Comprehension
The philosophy of Corporate Social Responsibility (“CSR”) has had a long-standing history in India. India is one of the first countries in the world to create a legal framework on CSR and statutorily mandate companies to report on the same. It emanates from the Gandhian principles of trusteeship and giving back to the society. The intent of the law is to mainstream the practice of business involvement in CSR and make it socially, economically and environmentally responsible.
The Companies Act, 2013 (the “Act”) mandates companies meeting a certain minimum threshold in terms of turnover/net worth/net profit to undertake CSR activities as per Schedule VII of the Act. Schedule VII specifies the areas or subjects to be undertaken by the company as CSR activities. These areas broadly align with national priorities and relate to sustainable and inclusive development. The Act does not recognise any expenditure on areas/activities outside of Schedule VII as CSR expenditure.
Companies (CSR Policy) Rules, 2014 prescribe the operational framework and manner in which companies should comply with CSR provisions under the Act. The mode of implementation of CSR activities, content of CSR policy, impact assessment, reporting requirements and disclosure for CSR are covered under these Rules. The CSR architecture is disclosure-based and CSR-mandated companies are required to file details of CSR activities annually in the MCA-21 registry in e-form AOC-4.
A High-Level Committee set up in 2018 to review the CSR framework recommended that Schedule VII of the Act be mapped with Sustainable Development Goals (“SDGs”). The Committee noted that companies need to balance CSR spending between local area/areas around where it operates, and less developed regions such as aspirational districts.
The Government of India launched the “Transformation of Aspirational Districts” Programme (ADP) in January 2018 with the aim to improve the socio-economic status of the least developed regions across India. The programme is based on five socio-economic themes such as: Health & Nutrition, Education, Agriculture and Water Resources, Financial Inclusion and Skill Development, and improvement of basic infrastructure. As on date, 112 aspirational districts are recognised by the Government wherein Jharkhand has the highest number of aspirational districts, i.e., 19, followed by Bihar (13), Odisha and Chhattisgarh (10 each). The Government has been taking various initiatives to encourage CSR in aspirational districts and to remove regional disparities.
[Source: Ministry of Corporate Affairs, Government of India “Compendium on Corporate Social Responsibility in India” (2021)]
The Companies Act, 2013 (the “Act”) mandates companies meeting a certain minimum threshold in terms of turnover/net worth/net profit to undertake CSR activities as per Schedule VII of the Act. Schedule VII specifies the areas or subjects to be undertaken by the company as CSR activities. These areas broadly align with national priorities and relate to sustainable and inclusive development. The Act does not recognise any expenditure on areas/activities outside of Schedule VII as CSR expenditure.
Companies (CSR Policy) Rules, 2014 prescribe the operational framework and manner in which companies should comply with CSR provisions under the Act. The mode of implementation of CSR activities, content of CSR policy, impact assessment, reporting requirements and disclosure for CSR are covered under these Rules. The CSR architecture is disclosure-based and CSR-mandated companies are required to file details of CSR activities annually in the MCA-21 registry in e-form AOC-4.
A High-Level Committee set up in 2018 to review the CSR framework recommended that Schedule VII of the Act be mapped with Sustainable Development Goals (“SDGs”). The Committee noted that companies need to balance CSR spending between local area/areas around where it operates, and less developed regions such as aspirational districts.
The Government of India launched the “Transformation of Aspirational Districts” Programme (ADP) in January 2018 with the aim to improve the socio-economic status of the least developed regions across India. The programme is based on five socio-economic themes such as: Health & Nutrition, Education, Agriculture and Water Resources, Financial Inclusion and Skill Development, and improvement of basic infrastructure. As on date, 112 aspirational districts are recognised by the Government wherein Jharkhand has the highest number of aspirational districts, i.e., 19, followed by Bihar (13), Odisha and Chhattisgarh (10 each). The Government has been taking various initiatives to encourage CSR in aspirational districts and to remove regional disparities.
[Source: Ministry of Corporate Affairs, Government of India “Compendium on Corporate Social Responsibility in India” (2021)]
Question: 1
Which of the following criteria should a company satisfy during the immediately preceding financial year to qualify for CSR under the Companies Act, 2013?
Which of the following criteria should a company satisfy during the immediately preceding financial year to qualify for CSR under the Companies Act, 2013?
Show Hint
CSR applicability is triggered if any one of the three thresholds in Section 135(1) is met — not all three together.
Updated On: Aug 17, 2025
- Net profit of ₹ 5 crores or more
- Net profit of ₹ 1,000 crores or more
- Turnover of ₹ 5,000 crores or more
- Net worth of ₹ 5,000 crores or more
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Understanding the CSR applicability thresholds.
Section 135(1) of the Companies Act, 2013 mandates CSR if, in the immediately preceding financial year, a company meets any one of the following: Net worth of ₹ 500 crore or more, OR
Turnover of ₹ 1,000 crore or more, OR
Net profit of ₹ 5 crore or more.
Step 2: Eliminating incorrect options.
(B), (C), and (D) give incorrect or inflated thresholds not present in law. \[ \boxed{\text{A}} \]
Section 135(1) of the Companies Act, 2013 mandates CSR if, in the immediately preceding financial year, a company meets any one of the following: Net worth of ₹ 500 crore or more, OR
Turnover of ₹ 1,000 crore or more, OR
Net profit of ₹ 5 crore or more.
Step 2: Eliminating incorrect options.
(B), (C), and (D) give incorrect or inflated thresholds not present in law. \[ \boxed{\text{A}} \]
Was this answer helpful?
0
0
Question: 2
What is the minimum spending obligation on CSR activities for a company under Section 135 of the Companies Act, 2013?
What is the minimum spending obligation on CSR activities for a company under Section 135 of the Companies Act, 2013?
Show Hint
Always remember: CSR spending is based on profits, not turnover or net worth.
Updated On: Aug 17, 2025
- 5% of the average net worth of the company of the preceding three financial years
- 2% of average net profits of the company made during the three immediately preceding financial years
- 7% of the average turnover of the company of the previous financial year
- 5% of the average net profits of the company made during the preceding financial year
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Legal requirement under Section 135(5).
CSR spending = at least 2% of the average net profits of the company during the three immediately preceding financial years. Step 2: Why other options are wrong.
(A) and (C) mention net worth/turnover, which are applicability triggers, not spending formulas. (D) mentions 5%, which is not prescribed in law. \[ \boxed{\text{B}} \]
CSR spending = at least 2% of the average net profits of the company during the three immediately preceding financial years. Step 2: Why other options are wrong.
(A) and (C) mention net worth/turnover, which are applicability triggers, not spending formulas. (D) mentions 5%, which is not prescribed in law. \[ \boxed{\text{B}} \]
Was this answer helpful?
0
0
Question: 3
Company A is incorporated in FY 2020-21, Company B in FY 2019-20, and Company C in FY 2018-19. Which company is covered under Section 135(1) of the Companies Act, 2013 for CSR in FY 2020-21?
Company A is incorporated in FY 2020-21, Company B in FY 2019-20, and Company C in FY 2018-19. Which company is covered under Section 135(1) of the Companies Act, 2013 for CSR in FY 2020-21?
Show Hint
CSR needs a preceding year’s data to check thresholds — hence new companies get a natural exemption initially.
Updated On: Aug 17, 2025
- Company A
- Company B
- Company C
- All the above
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Applicability timeline.
CSR applicability is determined based on the immediately preceding financial year’s financial data. A newly incorporated company without 3 years’ profit history cannot be mandated for CSR in its first years. Step 2: Application to given data.
FY 2020-21 CSR applicability uses FY 2019-20 data.
Company A: Incorporated in FY 2020-21 — no preceding year data.
Company B: Incorporated in FY 2019-20 — only 1 year of data.
Company C: Incorporated in FY 2018-19 — has preceding FY 2019-20 full-year data.
Hence, only Company C can qualify. \[ \boxed{\text{C}} \]
CSR applicability is determined based on the immediately preceding financial year’s financial data. A newly incorporated company without 3 years’ profit history cannot be mandated for CSR in its first years. Step 2: Application to given data.
FY 2020-21 CSR applicability uses FY 2019-20 data.
Company A: Incorporated in FY 2020-21 — no preceding year data.
Company B: Incorporated in FY 2019-20 — only 1 year of data.
Company C: Incorporated in FY 2018-19 — has preceding FY 2019-20 full-year data.
Hence, only Company C can qualify. \[ \boxed{\text{C}} \]
Was this answer helpful?
0
0
Question: 4
Which of these activities is not specified in Schedule VII of the Companies Act, 2013?
Which of these activities is not specified in Schedule VII of the Companies Act, 2013?
Show Hint
CSR must align with Schedule VII — state duties like “law and order” are outside its scope.
Updated On: Aug 17, 2025
- promoting education and employment enhancing vocation skills
- eradicating hunger, poverty and malnutrition
- rural development projects
- maintenance of law and order
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Understanding Schedule VII.
Schedule VII lists permissible CSR activities like:
Education and skill enhancement
Eradicating extreme hunger and poverty
Rural development projects
Health care, gender equality, environmental sustainability, etc.
Step 2: Excluding non-CSR items.
Maintenance of law and order is a sovereign function, not a CSR activity, and thus is absent from Schedule VII. \[ \boxed{\text{D}} \]
Schedule VII lists permissible CSR activities like:
Education and skill enhancement
Eradicating extreme hunger and poverty
Rural development projects
Health care, gender equality, environmental sustainability, etc.
Step 2: Excluding non-CSR items.
Maintenance of law and order is a sovereign function, not a CSR activity, and thus is absent from Schedule VII. \[ \boxed{\text{D}} \]
Was this answer helpful?
0
0
Question: 5
CSR policy is based on which of the following principles?
CSR policy is based on which of the following principles?
Show Hint
CSR in India is inspired by Mahatma Gandhi’s trusteeship doctrine — wealth should serve societal welfare.
Updated On: Aug 17, 2025
- trusteeship and giving back to society
- utmost good faith
- leveraging India’s managerial, technological and innovative skills
- promotion of rule of law and order
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Source principle.
India’s CSR philosophy is rooted in Gandhian principles of trusteeship — businesses hold resources in trust for society and should give back for its welfare. Step 2: Eliminating other options.
(B) is more relevant to insurance law. (C) and (D) are not core CSR guiding principles in the statute. \[ \boxed{\text{A}} \]
India’s CSR philosophy is rooted in Gandhian principles of trusteeship — businesses hold resources in trust for society and should give back for its welfare. Step 2: Eliminating other options.
(B) is more relevant to insurance law. (C) and (D) are not core CSR guiding principles in the statute. \[ \boxed{\text{A}} \]
Was this answer helpful?
0
0
Question: 6
Which of the following falls within the scope of the Companies (CSR Policy) Rules, 2014?
Which of the following falls within the scope of the Companies (CSR Policy) Rules, 2014?
Show Hint
When a question references an extract, prefer the option that verbatim tracks the extract’s language—here, “impact assessment” and “disclosure requirements”.
Updated On: Aug 17, 2025
- determination of the amount of expenditure to be incurred by companies on CSR activities
- reporting on the amount remaining unspent by the Company for CSR activities with detailed reasons for failing to spend the amount
- impact assessment and disclosure requirements for CSR
- detailing the company’s sponsorship activities for deriving marketing benefits for its products or services
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Read the given passage on the scope of the Rules.
The extract states that the Companies (CSR Policy) Rules, 2014 prescribe the operational framework for CSR: “the mode of implementation of CSR activities, content of CSR policy, impact assessment, reporting requirements and disclosure for CSR”.
Step 2: Map each option to the stated scope.
(C) explicitly matches “impact assessment and disclosure requirements” ⇒ within scope.
(A) Quantum of CSR spend is fixed by \S135(5) of the Act (2% of average net profits) ⇒ statute, not Rules.
(B) While reporting is within scope, the option’s phrasing is narrowly about “unspent” amounts; the passage does not emphasise that sub-detail—our safest pick is the direct statement in (C).
(D) Sponsorship for marketing benefits is not CSR; the passage says expenditure outside Schedule VII is not recognised.
Step 3: Conclude.
Only (C) squarely and directly mirrors the language of the extract.
\[ \boxed{\text{C}} \]
The extract states that the Companies (CSR Policy) Rules, 2014 prescribe the operational framework for CSR: “the mode of implementation of CSR activities, content of CSR policy, impact assessment, reporting requirements and disclosure for CSR”.
Step 2: Map each option to the stated scope.
(C) explicitly matches “impact assessment and disclosure requirements” ⇒ within scope.
(A) Quantum of CSR spend is fixed by \S135(5) of the Act (2% of average net profits) ⇒ statute, not Rules.
(B) While reporting is within scope, the option’s phrasing is narrowly about “unspent” amounts; the passage does not emphasise that sub-detail—our safest pick is the direct statement in (C).
(D) Sponsorship for marketing benefits is not CSR; the passage says expenditure outside Schedule VII is not recognised.
Step 3: Conclude.
Only (C) squarely and directly mirrors the language of the extract.
\[ \boxed{\text{C}} \]
Was this answer helpful?
0
0
Question: 7
The chief objective of the Government’s aspirational district programme is to:
The chief objective of the Government’s aspirational district programme is to:
Show Hint
When several options list sub-themes, identify the one that best reflects the programme-wide end goal stated in the stem.
Updated On: Aug 17, 2025
- ensure access to financial services like banking, remittance, credit, insurance, pension in an affordable manner
- promote entrepreneurship in India in manufacturing and other sectors
- improve India’s ranking in the Human Development Index
- facilitate easy access to credit facilities for people belonging to vulnerable populations
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Extract the programme’s aim from the passage.
The ADP (Aspirational Districts Programme) “aim[s] to improve the socio-economic status of the least developed regions across India.” That aligns with human development outcomes overall.
Step 2: Evaluate each option against this overarching aim.
(A) and (D) are sub-components under the theme of “Financial Inclusion and Skill Development”, not the overarching objective.
(B) Entrepreneurship is not specifically named in the extract as the programme’s goal.
(C) Captures the ultimate development objective in aggregate terms—improving human development, which best reflects “improve socio-economic status” at a macro level.
Step 3: Conclude.
(C) is most consistent with the chief objective described in the extract.
\[ \boxed{\text{C}} \]
The ADP (Aspirational Districts Programme) “aim[s] to improve the socio-economic status of the least developed regions across India.” That aligns with human development outcomes overall.
Step 2: Evaluate each option against this overarching aim.
(A) and (D) are sub-components under the theme of “Financial Inclusion and Skill Development”, not the overarching objective.
(B) Entrepreneurship is not specifically named in the extract as the programme’s goal.
(C) Captures the ultimate development objective in aggregate terms—improving human development, which best reflects “improve socio-economic status” at a macro level.
Step 3: Conclude.
(C) is most consistent with the chief objective described in the extract.
\[ \boxed{\text{C}} \]
Was this answer helpful?
0
0
Question: 8
Which one of the following comes within the scope of the ADP?
Which one of the following comes within the scope of the ADP?
Show Hint
When the passage lists categories, prefer the option that exactly repeats a listed category.
Updated On: Aug 17, 2025
- Labour Welfare
- Skill Development
- Maternity Benefits
- Urban Employment
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: List the five themes given in the passage.
Health & Nutrition; Education; Agriculture & Water Resources; Financial Inclusion and Skill Development; and basic infrastructure.
Step 2: Match options to these themes.
Only Skill Development appears verbatim among the five themes. Labour welfare, maternity benefits, and urban employment are not named in the extract.
\[ \boxed{\text{B}} \]
Health & Nutrition; Education; Agriculture & Water Resources; Financial Inclusion and Skill Development; and basic infrastructure.
Step 2: Match options to these themes.
Only Skill Development appears verbatim among the five themes. Labour welfare, maternity benefits, and urban employment are not named in the extract.
\[ \boxed{\text{B}} \]
Was this answer helpful?
0
0
Question: 9
Which Indian State has the highest number of ‘aspirational districts’?
Which Indian State has the highest number of ‘aspirational districts’?
Show Hint
For factual recall questions, quote the exact numbers from the passage to eliminate near-miss options.
Updated On: Aug 17, 2025
- Jharkhand
- West Bengal
- Karnataka
- Bihar
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Use the numeric fact from the extract.
The extract states: “As on date, 112 aspirational districts are recognised… Jharkhand has the highest number, i.e., 19, followed by Bihar (13), and Odisha and Chhattisgarh (10 each).”
Step 2: Compare with options.
Only (A) matches the explicit statement; (B) and (C) are not mentioned; (D) Bihar is second-highest, not highest.
\[ \boxed{\text{A}} \]
The extract states: “As on date, 112 aspirational districts are recognised… Jharkhand has the highest number, i.e., 19, followed by Bihar (13), and Odisha and Chhattisgarh (10 each).”
Step 2: Compare with options.
Only (A) matches the explicit statement; (B) and (C) are not mentioned; (D) Bihar is second-highest, not highest.
\[ \boxed{\text{A}} \]
Was this answer helpful?
0
0
Question: 10
The High-Level Committee reviewing the CSR framework in 2018 recommended that:
The High-Level Committee reviewing the CSR framework in 2018 recommended that:
Show Hint
When a stem cites a specific committee report/year, choose the option that mirrors the exact recommendation quoted in the passage.
Updated On: Aug 17, 2025
- a national CSR data portal be set up to monitor the progress of implementation of CSR policies by companies
- spending of CSR funds on CoVID-19 related activities be considered as an eligible CSR activity
- CSR implementing agencies should mandatorily register with the central government
- companies should balance CSR spending between local areas and the less developed regions of the country
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Lift the exact recommendation from the extract.
The extract states that the 2018 HLC “noted that companies need to balance CSR spending between local area/areas around where it operates, and less developed regions such as aspirational districts.”
Step 2: Test each option.
(D) matches the quoted recommendation ⇒ Correct.
(A) and (C) are not mentioned in the extract (even if similar ideas exist elsewhere, we must stick to the passage).
(B) relates to a later policy response during the COVID-19 period, not a 2018 recommendation.
\[ \boxed{\text{D}} \]
The extract states that the 2018 HLC “noted that companies need to balance CSR spending between local area/areas around where it operates, and less developed regions such as aspirational districts.”
Step 2: Test each option.
(D) matches the quoted recommendation ⇒ Correct.
(A) and (C) are not mentioned in the extract (even if similar ideas exist elsewhere, we must stick to the passage).
(B) relates to a later policy response during the COVID-19 period, not a 2018 recommendation.
\[ \boxed{\text{D}} \]
Was this answer helpful?
0
0
Questions Asked in CLAT PG exam
- The Hon’ble Supreme Court in the case of ‘Nil Ratan Kundu and another v. Abhijit Kundu’ 2008(3) Apex Court Judgements 232 (SC), while granting the custody to the maternal grandparents observed: In our judgement, the law relating to custody of a child is fairly well settled and it is this. In deciding a difficult and complex question as to custody of minor, a Court of law should keep in mind relevant statutes and the rights flowing therefrom. But such cases cannot be decided solely by interpreting legal provisions. It is a humane problem in live in relationship and is required to be solved with human touch. A Court while dealing with custody cases, is neither bound by statutes nor by strict rules of evidence or procedure nor by precedents. In selecting proper guardian of a minor, the paramount consideration should be the welfare and well-being of the child. In selecting a guardian, the Court is exercising parens patriae jurisdiction and is expected, may bound, to give due weight to a child’s ordinary comfort, contentment, health, education, intellectual development and favorable surroundings. But over and above physical comforts, moral and ethical values cannot be ignored. They are equally, or we may say, even more important, essential and indispensable consideration. If the minor is old enough to form an intelligent preference or judgement, the Court must consider such preference as well, though the final decision should rest with the Court as to what is conducive to the welfare of the minor.
The Hon’ble Supreme Court in the case of ‘Gaurav Nagpal v. Semedha Nagpal’-(2009)1 SCC 42, while giving paramount importance to the welfare of the child, which should include moral and ethical values, besides ethical well-being, observed as under:
When the court is confronted with conflicting demands made by the parents, each time it has to justify the demands. The Court has not only to look at the issue on legalistic basis, in such matters human angles are relevant for deciding those issues. The Court then does not give emphasis on what the parties say, it has to exercise a jurisdiction which is aimed at the welfare of the minor. As observed recently in Mausami Moitra Ganguli case, the Court has to give due weightage to the child’s ordinary contentment, health, education, intellectual development and favorable surroundings, but over and above physical comforts, the moral and ethical values have also to be noted. They are equal if not more important than the others.
(Extracts from Jaswinder Singh and Another vs Surjit Singh, AIR 2010 (NOC) 425 (P. & H.))- CLAT PG - 2025
- Family Laws
- The Companies Act, 2013 does not deal with insolvency and bankruptcy when the companies are unable to pay their debts or the aspects relating to the revival and rehabilitation of the companies and their winding up if revival and rehabilitation is not possible. In principle, it cannot be doubted that the cases of revival or winding up of the company on the ground of insolvency and inability to pay debts are different from cases where companies are wound up under Section 271 of the Companies Act, 2013. The two situations are not identical. Under Section 271 of the Companies Act, 2013, even a running and financially sound company can also be wound up for the reasons in clauses (a) to (e). The reasons and grounds for winding up under Section 271 of the Companies Act, 2013 are vastly different from the reasons and grounds for the revival and rehabilitation scheme as envisaged under the IBC. The two enactments deal with two distinct situations and in our opinion, they cannot be equated when we examine whether there is discrimination or violation of Article 14 of the Constitution of India. For the revival and rehabilitation of the companies, certain sacrifices are required from all quarters, including the workmen. In case of insolvent companies, for the sake of survival and regeneration, everyone, including the secured creditors and the Central and State Government, are required to make sacrifices. The workmen also have a stake and benefit from the revival of the company, and therefore unless it is found that the sacrifices envisaged for the workmen, which certainly form a separate class, are onerous and burdensome so as to be manifestly unjust and arbitrary, we will not set aside the legislation,solely on the ground that some or marginal sacrifice is to be made by the workers. We would also reject the argument that to find out whether there was a violation of Article 14 of the Constitution of India or whether the right to life under Article 21 Constitution of India was infringed, we must word by word examine the waterfall mechanism envisaged under the Companies Act, 2013, where the company is wound up in terms of grounds (a) to (e) of Section 271 of the Companies Act, 2013; and the rights of the workmen when the insolvent company is sought to be revived, rehabilitated or wound up under the Code. The grounds and situations in the context of the objective and purpose of the two enactments are entirely different.
(Extracted, with edits and revision, from the judgement in Moser Baer Karamchari Union Thr. President Mahesh Chand Sharma v. Union of India and Ors, 2023 SCC Online SC 547)- CLAT PG - 2025
- Company Law
- Ahmadi, J. (as he then was) speaking for himself and Punchhi, J., endorsed the recommendations in the following words-The time is ripe for taking stock of the working of the various Tribunals set up in the country after the insertion of Articles 323-A and 323-B in the Constitution. After the incorporation of these two articles, Acts have been enacted where-under tribunals have been constituted for dispensation of justice. Sufficient time has passed, and experience gained in these last few years for taking stock of the situation with a view to finding out if they have served the purpose and objectives for which they were constituted. Complaints have been heard in regard to the functioning of other tribunals as well and it is time that a body like the Law Commission of India has a comprehensive look-in with a view to suggesting measures for their improved functioning. That body can also suggest changes in the different statutes and evolve a model on the basis whereof tribunals may be constituted or reconstituted with a view to ensuring greater independence. An intensive and extensive study needs to be undertaken by the Law Commission in regard to the Constitution of tribunals under various statutes with a view to ensuring their independence so that the public confidence in such tribunals may increase and the quality of their performance may improve.
Before parting with the case, it is necessary to express our anguish over the ineffectiveness of the alternative mechanism devised for judicial review. The judicial review and remedy are the fundamental rights of the citizens. The dispensation of justice by the tribunal is much to be desired.
(Extracted with Edits from R.K. Jain v. Union of India, 1993 (4) SCC 119)- CLAT PG - 2025
- Constitutional Laws
- The elements of tort of negligence consist in – (a) duty of care; (b) duty is owed to the plaintiff; (c) the duty has been carelessly breached. Negligence does not entail liability unless the exacts a duty in the given circumstances to observe care. Duty is an obligation recognised by law to avoid conduct fraught with unreasonable risk of damage to others. The question whether duty exists in a particular situation involves determination of law. Hence, three ingredients are necessary for the existence of a duty of care: (i) foreseeability of the damage, (ii) proximity of relationship between the parties; and (iii) whether it is “just, fair and reasonable” that the law should impose a duty of care. In Caparo Industries Plc. v. Dickman, 1990 2AC 605, the court held that breach of duty is concerned with the standard of care that ought to have been adopted in the circumstances and whether the defendant’s conduct fell below that standard i.e., whether he was careless.
The court while quoting Rajkot Municipal Corporation v. Manjulben Jayantilal Nakum, 1997 stated that as a tort, negligence consists of legal duty to take care and breach of that duty. Duty determines whether the type of loss suffered by the plaintiff in the particular way in which to occurred can ever be actionable. The division of negligence into duty, breach and consequent damage is convenient for the purpose of exposition but it can be confusing because the issues will often overlap. The process of determining a breach of duty involves three steps: First, it is necessary to ascertain the qualities of the reasonable person, given the qualities attributed to him, would have taken in the circumstances. The factors that are permissible to take into account in this regard are prescribed by law, but the amount of care that the reasonable person would have taken is a question of fact. Thirdly, it must be determined whether the defendant took less care than the reasonable person would have taken.
(Extracts from Managing Director, Kerala Tourism Development Corporation Limited v. Deepti Singh and Ors., 2019 SC)- CLAT PG - 2025
- Law of Torts
- Article 14 of the Constitution stipulates that the State shall not deny to any person equality before the law or the equal protection of laws within the territory of India. Article 15(1) states that the State should not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them. Article 15(4) stipulates that nothing in Article 15 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes. Article 16 deals with equality of opportunity in matters of public employment. Clause (1) of Article 16 guarantees equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State. Clause (2) stipulates that no citizen shall be discriminated in or be ineligible for any employment or office under the State on the grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them. Clause (4) of the provision states that nothing in Article 16 shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens, which in the opinion of the State, is not adequately represented in the services under the State. The purpose of the equal opportunity principle in Article 16(1) and the reservation provision in Article 16(4) has emerged as a focal point of the jurisprudence on reservations in this Court. A discussion of the journey of the competing models of equality that the Court has espoused and their evolution over the course of the years is necessary to understand the constitutional vision on equality.
The impugned constitutional amendments by which Article 16 (4-A) and 16 (4-B) have been inserted, flow from Article 16 (4). They do not alter the structure of Article 16 (4). They retain the controlling factors or the compelling reasons which enables the State to provide for reservation keeping in mind the overall efficiency of the state administration under article 335. Sub-categorization within a class is a constitutional requirement to secure substantive equality in the event that there is a distinction between two sections of a class; Sub-classification must not lead to the exclusion of one of the categories in the class. A model that provides sufficient opportunities to all categories of the class must be adopted; and Sub-classification among a class must be on a reasonable basis.
Justice Bela Trivedi opined, in dissent, that presidential list of scheduled castes notified under Article 341 cannot be altered by the States. Any change to this list can only be made by a law enacted by Parliament. Sub-classification, according to her would amount to tampering with the Presidential List and undermine the object Article 341, which aims to eliminate political influence in the SC-ST List. Further, she emphasised the importance of adhering to the rule of plain and literal interpretation. She mentions that any preferential treatment for a sub-class within the presidential list would deprive other classes within the same category of their benefits. In the absence of executive or legislative power, state lack the competence to sub-classify castes and the benefit reserved for all SCs. Allowing states to do so would constitute a colourable exercise of power, which is impermissible under law. Justice Trivedi concluded by affirming that affirmative action by States must remain within constitutional boundaries and held that the law laid down in E.V. Chinnaiah case was correct and should be upheld.
(Extract from The State of Punjab & Ors. v. Davinder Singh & Ors. 2024 SC)- CLAT PG - 2025
- Constitutional Laws
View More Questions