Historical development of regulations related to legal profession

Vande Matram! Here you are to know about the historical developments in the formation of regulations related to the legal profession in India.

Introduction:

The legal profession is recognised as noblest profession and is of high calling. Neither is the legal profession a trade or a business; nor is an attorney a trader or a businessman. A lawyer has got to remember that he is expected to be a gentleman in the true sense of the term in every little or big act in his profession. No Government can function without laws and without the services of the legal profession. The legal profession in India, which exist today is the outcome of the legal system introduced by the British during the eighteenth century.

Establishment of Courts in India:

The rules of practice were formulated in India for the first time in the year 1726 when the Court of Record in the name of Mayor's Courts and Courts of Record in the name of Court of Oyer and Terminer and Gaol Delivery were established in the three Presidency towns of Calcutta, Madras and Bombay on September 24, 1726 by a Charter granted by King George I. However, no provision was made as to who could appear, argue and plead before such courts.

In 1774 the Supreme Court was established at Fort William in Bengal through a Charter issued by King George II. Clause II of the Charter authorised the Court to prescribe and regulate conditions for enrolment of attorney for appearance before the courts of law.

The Indian lawyers had no right of appearance in the Supreme Court of Judicature. It was only the English and Irish barristers and members of the Faculty of Advocates in Scotland who were allowed to practice in the Supreme Court. Thus, the Supreme Court was an exclusive preserve for members of the British Legal Profession.

The Supreme Courts at Bombay and Madras were established with the same jurisdiction and power as the Supreme Court at Calcutta had, and the same powers for the enrolment of advocates and attorneys-at-law were conferred on them with the exclusion of Indians to appear before such Courts.

Outside the metropolitan towns of Calcutta, Madras and Bombay local courts for the administration of civil and criminal justice were established in the mofussil areas. These courts were termed as Sadar-e-diwani adalat (District Civil Court) and Sadar-e-nizamat adalat (District Criminal Courts). The persons engaged in assisting the litigants and courts were called vakils.

The Bengal Regulation of 1793

The Bengal Regulation of 1793 created for the first time a regular legal profession and provided for the appointment of Hindus and Muslims as vakils or native pleaders in the Courts of civil judicature in the provinces of Bengal, Bihar and Orissa and gave to the Sadar-e-Diwani adalats, powers to enroll pleaders for all Company's Courts, to fix the retaining fee for pleaders, and to fix a scale based on a percentage of the value of the property.

The Bengal Regulation XXVII of 1814

The Bengal Regulation XXVII of 1814 empowered the pleaders to act as arbitrators and give legal opinions on payment of fees.

Legal Practitioners Act 1846

The Legal Practitioners Act 1846 made the following major changes in the then existing Regulations:

The office of pleaders was thrown open to all persons of whatever nationality or religion they were.

The Sadar Court had to satisfy itself about their character and qualification for the office.

Attorneys and barristers of any of Her-Majesty's Courts in India were eligible to plead in any of the Sadar Courts.

The pleaders were allowed to enter into agreements with their clients for their fees for professional services.

The barristers and attorneys of the Supreme Courts were empowered to practice in the Company's Court.

But the discrimination that the Indian legal practitioners could not appear before the Supreme Courts still persisted.

The Indian High Courts Act 1862 

In 1862 the Indian High Courts Act 1862 was passed. The Act is the beginning of reorganisation of judiciary in the country. The Act provided for the setting up of High Courts in place of Supreme Courts in the Presidency towns of Calcutta, Bombay and Madras and Sadar-e-Diwani adalat and Sadar-eNizamat adalats were established in other parts of the country.

The Act provided for making rules and regulation for enrolment of vakils, pleaders and attorneys. The persons so admitted were entitled to represent parties and appear on behalf of litigants before the courts and were subjected to the rules made by the High Court or direction issued by it from time to time.

Legal Practitioners Act 1879

Legal Practitioners Act 1879 consolidated the law relating to the legal practitioners. Under this Act all the different grades of the legal practitioners (except the revenue agents) were brought under the disciplinary jurisdiction of the High Court.

An advocate or vakil on the roll of any higher court, or a pleader of the Chief Court of the Punjab was entitled to practice in all the courts subordinate to the court on the roll of which he was entered and in the courts of all revenue officers, situated within the local limits of the appellate jurisdiction of such court subject to the rules in force.

As per this law the three high courts were having different criteria and procedure for enrolling a vakil, pleader or mukhtar. But no female were allowed to enroll as vakil, pleader or mukhtar under this Act.

Legal Practitioners' (Women) Act 1923

To remove the disqualification for enrolment as pleaders on the ground of sex the Legal Practitioners' (Women) Act 1923, was passed. The Act provided that "no women shall, by reason only of her sex, be disqualified from being admitted or enrolled as a legal practitioner." Thus since 1923 women have been getting enrolled as legal practitioners in all the courts and the number has been increasing year after year.

The Legal Practitioners' (Fees) Act 1926

The Legal Practitioners' (Fees) Act 1926, defined the right of legal practitioners to sue for their fees and their liabilities to be sued in respect of negligence and the discharge of their professional duties.

The Chamier Committee and The Indian Bar Council Act 1926

As stated earlier, there existed a sharp distinction between barristers and solicitors on the one hand, and between vakils and pleaders on the other. Also British barristers and solicitors enjoyed a number of special privileges which led to great dissatisfaction and resentment among the Indian legal practitioners. To resolve this Indian Bar Committee under the chairmanship of Sir Edward Chamier was constitued by Government of India. 

The Committee was asked to consider these points:  

(i) the proposals made from time to time for constituting an Indian Bar (whether an All India or Provincial Bar) with particular reference to the constitution, recognition, functions and authority of Bar Councils and their positions vis-a-vis High Courts; and

(ii) the extent to which it might be possible to remove the existing disparity between barristers, solicitors, vakils and pleaders.

To implement some of the major recommendations of the Chamier Committee and to consolidate and amend the law relating to the legal practitioners the Bar Council Act 1926 was passed. This Act provided for the constitution of separate Bar Councils as a corporate body for every High Court.

Disciplinary Proceedings:

The High Court was empowered to reprimand and suspend or remove from practice any advocate of the High Court for professional or other misconduct after giving a reasonable opportunity of hearing, against the action. Complaints against advocates for professional or other misconduct had to be made to the High Court. On receipt of a complaint, the High Court had to refer the case for enquiry to the Bar Council, or after consultation with the Bar Council, to a District Judge. The High Court had power to make such a reference suo motu, even if there was no complaint. Cases referred to a Bar Council had to be enquired into by a committee of the Bar Council (called tribunal) comprising of not less than three and not more than five members appointed by the Chief Justice of the High Court.

Justice S R Das Committee:

With the coming into force of the Constitution of India in 1950 and the establishment of a Supreme Court for India the need for an all India Bar was stressed by the legal fraternity. The Union Government accordingly set up a committee known as the All India Bar Committee under the chairmanship of Justice S. R. Das of the Supreme Court of India. The Committee considered at length questions of the constitution and powers of the State Bar Councils and the All India Bar Council and made detailed recommendations in 1953.

The Committee was of the view that the Bar should be made autonomous in matters relating to the profession in all respects. The Committee's recommendations got strength by the endorsement and approval of its recommendation by the Law Commission of India in 1953, which was presided over by the eminent jurist M. C. Setalvad, the then Attorney General of India.

The Law Commission of India in its fourteenth report on the Reform of Judicial Administration approved of the recommendations for the creation of a unified All India Bar as well as the establishment, composition and function of the State and All India Bar Councils.

Advocates' Act 1961:

As a result of the recommendations the Legal Practitioners Bill 1959 was introduced in the Lok Sabha on November 19, 1959 with a view to implement the recommendations of the All India Bar Committee and of the Law Commission's 14^th Report. When the Bill came to be passed, its name was changed from the Legal Practitioners Bill to the Advocates' Act and was passed in the year 1961 by the Parliament. It received the assent of the President of India on May 19, 1961.

The Act envisages for a single class of legal practitioners, namely, advocates, and has abolished the various categories of legal practitioners, such as pleaders, revenue agents, mukhtars, vakils, barristers and solicitors.

The Act provides for framing of rules prescribing the standards of professional conduct and etiquette to be followed by a practicing advocate. But the Act does not define as to who is a practicing advocate. A practicing advocate may, however be defined as an advocate who is entitled to practice and who holds himself out as ready and willing to do so, and not being otherwise employed in any other whole time occupation.

The Act also gives power to the Central Bar Council of India to recognize the degree in law for admission of advocates and prescribe standards of legal education. The Act further lays down exhaustively the provision relating to the constitution, powers and functions of the Bar Council of India as well as the State Bar Councils.

And thus the rules and regulations regarding legal profession are now established across India by enactment of Advocate' Act 1961.

Reference:

1) Professional Responsibility of Lawyers

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The legal profession and its responsibilities

Vande Matram my law friends. You are here to know about the legal profession and its responsibilities.

 

Introduction:

The legal profession is one of the oldest professions known to mankind and is having huge opportunities in today's modern world which is advancing and changing day by day. It is also one of the most important professions for the administration of justice and to maintain a balance between the legislature and the common people. It has been emphasized many times that, “A well-organized system of judicial administration proposes a properly equipped and proficient Bar.” Legal profession is always affected by the social, economical and political changes across the world. In India, the unitary character of India under its Constitution has influenced the country to have a unified bar. The pre-constitutional legal framework had to undergo a transformation for this purpose under the guidance of the Justice S R Das which led to the enactment of Advocates Act, 1961. 

A Lawyer and legal profession

Neither is the legal profession a trade or a business; nor is an attorney a trader or a businessman. A lawyer has got to remember that he is expected to be a gentleman in the true sense of the term in every little or big act in his profession. 

A lawyer, as part of a learned profession, has many obligations and duties of the honorable nature. It was not expected of a lawyer to bargain for any fee or to speculate on the result of litigation so as to determine his fees.

The responsibilities of a lawyer or advocate:

The Bar Council of India have made rules under section 49(1)(c) of the Advocates' Act 1961 prescribing the standards of professional conduct and etiquette to be observed by advocates. The rules so framed can be classified into five categories, viz., (1) duty to the court, (2) duty to the client, (3) duty to the opponent, (4) duty to colleagues and (5) restriction on other employment.

(1) First of all an advocate is having duty to the court. So an advocate shall, during the presentation of his case and while otherwise acting before a court, conduct himself with dignity and self-respect. He shall not be servile and whenever there is proper ground for serious complaint against a judicial officer, it shall be his right and duty to submit his grievance to proper authorities.

(2) An advocate is having duty to the client. The main responsibility in this category is An advocate shall not ordinarily withdraw from engagements, once accepted, without sufficient cause and unless reasonable and sufficient notice is given to the client. Upon his withdrawal from a case, he shall refund such part of the fee as has not been earned.

(3) As advocates are in the job of resolving disputes there are opponents and an advocate is having certain duty to the opponent. An advocate shall not in any way communicate or negotiate upon the subject matter of controversy with any party represented by an advocate except through that advocate. He shall do his best to carry out all legitimate promises made to the opposite party even though not reduced to writing or enforceable under the rules of the Court.

(4) As there are thousands of advocates practicing across the country there are some duty to the colleague so that everyone will get fair chance of practicing the profession. An advocate shall not solicit work or advertise, either directly or indirectly, whether by circulars, advertisements, touts, personal communications, interviews not warranted by personal relations, furnishing or inspiring newspaper comments or procuring his photograph to be published in connection with cases in which he has been engaged or concerned.

(5) An advocate is practicing the profession for full time. Hence there are certain restrictions on his employment in other businesses. An advocate shall not personally engage in any business, but he may be a sleeping partner in a firm doing business provided that, in the opinion of the appropriate State Bar Council, the nature of the business is not inconsistent with the dignity of profession.

 

Importance of legal profession:

The disputes can arise between any individuals, between any governments, between government and any person, and there are many more combinations of such disputes arising in society. And hence the legal profession is important because a) it helps in solving disputes between various entities, b) legal professional advise their clients the right legal remedy, c) legal professionals help in achieving legal remedy in the courts of law, d) the lawyers help the common people in upholding their basic rights, e) they help in preserving the Grundnorm i.e. constitution of our nation, f) They also help in maintaining a balance between the legislature, executive and judiciary.

Legal profession and Bar Councils

In India, the legal profession is regulated by Advocates Act, 1961. 

As per the Act, the State Bar Councils are constituted in each state of India (Section 3). The Bar Council of India is the All India Bar and is apex body to the state bar councils (Section 4). 

Members of Bar Council of India are - the Attorney General of India ex officio, the Solicitor General of India ex officio and one member elected from each of the State Bar Councils (Section 4).

The Bar Council of India lays down rules pertaining to standards of conduct and professional etiquette to be maintained by lawyers in court, with clients and opponents, and towards fellow advocates. The Bar Council of India is responsible for the promotion of legal education and lays down the standards of legal education in consultation with universities. Also it is responsibility of state bar councils to enroll the advocates on record.

Apart from the Bar Council of India and the State Bar Councils, almost every court in the country has Bar Associations of advocates that operate at a less formal level. These bar associations look after the welfare of advocates, represent their interests, and conduct numerous social and cultural activities of the bar, or even different sections of the bar.

Ethics and Bar Council of India:

The Bar Council of India still maintains strict standards with respect to the legal community. e.g. Rule 36 of the Bar Council of India Rules whereby the Indian Law firms/ lawyers are not allowed to advertise their practise in the market.  But it is evident that, Bar Council is also making rules as per the needs of globalisation and advancement in technology, from the amendment Rule 36 and add a proviso allowing advocates to maintain websites about themselves or their law firms in order to disseminate information, in order to enable people to make informed choices. The Bar Council of India is progressively reviewing the ethical standards with the demands of our time, in order to strike the best balance.

 

Conclusion

Among all the professions of the world, the Legal Profession is called the Noble Profession. This is because it often acts for noble causes for the common people and very basic foundation of this profession is noble. The Legal Practitioners act as the keepers and protectors of the law. Hence, they play a very important role in the society. Bar Councils are formed in each state of India with Bar Council of India as apex body. The role of Bar councils is to regulate the professional conduct in the legal profession in all aspects and to enroll the new advocates on record of the bar councils. BCI is having strict standards of the practice but it is also reviewing the impact of globalisation on the legal profession and making amendments in its rules as required.

References:

1) Importance of Legal Profession in India

2) Overview of the Legal Profession in India

3) Professional Responsibility of Lawyers

Negotiable Instruments Act, 1881 - one liners

Vandemataram! Here is the collection of one-liners related to Negotiable Instruments Act, 1881

* It is colonial law still in force.

* Long title: An Act to define and Law relating to negotiable instruments which are Promissory Notes, Bills of Exchange and cheques

* Imperial Legislative Council (India) enacted this act.

* Enacted: 9 December 1881

* Commenced: 1 March 1882

* The Act was originally drafted in 1866 by the 3rd Indian Law Commission and introduced in December 1867 in the Council and it was referred to a Select Committee.

* The most important class of Credit Instruments that evolved in India were termed Hundi. 

* In a sense, Hundis represent the oldest surviving form of credit instrument.

* The Hundis were used in trade and credit transactions; also they were used as remittance instruments for the purpose of transfer of funds from one place to another. 

* In Modern era Hundi served as traveller's cheque.

* Section 1 deals with short title of the act, it's local extent, Commencement of the act and most importantly Saving of usages relating to hundis.

* 

History of Banking in India

 Jay Shree Ram! Here are the one liners on History of Banking in India. Please note them down for your further reference.

* Banking on modern lines began in this country with the foundation of the Agency Houses of Calcutta and Bombay in the eighteenth and early nineteenth centuries.

* The Agency Houses were mainly trading concerns interested in tea and indigo.

*  The General Bank of India had a strictly small number of shareholders who limited their liability to certain figures and it was the first limited liability bank of India.

* Hastings made a proposal to have a Government note-issue.

* General Bank of India was dissolved in 1793.

* Bank of Calcutta founded by Palmer & Co. in 1806.

* The smallest denomination of notes was Rs. 4 while the Bank of Bengal issued notes ranging between Rs. 10 and Rs. 20,000.

* The Bank of Hindusthan, established as early as 1770 by the Agency House of Alexander & Company.

* 

Financial System = One liners

Jay Shree Ram! Here I am sharing one liners on Financial system. Please note them down.

* Van Horne defined the financial system as the purpose of financial markets to allocate savings efficiently in an economy to ultimate users either for investment in real assets or for consumption.

* Christy has opined that the objective of the financial system is to "supply funds to various sectors and activities of the economy in ways that promote the fullest possible utilization of resources without the destabilizing consequence of price level changes or unnecessary interference with individual desires."

* According to Robinson, the primary function of the system is "to provide a link between savings and investment for the creation of new wealth and to permit portfolio adjustment in the composition of the existing wealth."

* It may be said that the primary function of the financial system is the mobilisation of savings, their distribution for industrial investment and stimulating capital formation to accelerate the process of economic growth.

* Goldsmith said that " A case for the hypothesis that the separation of the functions of savings and investment which is made possible by the introduction of financial instruments as well as enlargement of the range of financial assets which follows from the creation of financial institutions increase the efficiency of investments and raise the ratio of capital formation to national production and financial activities and through these two channels increase the rate of growth"

* The financial system has been identified as the most catalyzing agent for growth of the economy, making it one of the key inputs of development.

* The Indian financial system is broadly classified into two broad groups: (i) Organised sector and (ii) unorganised sector.

* Financial institutions sell their services to households, businesses and government. They are the users of the financial services.

* With around two-third share in the total assets in the financial system, banks play an important role.

* The organised financial system comprises the following sub-systems: 1. Banking system 2. Cooperative system 3. Development Banking system (i) Public sector (ii) Private sector 4.Money markets and 5. Financial companies/institutions.

* Unorganised Financial System is not directly amenable to control by the Reserve Bank of India (RBI).

* There are a lots of financial companies, investment companies, chit funds etc., which are also not regulated by the RBI or the government in a systematic manner.

* Hundi were used to finance local trade as well as trade between port towns and inland centers of production.

* Indigenous bankers combined banking with other activities, such as the goldsmiths, merchants, and shippers of eighteenth and nineteenth century Europe had done.

* Indigenous bankers often endorsed hundis issued by traders and sometimes provided personal guarantees for loans from commercial banks.

* Indigenous banking was based on an elaborate and extensive network of personal relations that overcame the problems of dealing with a large number of customers.

* Rural financial system has been evolved over a period of time from the year 1904, when the first Primary Agricultural Credit Society was organized, by accepting and implementing important recommendations of expert committees appointed by the Government of India from time to time.

* The primary cooperative credit society is an association of borrowers and non-borrowers residing in a particular locality.

* The funds of the primary cooperative credit society are derived from the share capital and deposits of members and loans from Central Co-operative banks.

* Money market is concerned with the supply and the demand for investible funds.

* Money market provides a mechanism by which short-term funds are lent out and borrowed; it is through this market that a large part of the financial transactions of a country are cleared.

* The money market is generally expected to perform following three broad functions: (i) To provide an equilibrating mechanism to even out demand for and supply of short term funds. (ii) To provide a focal point for Central bank intervention for influencing liquidity and general level of interest rates in the economy. (iii) To provide reasonable access to providers and users of short-term funds to fulfill their borrowing and investment requirements at an efficient market clearing price.

* In the area of capital market, the Securities and Exchange Board of India (SEBI) was set up in 1992 to protect the interests of investors in securities and to promote development and regulation of the securities market.

* SEBI has issued guidelines for primary markets, stipulating access to capital market to improve the quality of public issues, allotment of shares, private placement, book building, takeover of companies and venture capital.

* In the area of secondary markets, measures to control volatility and transparency in dealings by modifying the badla system, laying down insider regulations to protect integrity of markets, uniform settlement, introduction of screen-based online trading, dematerialising shares by setting up depositories and trading in derivative securities (stock index futures).

* 

Reserve Bank of India - One liners

 Jay Shree Ram! Welcome to one liners related to Reserve Bank of India.

1) Royal Commission on Indian Currency and Finance – also known as the Hilton-Young Commission – recommended the creation of a central bank for India to separate the control of currency and credit from the Government and to augment banking facilities throughout the country.

2) The Reserve Bank of India Act of 1934 established the Reserve Bank and set in motion a series of actions culminating in the start of operations in 1935.

3) In 1933, The White Paper on Indian Constitutional Reforms recommended the creation of a Reserve Bank.

4) The Reserve Bank commenced operations as India’s central bank on April 1, 1935.

5) RBI was operating as a private shareholders’ bank during its initial working years.

6) RBI was having  paid up capital of rupees five crore in 1935.

7) In 1942, The Reserve Bank ceased to be the currency issuing authority of Burma (now Myanmar).

8) In 1947, The Reserve Bank stopped acting as banker to the Government of Burma.

9) In 1948, The Reserve Bank stopped rendering central banking services to Pakistan.

10) In 1949, The Government of India nationalised the Reserve Bank under the Reserve Bank (Transfer of Public Ownership) Act, 1948.

11) The functions of the Reserve Bank today can be categorised as a) Monetary policy b) Regulation and supervision of the banking and non-banking financial institutions, including credit information companies c) Regulation of money, forex and government securities markets as also certain financial derivatives d) Debt and cash management for Central and State Governments e) Management of foreign exchange reserves f) Foreign exchange management—current and capital account management g) Banker to banks h) Banker to the Central and State Governments i) Oversight of the payment and settlement systems j) Currency management k) Developmental role l) Research and statistics

12) As per preamble of RBI Act, 1934 the objectives of RBI are a) to regulate the issue of Bank notes, b) to keep the reserves for securing monetary stability in country, c) to operate the currency and credit system in country.

13) The Reserve Bank designs and implements the regulatory policy framework for banking and non-banking financial institutions with the aim of providing people access to the banking system, protecting depositors’ interest, and maintaining the overall health of the financial system.

14) Before 1947, the Reserve Bank carried out the regulation of foreign exchange transactions under the Defence of India Rules, 1939

15) After 1947, the Reserve Bank carried out the regulation of foreign exchange transactions under the Foreign Exchange Regulation Act of 1947.

16) The Central Board of Directors is at the top of the Reserve Bank’s organisational structure.

17) The Central Board of Directors of RBI is appointed by the Government under the provisions of the Reserve Bank of India Act, 1934.

18) The Governor is the Reserve Bank’s chief executive.

19) The Central Government nominates fourteen Directors on the Central Board, including one Director each from the four Local Boards. The other ten Directors represent different sectors of the economy, such as, agriculture, industry, trade, and professions.

20) All these appointments of directors of RBI are made for a period of four years.

21) The Government also nominates one Government official as a Director representing the Government, who is usually the Finance Secretary to the Government of India. There is no specific period of appointment of this director post.

22)  Reserve Bank Governor and a maximum of four Deputy Governors are also ex officio Directors on the Central Board of RBI.

23) The Reserve Bank also has four Local Boards, constituted by the Central Government under the RBI Act, one each for the Western, Eastern, Northern and Southern areas of the country, which are located in Mumbai, Kolkata, New Delhi and Chennai.

24)  Each of these Boards has five members appointed by the Central Government for a term of four years.

25) Mumbai has the Central office of Head office of RBI.

26) The Board for Financial Supervision (BFS) was constituted in November 1994 under Section 58 of the RBI Act.

27) Board for Financial Supervision (BFS) undertakes integrated supervision of banks, financial institutions and non-banking financial companies (including Primary Dealers).

28) The Reserve Bank Governor is the Chairman of the BFS.

29) One Deputy Governor, usually the Deputy Governor in-charge of banking regulation and supervision, is nominated as the Vice-Chairperson of BFS

30) The BFS has constituted an Audit Sub-Committee under the BFS Regulations to assist the Board in improving the quality of the statutory audit and internal audit in banks and financial institutions.

31) The Board for Regulation and Supervision of Payment and Settlement Systems provides an oversight and direction for policy initiatives on payment and settlement systems within the country.

32) The BPSS lays down policies for regulation and supervision of payment and settlement systems, sets standards for existing and future systems, authorises such systems, and lays down criteria for their membership.

33) The Deposit Insurance Corporation and Credit Guarantee Corporation of India were merged and the present Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978.

34) Deposit Insurance and Credit Guarantee Corporation (DICGC), established under the DICGC Act 1961, is one of the wholly owned subsidiaries of the Reserve Bank of India.

35) The DICGC insures all deposits (such as savings, fixed, current, and recurring deposits) with eligible banks except the following: (i) Deposits of foreign Governments; (ii) Deposits of Central/State Governments; (iii) Inter-bank deposits; (iv) Deposits of the State Land Development Banks with the State cooperative bank; (v) Any amount due on account of any deposit received outside India; (vi) Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India.

36) Every eligible bank depositor is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him.

37) National Housing Bank was set up on July 9, 1988 under the National Housing Bank Act, 1987.

38) National Housing Bank is  wholly-owned subsidiary of the Reserve Bank to act as an apex level institution for housing.

39)  NHB has been established to achieve, among other things, the following objectives: * To promote a sound, healthy, viable and cost effective housing finance system to all segments of the population and to integrate the housing finance system with the overall financial system. * To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. * To augment resources for the sector and channelise them for housing. * To make housing credit more affordable. * To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act. * To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country. * To encourage public agencies to emerge as facilitators and suppliers of serviced land for housing.

40) The Reserve Bank of India as the central bank of the country, is at the head of the group of banks.

41) 

Judiciary in Bharat

Jay Shree Ram!

A notable feature of the Constitution is that it accords a dignified and crucial position to the judiciary. Well-ordered and well-regulated judicial machinery had been introduced in the country with the Supreme Court at the apex. The jurisdiction of the Supreme Court is very broadly worded. It is a general court of appeal from the High Court, is the ultimate arbiter in all-constitutional matters and enjoys an advisory jurisdiction. It can hear appears from any court or tribunal in the country and can issue writ for enforcing the Fundamental Rights. There is thus a good deal of truth in the assertion that the highest court in any other federation. There is a High Court in each State.

The High Courts have wide jurisdiction and have been constituted into important instruments of justice. The most signification aspect of their jurisdiction is the power to issue writs.

The judiciary in India has been assigned role to play. It has to dispense justice not only between one person and another, but also between the state and the citizens. It interprets the constitution and acts as its protector and guardian by keeping all authorities legislative, executive, administrative, judicial and quasi-judicial-within bounds. The judiciary is entitled to scrutinize any governmental action in order to assess whether or to it conforms to the constitution and the valid laws made there under. The judiciary has powers to protect people’s Fundamental Rights from any unreasonable encroachment by any organ of the state. The judiciary supervises the administrative process in the country, and acts as the balance wheel of federalism by settling disputes between the center and the states or among the state inter se.

India’s Constitution is of the federal type. It established a dual polity, a two tier governmental system with the Central Government at one level and the state Governments at the other. The Constitution marks off the sphere of action of each level of government by devising an elaborate scheme of distribution of legislative, administrative, and financial powers between the Centre and the States. A government is entitled to act within its assigned field and cannot go out of it, or encroach on the field assigned to the other government. Thus the Constitution of India is having significant effect on laws including administrative law. It is under this fundamental laws are made and executed, all governmental authorities and the validity of their functioning adjudged. No legislature can make a law and no governmental agency can act, contrary to the constitution no act, executive, legislative, judicial or quasi-judicial, of any administrative agency can stand if contrary to the constitution. The constitution thus conditions the whole government process in the country. The judiciary is obligated to see any governmental organ does not violate the provisions of the constitution. This function of the judiciary entitles it to be called as guardian of the constitution.

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References: -

Training package on administrative law

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