision for captive coal mining for production of iron and steel. The amendment was carried out in section 3(3)(a)(iii) of the Nationalization Act by a Gazette notification dated June 9, 1993.  

1996 Amendment: Cement as an end use : Under the powers conferred on the Central Government by section 3(3)(a)(iv) of the Nationalization Act, another Gazette notification was issued on March 15, 1996 to allow cement as an end use for captive mining of coal.

Coal Mines (Nationalization) Amendment Bill, 2000 (“Nationalization Amendment Bill”)[2] : The Central Government decided to allow Indian companies, both in the public and private sectors to enter coal mining without the restriction of captive mining. The proposal of the Ministry of Coal to allow non-captive mining was approved by the Cabinet on February 11, 1997 and subsequently on May 27, 1997 after the change of Government in April 1997. However, this bill still hasn’t seen the light of the day due to disputes with trade unions.

Coal India (Regulation of Transfers and Validation) Act, 2000 : Ever since the nationalization of the private coal mines of the country took place during 1971-1973, though the rights, title and interest in relation to the coal mines was directed to be vested in CIL, its subsidiary companies were managing such land, mines, etc. In the absence of any specific legislation empowering them with formal rights, the subsidiary companies were exposed to litigation with respect to the land and coal mines. Thus, the Coal India (Regulation of Transfers and Validation) Act, 2000 was passed to empower the Central Government to direct the transfer of the land, or of the rights in or over land or of the right, title and interest in relation to a coal mine, coking mine or coke oven plant, vested in the CIL or in a subsidiary company to any subsidiary company of CIL or any other subsidiary company and to validate certain transfers of such land or rights.  




[1] Bharat Coking Coal Limited, became and still is, a subsidiary of Coal India Limited.