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Advocate, LawGK, C30, Nizamuddin East, New Delhi (2026)

12/02/2026

A Business Interruption (BI) loss claim, as defined in Industrial All Risk (IAR) Mega Policy, is an insurance claim for the financial loss sustained by business during the period it is unable to operate normally due to physical damage to its property.
While a property damage loss claim pays for the repair or replacement of the physical "things" (like a turbine blade), a Business Interruption claim pays for the lost income and continuing costs that occur while the machinery is being fixed.
For a BI claim to be valid, there must first be an indemnifiable material damage loss.
Insurers often try to end the "interruption period" the moment the machinery is physically repaired. However, a BI claim should legally cover until the business and revenues return to normal, even if that takes longer than the physical repair itself.

11/02/2026

• Insurance contracts are classic adhesion contracts, pre-drafted, non-negotiable agreements imposed by Insurer’s upon consumers who have no bargaining power and must accept the terms on a “take-it-or-leave-it” basis. Because of this inherent asymmetry of power, courts impose a heightened standard of fairness and reasonableness upon Insurer s. The Hon’ble Supreme Court’s extract from Texco Marketing (P) Ltd. v. TATA AIG General Insurance Co. Ltd., which must be preserved exactly as earlier provided, is crucial here as it describes insurance policies as standard form contracts where the insured merely signs on the dotted line. The Court emphasizes that in such contracts, freedom of contract is limited, and fairness, disclosure, and good faith by the Insurer are paramount.

11/02/2026

An Industrial All Risk (IAR) Mega Insurance Policy is a specialized, high-level comprehensive insurance product designed specifically for large industrial units/enterprises with a combined sum insured (property damage and business interruption) exceeding INR 2,50 crore at a single location. It acts as a "package" policy covering all risks on an "all-risk" basis, providing wider coverage than standard policies for assets like buildings, machinery, and stock.
In the world of insurance, this is the "fortress" policy. It is designed to protect large industries against almost all physical unforeseen circumstances.
An IAR Policy works the opposite way: Everything is covered unless it is specifically excluded. If the policy doesn't explicitly say "we don't cover this," then the insurance company is generally liable for the loss.

22/06/2025

A NON-COMPETE AGREEMENT OR A NON-COMPETITION CLAUSE is a legally binding restrictive covenant usually within an employment agreement, under which an employee agrees not to engage in a similar profession, trade, or business in competition with their employer for a specified period and within a defined geographical area during and after their employment.
The Purpose is to prevent employees from disclosing proprietary information like client lists, product designs, marketing strategies, or unique processes etc. to a competitor, preventing a former employee from soliciting those clients for a competing business, ensuring that the acquired knowledge and skill isn't immediately transferred to a direct competitor, protecting insider knowledge from gaining an unfair advantage in the market.
In India, the enforceability of non-compete clauses is primarily governed by Section 27 of the Indian Contract Act, 1872 which states:
“Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
Exception 1.Saving of agreement not to carry on business of which good-will is sold. One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.”
Section 27 of the Indian Contract Act strongly upholds the principle of freedom of trade and profession. This provision makes post-employment non-compete clauses generally unenforceable in India. It makes it very difficult, if not impossible, to enforce post-employment non-compete agreements in India. Businesses in India therefore rely more heavily on confidentiality agreements and carefully drafted non-solicitation clauses, along with protecting their trade secrets through other legal mechanisms, rather than restrictive non-compete clauses once an employee has left. Indian courts have consistently held that such clauses are a restraint on trade and infringe upon an individual's fundamental right to earn a livelihood.

31/05/2025

GST / VAT and ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTION

Clause (12A) - Definition of "Goods and Services Tax" (GST): "any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption."This clause explicitly excludes alcoholic liquor for human consumption from the ambit of GST, effectively preserving the power of State Legislatures to levy excise duty and VAT on such products.

Entry 51 in List II (State List) of the Seventh Schedule of the Constitution of India, outlines the subjects on which State Legislatures have the exclusive power to make laws - "Duties of excise on the following goods manufactured or produced in the State and countervailing duties at the same or equivalent rates on goods manufactured or produced elsewhere in India:— (a) alcoholic liquors for human consumption; (b) o***m, Indian h**p and other narcotic drugs and narcotics; but not including medicinal and toilet preparations containing alcohol or any of the above substances."

Entry 54 Amendment (of List II (State List) of the Seventh Schedule) – With the introduction of GST, the majority of taxes covered under Entry 54, were subsumed into GST, while taxes on the sale of petroleum crude, highspeed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption were exempted.

It is necessary to refer to Entry 52 of List II (State List) of the Seventh Schedule of the Constitution of India herein which grants State Legislatures the power to legislate on: "Taxes on the entry of goods into a local area for consumption, use or sale therein."

Thus, between Entry 51 and Entry 54, “alcoholic liquor for human consumption” remains under the purview of State which includes “good” and “services” relevant thereto i.e. raw material and exempt from GST.

26/05/2025

DID U KNOW

Clarification on Aadhar Card as Proof of Date of Birth in Legal Contexts (India)

The Hon'ble Supreme Court of India has unequivocally stated that the date of birth recorded on an Aadhar card, issued by the Unique Identification Authority of India (UIDAI), does not constitute conclusive proof of age.

In instances where a conflict arises between the date of birth specified on a School Leaving Certificate and that on an Aadhar card, the Supreme Court has ruled that the School Leaving Certificate shall be considered the authoritative document for establishing the correct date of birth.

It is important to note that while an Aadhar card serves as a valid document for identity verification, it is not deemed per se proof of an individual's date of birth. Consequently, for the purpose of determining the age of a deceased person, the determination is to be based primarily on their School Leaving Certificate.

06/05/2025

Article 300A is a dynamic constitutional safeguard that strikes a delicate balance between the sovereign power of the State and rights of individuals with respect to property rights.
What is Article 300A - "No person shall be deprived of his property save by authority of law." As implied even the government cannot acquire property without authority of law.
The context herein is that originally, the right to property was a fundamental right under Article 19(1)(f) and Article 31 of the Indian Constitution. However, the 44th Amendment in 1978 removed the right to property from the list of fundamental rights. It was then made a constitutional right under Article 300A, placed in Part XII of the Constitution.
Therefore, essentially it means that property rights are no longer under the purview of Fundamental Rights as granted and protected by the Constitution of India to it’s citizens but have been replaced as a constitutional right, meaning the State has the power to acquire or take possession of private property, subject to "authority of law." Article 300A balances the State's power to acquire property for public needs with the protection of individual property rights, ensuring that it is done legally and fairly. It recognizes the government's need to acquire property for public purposes but also protects individuals from arbitrary property seizures by requiring legal justification and, in practice, fair compensation.
"public purpose” constitutes for which the government can acquire land (e.g., infrastructure projects, public utilities, etc.).

18/04/2025

This is a powerful statement going beyond simply delivering justice but also embodies positive human values, hope, faith!!!

In the words of Philip Stanhope, “Judgment is not upon all occasions required, but discretion always is”.

The true test to ascertain whether discretion has been judiciously exercised or not is to see whether the court has been able to strike a balance between the personal liberty of the accused and the interest of the State, in other words, the societal interests. Each bail application should be decided in the facts and circumstances of the case having regard to the various factors germane to the well settled principles of grant or refusal of bail.

The Supreme Court of India in Writ Petitions concerned with the plight of children who are victims of organised child trafficking racket spread across multiple States in the country, wherein Young children from vulnerable families are kidnapped and sold to traffickers who work on a network basis, declined bail to accused stating thus:-

“We have referred to the above authorities solely for the purpose of reiterating two conceptual principles, namely, factors that are to be taken into consideration while exercising power of admitting an accused to bail when offences are of serious nature, and the distinction between cancellation of bail because of supervening circumstances and exercise of jurisdiction in nullifying an order granting bail in an appeal when the bail order is assailed on the ground that the same is perverse or based on irrelevant considerations or founded on non-consideration of the factors which are relevant. We are absolutely conscious that liberty of a person should not be lightly dealt with, for deprivation of liberty of a person has immense impact on the mind of a person. Incarceration creates a concavity in the personality of an individual. Sometimes it causes a sense of vacuum. Needless to emphasise, the sacrosanctity of liberty is paramount in a civilised society. However, in a democratic body polity which is wedded to the rule of law an individual is expected to grow within the social restrictions sanctioned by law. The individual liberty is restricted by larger social interest and its deprivation must have due sanction of law. In an orderly society an individual is expected to live with dignity having respect for law and also giving due respect to others' rights. It is a well-accepted principle that the concept of liberty is not in the realm of absolutism but is a restricted one. The cry of the collective for justice, its desire for peace and harmony and its necessity for security cannot be allowed to be trivialised. The life of an individual living in a society governed by the rule of law has to be regulated and such regulations which are the source in law subserve the social balance and function as a significant instrument for protection of human rights and security of the collective. This is because, fundamentally, laws are made for their obedience so that every member of the society lives peacefully in a society to achieve his individual as well as social interest. That is why Edmond Burke while discussing about liberty opined, “it is regulated freedom”. It is also to be kept in mind that individual liberty cannot be accentuated to such an extent or elevated to such a high pedestal which would bring in anarchy or disorder in the society. The prospect of greater justice requires that law and order should prevail in a civilised milieu. True it is, there can be no arithmetical formula for fixing the parameters in precise exactitude but the adjudication should express not only application of mind but also exercise of jurisdiction on accepted and established norms. Law and order in a society protect the established precepts and see to it that contagious crimes do not become epidemic. In an organised society the concept of liberty basically requires citizens to be responsible and not to disturb the tranquillity and safety which every well-meaning person desires. Not for nothing J. Oerter stated: “Personal liberty is the right to act without interference within the limits of the law.” Thus analysed, it is clear that though liberty is a greatly cherished value in the life of an individual, it is a controlled and restricted one and no element in the society can act in a manner by consequence of which the life or liberty of others is jeopardised, for the rational collective does not countenance an anti-social or anti-collective act. Considering the serious nature of the crime and the modus operandi adopted by the accused persons we are of the view that the High Court should not have exercised its discretion in favour of the accused persons. We are sorry to say but the High Court dealt with all the bail applications in a very callous manner. The outcome of this callous approach on the part of the High Court has ultimately paved way for many accused persons to abscond and thereby put the trial in jeopardy. These accused persons are a big threat to the society wherever they are in the country.

16/04/2025

ORDER XII – Rule 6 provision is to enable a party to obtain speedy judgment at least to the extent of admission. The Court further stated that provisions of Rule 6 are enabling, discretionary and permissive. They are not mandatory, obligatory or peremptory. The powers conferred on the Court by Rule 6 are untrammelled and cannot be crystallized into any rigid rule of universal application.
ORDER XII – Rule 6, Civil Procedure Code, 1908
(1) Where admissions of fact have been made either in the pleading or otherwise, whether orally or in writing, the Court may at any stage of the suit, either on the application of any party or of its own motion and without waiting for the determination of any other question between the parties, make such order or give such judgment as it may think fit, having regard to such admissions.
(2) Whenever a judgment is pronounced under sub-rule (1) a decree shall be drawn upon in accordance with the judgment and the decree shall bear the date on which the judgment was pronounced.
Section 17 of the Indian Evidence Act,1872 defines admission as a statement made in the oral, documentary or electronic form suggesting an inference to a fact-in-issue or relevant fact.
Admission here must be categorical, unequivocal, unconditional, unambiguous and should be essentially a question of fact. Admission should be a conscious and deliberate act of the party and should not be left to the interpretative determination by the Court means Admission should be made with an intention to be bound by it. Admissions of the fact must be clear from the record itself and cannot be left to the interpretative determination by the Court.

11/04/2025

"last shot fired in a contract," also known as the "battle of the forms," dictates that the terms and conditions of the party who last communicated their terms, without objection from the other party, will prevail. This rule is primarily used when parties exchange forms with their own terms, and it essentially means the last offer stands if not rejected.

When referring to the "last shot fired in a contract," it signifies the final, decisive action or communication that leads to the conclusion, resolution or termination of the contractual relationship or a specific dispute within it. "last shot fired in a contract" signifies the ultimate, often irreversible, step taken by a party that brings the contractual relationship or a significant dispute within it to a definitive end.

"last shot fired" could be the

• final offer or demand made by one party, after which they are unwilling to concede further.
• formal notice of termination of the contract by one party, citing a breach of contract, a force majeure event, or exercising a termination clause. This action effectively ends the contractual obligations
• final legal action taken by one party, such as filing a lawsuit, seeking arbitration, or appealing a court decision.
• a party's final act of performance (or non-performance constituting a final breach) leading to the natural conclusion or the other party's decision to terminate.
• final communication from one party explicitly stating the end of the contractual relationship for reasons other than formal breach, such as the expiry of the contract term or a mutual agreement to dissolve it.

08/04/2025

“Law is well-settled that an appointment made contrary to the statute/statutory rule would be void”

A "Lascar license" is a Certificate of Competency for a specific role on inland vessels i.e. under the Kerala Inland Vessels Rules and is often a mandatory requirement for certain boat crew positions.

A "Syrang's license" is a Certificate of Competency for a more senior role on inland vessels, being a higher certification than a Lascar's license, indicating a greater level of skill and responsibility.

The Supreme Court of India’s in it’s recent decision in JOMON K.K. v. SHAJIMON P. on public employment eligibility criteria within the Kerala State Water Transport Department (KSWTD), considered whether holding a Syrang’s license could serve as a substitute for the statutorily mandated Lascar’s license in a recruitment process for the post of “Boat Lascar”. The Court declined relief and emphasized principles of fair competition, strict adherence to statutory rules, and the need to avoid disenfranchising properly qualified applicants (i.e., those who held the required license). It was further held for appointment as Boat Lascar, “current Lascar’s license” was a mandatory requirement that the appellant’s possession of a Syrang’s license, though deemed superior by the Director of Ports, could not replace the explicit statutory mandate of holding a current Lascar’s license.

Advocate, LawGK

12/02/2026

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