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Saturday 20 December 2014

THE COMPANIES (AMENDMENT) BILL, 2014

 The Companies (Amendment) Bill, 2014 has been passed by Lok Sabha. This bill brings out the amendments to clear the practical difficulties and to promote the Commerce & Industry. The key highlights of the Bill are as follows:

1.  It removes the minimum pai-up capital requirements for incorporating a private/public company;
2.  The requirement of having a Common Seal is being optional from mandatory, so the consequential requirements of use of the Common Seal have also been amended;

3. The Bill has prescribed the punishment/ consequences for acceptance of public deposit in non-compliance with the deposit provisions read with the rules under the Act. i.e.

(i)   The amount of deposit along with the interests due will have to be returned;
(ii)   In addition to the above, the Company shall be liable for a fine not less than Rs. 1 Crore but which may extend to Rs. 10 Crores;
(iii)  every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or
with both:

4.  The great relief provided is that no person shall be entitled to inspect or obtain copies of the resolutions filed under section 117 of the Act;

5.For declaring dividend previous year losses and depreciation shall first be set off against the profit of the current year;

6. Again the major practical difficulty has been removed in the benefit of the public that only the dividend un-paid or unclaimed for consecutive 7 years shall be transferred to IEPF and not the shares;

7.Enabling threshold limits for reporting of frauds by the auditors;

8.  Empowering Audit Committee to approve the related party transactions , as may be prescribed;

9.The exemptions for applicability of section 185 , earlier mentioned in rules, has been added to section itself;

10.  Special resolution being replaced by ordinary resolution for approval of related party transactions at places, also exempted related party transactions between holding and wholly owned subsidiary, where consolidated accounts shall be made and presented in general meeting for shareholders’ approval;

11. Bail restrictions to apply only for offence relating to fraud u/s 447;

12. winding up cases to be heard by 2-member Bench instead of a 3-member Bench;

13. Special Courts to try only offences carrying imprisonment of two years or more.

As the bill has been approved by Lok Sabha, it is hopeful to get the further approvals soon and became the amendment act. But the corporate world and the professionals are still waiting for the proposed privileges to private companies to get approved, the draft of which has already been circulated by the Ministry. Furthrer the said bill doesn’t refer to the biggest problem of approval of related party transactions in Closely held companies and the difficulties of loan to directors etc. i.e. companies having common directors.

~By Nikita Singh~

Wednesday 10 December 2014

498A: THE GLORIOUS CRIME???





photo by : http://www.freeclassifieds.in/classified-ad-41810.html

In recent past, I came out of theater with a thousand questions in my mind after watching “Daawat-E-Ishq”. Surely, all the girls are not “Gullu” who fall in love with the honesty of “Taru” and will have a happy ending by a proper married life. The movie not only raised the issue of 498A but with the same effort the evil of dowry was also raised. I give it a 10 on 10 to show both the sides of a coin to reflect how both the sex are getting dragged into the crime.

We all are more or less aware about the crime called “Dowry” and to protect the society from the same and similar crimes the law came in the form of “498A” of The Indian Penal Code. So, with the law came its use and misuse in the form of Needy and Greedy. Let’s read the most talked about or heard about section to be aware of the law:

Section 498A of The Indian Penal Code:

Husband or relative of husband of a woman subjecting her to cruelty.—Whoever, being the husband or the relative of the husband of a woman, subjects such woman to cruelty shall be pun­ished with imprisonment for a term which may extend to three years and shall also be liable to fine. Explanation.—For the purpose of this section, “cruelty” means:

(a) any wilful conduct which is of such a nature as is likely to drive the woman to commit suicide or to cause grave injury or danger to life, limb or health (whether mental or physical) of the woman; or

(b) harassment of the woman where such harassment is with a view to coercing her or any person related to her to meet any unlawful demand for any property or valuable security or is on account of failure by her or any person related to her to meet such demand.


Don’t raise your eyebrows on only plain reading of the section, the misuse is, the so called beloved newly married wife will go to the nearby police station lodging the complaint against the Husband, his mother, sister (mostly along with the husband the female members of the family and senior citizens are dragged, taking the advantage that no man will let the female members and senior citizens go to jail) on the basis of which the persons against whom the complaint has been lodged are arrested immediately, without sufficient investigation and put behind bars on a non-bailable term. Even if the complaint is fake, you shall be presumed guilty until you prove that you are innocent. Mostly in such false cases a handsome amount is asked to take the charges back and to go for a mutual divorce. Even the victims agrees to pay to save themselves from the harassment and damage to their social reputation, the main reason be mostly to protect the female members from the so called police –court-kachahari matters.

Now, read some of the related facts used in judgment given by Honorable Supreme Court of India in the matter of ARNESH KUMAR Vs STATE OF BIHAR & ANR.  dated 2nd July, 2014:

“There is phenomenal increase in matrimonial disputes in recent years. The institution of marriage is greatly revered in this country. Section 498-A of the IPC was introduced with avowed object to combat the menace of harassment to a woman at the hands of her husband and his relatives. The fact that Section 498-A is a cognizable and non-bailable offence has lent it a dubious place of pride amongst the provisions that are used as weapons rather than shield by disgruntled wives. The simplest way to harass is to get the husband and his relatives arrested under this provision. In a quite number of cases, bed-ridden grand-fathers and grand-mothers of the husbands, their sisters living abroad for decades are arrested. “Crime in India 2012 Statistics” published by National Crime Records Bureau, Ministry of Home Affairs shows arrest of 1,97,762 persons all over India during the year 2012 for offence under Section 498-A of the IPC, 9.4% more than the year 2011. Nearly a quarter of those arrested under this provision in 2012 were women i.e. 47,951 which depicts that mothers and sisters of the husbands were liberally included in their arrest net. Its share is 6% out of the total persons arrested under the crimes committed under Indian Penal Code. It accounts for 4.5% of total crimes committed under different sections of penal code, more than any other crimes excepting theft and hurt. The rate of charge-sheeting in cases under Section 498A, IPC is as high as 93.6%, while the conviction rate is only 15%, which is lowest across all heads. As many as 3,72,706 cases are pending trial of which on current estimate, nearly 3,17,000 are likely to result in acquittal.”

The difference between the dowry and the 498A is the demand of dowry is made before marriage in 90% of the cases and we have a choice in our hand to say a clear “NO” to it. Which means the society needs to say “NO” for the marriages where dowry is demanded, but what about 498A? It starts with a happy marriage, where the boy and his family go for an actual marriage but the girl and her family goes for a so called “Glorious Crime of Marriage” to earn some easy money.

Following are some of the steps which you can use to protect yourself from 498A if you are planning to get married and you are MALE:

1.      Do proper background checkup of the prospective bride.
2.      Check her and her families back ground, like if she has a sister, what is her marital status, if divorcee the reasons and all.
3.      Specially, if they have recently shifted to the home, you have been taken to meet them, check from where they belong to, where they were living earlier and the checks on native place.
4.      If the spending of the family is more than their income, stay away.
5.      If even before marriage, the girl have so many emotional things to tell you, like how much she loves you, how good a wife she will turn to be, how much respect she is going to give your parents, what a bad past she has but faced that bravely etc
6.      If you are going for a second marriage and the girl is also a divorcee, better to check what charges she has made up for his ex-husband and not only read the court orders.
7.      If the girl has a full-fledged relationship, might be some close relative too and a frequent visitor to her family or her town, give a deeper thought or investigate/enquire deep down to the root or time to probe further.
8.      If the girl has a close lawyer/matrimony consultant friend specially a male, who might help her in finding the prospective groom/divorce case, think twice.
9.      If you are going for a marriage from some matrimonial site, better to hire a detective agency side by side for the short listed girls, it may cost you a few thousand rupees but it may save a fortune too.
10.  Check the birth certificate/ marksheets etc. of the girl in original.

In short and simple, I will sum-up 498A as a “Sword with double sharp edge”/ Do-Dhari-Talwar. It is very useful for the one who are being victims of the crime of “Dowry and harassment” but the real question is in how many genuine cases the wife was able to prove the misdeed, as of the facts the one who shall be sheltered under the law, has mostly been deprived by the delayed justice, as well said justice delayed is justice denied. On the other hand the greedy, who is making money by misuse of it, by charging the groom and his family under the fake cases are not only making some easy money, but also the person and his family charged by the fake case are drained mentally, physically and financially. Ironical fact of this legal provision is the sisters/mothers and other female relatives of the groom are treated as criminals but the wife and her family even when the fake charges are proved get released easily.

The law shall provide equality for all, else soon the proverb that the Women is weaker section of society will turn as Men is weaker section of society. I personally plea for such a law, which protect the rights, provide equality and also include strict provisions for those who misuse the law and play with it for their personal benefits.


~By Nikita Singh~