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Corporate structure most suitable for big business

Corporate structure most suitable for big business

BY MOHD IQBAL BUTT and ROMAAN MUNEEB

In my experience of more than 30 years of legal practice I have found very few entrepreneurs who could convincingly answer to my question as to what do they mean by ‘limited’ in the name of a company. There are also certain misconceptions connected with incorporation and management of a company which deters some entrepreneurs from using the company structure for their businesses. Leave aside the misconceptions and the ignorance of the technical knowledge as regards this most successful form of the business structure, many of us fail to realise that almost all the goods and services we are surrounded in our daily lives are provided and produced by business organisations structured as companies. Further, richest individuals of the world are shareholders of big companies. 

A company has a legal personality distinct from its shareholders/owners and has rights like any other individual. These rights include the ability to enter into contracts, take loans, sue others, be sued, own assets, and so on. A company is formed when individuals agree to contribute capital to a company in exchange for shares of the company, which in turn creates a right to a portion of profits of the company.

The word ‘limited’ in the name of a company indicates ‘limited liability’. Under ‘limited liability’, a shareholder/owner of a company is liable for the losses incurred by the company limited to the amount promised by him to the company while subscribing to the shares of the company. Once a shareholder who has subscribed to the shares of the company has paid the subscription amount to the company he is not liable for the losses of the company beyond the subscription amount already paid by him to the company. In case he has not paid for the shares subscribed by him he will have to contribute to the loss of the company to the extent of the subscription amount agreed by him to the company and nothing more. This explains the concept of limited liability in simple language.

As can be understood from the explanation above, the limited liability allows individuals to avoid personal liability for company’s losses. This allows individuals who otherwise are reluctant to take risks to expose a part of their personal resources to the risks involved in starting a business. This also allows individuals to jointly contribute their resources to achieve business objectives that would otherwise be difficult to achieve individually. A corporate structure also allows labor and capital to be aggregated for the purpose of undertaking tasks that would be too large for any one person.

The roots of the company structure for business can be traced back into history. One of the biggest examples is that of The East India Company. In the 1600s, the British Crown began granting monopolies to groups of investors willing to undertake certain ventures. The East India Company was one such monopoly, in which investors pooled capital into a single  company from which profits would be distributed according to capital invested. Only members of The East India Company had the privilege of conducting trade with India. We are well aware how The East India Company eventually came to form a government over large portions of India and maintain an army. This example shows that by allowing the aggregation of resources, companies can be organized to carry out tasks too big for one person, or even one government.

The common misconceptions regarding doing business through a company structure are:

·                 Lots of compliances;

·                 High tax rate for companies;

·                 High cost of incorporation and maintenance of records;

·                 Requirement of minimum turnover.

In the past, yes, it required lots of paperwork to incorporate a company. But with the advance in information technology the process of incorporation has been streamlined and it is possible to incorporate a company by just filing one combined form. It is also not correct to say that companies are taxed at a higher rate in comparison to a partnership. The maximum tax rate applicable to both a partnership and a company is same. Doing business under a company structure may be tax efficient since certain companies having turnover below a prescribed limit are liable to pay income tax at a considerably lower rate. With online process of incorporation of companies, the cost of incorporation has also reduced considerably. An entrepreneur having basic knowledge of use of computers can incorporate a company without any assistance from a consultant/lawyer and save the cost of engaging such consultant/lawyer.

As regards maintenance of records a company once incorporated has to hold minimum four meetings of its board of directors in a financial year and one annual general meeting of the shareholders to approve the accounts. The company has to maintain minutes of these meetings. There are annual requirements of filing of annual return and accounts with the registrar of companies. Again, with the advancement of information technology and the government’s focus on ‘ease of doing business’ compliance of these annual requirements has become easy. There is also no minimum turnover required for incorporation of a company. Earlier there was a minimum paid up capital requirement for incorporation of a company which has now been dispensed with. It has been left to shareholders of a company to prescribe the same in the articles of the company. Hence theoretically you can start a company with Re.1 as minimum paid up share capital of the company. 

There are various disadvantages of a partnership structure. 

Unlimited Liability: Each partner of a partnership firm is liable for the losses of the firm jointly and severally. This restricts carrying of any large business activity by a partnership firm. There is a risk of personal property of the partners being taken over by the creditors of the partnership if the assets of the partnership firm are not sufficient to cover the liability.

No Continuity: A partnership firm may come to an end because of death of the partner, insolvency, insanity or retirement of a partner. Hence there is a perception of instability in the structure which may not be good for big business.

Restriction on Transferability of Interest: A partner cannot transfer his partnership interest to an outsider without the consent of all partners. A partner is also not authorized to bring any new partner without the consent of other partners. This shows that there is a restriction on transfer of interest. In case of a private limited company the restriction is to the extent that the shares are first to be offered to the existing shareholders and if they refuse to buy, the same can be offered to outsiders. In case of public limited companies there is absolutely no restriction on transfer of shares.

No Formal Structure: The Indian Partnership Act, 1932, does not give independent legal status to the partnership. Registration is not mandatory hence no differentiation is made between a partnership firm and its partners. In the absence of any regulatory control over the formation and management of a partnership firm, there is lack of public confidence in the structure. In the current age of fake news and online misrepresentations a structure the details of which can be confirmed/ascertained independently from a public repository, like registrar of companies in case of companies, is a must for the business.   

Risk of Implied Authority: Each partner is considered an agent of the partnership firm. He/she can bind the co-partners by his/her activities. On account of this authority of one partner, other partners have to suffer for the wrongdoing of a partner.

Limited Capital: In the partnership firm, there is a restriction on the number of members of the partnership, therefore, the total amount of capital which can be invested in case of the partnership is limited to the sum total of the individual amount invested by each partner. It is not easy for a partnership firm to collect huge capital.

Limited access to Loans: The above disadvantages are also responsible for difficulty in raising funds from banks and financial institutions due to lack of formal structure under a regulatory framework and prospects of discontinuity of the business in case of death, insolvency of a partner.

A sole proprietorship structure also suffers from similar disadvantages as applicable to a partnership firm where in case of death or incapacity of a sole proprietor the proprietorship gets dissolved. Further, a sole proprietor cannot raise capital by selling his interest in the business.

There are several advantages of a company structure, including the limited personal liability, easy transfer of ownership, business continuity, better access to capital and tax benefits.

No Personal Liability: A company provides more personal asset liability protection to its owners than any other type of business structure. If a company is sued, the shareholders are not personally liable for the company’s debts or legal obligations.

Perpetuity of Business: There is flexibility in transfer of ownership in a company and hence perpetuating the business for the long term by simply selling the shares in a company. It is easy to buy and sell ownership in a company by simply transferring of shares. If an owner of a business wants to leave the company running the business, he can simply sell off his/her shares in the company. Similarly, if a shareholder dies, his/her shares can easily be transmitted to another.

Access to Capital: Public limited companies can raise capital by selling their shares to public at large through publicly traded shares. This helps in raising large amount of funds for growing a business and also for starting new projects. When a company is incorporated it is considered more reliable and hence easy for it to raise capital.

Efficiency: A company is managed through a Board of Directors which could be distinct from the shareholders of the company. Domain experts can be appointed to the Board and for each specific function of the company which in turn leads to improved accountability and efficiency. The availability of resources makes it conducive to offer good salary packages and attract the best talent available in the market.

Availing incentive under schemes and loans: Having a separate identity and being regulated under a well-defined legal framework it is always easy for a company to meet the requirements of incentive schemes and satisfy the requirements of banks and financial institutions to avail loans. Further the efficiency the company structure brings to the business goes a long way in helping in a good appraisal for raising loans.     

Establishing reputation: A business incorporated as a company is always considered as a reputable organization. It enables the entrepreneur to set a mark of reputation among its customers and the stakeholders.

Hence, an entrepreneur needs to look into various advantages and risks involved while choosing the form of business. A well thought out business structure goes a long way in deciding the future of the business especially its scalability. Incorporating business as a company provides security, credibility, scalability which is unique to a company structure only. Depending upon the size of the project and the investment required an entrepreneur can decide to incorporate:

·    a private limited company which requires minimum two shareholders and maximum 200 shareholders; or

·   a public limited company which requires minimum seven shareholders and no limit on maximum number of shareholders.  

The Companies Act 2013 has permitted setting up of ‘one person company’. A sole proprietor now also enjoys ‘limited liability’ if he/she incorporates a ‘one person company’.

Mohd Iqbal Butt, Senior Partner IMR Law Offices

Romaan Muneeb, Partner IMR Law Offices

Originally Published on July 10, 2023 at Corporate structure most suitable for big business – Greater Kashmir

Industrial Subsidy in Jammu and Kashmir

Industrial Subsidy in Jammu and Kashmir

Introduction

Jammu and Kashmir, known for its breathtaking landscapes, is now emerging as a region of industrial promise. The state’s unique geographical position, combined with government initiatives, offers a compelling opportunity for businesses, especially in the pharmaceutical sector. As India aims to become a global pharmaceutical powerhouse, Jammu and Kashmir plays a critical role in providing cost-effective manufacturing locations, supported by attractive subsidies and incentives.

Establishing a pharmaceutical manufacturing unit here not only taps into the growing global demand for medicines but also benefits from financial support offered by the central and state governments. These subsidies significantly lower the costs of setting up and operating a factory, making Jammu and Kashmir a lucrative destination for pharmaceutical entrepreneurs.

Government Schemes and Subsidies

In recognition of Jammu and Kashmir’s potential as an industrial hub, both the central and state governments have introduced several schemes to encourage investment in pharmaceutical manufacturing. These programs aim to reduce the financial burden on investors and create an enabling environment for industries to flourish.

One of the primary schemes benefiting industries in the region is the Industrial Development Scheme (IDS). This scheme offers substantial financial assistance to industries setting up in Jammu and Kashmir, particularly for capital investment. The scheme provides capital investment subsidies of up to 30% of the project cost, with an upper limit based on the size of the unit and the sector.

Additional subsidies cover areas such as:

  • Interest subsidies on loans taken for setting up infrastructure.
  • Power subsidies that reduce the cost of electricity, crucial for energy-intensive pharmaceutical production.
  • Transport subsidies to help companies with the logistics of bringing raw materials and distributing finished products, given the region’s relatively remote location.

Special Incentives for Jammu & Kashmir

Jammu and Kashmir has its own set of special industrial packages designed to promote investment. These include tax holidays, rebates, and subsidized credit. One of the most attractive aspects for pharmaceutical manufacturers is the Production Linked Incentive (PLI) Scheme, which aims to boost domestic production of high-value pharmaceutical products.

The PLI scheme offers incentives tied to incremental sales of products made in the region. Pharmaceutical manufacturers that invest in Jammu and Kashmir can receive government payouts based on the increased volume of their production, making it more attractive for companies to expand their operations here.

Moreover, the government has introduced GST exemptions and income tax holidays for businesses in the state. These fiscal incentives are vital for offsetting the initial investment costs, especially in the capital-intensive pharmaceutical sector.

Eligibility Criteria for Availing Subsidies

While the subsidies and incentives are substantial, businesses must meet certain eligibility criteria to benefit from these schemes. Pharmaceutical factories must meet guidelines related to:

  • Minimum investment thresholds, depending on the scale and scope of the unit.
  • Employment generation requirements, where the business must create a specified number of local jobs as part of its operation.
  • The factory should be established in designated industrial zones of Jammu and Kashmir to qualify for certain subsidies.

These criteria are set to ensure that the subsidies target serious investors and contribute to the region’s long-term economic growth.

Process of Applying for Subsidies

The application process to access these subsidies is streamlined, but thorough. Entrepreneurs must begin by registering their business through the DPIIT (Department for Promotion of Industry and Internal Trade) portal or the Jammu and Kashmir Industrial Development Corporation (JKIDC).

A step-by-step guide for applying:

  1. Register the pharmaceutical manufacturing unit with the state’s industrial department.
  2. Submit a detailed project report outlining the business plan, investment requirements, and anticipated benefits for the region.
  3. Complete the application forms for specific subsidies, such as the IDS or PLI schemes, through the respective government websites.
  4. Attach all necessary documents, including proof of investment, land ownership or lease agreements, and employment commitments.
  5. Once the application is submitted, it undergoes scrutiny by a committee, with approvals typically granted within 2-3 months.

Impact of Subsidies on the Pharmaceutical Industry in Jammu & Kashmir

The introduction of these subsidies has already attracted major players to Jammu and Kashmir’s pharmaceutical sector. Companies such as  Sun Pharma and Cipla have shown interest in expanding their operations to this region, citing both cost advantages and governmental support as key factors.

Additionally, several smaller firms have successfully launched operations in the state, benefiting from lower costs, subsidies, and ease of doing business. As more pharmaceutical manufacturers enter the region, Jammu and Kashmir is gradually positioning itself as a significant contributor to India’s pharmaceutical exports.

Conclusion

Jammu and Kashmir’s industrial policy, focused on subsidies and incentives, is designed to attract pharmaceutical manufacturers and contribute to the state’s economic resurgence. With ample government support, businesses setting up factories in the region can significantly reduce operational costs while benefiting from the expanding pharmaceutical market.

For entrepreneurs looking to enter the pharmaceutical manufacturing space, now is the perfect time to leverage these subsidies and incentives to establish a thriving business in one of India’s most beautiful yet rapidly developing regions

Kashmir Hospitality: A Businessman’s GUIDE to Hotel Agreements

Kashmir Hospitality: A Businessman’s GUIDE to Hotel Agreements

The tourism industry in Kashmir is booming, attracting major hotel franchises and brand owners to this “paradise on earth”. As the sector contributes significantly to the region’s GDP, local hotel and land owners must navigate complex legal agreements to protect their interests. This comprehensive guide examines various types of hotel agreements, including franchise, management, and lease contracts, providing crucial insights for business owners in Kashmir’s hospitality sector.

To read more about this topic, check our article on Rising Kashmir at the following link: Kashmir Hospitality: A Businessman’s GUIDE to Hotel Agreements – Rising Kashmir

Here are some key highlights from the article:

  1. Tourism accounts for 7-8% of Kashmir’s GDP, generating over INR 8000 crores in annual revenue.
  2. Types of agreements covered: Franchise, Third-Party Operation/Management, Hotel Management, Lease, and Joint Development Agreements.
  3. Franchise fees typically include initial fees, royalty fees (3-5% of room revenues), and marketing fees (1-2% of total revenue).
  4. Third-party management fees usually range from 4-6% of total revenues.
  5. Hotel Management Agreements often include base fees (2-4% of gross revenue) and incentive fees (4-8% of Gross Operating Profit).
  6. Performance tests in management agreements allow owners to terminate contracts if operators underperform.
  7. Lease agreements offer stable income for owners but less control over operations.
  8. Joint Development Agreements (JDAs) allow landowners to partner with developers to construct hotels without significant financial investment.
  9. Local hotel owners in Kashmir have leverage in negotiations due to high demand for hospitality services.
  10. The article emphasizes the importance of thorough investigation, evaluation, and negotiation of legal agreements in the evolving hospitality industry.

Arbitration Challenges in Government Contracts

Arbitration Challenges in Government Contracts

Competitive tendering in the construction, engineering, and logistics sectors of the UT of J&K holds immense importance. These projects not only hold great public importance, but significant public funds are allocated to them. However, beneath the surface of these initiatives lie multifaceted challenges. The root of these challenges often lies in the initial bidding phase, where proposed bidders must adhere to certain Qualifications. With the award of a project to one contractor, challenges and disputes are raised by unsuccessful bidders, often attributing the decision to alleged connivance within the State Department, in the selection process. This situation creates a divergence between initial bidding approximations and the final selection of the winning bidder, leading to conflicts and court litigation between state departments and participating bidders.

On the flip side, once the contract is awarded to a contractor, the state entity holds the authority to assert that the procedures employed by the contractor during contract performance constitute a breach of contract or that the performance of the contractor falls short of the parameters stipulated in the agreement. Factors like force majeure, court interventions, changes in project requirements mid-way or the department’s failure to make partial payments can further complicate the matters. Such situations not only aggravate the challenges faced by both parties but also contribute to a significant extension of the contract timeline. This extended contract timeline, coupled with the challenges of delayed resolution and payments, introduces a ripple effect on project dynamics. The prolonged uncertainty can strain the contractor’s financial stability, impacting their ability to execute the project operations and fulfil contractual obligations. Additionally, the lingering issues, contribute to an atmosphere of apprehension, affecting the overall collaboration between the contracting parties and thus, results in disputes commonly subject to arbitration. 

Arbitration clauses, a common feature in government contracts, introduce their own set of complexities. The inclusion of government-nominated arbitrators, raises legitimate concerns about impartiality. The recourse for challenging such appointments or dealing with unresponsive or overburdened Govt. appointed arbitrators involves a detour through the courts, consuming valuable time and resources. The Supreme Court, while recognizing the well-established principle that appointment is required to be done as per the terms and conditions of the contract, held that if circumstances exist, an independent arbitrator may be appointed as an exception to the general rule if there is reasonable apprehension of bias and impartiality. In cases where the parties cannot mutually agree on an arbitrator, they are compelled to invoke 

Section 11(6) of the Arbitration and Conciliation Act, 1996, for the appointment of an arbitrator through the court, a process that typically extends over several months. This delay, not to mention the subsequent initiation of arbitration proceedings, significantly undermines the purpose of opting for arbitration as a quick and efficient dispute resolution mechanism. Moreover, the courts are engaged in lengthy inquiries into the validity and effect of the arbitration agreement/clauses before referring parties to arbitration, which severely delays the matter. Recent amendments aim to streamline this process; however, in practice, parties can file multiple applications and delay proceedings, both before and after the closure of arbitration proceedings. Even if these applications are ultimately dismissed on merit, the process of filing applications, serving the other side, hearing applications, and seeking an order on these applications is used by the parties to buy time in a judicial system that is significantly overburdened.

In this intricate web of challenges, the importance of robust arbitration mechanisms cannot be overstated. The intervention of the court cannot be eliminated, as those are statutorily enshrined under the Arbitration and Conciliation Act. The comprehensive solution to the array of issues discussed in the article lies in fully embracing and resorting to institutional arbitration. Institutional arbitration not only addresses concerns related to bias, non-performance by contractors, payment-related issues, and delays in government contracts but also introduces a systematic framework. Typically, institutional arbitration has its own rules that govern the procedure that would be followed. The Government of J&K has recently established the Institutional Arbitration Centre, namely the Jammu and Kashmir International 

Arbitration Centre (JKIAC), which could prove beneficial to counter such issues. The advent of institutional arbitration, exemplified by the J&K International Arbitration Centre (JKIAC), brings a structured
approach to dispute resolution. With a diverse panel of experts covering fields such as law, medicine, engineering, information technology, town planning, etc. to assist in the arbitral proceedings, JKIAC may provide a cost-effective alternative to protracted court battles. For dealing with the arbitration proceedings in the Centre, the Jammu and Kashmir International Arbitration Centre (Arbitration Proceedings) Rules, 2020 have been framed by the High Court. Despite these massive developments, most arbitrations in J&K are still conducted on an ad hoc basis. To fully leverage the benefits of institutional arbitration, suggested arbitration clauses in government contracts explicitly mentioning institutions like JKIAC in the following format may prove beneficial:

“Any dispute, difference, or claim arising out of, in connection with, or relating to the present contract or the breach, termination, or invalidity thereof shall be referred and settled under the Jammu & Kashmir International Arbitration Centre (Arbitration Proceedings) Rules, 2020, by one or more arbitrators appointed by its rules”.

In the framework of institutional arbitration, the administration of Arbitration falls under the purview of the Arbitration Institution. The institution’s panel of arbitrators typically comprises experts from various fields and this setup empowers parties to nominate an arbitrator possessing the requisite skills, experience, and expertise for a quick and effective dispute resolution process. The institution retains the right to refuse an appointment, on request, if it deems the nominated Arbitrator lacks the necessary competence or impartiality. Arbitration institutions oversee the entire arbitration process, starting with notifying the defending party about the Claimant’s request for Arbitration and extending the notification of the arbitral award to all involved parties. Institutional arbitration, therefore, offers a structured, impartial, and cost-effective alternative, providing support and expertise throughout the arbitration process. The recent legislative amendments, particularly in 2019, signal a shift towards institutional arbitration as a preferred mode, aiming to expedite resolution and reduce court interference.

In conclusion, achieving effective dispute resolution in J&K government contracts demands equilibrium. Addressing the aforementioned issues necessitates a comprehensive approach, including streamlined dispute resolution mechanisms, timely payments, and a proactive review of compensation policies in situations not attributable to the contractor. At a broader level, a thorough understanding and adherence to contract requirements, project timelines, and payment provisions by the contractors is essential for successful contract execution. Proactive identification of variations, coupled with transparent communication and timely responses from the departments, significantly contribute to the seamless operation of government contracts. The careful construction of arbitration clauses, along with the integration of institutional frameworks such as JKIAC (Jammu and Kashmir International Arbitration Centre), emerges as a key strategy for unlocking smoother and more efficient contract execution and dispute resolution in the dynamic landscape of the UT of J&K.

The authors, Adv. Romaan Muneeb, Partner at “Malik and Romaan Law Offices, Srinagar, J&K,” along with Associate Adv. Areeba Ahad, are lawyers at the J&K High Court. The authors can be reached at malikandromaan@gmail.com

CCTV, AI (Artificial Intelligence) weapon against Crime: Insights from Indian Law and Future. 

CCTV, AI (Artificial Intelligence) weapon against Crime: Insights from Indian Law and Future. 

The use of Closed-Circuit Television (CCTV) cameras has become an increasingly common tool in law enforcement and security around the world, where Kashmir is no exception, with CCTV cameras being installed in public areas, offices, it is high time that all private facilities including homes should also install CCTV cameras in order to curb crime in the Division. 

From 2009 the CCTV surveillance became an increasingly popular means of monitoring public and private spaces in India. The use of CCTV cameras is widespread in a variety of settings, including residential areas, offices, banks, hospitals, and public transportation systems. The Jammu and Kashmir administration has also installed CCTV cameras throughout the city, offices and public places to enhance public safety and security. In fact the State Administration also issued order for installation of CCTV cameras in all Police Stations and public officer, not only a measure of security but also accountability. In fact in another Order the District Magistrates of various district in Kashmir division in order to deter criminals, anti-social and anti-national elements from committing crimes, directed the installation of CCTV outside establishments, and such installation would work as a force multiplier, which would inspire further confidence in general public/customers visiting these establishments. The District Magistrates exercised their Power under Section 144 of the Code of Criminal Procedure, 1973 directing Shop owners and market associations to install CCTV cameras compulsorily.

Thought the directions for installation of CCTV in markets etc. did raise the concerns raised about privacy violations and the potential misuse of footage, Hence in order to restrict the misuse of such footages, the the Ministry of Home Affairs issued guidelines for their installation and use. Some key features of the guidelines are that the footage from CCTV cameras should be stored securely and should not be shared with unauthorized persons, also that the CCTV should not be installed only in public places and should not be used to invade the privacy of individuals.

Case studies of CCTV footage used in criminal investigations

CCTV footage has become an indispensable tool in criminal investigations in recent years, providing crucial evidence in many high-profile cases. In India, there have been several instances where CCTV footage has led to successful prosecution and conviction of criminals. 

1. Nirbhaya Case (2012): In this infamous gang rape case in New Delhi, CCTV footage from a hotel helped investigators identify and apprehend the six perpetrators.

2. Gauri Lankesh Murder Case (2017): The murder of journalist Gauri Lankesh was captured on her home’s CCTV system. The footage facilitated law enforcement agencies in identifying suspects involved in her assassination.

3. Kathua Rape Case (2018): In this brutal rape case involving an eight-year-old girl from Jammu and Kashmir, investigators were able to assemble multiple pieces of evidence, including CCTV footage of the temple’s vicinity where the crime was committed.

However, it is important to note that the Indian Evidence Act, 1872, regulates the use of CCTV footage in criminal investigations and it’s not merely the installation of cameras but also the handling of the footage for the purposes of reading a Evidence, which also need to be learned and administration must introduce SOPs for the same 

Supreme Court: Paramvir Singh Saini Versus Baljit Singh & Ors. vide its reportable judgement dated 02.12.2020 gave direction for installation of CCTV cameras in all Police Station and office of all other Investigation agencies , which possesses the power of arrest. As per the directions, CCTV cameras are to be installed, inter alia, at all entry and exit points including the main gate of the police station, in front of the police station compound as well as the back portion of the police station, in the lobbies or reception areas, corridors, verandas or outhouses, station halls, and rooms belonging to the inspectors, sub-inspectors, and duty officers, inside and outside lock-up rooms, and outside washrooms. The surveillance systems must be equipped with night vision and should be able to transmit both video and audio footage. Victims of custodial torture, the court had asserted, would have the right to seek the CCTV footage of interrogation by police and other federal agencies. 

The direction by the Hon’ble Supreme Court reflects the confidence of the highest judiciary in the technology and how the same can be a game changer for security as well as accountability.  

Delhi Model 

As per a news report, Delhi was at the top with 1,826 CCTV cameras per square mile in the world. The story behind such numbers is that the NCT of Delhi, through Public Works Department, upon an Application by any Individual, market, association etc. installs the CCTV camera on cost of the State, rather than shifting the onus of installation on the Individuals. Though such applications are subject to the approval of competent authority and location feasibility etc.

Preservation of CCTV footage

In a number of cases the Complainant would entirely leave the matter in hands of the Investigation Agencies, who might due to limited resources and overburden of cases, miss on an essential factor i.e preservation of the CCTV footage. The average life of CCTV footage to replay is around 3-12 Months and upon expiry of such period if the CCTV footage is not secured or preserved the same is lost forever, without any chances of recovery, which not only weakens the case for the prosecution but also sabotages an important link in the chain of events. The Complainants can very well exercise their right under 156(3) Cr.P.C to seek specific directions for preservation of CCTV footage  

The role of CCTV footage in workplace and property monitoring 

CCTV footage plays a crucial role in workplace safety and security. There are several benefits of installing CCTV cameras in the workplace. Firstly, they act as a deterrent to potential criminals, reducing the likelihood of theft, vandalism, or even more severe crimes. Secondly, they can help in identifying perpetrators if a crime does occur, making it easier for law enforcement officials to apprehend them. 

Apart from preventing crime, CCTV cameras can also be used to monitor employee behaviour to ensure compliance with company rules and regulations. For instance, if an employee is caught stealing from the company, the CCTV footage can be used as evidence during disciplinary proceedings. Moreover, CCTV footage can be used to identify safety hazards in the workplace, enabling employers to take corrective actions to prevent accidents. For example, if an employee slips and falls at a particular location, the CCTV footage can be reviewed to identify the cause of the accident, such as a wet floor or an obstruction. This information can then be used to take corrective measures such as putting up warning signs, cleaning up spills immediately, or removing obstructions. 

Overall, the presence of CCTV cameras in the workplace can improve employee safety, reduce the likelihood of criminal activity, and provide valuable evidence in case a crime does occur. Employers should ensure that their CCTV systems comply with all applicable laws and regulations to avoid any legal issues.

Conclusion and the future of CCTV surveillance in India.

In conclusion, the use of CCTV cameras has become an important tool in to ensure public safety and security. The cases discussed in this article demonstrate the value of CCTV footage in providing evidence and solving criminal cases. However, there are also concerns regarding the misuse of CCTV footage, invasion of privacy, and data protection. As technology continues to advance, the future of CCTV surveillance in India will likely involve the integration of Artificial Intelligence (AI) and facial recognition technology. This could lead to more efficient and accurate identification of suspects, but it also raises questions about privacy and civil liberties.

It is important that the use of CCTV cameras is regulated and monitored by the government to prevent abuse and ensure that citizens’ rights are protected. Businesses and individuals should also take responsibility for the use of CCTV cameras on their premises, ensuring that they are used ethically and in compliance with the law.

Overall, the use of CCTV cameras has both benefits and drawbacks, and it is important to strike a balance between public safety and individual privacy. With careful implementation and regulation, CCTV surveillance can continue to play an important role in maintaining law and order in India.

A Legal Insight Into the Lives of the Women of Jammu and Kashmir

A Legal Insight Into the Lives of the Women of Jammu and Kashmir

Anyone who seeks remedy under Law anticipates an effective and speedy redressal of grievances. To cater to this hope, the Legislature often endeavours to design special laws, procedures and adjudicatory fora for speedy adjudication of disputes, especially for the more vulnerable. One of the issues has been the dismay and despair of the women in our society and the legislature has been more empathetic with the plight of women who face difficulties due to troubled marriages. There are various statutes, which ensure the protection of women as also their rights. In fact, the Magna Carta of these welfare legislations lays in the Constitution of India, Article 15 (3) to be more specific.

The Muslim Women (Protection of Rights on Divorce) Act, 1986, The Protection of Women from Domestic Violence Act, 2005, Hindu Marriage Act, 1955 etc. were introduced decades ago and have been tailored time and again to ensure their effectiveness. However, the women of Jammu and Kashmir could not exercise many rights like their sisters in the other parts of the country due to parallel Constitutional structure and failure of the male-dominated State Legislature to ratify these laws. Hence, the women of J&K could never really ensue any benefit out of these legislations, which otherwise equipped their sisters with special rights and protection where the marriages failed to work.

Read Full Article on https://libertatem.in/articles/a-legal-insight-into-the-lives-of-the-women-of-jammu-and-kashmir/

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