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Day 38 at Padala Rama Reddi Law College 3Y LLB

·2192 words·11 mins
PRRLC Law School Contracts Family Law Constitutional Law Law of Torts LLB 3YDC Semester 1
Prithvi Raj Kunapareddi
Author
Prithvi Raj Kunapareddi
Solving problems for things I care about.

Class Notes - 12th November, Tuesday, 2024
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These are the notes from the classes held on Tuesday, 12th November 2024 for LLB 3Y students at Padala Rama Reddi Law College, covering Contracts, Family Law, Constitutional Law, and Law of Torts. Though vetted, it may contain inaccuracies; discretion is advised.

Notes for Day 37 can be found here.

Contracts 1
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Faculty: Dr. Radha Kumari

We are continuing on the concept of fraud.

Consequences of Fraud
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Fraud in a contract refers to deliberate deception intended to secure an unfair or unlawful gain. When a contract is induced by fraud, it is voidable at the option of the defrauded party. This means that the contract remains valid until the defrauded party chooses to avoid it. The remedies available to the aggrieved party in cases of fraud include:

  1. Rescission of the Contract:

    • The defrauded party has the right to cancel (rescind) the contract, returning both parties to their original positions as if the contract had never been made.
    • Example: If A sells B a painting, falsely claiming it is an original, B can rescind the contract and get a refund upon discovering the fraud.

  2. Insistence on Performance with Compensation:

    • The aggrieved party may insist on performance of the contract, provided they are put in the same position they would have been in if the fraudulent representation were true.
    • Example: If A falsely claims a plot of land has commercial zoning to induce B to buy it, B can insist that A compensate him to cover the expected gains from commercial use or bear the cost of rezoning.

  3. Suing for Damages:

    • The defrauded party can also sue for damages to compensate for the losses suffered due to the fraudulent representation.
    • Example: If A sells B a defective car by concealing its problems, B may sue for the cost of repairs after rescinding the contract.

Does Silence Amount to Fraud?
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Silence, in general, does not automatically constitute fraud. A person is not obligated to disclose every fact they know before entering a contract, as the law typically follows the principle of caveat emptor (“let the buyer beware”). However, there are specific conditions under which silence may indeed amount to fraud.

General Rule
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  • According to the explanation in Section 17 of the Indian Contract Act, “mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud.”
  • This means that simply withholding information does not constitute fraud, unless there is a duty to speak or silence implies consent.

Statutory Exceptions
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Silence can amount to fraud under certain statutory exceptions, such as:

  1. Duty to Disclose (Fiduciary Relationships):

    • In situations where a fiduciary relationship exists, there is a duty to disclose material facts. Fiduciary relationships are based on trust and confidence, such as those between a trustee and beneficiary, parent and child, or doctor and patient.
    • Example: If a financial advisor withholds information about a risky investment from a client, this can be considered fraud due to the advisor’s duty to disclose relevant information.

  2. Silence Equivalent to Speech:

    • When silence is understood as equivalent to a statement or promise, it can amount to fraud. This usually occurs when one party directly asks about a particular fact, and the other party’s silence implies agreement or affirmation.
    • Example: If A is selling a horse to B and B asks, “Is the horse healthy?” and A remains silent, leading B to assume it is healthy, the silence may amount to fraud. Here, B’s assumption is based on A’s silence, which is taken as implied consent.

Examples Illustrating the Principle
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  1. No Duty to Disclose:

    • Suppose A sells a plot of land to B without mentioning that a new highway will soon pass nearby. As B did not ask, A’s silence does not amount to fraud, even if the highway affects the land’s value.

  2. Fiduciary Relationship:

    • If a doctor selling health supplements does not inform a patient of potential side effects, this could amount to fraud, given the fiduciary duty involved.

  3. Assumption Based on Silence:

    • A person buys a house and asks the seller, “There are no structural issues, right?” If the seller knowingly keeps silent despite awareness of major structural problems, this silence can amount to fraud.

Family Law - 1
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Faculty: Dr Sriveni

The Hindu Adoption and Maintenance Act, 1956 (30 Sections) Cont
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  • Section 10: Persons Capable of Being Adopted
    • Hindu
    • Not previously adopted
    • Unmarried
    • Under 15 years of age
  • Section 11: Ceremonies of Adoption
    • The ceremony of “giving and taking” is mandatory, where the biological father places the child in the lap of the adoptive father.

  1. Section 12: Effect of Adoption

    • The adoption is effective from the date of adoption.
    • Doctrine of relation back is abolished.
    • The adopted child becomes the legal child of the adoptive parents.
    • All ties with the biological family are severed, except for certain prohibitions on marriage with biological relatives (e.g., biological sister).
    • Any property vested with the adopted child prior to adoption remains vested with them, including liabilities.
    • Adoption does not divest any property already vested with others.
    • Case Law: Sawan v. Kalawati (1956)
      • Facts: A man died, leaving his widow and a daughter. The widow had limited estate ownership and later adopted the daughter’s son.
      • Issue: A third party (X) sued the widow after she transferred property to another.
      • Judgment: The court upheld the adoption, which provided the adopted son inheritance rights, denying X’s claims.

  2. Section 13: Anti-Adoption Agreements

    • Agreements preventing adoption are not legally valid.

  3. Section 14: Relationships Post-Adoption

    • The adopted child has rights and obligations similar to those of a biological child.

  4. Section 15: Adoption is a Matter of Status

    • Adoption changes the child’s legal status, granting inheritance rights and responsibilities toward adoptive parents.

  5. Section 16: Presumption of Registration

    • While registration is not mandatory under HA&MA, registered documents serve as valid proof of adoption.

  6. Section 17: Prohibition of Certain Payments

    • Any payments made to the biological parents as part of the adoption process are illegal, as they imply the sale of a child.

Case Laws
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1. Bhoobun Moyee’s Case (Gour Kishore & Bhowani Kishore v. Chandrabulle & Ram Kishore)
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  • Facts: Widow (who already has a son and daughter in law and adopted grandson) adopted another son named Ram Kishore.
  • Issue: The adopted son of the widow(Ram Kishore) wanted the right to the property since the real son had died. However, the real son had an adopted son which the daughter-in-law adopted.
  • Judgment: The Privy Council ruled that the adopted son could not inherit as a legal heir to the deceased husband. The grandson would be the rightul heir as there is no adoption possible for a son if a son or grandson already exists.

Law of Torts
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Faculty: Dr Pavani

Continuing from the previous day’s discussion, where we covered the rules of absolute liability in the context of Indian cases, today we discussed major legislative responses and key cases concerning environmental liability and public safety. You can find the notes from the previous day here.

Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985
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The Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 was enacted in response to the Bhopal Gas Tragedy. This Act allowed the central government to represent victims in court to ensure that settlements were fair and comprehensive, preventing private settlements that could disadvantage the victims.

Compensation Slabs Established by the Act:
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  1. Death: ₹1 lakh to ₹3 lakhs.
  2. Permanent Disability: ₹50,000 to ₹2 lakhs.
  3. Partial Disability and Other Injuries: ₹30,000 to ₹1 lakh.

This Act centralized claims processing and helped ensure that victims received fair compensation without interference from private settlements.

Public Liability Insurance Act, 1991
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The Public Liability Insurance Act, 1991 was enacted to provide immediate relief to individuals affected by accidents involving hazardous substances. This Act established a no-fault liability system, meaning victims are compensated regardless of negligence on the part of the hazardous industry.

Key Provisions:
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  1. Mandatory Insurance:

    • Every owner of a facility handling hazardous substances must take out insurance to cover potential liabilities before starting operations. This insurance must be renewed annually.

  2. Definition of “Handling”:

    • Handling includes any activity related to the manufacture, processing, treatment, packaging, storage, use, collection, or destruction of hazardous substances.

  3. Immediate Relief:

    • The Act ensures immediate compensation to affected individuals, with further claims possible under other laws.

  4. Strict Timelines:

    • Owners must obtain insurance within one year of the Act’s commencement.

Key Case Laws
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1. Indian Council for Environment Legal Action v. Union of India (1996) #

  • Background: A writ petition was filed under Article 32 of the Indian Constitution by Sal from the Indian Council for Environmental Legal Action. The case sought to compel the State Pollution Control Board to enforce environmental protections and relocate hazardous industries.
  • Supreme Court’s Decision:
    • The Supreme Court held that the Central Government could recover costs of environmental remediation from the polluting companies. This included the removal of sludge around the respondent company’s location.
    • Established the “Polluter Pays” principle: Polluters are financially responsible for the harm they cause to the environment.
  • Impact: This case reinforced the role of the judiciary in environmental protection and highlighted the financial accountability of industries involved in hazardous activities.

2. Klaus Mittelbachert v. East India Hotels Ltd. (1997)
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  • Background: Klaus Mittelbachert, a co-pilot for a German airline, was staying at an Indian hotel owned by East India Hotels Ltd. He dived into the hotel’s swimming pool, which had an insufficient water level and an inadequately cushioned floor, resulting in a severe spinal injury. He fell into a coma for 10-11 years and ultimately passed away.
  • Judgment:
    • The court held that hotels charging high prices owe a high duty of care to their guests, especially regarding latent structural or service defects.
    • The court awarded the plaintiff ₹50 lakh as compensation.
  • Significance: This case established that facilities and services in high-priced accommodations should meet high standards of safety. If there are latent defects that compromise guest safety, the service provider can be held liable for damages.

Constitutional Law - 1
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Faculty: Dr. M. Gangadhar Rao

Article 16: Equality of Opportunity in Public Employment
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Article 16 of the Indian Constitution ensures equality of opportunity for all citizens in matters related to employment or appointment to any public office. It prohibits discrimination in public employment on various grounds but allows the state to make provisions for underrepresented groups.

Key Provisions of Article 16
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  1. Equal Opportunity: Every citizen has an equal right to employment or appointment to any public office.
  2. Non-Discrimination: No citizen can be discriminated against on grounds of caste, race, religion, sex, place of birth, or residence in public employment.
  3. Residence-Based Qualification: The State can prescribe residence as a qualification for public employment in certain cases.

Special Provisions for Underrepresented Groups
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  1. Reservation for Backward Classes (BCs), Scheduled Castes (SCs), and Scheduled Tribes (STs):

    • Article 16(4) allows the State to make provisions for the reservation of appointments or posts in favor of backward classes that are not adequately represented in public services.
    • Reservation for SCs and STs extends to promotions, under Article 16(4A), which was introduced by the 77th Constitutional Amendment 1995.
    • This was done to nullify the Mandal Commission judgment 1992 which stated that reservations could not apply to promotions.

  2. Carry Forward Rule:

    • The 81st Constitutional Amendment 2000 introduced Article 16(4B), which allows unfilled reserved vacancies in a particular year to be carried forward to subsequent years. This was done to nullify the Devadasan Case judgment by the Supreme Court.

  3. Reservation for Economically Weaker Sections (EWS):

    • Recently, a provision was introduced for reserving 10% of public posts for economically weaker sections in upper castes.

Special Rules for Religious Posts
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  • Certain religious roles can be restricted to individuals of that particular religion. For example:
    • Purohits (Hindu priests) can only be employed as religious workers within temples.
    • Administrative positions, however, can be filled by people of any religion.
  • Example: TTD (Tirumala Tirupati Devasthanams) policies allow only Hindus to serve in religious roles, but there have been recent discussions about moving administrative employees to other departments outside of TTD.

Mandal Commission Case (Indra Sawhney v. Union of India)
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The Mandal Commission case, formally known as Indra Sawhney v. Union of India, is one of the landmark cases in Indian Constitutional Law regarding reservation.

Background
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  • In 1979, Prime Minister Morarji Desai appointed the Mandal Commission, headed by B.P. Mandal, to identify socially and educationally backward classes in India and to make recommendations on providing reservations in government jobs for these groups.
  • The report recommended 27% reservation for Other Backward Classes (OBCs) in addition to the existing reservations for SCs and STs.

Key Points
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  • The case addressed the question of reservations in public employment and promotions, as well as the 50% cap on reservations.
  • 50% Cap on Reservation: The Supreme Court, in this case, upheld the 50% ceiling on reservations, meaning that total reservations should not exceed 50% of available positions.
  • Reservations in Promotions: The court restricted reservations in promotions.
  • Creamy Layer: The judgment introduced the concept of creamy layer for OBCs which prevented children of the BCs who already got benefits to get the reservation.