Business & Company Law

8/8/2019 Business & Company Law

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BUSINESS AND COMPANY LAW 2011

Questions:

1) Distinguish between a private company and a public company. What are the advantages

or disadvantages of a private company vs. public limited company, in terms of control,ownership and liability?

What is a Company?

Company is a voluntary association of two or more persons formed for the purpose of doing business

having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct

from the members who constitute it, capable of rights and duties of its own and endowed with the

potential of perpetual succession. The Companies Act, 1956, states that 'company' includes companyformed and registered under the Act or an existing company i.e. a company formed or registered under

any of the previous company laws.

Private Ltd.

Private Company as defined in section 3 clause (iii) they prohibit any invitation to the

public to subscribe for any of the shares or debentures of the company

1. has a minimum paid-up share capital of Rs.1 Lakh or such higher capital as may be

prescribed; and

2. by its Articles Association:

3. restricts the right of transfer of its share;4. limits the number of its members to 50 which will not include:

members who are employees of the company; and

members who are ex-employees of the company and were members while in

such employment and who have continued to be members after ceasing to be

employees

5. prohibits any invitation to the public to subscribe for any shares or debentures of the

company; and

6. Prohibits any invitation or acceptance of deposits from persons other than its members,

directors or their relatives.

This goes to say that a private company, in addition to the earlier conditions, shall have a

minimum paid-up share capital of Rupees One Lakh or such higher capital as may be prescribedand its Articles shall prohibit invitation or acceptance of deposits from persons other than its

members, directors or their relatives. In case of such companies, public interest is not involved.

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Public Company:

The Company defined under section 3(1)(iv) of the Companies Act, 1956 is a public

company which-

1. is not a private company;

2. has a minimum paid-up capital of Rs. 5 Lakhs or such higher capital as may be prescribed;

3. It is a private company, but subsidiary of a public company.

Private Companies deemed to be Public Companies

Certain private companies are deemed to be public companies by virtue of section 43 A, viz.-

1. when 25% or more of its paid-up share capital is held by one or more body corporate;

2. when its average annual turnover (during the last 3 years) exceeds Rs. 25 crores;

3. when it holds 25% or more of the paid-up share capital of Public Company; or

4. When it accepts or renews deposits from the public after making an invitation by an

advertisement.

However, as per the Companies (Amendment) Act, 2000 effective from 13th December 2000

such deemed public limited companies are required to intimate to the Registrar to revert back totheir original status as a private limited company.

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Differences between public company and private company

1. Minimum Paid-up Capital: A company to be incorporated as a Private Company must

have a minimum paid-up capital of Rs. 1, 00,000, whereas a Public Company must have

a minimum paid-up capital of Rs. 5, 00,000.

2. Minimum number of members: Minimum number of members required to form a

private company is 2, whereas a Public Company requires at least 7 members.

3. Maximum number of members: Maximum number of members in a Private Company

is restricted to 50; there is no restriction of maximum number of members in a Public

Company.

4. Transferability of shares: There is complete restriction on the transferability of the

shares of a Private Company through its Articles of Association, whereas there is no

restriction on the transferability of the shares of a Public company

5. Issue of Prospectus: A Private Company is prohibited from inviting the public for

subscription of its shares, i.e. a Private Company cannot issue Prospectus, whereas a

Public Company is free to invite public for subscription i.e., a Public Company can issue

a Prospectus.

OBJECTIVE

By private sector, we mean, economic and social activities undertaken privately by a single

individual or group of individuals. They prefer to do business in private sector basically to earn

profit. On the other hand P.S.U. refers to economic and social activities undertaken by public

authorities. The enterprises in public company are set up with the main aim of protecting public

interest.

CAPITAL

In the private company the capital is raised by owners of the company

But in P.S.U the capital is raised from Government through loans, private funds and sometimes

sources and public issues

AREA OF OPERATION

The private company operates in all areas. But the Public Sector Undertaking operates in basic

and with adequate return public utility sectors on investment.

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ADVANTAGE OF BEING A PRIVATE LIMITED COMPANY

I give herein below the advantages of conducting the affairs of a Company as a Private Limited

Company (Pvt. Ltd). These advantages are based on the provisions of the Companies Act as in

force and the recommendations of the 2ndNaresh Chandra Committee on Private Limited

Companies (PLC) are not being dealt with here, as they are only recommendations at this point

of time.

1. Managing Business Risk: The Annual Accounts of a PLC filed with the Registrar is a

public document and any person can inspect the same & obtain copies. However, in case

of a Private Company the Profit & Loss Account should be filed separately in Form

23ACA and no person other than a shareholder can obtain copies from the Registrar.

While filing the accounts you would have to ensure that this would effectively act as

hedge from the competitors gaining access to the profitability details of the Company.

This assumes a greater relevance when the Ministry unveils its e-governance programme.

2. Augmenting Additional Capital: Private Company cannot raise funds from the Capital

Markets, and a PLC can do so. However, for an unlisted PLC, if it were to raise additional

resources for tying up its Capital requirements from its Promoters, then, it can do so only

if its Articles of Association permits it and also comply with many disclosure

requirements. Whereas, there are no such restrictions / disclosures that are required to bemade by a Private Company.

3. Managing Shareholder Affairs :

a. Transfer of Shares: Shares in any form of Company are normally freely

transferable. However, in a Private Company the articles can lay down certain

restrictions and also the methodology in which they can be transferred.

b. Convening General Meetings: A PLC necessarily has to give a notice of 21 clear

days for conducting any general meeting, unless all the shareholders agree for a

shorter notice. However, in case of a Private Company the articles can determine

the period of notice, which is required for convening a general Notice, as well as

the percentage of shareholders to consent for a meeting to be convened at a

shorter notice

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4. Utilization of surplus of the Company: A PLC can utilize the surplus funds available in its

ordinary course of business either by making a loan or investing in the shares of another

company, by following the provisions laid down in the Act, which require unanimous

consent of the Board in certain cases and in certain other cases requires approval of the

shareholders. However, a Private Company is not subject to these restrictions.

5. Exception from certain statutory committees & the Board : A PLC that has a paid up

capital of Rs. 5 Cores and above in required to constitute a Committee of the Board called

the Audit Committee, to review the internal control systems, the half yearly annual

financial statements and belated irrespective of its capital.

6. Acceptance of loan from Directors: In a normal course of conducting the business of a

Company, it is common for the Directors to bring in personal funds to manage the cash

flow of the Company. However, in a PLC the Directors can do so only on following thedetailed procedure laid down in the Act as it is construed as a deposit. However, in a case

of a Private Company any loan given by a Director is not construed to be a deposit.

7. Managing Directorial Affairs:

a) Remuneration to Directors: A PLC has a restriction that it can pay only a

maximum of 5% of its Net Profits as remuneration to its Managing Director,

Whole-time Director and the like and 10% while there is more than one such

person. Also in order to pay remuneration to Director Simplicity, PLC needs theapproval of the Central Government before it can do so. However, such

restrictions are not applicable to a Private Company, if the articles of the

Company provides for the same.

b) Loan to Directors: A PLC in order to give a loan to a Director or give a guarantee

for a loan given to the Director by another person has obtain the approval of the

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Central Government before doing so. However in case of a Pvt. Company such

approval is not required and the Company can do so after obtaining a Board

Resolution.

Explain the Doctrine of Lifting the corporate veil. How far does this doctrine ensure

protection to third parties?

DOCTRINE OF LIFTING OF CORPORATE VEIL

In the eyes of law, a company is a legal person with a separate entity distinct from its

members of shareholders. In essence it means that there is a veil or curtain separating thelegal entity of the company from its members or shareholders. But in reality there is no

such separation between the economic interests of the company and its members. The

members are shareholders are the beneficial owners of the property of the company andas such theyre economic interest are identical with those of the company.

Ordinarily, the Courts recognize the separate legal entity of the company and consider

themselves bound by the principle laid down in the case of Salomon Vs. Salomon & Co.

Ltd. They do not lift or pierce the veil of corporate entity to look at the economic realities

behind the legal veil. But in exceptional cases, the courts may disregard the concept ofcorporate entity to look at the persons (members or shareholders) behind the company.

They may, so to say lift the corporate veil to probe into the economic realities behind the

scene. This is known as the lifting or piercing the corporate veil.

In Salomon Vs. Salomon & Co. Ltd it was decided that a company has an independent

and legal personality distinct from the individuals who are its members, it has since been

held that the corporate veil may be lifted, the corporate personality may be ignored andthe individual members recognized for who they are in certain exceptional circumstances.

The doctrine of the lifting of the veil thus marks a change in the attitude that law had

originally adopted towards the concept of the separate entity or personality of thecorporation.

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Exceptions to the Doctrine

Some of the exceptional cases necessitating the lifting of the corporate veil may briefly be

indicated below: -

1. FOR DETERMINING THE CHARACTER OF THE COMPANY

Where there is reason to suspect that the persons in real control of a company are enemy

agents or are residents of an enemy country, the Courts may disregard the corporate

fiction and examine the character of the persons behind the company to determine

whether it is an enemy company (In re Daimler Co. Ltd Vs. Continental Tyre & RubberCo Ltd)

2. COMPANY CANNOT ACT AS AGENT OF SHAREHOLDERS

Where a company is acting as the agent of the shareholders under an express or implied

agreement, the corporate entity of the company will be disregarded and shareholders will

be held liable for the acts of the company.

Shareholders cannot be the principals for the company but if so, it should be proved thatthe company was their agent in one or more transactions.

The court would refuse to resort to the doctrine of lifting the corporate veil when it would

defeat, instead of promoting, the aims of a statutory enactment.

3. FOR CHECKING FRAUD OR IMPROPER CONDUCT

Where it appears that the company has been formed for some fraudulent purpose or to

conceal the real identity of the owners, the Courts will lift the corporate veil to findout the real owners of the company.

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4. AGAINST PUBLIC POLICY

Where the principle of separate entity conflicts with public policy the court may lift

the corporate veil in defence of the public policy.

5. AVOIDANCE OF LEGAL OBLIGATION

The Court will also disregard the legal personality of a company where the corporate

veil is being used to avoid legal obligation.

6. IN THE INTEREST OF REVENUE

Where it appears that a company has ben formed or is being used for the only purposeof evading taxes or for avoiding tax liability, the courts may ignore the separate entity

of the company and lift th veil to look into the persons responsible for tax evasion

(Re Sir Dinshaw Maneckjee Petit)

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CASE STUDY

V.P. Shanthas husband was admitted in the Cosmopolitan Hospital. They did not charge fortreatment of her husband. Due to the negligence of medical services of that hospital, he died. She

filed complaint against it. The Hospital authorities contended that they rendered free medical

service. On appeal, the National Commission gave the judgment dated 3-5-1993 in OP No. 93 of1992, holding the Hospital was not liable since the treatment was given to the complainants

deceased husband in the nursing home belonging to the opposite party was totally free of any

charge, and it did not constitute service as defined under the Act and the complainant was notentitled to seek any relief under the Act.

Questions

1) Explain the contention of the Indian Medical Association on technical and medical

deficiency.

Introduction

With the awareness in the society and the people in general gathering consciousness about their

rights, measures for damages in tort, civil suits and criminal proceedings are on the augment. Not

only civil suits are filed, the accessibility of a medium for grievance Redressal under theConsumer Protection Act, 1986 (CPA), having jurisdiction to hear complaints against medical

professionals for 'deficiency in service', has given rise to a large number of complaints against

doctors, being filed by the persons feeling aggrieved. The criminal complaints are being filedagainst doctors alleging commission of offences punishable under Sec. 304A or Sections

336/337/338 of the Indian Penal Code, 1860 (IPC) alleging rashness or negligence on the part of

the doctors resulting in loss of life or injury of varying degree to the patient. This has given riseto a situation of great distrust and fear among the medical profession and a legal

assurance, ensuring protection from unnecessary and arbitrary complaints, is the need of the

hour. The liability of medical professionals must be clearly demarcated so that they can perform

their benevolent duties without any fear of legal sword. At the same time, justice must be done to

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the victims of medical negligence and a punitive sting must be adopted in deserving cases. Thisis more so when the most sacrosanct right to life or personal liberty is at stake.

Nature of Medical Negligence

In the law of negligence, professionals such as lawyers, doctors, architects and others areincluded in the category of persons professing some special skill or skilled persons generally.

Any task which is required to be performed with a special skill would generally be admitted or

undertaken to be performed only if the person possesses the requisite skill for performing thattask. Any reasonable man entering into a profession which requires a particular level of learning

to be called a professional of that branch, impliedly assures the person dealing with him that the

skill which he professes shall be exercised with reasonable degree of care and caution. On thesame analogy, this assures the patients that a doctor possesses the requisite skill in the medical

profession which he is practicing and while undertaking the performance of the task entrusted to

him he would be exercising his skill with reasonable competence. Judged by this standard, a

professional including medical professional may be held liable for negligence on one of two

findings: either he was not possessed of the requisite skill which he professed to have possessed,or, he did not exercise, with reasonable competence in the given case, the skill which he did

possess.

The standard to be applied for judging, whether the person charged has been negligent or not,

would be that of an ordinary competent person exercising ordinary skill in that profession. It is

not necessary for every professional to possess the highest level of expertise in that branch which

he practices. Where a profession embraces a range of views as to what is an acceptable standardof conduct, the competence of the professional is to be judged by the lowest standard that would

be regarded as acceptable. The test is the standard of the ordinary skilled man exercising and

professing to have that special skill. A man need not possess the highest expert skill; it is wellestablished law that it is sufficient if he exercises the ordinary skill of an ordinary competent man

exercising that particular art.

Thus, a professional man should command the corpus of knowledge which forms part of the

professional equipment of the ordinary member of his profession. He should not lag behind otherordinary assiduous and intelligent members of his profession in knowledge of new advances,

discoveries and developments in his field. He should have such awareness as an ordinarily

competent practitioner would have of the deficiencies in his knowledge and the limitations on his

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skill. He should be alert to the hazards and risks in any professional task he undertakes to theextent that other ordinarily competent members of the profession would be alert. He must bring

to any professional task he undertakes no less expertise, skill and care than other ordinarily

competent members of his profession would bring, but need bring no more.

To establish liability on that basis it must be shown

(1) That there is a usual and normal practice;

(2) That the defendant has not adopted it; and

(3) That the course in fact adopted is one no professional man of ordinary skill would have taken

had he been acting with ordinary care.

A medical practitioner cannot be held liable simply because things went wrong from mischanceor misadventure or through an error of judgment in choosing one reasonable course of treatment

in preference of another. A medical practitioner would be liable only where his conduct fellbelow that of the standards of a reasonably competent practitioner in his field. At least threeweighty considerations can be pointed out which any forum trying the issue of medical

negligence in any jurisdiction must keep in mind. These are: (i) that legal and disciplinary

procedures should be properly founded on firm, moral and scientific grounds; (ii) that patients

will be better served if the real causes of harm are properly identified and appropriately actedupon; and (iii) that many incidents involve a contribution from more than one person, and the

tendency is to blame the last identifiable element in the chain of causation the person holding the

'smoking gun'. Thus, to establish a medical negligence, the abovementioned position must bekept in mind

Q 2.Explain contract of personal service

A 'contract for service' implies a contract whereby one party undertakes to render services (such

as professional or technical services) to another, in which the service provider is not subjected to

a detailed direction and control. The provider exercises professional or technical skill and useshis or her own knowledge and discretion. A 'contract of service' implies a relationship of master

and servant and involves an obligation to obey orders in the work to be performed and as to its

mode and manner of performance. The 'contract of service' is beyond the ambit of the Consumer

Protection Act, 1986, under Section 2(1)(o) of the Act. The Consumer Protection Act will notcome to the rescue of patients if the service is rendered free of charge, or if they have paid only a

nominal registration fee. However, if patients' charges are waived because of their incapacity to

pay, they are considered to be consumers and can sue under the Consumer Protection Act.

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Q3. Give the clarification/position given by the Supreme Court.

In Indian Medical Association v. V.P. Shantha and Ors the principal issue which arose for

decision before the Supreme Court was whether a medical practitioner renders 'service' and canbe proceeded against for 'deficiency in service' before a forum under the Consumer Protection

Act, 1986. The Court dealt with how a 'profession' differs from an 'occupation' especially in the

context of performance of duties and hence the occurrence of negligence. The Court noticed thatmedical professionals do not enjoy any immunity from being sued in contract or tort (i.e. in civil

jurisdiction) on the ground of negligence.

However, in the observation made in the context of determining professional liability as

distinguished from occupational liability, the Court has referred to authorities, in particular,Jackson & Powell and have so stated the principles, partly quoted from the authorities :-

"In the matter of professional liability professions differ from occupations for the reason that

professions operate in spheres where success cannot be achieved in every case and very often

success or failure depends upon factors beyond the professional man's control. In devising arational approach to professional liability which must provide proper protection to the consumer

while allowing for the factors mentioned above, the approach of the Courts is to require that

professional men should possess a certain minimum degree of competence and that they shouldexercise reasonable care in the discharge of their duties. In general, a professional man owes to

his client a duty in tort as well as in contract to exercise reasonable care in giving advice or

performing services.

The Court held that even though services rendered by medical practitioners are of a personalnature they cannot be treated as contracts of personal service (which are excluded from the

Consumer Protection Act). They are contracts for service, under which a doctor too can be sued

in Consumer Protection Courts

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Q4. Explain the Redressal machinery/Agencies under the CPA ACT 1986?

Redressal Machinery under the Act

The CPA provides for a 3 tier approach in resolving consumer disputes. The District Forum has

jurisdiction to entertain complaints where the value of goods / services complained against and

the compensation claimed is less than Rs. 5 Lakhs, the State Commission for claims exceeding

Rs. 5 Lakhs but not exceeding Rs. 20 Lakhs and the National Commission for claims exceeding

Rs. 20 Lakhs.

District Forum

Under the CPA, the State Government has to set up a district Forum in each district of the State.

The Government may establish more than one District Forum in a district if it deems fit. Each

District Forum consists of:-

(a) a person who is, or who has been, or is qualified to be, a District Judge who shall be its

President

(b) two other members who shall be persons of ability, integrity and standing and have adequateknowledge or experience of or have shown capacity in dealing with problems relating to

economics, law, commerce, accountancy, industry, public affairs or administration, one of whom

shall be a woman.

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Appointments to the State Commission shall be made by the State Government on the

recommendation of a Selection Committee consisting of the President of the State Committee,

the Secretary - Law Department of the State and the secretary in charge of Consumer Affairs

Every member of the District Forum holds office for 5 years or up to the age of 65 years,whichever is earlier and is not eligible for re-appointment. A member may resign by giving

notice in writing to the State Government whereupon the vacancy will be filled up by the State

Government.

The District Forum can entertain complaints where the value of goods or services and the

compensation, if any, claimed is less than rupees five Lakhs. However, in addition to jurisdiction

over consumer goods services valued up to Rs. 5 Lakhs, the District Forum also may pass orders

against traders indulging in unfair trade practices, sale of defective goods or render deficient

services provided the turnover of goods or value of services does not exceed rupees five Lakhs

A complaint shall be instituted in the District Forum within the local limits of whose

jurisdiction

(a) the opposite party or the defendant actually and voluntarily resides or carries on business or

has a branch office or personally works for gain at the time of institution of the complaint; or

(b) any one of the opposite parties (where there are more than one) actually and voluntarily

resides or carries on business or has a branch office or personally works for gain, at the time of

institution of the complaint provided that the other opposite party/parties acquiescence in such

institution or the permission of the Forum is obtained in respect of such opposite parties; or

(c) the cause of action arises, wholly or in part.

State Commission

The Act provides for the establishment of the State Consumer Disputes Redressal Commission

by the State Government in the State by notification. Each State Commission shall consist of:-

(a) a person who is or has been a judge of a High Court appointed by State Government (in

consultation with the Chief Justice of the High Court ) who shall be its President;

(b) two other members who shall be persons of ability, integrity, and standing and have adequate

knowledge or experience of, or have shown capacity in dealing with, problems relating to


must be a woman.

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Every appointment made under this hall is made by the State Government on the

recommendation of a Selection Committee consisting of the President of the State Commission,

Secretary -Law Department of the State and Secretary in charge of Consumer Affairs in the

State.

Every member of the District Forum holds office for 5 years or up to the age of 65 years,

whichever is earlier and is not eligible for re-appointment. A member may resign by giving

notice in writing to the State Government whereupon the vacancy will be filled up by the State

Government.

The State Commission can entertain complaints where the value of goods or services and the

compensation, if any claimed exceed Rs. 5 Lakhs but does not exceed Rs. 20 Lakhs;

The State Commission also has the jurisdiction to entertain appeal against the orders of any

District Forum within the State

The State Commission also has the power to call for the records and appropriate orders in any

consumer dispute which is pending before or has been decided by any District Forum within the

State if it appears that such District Forum has exercised any power not vested in it by law or has

failed to exercise a power rightfully vested in it by law or has acted illegally or with material

irregularity.

National Commission

The Central Government provides for the establishment of the National Consumer Disputes

Redressal Commission the National Commission shall consist of:-

(a) a person who is or has been a judge of the Supreme Court, to be appoint by the Central

Government (in consultation with the Chief Justice of India ) who be its President;

(b) four other members who shall be persons of ability, integrity and standing and have adequate

knowledge or experience of, or have shown capacity in dealing with, problems relating to

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shall be a woman

Appointments shall be by the Central Government on the recommendation of a Selection

Committee consisting of a Judge of the Supreme Court to be nominated by the Chief Justice of

India, the Secretary in the Department of Legal Affairs and the Secretary in charge of ConsumerAffairs in the Government of India. Every member of the National Commission shall hold office

for a term of five years or up to seventy years of age, whichever is earlier and shall not be

eligible for reappointment.

The National Commission shall have jurisdiction:-

a. to entertain complaints where the value of the goods or services and the compensation, if any,

claimed exceeds rupees twenty Lakhs:

b. to entertain appeals against the orders of any State Commission; and

c. to call for the records and pass appropriate orders in any consumer dispute which is pending

before, or has been decided by any State Commission where it appears to the National

Commission that such Commission has exercised a jurisdiction not vested in it by law, or has

failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally

or with material irregularity.

Complaints may be filed with the District Forum by:-

the consumer to whom such goods are sold or delivered or agreed to be sold or

delivered or such service provided or agreed to be provided

any recognized consumer association, whether the consumer to whom goods sold or

delivered or agreed to be sold or delivered or service provided or agreed to be

provided, is a member of such association or not

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one or more consumers, where there are numerous consumers having the same

interest with the permission of the District Forum, on behalf of or for the benefit of,

all consumers so interested

The Central or the State Government.

On receipt of a complaint, a copy of the complaint is to be referred to the opposite party,

directing him to give his version of the case within 30 days. This period may be extended by

another 15 days. If the opposite party admits the allegations contained in the complaint, the

complaint will be decided on the basis of materials on the record. Where the opposite party

denies or disputes the allegations or omits or fails to take any action to represent his case within

the time provided, the dispute will be settled in the following manner:-

I. In case of dispute relating to any goods: Where the complaint alleges a defect in the goods

which cannot be determined without proper analysis or test of the goods, a sample of the goods

shall be obtained from the complainant, sealed and authenticated in the manner prescribed for

referring to the appropriate laboratory for the purpose of any analysis or test whichever may be

necessary, so as to find out whether such goods suffer from any other defect. The appropriate

laboratory' would be required to report its finding to the referring authority, i.e. the District

Forum or the State Commission within a period of forty- five days from the receipt of the

reference or within such extended period as may be granted by these agencies.

Appropriate laboratory means a laboratory or organization:-

(i) Recognized by the Central Government;

(ii) Recognized by a State Government, subject to such guidelines as may be prescribed by the

Central Government

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(iii) Any such laboratory or organization established by or under any law for the time being in

force, which is maintained, financed or aided by the Central Government or a State Government

for carrying out analysis or test of any goods with a view to determining whether such goods

suffer from any defect.

The District Forum / State Commission may require the complainant to deposit with it such

amount as may be specified towards payment of fees to the appropriate laboratory for carrying

out the tests. On receipt of the report, a copy thereof is to be sent by District Forum/State

Commission to the opposite party along with its own remarks.

In case any of the parties disputes the correctness of the methods of analysis/test adopted by the

appropriate laboratory, the concerned party will be required to submit his objections in writing in

regard to the report. After giving both the parties a reasonable opportunity of being heard and to

present their objections, if any, the District Forum/Slate Commission shall pass appropriate

orders.

Q4 a).What is a trade dispute?

Section 2(h) of the Trade Unions Act 1926 defines Trade Union as a combination,

temporary or permanent, formed primarily for the purpose of regulating the relations

between workmen and employer, workmen and workmen, or employers and employers,or for imposing restrictive condition on the conduct of any trade or business, and includes

the federation of two or more trade unions.

A trade dispute is defined as a dispute between workers and employers which are

"connected with" one or more of the following: terms and conditions of employment,engagement or non-engagement or termination or suspension of employment of workers,

allocation of work, discipline, membership or non- membership of a union, union

facilities, and management-union procedures relating to the above.

This definition of trade dispute was narrowed by the Employment Act 1982. This Actrestricted the definition of a trade dispute to being a dispute between workers and their

own employers and it must now relate "wholly or mainly" to the above list. These

changes effectively excluded from the immunities disputes between workers and workers;action in support of other workers; and industrial action which might be "connected with"

one of the areas listed but which does not "relate wholly or mainly to it". For example, a

strike arising from a decision to privatize part of the public sector may be connected withfears of job loss but be held not to relate mainly to that but rather to be concerned to

affect government policy, and thus fall outside the definition of trade dispute.

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Q4 c).Who is a Consumer as per the CPA ACT 1986?

Introduction & Definitions

A consumer is a user of goods and services. Any person paying for goods and services

which he uses is entitled to expect that the goods and services are of a nature and qualitypromised to him by the seller.

A

consumer" means any person who(i) buys any goods for a consideration which has been paid or promised or

partly paid and partly promised, or under any system of deferred

payment and includes any user of such goods other than the personwho buys such goods for consideration paid or promised or partly paid

or partly promised, or under any system of deferred payment when

such use is made with the approval of such person, but does not include

a person who obtains such goods for resale or for any commercialpurpose; or

(ii) hires or avails of any services for a consideration which has been paid or promisedor partly paid and partly promised, or under any system of deferred payment and includes

any beneficiary of such services other than the person who 'hires or avails of the services

for consideration paid or promised, or partly paid and partly promised, or under anysystem of deferred payment, when such services are availed of with the approval of the

first mentioned person but does not include a person who avails of such services for any

commercial purposes;

P

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