Counselence Connect - Counselence

Counselence Connect

Our newsletter, Counselence Connect, released every week, gives a crisp, succinct update on changes in laws brought about by actions of legislature, government, and courts. Each Connect will be relevant for corporates and would not take more than 5 minutes to read.

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Delhi HC on Imposing Liquidated Damages in Contracts

Reading Time: 2 Minutes

On assessment of whether liquidated damages (LD) were payable by a contractor for delays in completion of work, the Delhi High Court (HC) in North Delhi Municipal Corporation v. IJM Corporation Berhad, held that once a request for extension is received and granted, and the contractor completes the work in the contractual and extended periods, LD is not payable. The HC also held that a competent authority cannot, after the extended period, turn around and re-evaluate the extension granted, to the detriment of the contractor.

Aug 29, 2022

Karnataka HC on WFH Benefits Post Maternity Leave

Reading Time: 2 Minutes

The High Court of Karnataka, in the case of Prachi Sen v. Ministry of Defence, held that the work-from-home benefit may be granted to an employee who has exhausted their maternity benefit, only if the nature of work assigned, permits working from home.

Aug 22, 2022

Supreme Court on Amendment to Bonus Act

Reading Time: 4 Minutes

The Supreme Court considered the Union of India’s contentions seeking transfer of writ petitions that challenged constitutional validity of Payment of Bonus (Amendment) Act, 2015 filed before various High Courts to the Supreme Court in the Union of India and Ors. vs. The United Planters Association of Southern India and Ors. It however declined the transfer of the cases from the High Court with a direction to the courts to proceed on the matters expeditiously and on priority.

Aug 15, 2022

SC on the Powers of Consumer Redressal Forums.

Reading Time: 4 Minutes

Supreme Court in Experion Developers case held that consumer forums created under the Consumer Protection Act, 1986 have the power to direct builders to refund and pay compensation for failure to deliver possession of residential apartment as stipulated in their agreement.

Aug 8, 2022

Supreme Court on Wages under Gratuity Act

Reading Time: 2 Minutes

Supreme Court, in the Fertilizer Corporation case, held that ad hoc payment made as per interim orders does not form part of ‘wage’ under Payment of Gratuity Act. This Connect highlights the facts and reasoning of the Court.

Aug 1, 2022

Madras HC on Survival of Arbitration Clauses in Terminated Agreements

Reading Time: 2 Minutes

The Madras High Court in the case of Rajasthani Marble and Another. v. K. Kumar and Others, held that when an arbitration agreement is between contracting parties in the form of a clause or covenant in a contract, the termination of the contract does not terminate the arbitration agreement.

Jul 25, 2022

Delhi HC On Forfeiture Of Gratuity

Reading Time: 3 Minutes

The Delhi High Court in two Union Bank of India cases observed in March 2022 that an employer has the right to forfeit gratuity of its employee sunder Section 4(6)(a) of the Payment of Gratuity Act, 1972 to the extent of loss or damaged caused by the employee. However, the damage must be quantified, opportunity afforded to employees to present their case and be heard before forfeiture.

Jul 18, 2022

Supreme Court on Claim for Back Wages

Reading Time: 3 Minutes

Supreme Court, in the case of Allahabad Bank and Others vs. Avtar Bhushan Bhartiya, clarified the legal position on proof of gainful employment while claiming reinstatement with back wages. It held that in the first instance, there is an obligation on the part of an employee to plead that he is not gainfully employed. It is only then that the burden would shift upon the employer to make an assertion and establish that the employee was gainfully employed. This Connect highlights the changed views of the apex court and its reasoning in this case.

Jul 11, 2022

Delhi HC on Apprentices Demand for Regularising Employment.

Reading Time: 3 Minutes

In the recent case of Shiwang Tripathi vs. Union of India, the Delhi High Court dismissed the demand of apprentices for regularisation of employment and upheld the right of the employer, National Insurance Co. to exercise discretion under Section 22 of the Apprentices Act, 1961.

Jul 4, 2022

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