ESI Act does not bar compensation claim

Scaria Meledum

THIRUVANATHAPURAM: The Employees State Insurance Act (ESI Act) is meant to provide for certain benefits to the employees in case of sickness, maternity and “employment injury”.Employment injury means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his employment.If the employment is insurable under the Act it does not matter whether the accident occurs or the occupational disease is contracted within or outside the territorial limits of India. A person who sustains temporary disablement for not less than three days (excluding the day of accident), is entitled to periodical payment at such rates and for such period and subject to such conditions prescribed by the Central Government.
Similarly, a person who sustains permanent disablement, whether total or partial, is entitled to periodical payment in a similar fashion.These are called disablement benefits.The question is whether a person who has suffered a personal injury in a motor accident “arising out of and in the course of his employment”, and is receiving disablement benefits under the ESI Act can make a further claim for compensation under the Motor Vehicles Act for the injury he has suffered.Under Section 166 of the Motor Vehicles Act, a person who has sustained bodily injury out of an accident arising out of the use of motor vehicle can claim compensation.In cases where death has resulted from the accident all or any of the legal representatives of the deceased can claim compensation for the death.This crucial question arose because Section 53 of the ESI Act imposes a bar against receiving compensation or damages under any other law. The Section provides that an insured person (an employee covered under the ESI Act) or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person, or “from any other person”, any compensation or damages under the Workmen’s Compensation Act or “any other law for the time being in force” in respect of an `employment injury’ sustained by the employee insured under the ESI Act.If one goes by the Supreme Court verdict in the Western India Plywoods case, he is not entitled to claim compensation under the Motor Vehicles Act for the injury suffered by him. In that case, the employee, Ashokan, after claiming and obtaining benefits under the ESI Act, had staked claim for compensation by filing a suit against his own employer. Hence, it was held that an employee who has already enjoyed benefit under the ESI Act could not stake claim for compensation against the employer as he is barred by Section 53 of the ESI Act.But, this is not the case if the claim for compensation is against a stranger to the contract of employment, according to a Division Bench of the Kerala High Court consisting of Justice R Basant and Justice C T Ravikumar.A claim for compensation in tort against a stranger can co-exist with a claim for benefits under the ESI Act. The expression “any other person” in Section 53 of the ESI Act does not take in a stranger who by his negligence caused the accident. The expression takes within its weep only such other person who is sought to be made liable under or on the basis of the contract of employment to compensate the employee for the employment injury suffered by him.If an injury is suffered in a motor accident and such injury is also an employment injury the Section 53 does not bar the claim in tort under Section 166 of the Motor Vehicles Act against a stranger or tort-feasor; but it bars the claim against the employer under any other law, including the Motor Vehicles Act.The insurance coverage under the ESI Act is in addition to and not in substitution of the other remedies against a stranger (to the contract of employment), the Bench ruled.
Courtesy : Indian Express

Contract Law

The Law of Contracts is the basis of business law because the bulk of transactions of the people engaged in trade, commerce and industry is based on contracts. In India, the Law of Contracts is contained in the Indian Contract Act,1872. The Act lays down the general principles relating to formation, performance and enforceability of contracts and the rules relating to certain special types of contracts like, Indemnity and Guarantee; Bailment and Pledge, and Agency. The Partnership Act; the Sale of Goods Act; the Negotiable Instruments Act; the Companies Act, though technically belonging to the Law of Contracts, have been covered by separate enactments. However, the general principles of the Contract Law are the basis for all such contracts as well.

The principal features of the Law of Contract are:-

• The parties to the contract make the law for themselves.


• The Act is not exhaustive since it does not take into its purview all the relevant legislations.


• It does not override customs or usages.


• The Law of Contracts is not the whole law of agreements.

As per the Indian Contract Act,1872, a "contract" is an agreement enforceable by law. The agreements not enforceable by law are not contracts. An "agreement" means 'a promise or a set of promises' forming consideration for each other. And a promise arises when a proposal is accepted. By implication, an agreement is an accepted proposal. In other words, an agreement consists of an 'offer' and its 'acceptance'.

An "offer" is the starting point in the process of making an agreement. Every agreement begins with one party making an offer to sell something or to provide a service, etc. When one person who desires to create a legal obligation, communicates to another his willingness to do or not to do a thing, with a view to obtaining the consent of that other person towards such an act or abstinence, the person is said to be making a proposal or offer.

An agreement emerges from the acceptance of the offer. "Acceptance" is thus, the second stage of completing a contract. An acceptance is the act of manifestation by the offeree of his assent to the terms of the offer. It signifies the offeree's willingness to be bound by the terms of the proposal communicated to him. To be valid an acceptance must correspond exactly with the terms of the offer, it must be unconditional and absolute and it must be communicated to the offeror.

An "agreement" is a contract if 'it is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and is not expressly declared to be void'. The contract must be definite and its purpose should be to create a legal relationship. The parties to a contract must have the legal capacity to make it. According to the Contract Act, " Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of a sound mind, and is not disqualified from contracting by any law to which he is subject". Thus, minors; persons of unsound mind and Persons disqualified from contracting by any law are incompetent to contract.

Essential Elements of a Contract

Minimum two parties :- Atleast two parties are needed to enter into a contact. One party has to make an offer and other must accept it. The person who makes the 'proposal' or 'offer' is called the 'promisor' or 'offeror'. While, the person to whom the offer is made is called the 'offeree' and the person who accepts the offer is called the 'acceptor'.

Offer and acceptance :- There must be an 'offer' and an 'acceptance' to the offer, resulting into an agreement. Both offer and acceptance should be lawful.

Legal obligations :- The parties must intend to create a legal obligation.The agreement sought to be enforced should contemplate legal relations between the parties to it.

Lawful consideration:- A contract is basically a bargain between two parties, each receiving 'something' of value or benefit to them. This 'something' is described in law as 'consideration'. Consideration is an essential element of a valid contract. It is the price for which the promise of the other is bought. A contract without consideration is void. The consideration may be in the form of money, services rendered, goods exchanged or a sacrifice which is of value to the other party. This consideration may be past, present or future, but it must be lawful.

Competent parties:- The parties making the contract must be legally competent in the sense that each must be of the age of majority, of a sound mind, and not expressly disqualified from contracting. An agreement by incompetent parties shall be a legal nullity.

Free consent:- The contracting parties must give their consent freely. 'Consent' means that the parties must agree about the subject matter of the agreement in the same sense and at the same time. Consent is said to be free if it is not induced by coercion, undue influence, fraud,misrepresentation or mistake. The absence of free consent would affect the legal enforceability of a contract.

Lawful object:- The object of the agreement must be lawful. An agreement is unlawful, if it is:- (i) illegal (ii) immoral (iii) fraudulent (iv) of a nature that, if permitted, it would defeat the provisions of any law (v) causes injury to the person or property of another (vi) opposed to public policy.

Not expressly declared void:- An agreement expressly declared to be void under the Contract Act or under any other law, is not enforceable and is, thus, not a contract. The Contract Act declares void certain types of agreements such as those in restraint of marriage, or trade, or legal proceedings as well as wagering agreements.

Certainity and possibility of performance:- The terms of a contract must not be vague or uncertain. If an agreement is vague and its meaning cannot be ascertained, it cannot be enforced. Also,the terms of a contract must be such as are capable of performance. An agreement to do an impossible act is void and is not enforceable by law.

Legal formalities:- Generally, a contract may be oral or in writing. However, certain contracts are required to be in writing and may even require registration. Therefore, where law requires an agreement to be put in writing or be registered, the same must be complied with. For instance, the Indian Trusts Act requires the creation of a trust to be reduced to writing.

Breach of Contract

The remedies available to the aggrieved party, in case of breach of contract by the other party are:-

• Suit for rescission of the contract :- Rescission is the revocation of a contract. When a contract is broken by one party, the other party may sue for rescission and refuse further performance. In such a case, the aggrieved party is absolved of all its obligations under the contract.


• Suit for damages:- the party who is injured by the breach of a contract may bring an action for damages. Damage is the monetary compensation allowed by the court to the aggrieved party for the loss or injury suffered by him as the result of breach by the other party.


• Suit for injunction:- An injunction is an order of the court requiring a person to refrain from doing some act which has been the subject matter of contract. The power to grant injunction is discretionary and it may be granted temporarily or for an indefinite period.


• Suit upon 'Quantum Meruit' :- The term "quantum meruit" means, 'as much as is merited' or 'as much as earned'. A suit of quantum meruit is a claim for the value of the material used or supplied under a contract that has become void on account of breach by the other party. When a contract becomes void, any person who has received any advantages under such contract is bound to restore it, to the person from whom he received it.


• Suit for specific performance:- When the loss suffered by breach of contract cannot be compensated by damages or where there are no standards to ascertain the quantum of damages, the aggrieved party may approach the Court for the grant of a decree for specific performance of the contract. Specific performance is granted when:-
  
  
  • Money is an adequate remedy
  
  
  • It will be inequitable to either party
  
  
  • The contract is of a personal nature
  
  
  • the court cannot supervise its execution

'Earth Hour' to be Observed on March 28 in India

`Earth Hour' will be observed by India as well as by the rest of the world to save energy as well as environment on March 28. The people will be observing the Day by switching off all the lights and electrical appliances for an hour from 8.30 pm to 9.30 pm. This year India, especially Delhi and Mumbai will participate. Lights would be switched off or dimmed at 11 PVR cinemas in Delhi and Mumbai and corporate offices. As per World Wide Fund for Nature (India), this year 50 lakh citizens of 377 cities from 74 nations are participating in this initiative.

Began with one hour switching off lights at Sydney in Australia two years back, the `Earth Hour' was observed in 35 countries last year in an attempt to reduce the carbon footprint. Earth hour is not about a quantitative measure about saving electricity but a powerful symbol for the fact that its possible to take action against climate change. It is to bring about awareness about the increasingly growing problem of climate change and to subsequently make changes in lifestyle that lead to wiser energy use.

Subject: Levy of service tax on educational institutions- regarding

Circular No. 107/01/2009 – ST

F.No137/23/2007-CX.4

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

***

New Delhi, dated 28^th January 2009

Subject: Levy of service tax on educational institutions- regarding

****************

Various educational institutions impart training and conduct courses in different fields. Many of these institutions issue certificates/degrees/diplomas to the candidates upon their successfully completing such courses. Apart from government run or aided institutes imparting education, training or coaching, there are several private run institutes or centers, which impart education/ training/ coaching, teach skills, help in preparing for competitive examinations or run classes on various subjects. Service tax is leviable on services provided by ‘commercial training and coaching centers’, since the year 2003. Over a period of time, certain doubts /disputes have arisen in the field in respect of the chargeability of service tax on the fees/ charges collected by such institutes and education centers. Some of such issues have been discussed below.

2. COMMERCIAL NATURE OF INSTITUTE

The first issue arises from the very name i.e. Commercial training or coaching center’. Many service providers argue that the word ‘commercial’ appearing in the aforementioned phrase, suggests that to fall under this definition, the establishment or the institute must be commercial (i.e. having profit motive) in nature. It is argued that institutes which are run by charitable trusts or on no-profit basis would not fall within the phrase commercial training or coaching center and none of their activities would fall under the taxable service. This argument is clearly erroneous. As the phrase ‘commercial training or coaching center ‘has been defined in a statute, there is no scope to add or delete words while interpreting the same. The definition commercial training or coaching center has no mention that such institute must have ‘commercial’ (i.e. profit making) intent or motive. Therefore, there is no reason to give a restricted meaning to the phrase. Secondly, service tax, unlike direct taxes, is chargeable on the gross amount received towards the service charges, irrespective of whether the venture is ‘profit making, loss making or charity oriented’ in its motive or its outcome. The word “Commercial” used in the phrase is with reference to the activity of training or coaching and not to the nature or activity of the institute providing the training or coaching. Thus, services provided by all institutes or establishments, which fulfills the requirements of definition, are leviable to service tax.

3. POST SCHOOL EDUCATION

3.1 Determination of taxability of education, other than school education is more complex and poses more questions. This is because, it covers an entire gamut of educational courses, such as formal higher education (i.e. bachelors, masters, doctoral, post doctoral course), specialized education, vocational education, language (including foreign language) courses etc. These vary in terms of their content; purpose; scope; and the type of institutes or establishments, which impart them.

3.2 The system of statutory recognition of educational establishments or institutions in India is still in the state of evolution. As regards university education, University Grants Commission (UGC) is the apex regulating body. As per the objects of the University Grants Commission Act, 1956 (which established UGC) the said Act is ‘to make provision for the co-ordination and determination of standards in Universities and for that purpose, to establish a University Grants Commission’.

·

As per the definition, in terms of Section 2(f) of the Act, a University means a University established or incorporated by or under a Central Act, a Provincial Act or a State Act, and includes any such institution as may, in consultation with the University concerned, be recognized by the Commission in accordance with the regulations made in this behalf under this Act. . Therefore, all universities which are a creature of a State or Union Act fall within this definition of ‘University’.

· Further, Section 3 of the Act, explains the scope of a ‘deemed university’ and defines that the Central Government may, on the advice of the Commission, declare by notification in the Official Gazette, that any institution for higher education, other than a University, shall be deemed to be a University for the purposes of this Act, and on such a declaration being made, all the provisions of this Act shall apply to such institution as if it were a University within the meaning of clause (f) of section 2.

· Also, UGC, with the approval of Central Government and under the Recognition of College in Terms of Regulations, 1974 framed under the UGC Act, can grant recognition to a college or institution run by a trust, a registered society or a body corporate or body incorporated under Central or state Act as an institution affiliated to or form as constituent member with a university, providing education up to a bachelors degree, masters degree or diploma of a duration of minimum one academic year

· As per National Policy on Education, 1986, a scheme of autonomous colleges was promoted. In the autonomous colleges, whereas the degree continues to be awarded by the university, the name of college is also included. These colleges develop and submit new courses of study for approval by the university. These autonomous colleges are fully responsible for the conduct of examination.

As all these institutions or establishment are either created or recognized in terms of the power conferred by statutes, they would fall in the category of institutes/ establishments which issues diploma or certificate recognized by the law for the time being in force. As regards issuance of degree, section 22(1) of the said Act, provides for right of conferring or granting degrees only by a ‘university’ (as defined above) or a ‘deemed university’ (as defined above).

3.3 In addition, for recognition of professional courses, promotion of professional institutions and providing grants to various programmes, a number of ‘professional councils (Such as All India Council for Technical Education-AICTE, Medical Council of India-MCI, Indian Council for Agricultural Research-ICAR, Bar Council of India-BCI) have been created through independent Union Acts. Since, inter alia these councils are entrusted with ensuring norms and standards of the courses, physical and instructional facilities, undertaking assessment etc., they have also been provided with powers to make subordinate legislations (i.e. through notifications, circulars, rules) that the institutions or the establishments within their ambit must abide. In case of default, the councils have the power to derecognize an institution or establishment or a particular course being conducted by them, even if they are recognized as a university, a deemed university or an affiliated college. If an institution or establishment is derecognized, then such institution or establishment cannot be called to be an institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by the law for the time being in force. With the result, the courses conducted would fall under the ambit of ‘commercial training or coaching centers’ and would be charged to tax. It may however, be noted that for exercising such power, there should be a valid rule / notification / circular, prescribing the minimum requirements or standards as also the consequences of default.

3.4 All India Council for Technical Education-AICTE, was started in 1945 with the objectives stated above. Based on the recommendations of a ‘National Working Group’ (constituted by the Government of India) that AICTE be vested with the necessary statutory authority, it was given legislative support through an Act, called the AICTE Act, 1987. AICTE, using the powers conferred on it through 1987 Act, issued the ‘AICTE (Grant of Approval for Starting New Technical Institutions, Introduction of Courses or Programme and Approval), Regulation 1994. Theses were amended in the years 1997 and 2000. Under Regulation 4 (Requirement of Grant of approval) of these Regulations, AICTE prescribed that,-

“After the commencement of these regulations,-

a. No new Technical Institution or University Technical Department shall be started; or

b. No course or programme shall be introduced by any Technical Institution, University including a Deemed University or University Department or Collage; or

c. No Technical Institution, University or Deemed University or University Department or College shall continue to admit students for Degree or Diploma course; or

d. No approved intake capacity of seats shall be increased or varied;

Except with the approval of the council.

The powers to issue regulations for approval are conferred on AICTE under Section 23 read with Section 10 of the AICTE Act.

3.5 In 2003, when service tax was first imposed on commercial training and coaching centers, the AICTE regulations required that for (a) starting or establishing new technical institutions; (b) introduction of additional programmes; or (c) increase in ‘intake’ in the existing programmes of AICTE approved institutions, a ‘no objection certificate’ from the concerned State government /UT would be required (notification F.37-3/Legal (iii)/2002 dated 10.09.2003). This notification does not prescribe any certification for existing institutes or establishments, which did not introduce any additional programme or did not increase in ‘intake’ in an existing programme. Thus, at that stage, not having a AICTE approval for such existing institution or establishment did not make them ineligible for being an institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by the law for the time being in force. Thus, if otherwise recognized or accepted, this sole reason of absence of AICTE approval did not cause such institutions or establishments to be within the service tax net. On 6.01.2005, vide notification No. F.37-3/Legal/2004, the previous AICTE Regulations was replaced by new Regulations. These Regulations expanded the scope and stated (Regulation No. 5) that no new technical institution of the Government, Government Aided or Private institution shall be introduced; no new courses or programs in technical education shall be introduced or no variation of intake shall be effected or no existing technical institution of the Government, Government Aided or Private institution shall conduct any technical course without prior approval of the council. The Regulation No. 7 of these Regulations also stated that the council shall, in every year publish the names of approved technical institutions, conducting course in technical education, the course and programs approved by the council and the number of seats permitted for each course etc. These Regulations were again superseded by another set of Regulations issued vide Not. No. F-37-3/Legal/2004 dated 28.11.2005, where the requirement of grant of approval by AICTE was further elaborated to specifically include universities, deemed universities and any admission authority etc. Vide notification No. F-2-1/2006 U.3 (A) dated 5.04.2006 the Central Government issued clarification regarding the role and the powers of AICTE and UGC with respect to ‘Deemed to be University’. From the above it emerges that from the year 2005 onwards, a technical institution or establishment (which is otherwise recognized being a university, or affiliate college) not having AICTE approval cannot be called to be the one issuing any certificate or diploma or degree or any educational qualification recognized by the law for the time being in force and thus be within the ambit of service tax. However ‘Deemed to be University’ have been exempt from this requirement. As per the said notification for the institutes ‘Deemed to be University’, it is not a pre-requisite to obtain the approval of AICTE to start any programme in technical or management education leading to an award, including degrees in disciplines covered under the AICTE Act, 1987. However, such institutes are required to ensure the maintenance of the minimum standards prescribed by the AICTE for various courses under the jurisdiction of the said council.

3.6 Similar would be the situation in case of other Statutory Councils.

3.7 A related issue is, that since the concept of recognition of an educational qualification in India has been dynamic in nature (i.e. the degree/ diploma/ certificate an institute or establishment may be recognized by the law at one time and not recognized at other, due to change in legal provisions) the taxability of the courses conducted would depend on the legal status of such institute or establishment at the point of time when such service is provided (i.e. course is conducted). It cannot be said that once recognized an institute or establishment would remain so even in future or was so in the past.

3.8 Many a time private institutes conduct courses and issue diplomas or certificates in collaboration with certain foreign institutes universities. In many cases private enterprises conduct campus interviews of the students of such institutes and offer them jobs. Such certificates / diplomas may be accepted for higher education abroad. However, such a certificate / diploma cannot be called as the one ‘recognized by the law for the time being in force’ unless such a diploma/ certificate has been specifically recognized by the statutory authorities such as UGC, AICTE. Consequently, such institutes would not fall under the exempted category and would be subjected to tax.

4. VOCATIONAL TRAINING INSTITUTE

The vocational training institutes are exempted from service tax vide notification no. 24/2004-ST, dated 10.09.2004 (as amended). By definition, such institutes should provide training or coaching that imparts skill to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching. Disputes have arisen in respect of institutes that offer general course on improving communication skills, personality development, how to be effective in group discussions or personal interviews, general grooming and finishing etc. It is claimed that such training or coaching improves the job prospects of a candidate and therefore they are eligible for exemption as ‘vocational training institutes. However, a careful reading of the definition shows that the exemption is available only to such institutes that impart training to enable the trainee to seek employment or self-employment. The courses referred to above do not satisfy this condition because on their own such courses do not prepare a candidate to take up employment or self-employment directly after such training or coaching. They only improve the chances of success for a candidate who already has the required skill. Therefore, such institutes are not covered under the exemption.

5. CONCLUSION

All pending cases may be disposed of accordingly. In case any difficulty is faced in implementing these instructions, the same may be brought to the notice of the undersigned.

(Gautam Bhattacharya)

Commissioner (Service Tax)

CBEC, New Delhi

Rate of Daily Allowance for staff side member of JCM

Three IAF pilots die in test flight crash near Bangalore

IANS
BANGALORE: Three Indian Air Force (IAF) test pilots died Friday when the prototype aircraft Saras of the state-run National Aerospace Laboratories (NAL) crashed near Bidadi, about 30 km from Bangalore, IAF sources said."The Saras aircraft, which took off from the HAL airport in the city at 2.55 p.m. on a test flight, crashed around 4.05 p.m. in a field near Bidadi on the outskirts of the city. The Bangalore rural police told us all the three pilots died after the aircraft caught fire," an official of the IAF's aircraft systems & testing establishment (ASTE) told IANS on phone.The deceased pilots were Squadron Leader Ilairaj, Wing Commander Praveen and Wing Commander Shah.The 14-seater multi-role Saras is an indigenous aircraft, designed and developed by the Bangalore-based NAL for use by the military and civil aviation sector. NAL is a constituent of the Council of Scientific and Industrial Research (CSIR)."The new version of the aircraft was on a regular test flight. It had a smooth take-off from the HAL runway where ASTE is located. About an hour later, the aircraft lost contact with our air traffic control (ATC). We learnt about the crash from the police," the official said on condition of anonymity.The IAF has rushed a rescue team by helicopter to the crash site.With NAL director A.R. Upadhya away in Hyderabad, officials associated with the Saras project declined to comment, saying only the director was authorised to speak to the media."The director is rushing back to Bangalore from Hyderabad. We will get back with details," a NAL official said.

Allotment of Government Residences- Entitlement as per 6th pay Commission

TIPS FOR BOOKING RESERVED TRAIN TICKET IN ADVANCE - PIB Release

A reserved ticket may be booked for any train on the Indian Railways network from any originating station to any destination (subject to distance restrictions and availability of quotas) at any of the Computerised Reservation Centre, across the country. Tickets for onward and return journey may also be booked from any Computerised Reservation Centre.

Tickets may be got reserved 90 days in advance, excluding the date of journey at the rain originating station. At intermediate stations where the train arrives the following day, reservation can be done 91 days in advance. In the case of some intercity day express trains, the advance reservation period is less.

The reservation status will be clearly indicated in the ticket. The status can be either confirmed or RAC or waitlisted or combination thereof. If the ticket is confirmed, coach and berth numbers will be mentioned on the ticket in all classes other than First Class and AC First Class. In case of First Class and AC First Class, the word “Confirmed” will be printed alongside the class of travel. If the ticket is in RAC (Reservation against Cancellation)/Waitlisted status, the same will be mentioned on the ticket. As passenger holding an RAC ticket can board the train. He will be provided with sitting accommodation initially and allotted a berth (in case of passengers not turning up) in the train. Waiting list passengers are not supposed to board the reserved compartment.

While every effort is made to ensure a comfortable, hassle-free journey, Indian Railways are not liable to compensate a passenger due to non-provision of reserved accommodation or for any losses suffered due to late running of trains and other such unintended eventualities which are not willful or deliberately perpetrated.

For the convenience of the passengers, Indian Railways have exclusive counters where they can reserve their tickets through credit card. This facility is presently available only at important Computerised Reservation Centres. A additional service charge of Rs. 30/- is levied when reservation of tickets is done on a credit card.

Reserved tickets can be booked through mobile phones also. The procedures for booking is similar to that of booking tickets through internet. For details, the website www.irctc.co.in may be visited.

Tickets may be booked through the authorized Rail Travellers’ Service Agents (and Railway Tourist Agents), on payment of prescribed charges. No separate reservation quotas have been assigned to these agents and their staff has to take their turn in the queue at the Reservation office for purchasing rickets like any other passenger. Addresses and phone numbers of these Travel Agents can be obtained from the Station Managers.

Central secretariat Service Rules 2009 Notified

Building cost index w.e.f 1/10/2008

Vacancy at IIIT Allahabad, Last date 27/3/2009

CAT comes to aid of whistleblower

Hiral Dave, Rajkot

Says Central Vigilance Commission bowed to influence, failed to protect officer who blew the cover

In a strongly worded order, the Central Administrative Tribunal (CAT) has slammed the Central Vigilance Commission (CVC) for bowing to the “influence of the powers that be”, and for failing to protect an officer who blew the whistle on a multi-crore land scam at the Kandla Port Trust (KPT).

The whistleblower, Manoj Ranjan Kumar, an IES officer, was deputy chairman at KPT. He had to fight a year-long legal battle after he prepared a confidential report exposing a land scam involving top KPT officials.

It related to 1,000 acres of land belonging to KPT, given free to private companies for use without charging any amount as lease. At the heart of the controversial deal was a salt company operating from the KPT land without paying a penny to the government. The total loss suffered by KPT on this account was estimated to be over Rs 190 crore per annum, which, interestingly, exceeded even the port trust’s annual turnover of Rs 180 crore.

With the lid off the scam, Kumar was ordered to go on leave for three months in January 2008, along with the then chairman Janardhan Rao and three other senior officers. The shipping ministry ordered a CBI inquiry but Kumar, on his part, moved the CVC with his report and documents. The CVC did nothing.

In August 2008, the CAT ordered Kumar to be repatriated to KPT, but the shipping ministry issued no orders to enable him to join back. So, Kumar approached the CAT again. Since then, he has been without a posting, and no salary.

In its 113-page order, the CAT has now asked the shipping ministry to pay a token fine of Rs 25,000 and compensation of Rs 25,000 to the officer, while indicting it for harassing Kumar.

The CAT order says that removing the officer from KPT by the ministry was done as ‘a substantial number of people, wielding power, felt threatened and insecure on account of the reports he had made of the scam’.

Now the CBI is investigating the scam, but three important files prepared by Kumar that are considered capable of leading to the prosecution of the higher ups are missing. A police complaint was filed on this account by the KPT but no one was arrested.

A saga of harassment, injustice; says CAT
“None of the reports submitted by the applicant is false, yet the ministry had the audacity to state that instead of devoting his time to the development of the port, he was making frivolous complaints. In our view, he has been meted great injustice. Facts of the case do clearly reveal his agony, harassment and humiliation. We are of the view that he deserves cost which we here by quantify at Rs 25,000. Even this cost may not compensate him in view of marathon litigation forced upon him,” the CAT order says.

The CAT's indictment of CVC
“If the reply would have been filed by the CVC, we are of the view that it would have no choice, but to support the case of the applicant. We may also draw an inference that it is because of the influence exerted by the powers that be that CVC has not filed a reply. We are distressed to note that the applicant, because of his bold stand exposing misdeeds, corruption and irregularities, instead of being protected by the system, had in fact been victimised. The applicant, in our view, required the protection of CVC. If the system may not protect the applicant, in our considered view, the court must come to his rescue. Otherwise, no whistleblower will ever dare to expose corruption. A whistleblower without protection, where higher ups may be involved, may always be a victim himself,” the CAT order said.

Sreelatha Menon: Researchers sans borders

A global net-based project for finding a new TB drug sets the pace for research into poor man's diseases that don't attract big money.

Call it Science 2.0 or merely science without borders. What the Department of Science and Technology (DST) of the government of India has devised to tackle lack of adequate research into drugs for key diseases amounts to just that.

Drugs and diseases are split into haves and have-nots when it comes to attracting funds for research. So, while 399 drugs for treating cancer are under development and a total of 136 drugs are being developed for cardio-vascular conditions, only six drugs have been developed for tuberculosis (TB), which affects a third of the global population. And all of these six drugs were discovered in 50s and 60s. The reason for this is that a poor man’s disease fetches little money and a TB drug with a $300-million market does not lure drug companies, which won’t invest anything in a market that is worth less than a billion dollars, say scientists.

So, the DST’s Council of Scientific and Industrial Research (CSIR) is resorting to open source drug research for TB through its Open Source Drug Discovery (OSDD) Project. It has created a web-based platform that taps scientists, students and researchers across the world, creating a global laboratory that is as fenceless as a paddy field, as its mentor, Dr Samir Brahmachari, director-general of CSIR and former director of Institute of Genomics and Integrative Biology (IGIB), puts it.

The Rs 150-crore OSDD project has so far registered 700 participants from 130 cities. About 56 live projects are visible on the site today. One of the key components of the portal is SysBorg (Systems Biology of Organisms), a wiki-based collaborative research environment where ideas can be shared and project results recorded in an open-lab notebook. Today, SysBorg hosts the largest database on Mycobacterium Tuberculosis, the TB bacteria, thanks to the OSDD’s community laboratory.

Dr Anshu Bharadwaj, a scientist at the IGIB, recently published results of one of the projects completed in collaboration with students and researchers from across the country. The project decoded 400 of the 4,000 genes of Mycobacterium Tuberculosis.

A lone researcher can take years to do it, but she, along with 12 students from Vellore, Chennai, New Delhi and Faridabad has already published the findings on the site, which was launched only last September. Now, someone will validate these against various compounds.

Another researcher has published the targets for some of the genes, that is, areas which are to be targeted with compounds to eliminate the bacteria without harming the human host. Yet another project has shortlisted compounds that are to be tested against the biological targets. Normally, these happen in a linear fashion, points out Bharadwaj. But here, everything is happening simultaneously and so the road to success or failure may be shortened, she says.

Projects are being posted by people from institutes ranging from National Institute for Health in the US, Institute of Life Sciences, Hyderabad, to Chennai’s Anna University. There are 56 live projects online attracting students and researchers.

The CSIR now plans to adopt 30 colleges, whose infrastructure will be upgraded and whose students will work on new experiments required for its project, rather than repeating the experiments being done at their colleges for decades.

The CSIR is thrilled at the prospect of creating a new generation of trained research manpower. Before many of these researchers complete their graduation, they would have publications in their name, some a gene in their name, and so on.

Science can’t get younger than that.

Courtesy: Business standard

MINISTRY OF SCIENCE AND TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO 524 ANSWERED ON 24.02.2009 PAY SCALES (S.O-NFS) IN CSIR

Will the Minister of

SCIENCE AND TECHNOLOGY

be pleased to state:-

(a) whether the CSIR has been taken into consideration the modifications and clarifications made by the Government in the date of adoption of the scheme granting Non-functional pay scale of Rs. 8000-13500 to the Section Officers; (b) if so, the details of implementation of the scheme by CSIR; (c) whether the said scheme is not being implemented in accordance with the approvals granted by the Government; (d) if so, the reaction of the Government thereto and the steps being taken to ensure proper implementation of the scheme by CSIR; (e) whether any complaints have been received by the Government regarding tardy i mplementation of the Scheme and against the spirit of the Government approvals thereto; (f) if so, the details thereof; and (g) if not, the time by which the scheme is likely to be implemented ?

ANSWER

MINISTER OF SCIENCE AND TECHNOLOGY AND MINISTER OF EARTH SCIENCES (KAPIL SIBAL) (a) No Sir, as the scheme formulated by Department of Personnel and Training was specific to Section Officers of Central Secretariat Services, Ministry of Finance, Department of Expenditure did not agree to extend it. (b) The Non Functional Scale of Rs 8000-13500 was implemented in respect of Section Officers w.e.f. 03.10.2003, based on the approval given by the Governing Body of CSIR in its 166th meeting held on 16.02.2006 and the decision dated 17.05.2007. (c) Ministry of Finance, Department of Expenditure, did not agree to extend Non Functional Scale to the CSIR as the scheme was specifically formulated by Department of Personnel and Training for Section Officers of Central Secretariat Services. (d) The issue regarding grant of Non Functional Scale to the Section Officers was taken up with Ministry of Finance, Department of Expenditure both formally and informally and it was not agreed to by the Government. (e & f) Yes Sir. Representations from the employees and references from Director Central Institute of Medicinal & Aromatic Plants (CIMAP), Lucknow and Hon’ble Members of Parliament were received for implementing the Non Functional Scale of Rs 8000-13500 notionally from 1.1.1996 with actual benefit from 3.10.2003. Details of same are given in Annexure I. (g) In view of the observations of Ministry of Finance, Department of Expenditure, Non Functional Scale of Rs 8000-13500 could not be extended notionally wef 01.01.1996.

Credit/Debit Card transactions-Security Issues and Risk mitigation measures -RBI

RBI/2008-2009/387
RBI / DPSS No. 1501 / 02.14.003 / 2008-2009	February 18, 2009
The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks /. District Central Co-operative Banks
Madam / Dear Sir
Credit/Debit Card transactions- Security Issues and Risk mitigation measures
The use of Credit/Debit Cards has been increasing in the country. We have been reviewing various options to enhance the security of online card transactions. After extensive consultations with banks/card companies, it has been decided as under: 2. It would be mandatory to put in place with effect from August 01, 2009: i) A system of providing for additional authentication/validation based on information not visible on the cards for all on-line card not present transactions except IVR transactions (for which separate instructions will follow). ii) A system of "Online Alerts" to the cardholder for all 'card not present' transactions of the value of Rs. 5,000/ and above. 3. Banks are advised to strictly adhere to the instructions and time discipline indicated in this circular. Non-adherence to the directives shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007). 4. This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). 5. Please acknowledge receipt.
Yours faithfully
(G. Padmanabhan)
Chief General Manager

Age limit for dependent children of government servants for avaling medical facilities- GoI OM Dt 25th Feb,2009

Advertisment of Vacancy by Autonomous Organisation

Deputation of Central Government Employees to ex-cadre posts under Central/State Governments and on Foreign Service to Central/State PSUs/AB

DAVP Advertisement Rates Hiked

The Ministry of Information & Broadcasting has enhanced the existing rates for the DAVP advertisements. The revision of advertisement rates was under consideration of the Ministry on the demand of captains of media industry. The Ministry had taken up the matter with the Ministry of Finance, which has now given its concurrence for the following fiscal stimulus package for the Print Media:

(i) Waiver of 15% Agency Commission on DAVP advertisements till 30th June, 2009.

(ii) 10% increase in the current DAVP rates (to be paid as a separate element and designated as ‘special relief’) subject to documentary proof of loss of revenue in non-governmental advertisements as compared with the same period last year. This would also be available only till 30th June 2009.

New Millennium Indian Technology Leadership Initiative (NMITLI) Scheme -PIB

As a part of New Millennium initiative, the Government mounted a farsighted R&D Programme named ‘New Millennium Indian Technology Leadership Initiative (NMITLI)’ in Public-Private Partnership mode in 2000-01. The programme was announced as part of the Union Budget in the year 2000. The responsibility of conceptualizing, evolving and implementing the programme has been assigned to the Council of Scientific & Industrial Research (CSIR).

The trigger for NMITLI programme was:

• From incremental innovation to disruptive innovation;

• Tolerance for risk taking and failure;

• Best minds in India to take up the grand challenge for collaborative excellence; and

• Technology leadership.

The NMITLI focus is to:

• identify niche areas where India can gain leadership in about 10-15 years;

• develop projects involving best brains of the country through a rigorous process;

• build knowledge network of partners from public funded institutions and private industries;

• develop new methods of working together for collaborative excellence;

• focus on proof-of-concept; and

• provide a pipeline of cutting edge Indian innovation for conventional technology financing bodies as against the ‘usual safe bets.

Today, the New Millennium Indian Technology Leadership Initiative (NMITLI) is the largest public-private-partnership effort within the R&D domain in the country. It looks beyond today’s technology and thus seeks to build, capture and retain for India a leadership position by synergising the best competencies of publicly funded R&D institutions, academia and private industry. The Government finances and plays a catalytic role. It is based on the premise of consciously and deliberately identifying, selecting and supporting potential winners. NMITLI has carved out a unique niche in the innovation space and enjoys an excellent reputation.

NMITLI has so far evolved 57 largely networked projects in diverse areas viz. Agriculture & Plant Biotechnology, General Biotechnology, Bioinformatics, Drugs & Pharmaceuticals, Chemicals, Materials, Information and Communication Technology and Energy. These projects involve 80 industry partners & 270 R&D groups from different institutions. Approximately 1700 researchers are engaged in these projects. These 57 projects cumulatively have had an outlay of approximately Rs. 500 crore.

NMITLI Achievements:

The programme has generated about 100 international patents and 150 publications in peer reviewed journals. The important achievements are:

• Paradigm shift in leather processing-From chemical to biochemical route

• Pilot plants for separating cellulose, hemi-cellulose and lignin from bagasse

• Pilot plants for producing lactic acid from sugarcane juice

• Bio-informatics software viz. Bio-Suite, GenoCluster, Bio-SuiteC and Darshee

• Developed three variants of SofComp (Simple office Computer) devices including Mobilis

• Anti-psoriasis formulation in Phase-III Clinical Trial

• Lysostaphin in Phase-II Clinical Trial

• Anti-tuberculosis molecule in Phase-II Clinical Trial

• poly herbal formulations for diabetes, arthritis and hepatic disorder

• Micro-PCR based immuno-diagnostics for detecting eye infections

• Development of new plant varieties of Mentha piperita

• Development of Triple-Play broadband technology

Key components of CCEA Note:

Enthused by the success of the programme and on the recommendations of several committees, Government has approved the expansion of NMITLI programme to experiment newer models of innovation development. The key components of the proposal are:

Funding along with industry (50:50 Initiative)

There are many Indian companies who are doing financially very well but do not have the necessary expertise and intellectual resources to develop focused network projects for development of technologies/products in their line of activities. Their efforts need complementation from suitable R&D institutions and guidance from recognized peers to develop and commercialize newer technologies/products. Therefore, NMITLI will leverage its experiential base to encourage and assist such companies for developing network projects for those companies in product/technology development through a specific scheme called ‘NMITLI 50:50 initiative’.

Co-financing with Venture Capital funds

Many venture capitals are limited in scope and risk taking, due to lack of domain knowledge within the organization. Venture Capitals are therefore interested in joining hands with NMITLI, which has strong domain knowledge base, to jointly finance projects. Such projects would be identified and evolved following the procedures established by NMITLI. The funding would be joint with pre-determined ratio, but not more than 50% contribution from NMITLI. These projects are envisaged to be monitored by a joint team of experts as per the NMITLI monitoring mechanism. The proposed funding would follow the venture funding norms. The successes and failures resulting from the projects will be shared on equitable basis.

Setting up of NMITLI innovation centres in selected areas for long term sustained efforts

Some areas need long term sustained support with requisite human resource as well as infrastructure, assembled at one place to cross the threshold of intellectual barrier in order to generate globally competitive technologies and products, IPR, and high quality publications. It is envisaged to set up ‘NMITLI Innovation Centres’ in PPP mode for sustained efforts in some selected areas for example, Photovoltaics, Fuel Cells, White LEDs, Industrial Enzymes, Medical Implants, Vaccine development, Seed Development etc.

Support to post NMITLI projects

Despite the excellent R&D and developments, the technologies and products developed in the laboratory do need market seeding, pilot plant studies to refine the development. The companies need CSIR’s hand holding to develop and package the technologies/products further. The concept of ‘Post-NMITLI’ will fulfill the objective of providing financial and technical assistance for pre-commercialization related activities such as scale up, pilot plants, field trials, market seeding of products, market surveys, etc.

Acquisition of early stage relevant knowledge / IP for portfolio building

External ideas / leads / IP acquisition are assuming greater significance in the chain of innovation and mind to market. The availability of a large number of unencumbered IP (being developed in several laboratories globally) is providing a fillip to this approach. Several countries across the globe are striving to take advantage of the diversity of creativity available in different parts of world and integrate with its own developments to bring out new products / processes for global competitiveness. Since NMITLI aims to provide the Technological Leadership to the Indian industry, it becomes imperative for NMITLI to adopt such practices to achieve its objectives. Such acquisitions shall be in chosen areas with a view to creating a portfolio where NMITLI projects are in operation.

Crossing the geographical boundaries

It is increasingly being felt that to achieve leadership in niche technology areas, relying totally on internal expertise and capabilities may not be adequate. To achieve the objective of global leadership, it would be helpful to broaden the programme by bringing in international expertise. The international expertise may be in the form of expert advise of international experts at various stages of project development and implementation, involving international companies for product/technology development and commercialization at global scale, and engaging research institutions and/or CROs across the globe where Indian expertise need outside complementation.

Joint development and support of projects with other departments of science and technology as well as economic ministries

Many government departments are engaged in research and development activities in areas of relevance to them. These activities often have considerable degree of overlap with other scientific departments. However, these departments’s expertise is limited to undertake multi-disciplinary projects in cutting edge areas requiring wide-spectrum of intellectual and infrastructural inputs. Such multi-disciplinary areas need expertise, inputs and concerted efforts from all concerned government departments to generate IPR, technologies and products besides high quality publications. Therefore, part of the NMITLI funds will be utilized to generate inter-departmental projects in the XI FY Plan. The proposed scheme apart from generating intellectual capital, technologies and products in cutting edge areas would act as a catalyst to bring better co-ordination among various departments of government in the R&D sphere.

Relaxing the condition of more than 50% shareholding by Indians/Non-resident Indians

Many oversees companies through their R&D efforts using local resources, produce goods for local as well as overseas consumption and are thus contributing to the growth of Indian economy. They also employ Indian workforce. In some areas, such companies are better equipped to upscale the technology/products and sell it under their brand name. Further, they can become a vehicle for taking Indian technologies and products into global market easily thereby contributing more to Indian economy. The provision permits relaxation of the condition of more than 50% shareholding by Indians/Non-resident Indians to become an industrial partner in NMITLI projects.

Flexibility to convert loan into equity

Launching a new product or setting a knowledge based new venture requires investment on many fronts particularly for capital-intensive infrastructure, manpower, technology costs, working capital etc. Governments all over the world, particularly in developed countries endeavor to support entrepreneurs in different ways to ease the burden of initial investment. The industrial partner under NMITLI has to invest for commercialization of technology/products and at the same time has to return the loan to CSIR albeit in installments. This burden of loan repayment can be further reduced by converting loan into equity. Therefore, with this provision and on the request of industrial partner, loan given to it may be converted into equity.

Advantages of NMITLI Expansion:

As others are emulating, NMITLI is endeavoring to position higher in the innovation development. The proposal will therefore:

 enable CSIR to experiment newer models of innovation development in Public-Private-Partnership (PPP) mode, which could later become models for others to emulate;

 encourage to develop products / processes based on innovation and thereby help Indian industry emerge as a technology leader in the identified domain;

 encourage venture capital funds to venture into more risky R&D areas;

 act as a catalyst to bring better co-ordination among various departments of government in the R&D sphere and avoid unnecessary duplication, apart from generating intellectual capital, technologies and products in cutting edge areas; and

 enhance national competitiveness.