Insights
The rapid growth of e-commerce has significantly transformed the manner in which businesses interact with consumers in India. Online marketplaces, direct-to-consumer platforms, mobile applications and digital payment systems have made products and services increasingly accessible while creating new opportunities for businesses to expand their customer base.
The Supreme Court has held that a port trust governed by the Major Port Trusts Act, 1963 can be treated as a custodian under the Customs Act, 1962 and can consequently be held liable to pay customs duty in respect of imported goods that are pilfered while in its custody.
Confidential information constitutes an important commercial asset for businesses. Trade secrets, customer information, pricing strategies, financial data, business plans, technical information, source code, proprietary processes and other commercially sensitive information can provide businesses with a significant competitive advantage. Unauthorised disclosure, use or dissemination of such information can therefore result in financial loss, competitive harm, disruption of business relationships and reputational damage.
In a significant development aimed at tackling fraudulent motor accident compensation claims, the Supreme Court has directed all States to constitute dedicated Special Investigation Teams (SITs) at the State level to investigate suspected insurance fraud. The directions came after the Court, while dealing with an individual motor accident compensation dispute, uncovered allegations of a potentially organised pattern in which the same vehicle was allegedly shown as being involved in multiple accidents to secure compensation from insurance companies. The Supreme Court observed that the matter had developed into an issue of potentially “enormous proportion” and required a coordinated response to identify, investigate and prevent fraudulent motor accident claims across the country.
As businesses grow, their legal, regulatory and operational responsibilities become increasingly complex. Expansion into new markets, increasing workforce strength, multiple business relationships, external investments and evolving regulatory requirements can expose companies to a wide range of compliance risks. For growing companies, compliance should not be treated merely as a checklist of statutory requirements. An effective compliance framework provides a structured approach for identifying legal obligations, assigning responsibilities, monitoring regulatory requirements and responding to potential risks.
A Power of Attorney (“POA”) is an important legal instrument that enables one person to authorise another person to act on their behalf. It is commonly used in India where an individual is unable or unwilling to personally undertake a transaction, manage property, operate certain affairs or represent themselves before an authority. The Powers-of-Attorney Act, 1882 recognises a power of attorney as an instrument empowering a specified person to act for and in the name of the person executing it. The Act also provides for the legal effect of acts performed by an authorised attorney within the scope of the authority granted.
In a significant ruling, the Supreme Court has held that a spouse who has voluntarily relinquished monetary and maintenance claims through a valid settlement agreement and has subsequently reaffirmed such waiver before the Family Court cannot later revive the same claims through proceedings under the Protection of Women from Domestic Violence Act, 2005 (“DV Act”). The Supreme Court, in Reji Baby v. Subi Mary, quashed the DV Act proceedings initiated by the wife after observing that the parties had already settled their financial claims as part of their divorce settlement. However, the Court carved out an important exception in favour of the daughter, holding that she was not bound by the settlement because she was not a party to it.
The Supreme Court has reaffirmed an important principle governing service jurisprudence and the interpretation of government orders: amendments or modifications to existing rules must be interpreted reasonably and should not be applied in a manner that causes unnecessary hardship to individuals who had no control over the subject matter. In R.J. Gajendra Kumar v. Government of Tamil Nadu & Anr., a Bench comprising Justice Manoj Misra and Justice Ujjal Bhuyan held that an employee who had acquired the requisite educational qualifications in accordance with the rules prevailing at the relevant time could not subsequently be denied promotion merely because later amendments or government clarifications altered the recognition of such qualifications.
