Introduction Sources of law Constitution of India Preamble to the Constitution Fundamental Rights Fundamental Duties Indian Judiciary System Criminal Law Civil Procedure Code Family Law Indian Contract Act 1872 Sale of Goods Act 1930 Industrial Disputes Act 1947 Minimum wages Act 1948 Factories Act 1948 Consumer Protection Act 1986 Trademarks Act 1999 Right To Information Act 2005 Companies Act 2013 Black Money Act 2015

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INDIAN LEGAL
SYSTEM

2. INDEX
Sl.
No
Topic Page
Number
1 Introduction 3
2 Sources of law 3
3 Constitution of India 3
4 Preamble to the Constitution 4-5
5 Fundamental Rights 6
6 Fundamental Duties 7
7 Indian Judiciary System 8-9
8 Criminal Law 10
9 Civil Procedure Code 10
10 Family Law 10
11 Indian Contract Act 1872 11
12 Sale of Goods Act 1930 11
13 Industrial Disputes Act 1947 11
14 Minimum wages Act 1948 12
15 Factories Act 1948 12
16 Consumer Protection Act 1986 12-13
17 Trademarks Act 1999 13
18 Right To Information Act 2005 13-14
19 Companies Act 2013 14
20 Black Money Act 2015 14
21 Conclusion 15

3. INDIAN LEGAL SYSTEM
Indian legal system is inherited from the legal system introduced by the British during their
colonial rule in India. It can be said that Indian legal system is based on English common law
except in Goa, Daman and Diu and Dadra and Nagar Haveli which follows Civil law system
based on the Portuguese Civil Law.
Ancient India had a sort of legal system during the Bronze Age and the Indus Valley
Civilization. The evolution of Indian law may be classified as that during the Vedic Period,
the Islamic Period and the British period and post independence. The Arthashastra (400BC)
and Manusmriti (100AD) were considered as authoritative legal guidance in India. But with
the arrival of British Raj system, Hindu and Islamic law were abolished for introducing British
Common law system in India.
SOURCES OF LAW
CONSTITUTION OF INDIA
The Constitution of India is the lengthiest written constitution in the world and came in to
effect on 26th January 1950. The Constitution of India is federal in nature but unitary in
spirit. It is the document which makes the government systems work. It lays down the
framework defining fundamental political principles, establishes the structure, procedures,
powers and duties of government institutions and sets out fundamental rights, directive
principles and the duties of citizens. It contains 395 articles and 12 schedules, as well as
numerous amendments, for a total of 1, 17,369 words in the English language version.
PRIMARY
•Customs
•Legislature
•Ordinances
SECONDARY
•Common Law
•Law of Merchants
•Case Laws

4. PREAMBLE TO THE CONSTITUTION OF INDIA
The 'Preamble' to the Constitution of India is a brief introductory statement that sets out
the guiding purpose and principles of the document. The hopes and aspiration of the people
as well as the ideals before our nation are described in the preamble in clear cut words. It
may be considered as the soul of Constitution. The preamble can be referred to as the
preface which highlights the essence of the entire Constitution. It was adopted on 26th
November 1949 by the Constituent Assembly and came into effect from 26th January, 1950.
The Preamble reflects the philosophy as well as fundamental values of Indian Constitution.
It clarifies four important aspects
1. It mentions that the Constitution derives its Authority fromthe people of India
2. It declares India to be sovereign, socialist, secular, and democratic and republic
country.
3. It clarifies the objectives of the Constitution are Justice, Liberty, Equality and
Fraternity.
4. It states the date of Adoption i.e., 26 November 1949

5. These are the opening words of the preamble to the Indian Constitution:
“
WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a
SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to all its
citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity;
and to promote among them all
FRATERNITY assuring the dignity of the individual and the unity and integrity of the
Nation;
IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do
HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION. ”

6. FUNDAMENTAL RIGHTS
The Fundamental Rights are defined as basic human freedoms that every Indian citizen has
the right to enjoy for a proper and harmonious development of personality. These rights
universally apply to all citizens, irrespective of race, place of birth,
religion, caste or gender. The nine fundamental rights recognized by the Indian constitution
are:
1. Right to equality: Which includes equality before law, prohibition of discrimination
on grounds of religion, race, caste, gender or place of birth, and equality of
opportunity in matters of employment, abolition of untouchability and abolition of
titles?
2. Right to freedom: Which includes speech and expression, assembly, association or
union or cooperatives, movement, residence, and right to practice any profession or
occupation (some of these rights are subject to security of the State, friendly
relations with foreign countries, public order, decency or morality), right to life and
liberty, right to education, protection in respect to conviction in offences and
protection against arrest and detention in certain cases.
3. Right against exploitation: Which prohibits all forms of forced labour, child labour
and traffic of human beings
4. Right to freedom of religion: Which includes freedom of conscience and free
profession, practice, and propagation of religion, freedom to manage religious
affairs, freedom from certain taxes and freedom from religious instructions in
certain educational institutes.
5. Cultural and Educational rights: Preserve the right of any section of citizens to
conserve their culture, language or script, and right of minorities to establish and
administer educational institutions of their choice.
6. Right to constitutional remedies: Which is present for enforcement of Fundamental
Rights.
7. Right to life: Which gives the right to live with human dignity. This includes rights
such as right to education, health, shelter and basic amenities that the state shall
provide.
8. Right to education: It is the latest addition to the fundamentals rights.
9. Right to Information: RTI stands for Right To Information and has been given the
status of a fundamental right under Article 19(1) of the Constitution.

7. FUNDAMENTAL DUTIES
The Fundamental Duties of citizens were added to the Constitution by the 42nd
Amendment in 1976, upon the recommendations of the Swaran Singh Committee that was
constituted by the government earlier that year. Originally ten in number, the Fundamental
Duties were increased to eleven by the 86th Amendment in 2002, which added a duty on
every parent or guardian to ensure that their child or ward was provided opportunities for
education between the ages of six and fourteen years. The other Fundamental Duties
obligate all citizens to respect the national symbols of India, including the Constitution, to
cherish its heritage, preserve its composite culture and assist in its defence.
The Fundamental Duties noted in the constitution are as follows:
—It shall be the duty of every citizen of India —
 to abide by the Constitution and respect its ideals and institutions, the National Flag and
the National Anthem;
 to cherish and follow the noble ideals which inspired our national struggle for freedom;
 to uphold and protect the sovereignty, unity and integrity of India;
 to defend the country and render national service when called upon to do so;
 to promote harmony and the spirit of common brotherhood amongst all the people of
India transcending religious, linguistic and regional or sectional diversities; to renounce
practices derogatory to the dignity of women;
 to value and preserve the rich heritage of our composite culture;
 to protect and improve the natural environment including forests, lakes, rivers and wild
life, and to have compassion for living creatures;
 to develop the scientific temper, humanism and the spirit of inquiry and reform;
 to safeguard public property and to abjure violence;
 to strive towards excellence in all spheres of individual and collective activity so that the
nation constantly rises to higher levels of endeavour and achievement;
 who is a parent or guardian to provide opportunities for education to his child or ward,
as the case may be, between the age of six and fourteen years

8. INDIAN JUDICIARY SYSTEM
The Indian Judiciary administers a common law system of legal jurisdiction, in which
customs, precedents and legislation, all codify the law of the land. The Constitution of
India is the supreme legal document of its jurisdiction which extends throughout the
territory of the country. It has in part, inherited the legacy of the legal system established by
the then colonial powers and the princely states since the mid-19th century, and has partly
retained characteristics of practices from the ancient and medieval times.
There are various levels of judiciary in India – different types of courts, each with
varying powers depending on the tier and jurisdiction bestowed upon them. They form a
strict hierarchy of importance, in line with the order of the courts in which they sit, with
the Supreme Court of India at the top, followed by High Courts of respective states with
district judges sitting in District Courts and Magistrates of Second Class and Civil Judge
(Junior Division) at the bottom. Courts hear criminal and civil cases, including disputes
between individuals and the government. The Indian judiciary is independent of
the executive and legislative branches of government according to the Constitution.
SUPREMECOURT OF INDIA
On 26 January 1950, the day India's constitution came into force; the Supreme Court of
India was formed in Delhi. The Supreme Court of India comprises the Chief Justice and 30
other Judges appointed by the President of India, as the sanctioned full strength. Supreme
Court Judges retire upon attaining the age of 65 years. In order to be appointed as a Judge
of the Supreme Court, a person must be a citizen of India and must have been, for at least
five years, a Judge of a high court or of two or more such Courts in succession, or an
advocate of a high court or of two or more such Courts in succession for at least 10 years or
he must be, in the opinion of the president, a distinguished jurist. Provisions exist for the
appointment of a Judge of a high court as an ad hoc judge of the Supreme Court and for
retired judges of the Supreme Court or High Courts to sit and act as Judges of that Court.
HIGH COURT
There are 29 High Courts at the State level. These courts have jurisdiction over a state, a
union territory or a group of states and union territories. Below the High Courts are a
hierarchy of subordinate courts such as the civil courts, family courts, criminal courts and
various other district courts. High courts are instituted as constitutional courts under Part VI,

9. Chapter V, Article 214 of the Indian Constitution. Judges in a high court are appointed by the
President after consultation with the Chief Justice of India, Chief Justice of High Court and
the governor of the state. The number of judges in a court is decided by dividing the average
institution of main cases during the last five years by the national average, or the average
rate of disposal of main cases per judge per year in that High Court, whichever is higher.
DISTRICT COURT
The District Courts of India are established by the State governments in India for every
district or for one or more districts together taking into account the number of cases,
population distribution in the district. They administer justice in India at a district level.
These courts are under administrative control of the High Court of the State to which the
district concerned belongs. The decisions of District court are subject to the appellate
jurisdiction of the concerned High court. The district court is presided over by one District
Judge appointed by the state Government. In addition to the district judge there may be
number of Additional District Judges and Assistant District Judges depending on the
workload.

10. CRIMINAL LAW
The judicial system is essentially divided into two types of cases: Civil and Criminal. Indian
criminal law is the law relating to criminal conduct in India. Indian Criminal Laws are divided
into three major acts i.e. Indian Penal Code, 1860, Code of Criminal Procedure,
1973 and Indian Evidence Act, 1872. Besides these major acts, special Criminal Laws are also
passed by Indian Parliament i.e. NDPS, Prevention of Corruption Act, Food Adulteration Act,
Dowry Prevention Act, the Defence of India Act, etc. thousands of minor laws are made in
India. Indian Penal Code (IPC) was passed under the chairmanship of Lord Macaulay and was
enforced in 1862, Lord Macaulay issued clarification for the people of India for
implementation of this Code, because people were of the view that rule of Capital
Punishment will be misused against them. Further more people were against foreign rule on
Indian people.
CIVIL PROCEDURE CODE
The Code of Civil Procedure, 1908 is a Procedural Law related to administration of Indian
civil procedure. A study of civil procedure is a study of procedures that apply in cases that
are not criminal. Civil trials can be used by anyone to enforce, redress, or protect their legal
rights through court orders and monetary awards. It lays down procedure of filing the civil
case, powers of court to pass various orders, court fees and stamps involved in filing of case,
jurisdiction & parameters of civil courts functioning, specific rules for proceedings of a case,
right of appeals, review or reference.
INDIAN FAMILY LAW
Family law in India is rather unique as it needs to be very specific to the various religions
that are practiced in India. Family Law if described in one line is a branch of law that deals in
'making or breaking of any family.' In other words, all the legal disputes arising in any Indian
family are governed under the Family Law prevalent in India. This area of law takes into
consideration the customs, beliefs and tenets of religions such as Hinduism, governed by
Hindu Law, Islam (Muslim Law), Zoroastrianism (Parsi Law) and Christianity (Christian Law).
This is one law that embraces all the age groups e.g. minors for Adoption and Child Custody,
majors for Marriage, Divorce, Alimony/Maintenance , so on. Family Law also defines
Succession in terms of Will and Inheritance. The basic need of family law is to deal with the
disputes in such a manner that the rights to perform certain actions under this law are
enjoyed by the persons with little or no stress.

11. INDIAN CONTRACT ACT 1872
The law relating to contracts in India is contained in Indian Contract Act, 1872. The Act was
passed by British India and is based on the principles of English Common Law. It is applicable
to all the states of India except the state of Jammu and Kashmir. It determines the
circumstances in which promises made by the parties to a contract shall be legally binding
on them. All of us enter into a number of contracts everyday knowingly or unknowingly.
Each contract creates some rights and duties on the contracting parties. Hence this
legislation, Indian Contract Act of 1872, being of skeletal nature, deals with the enforcement
of these rights and duties on the parties in India.
SALE OF GOODS ACT, 1930
The law of sale of good was contained in Chapter VII of the Indian Contract Act, 872.
Contracts for the sale of goods are subject to the general legal principles applicable to all
contracts, such as offer and its acceptance or other essential elements of a contract. A
contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the
property in goods to buyer for a price. The term “Contract of sale” is a generic term and
includes both a sale and an agreement to sell.
INDUSTRIAL DISPUTES ACT, 1947
The Industrial Disputes Act 1947 extends to the whole of India and regulates Indian labour
law so far as that concerns trade unions. It came into force April 1, 1947. The objective of
the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by
negotiations. The laws apply only to the organised sector. The Act lay down:
1. The provision for payment of compensation to the workman on account of closure
or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
3. Unfair labour practices on part of an employer or a trade union or workers.

12. MINIMUM WAGES ACT, 1948
The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that
sets the minimum wages that must be paid to skilled and unskilled labours. The Indian
Constitution has defined a 'living wage' that is the level of income for a worker which will
ensure a basic standard of living including good health, dignity, comfort, education and
provide for any contingency. However, to keep in mind an industry's capacity to pay the
constitution has defined a 'fair wage'. Fair wage is that level of wage that not just maintains
a level of employment, but seeks to increase it keeping in perspective the industry’s
capacity to pay. To achieve this in its first session during November 1948, the Central
Advisory Council appointed a Tripartite Committee of Fair Wage. This committee came up
with the concept of Minimum Wages. A minimum wage is such a wage that it not only
guarantees bare subsistence and preserves efficiency but also provides for education,
medical requirements and some level of comfort.[1] India introduced the Minimum Wages
Act in 1948, giving both the Central government and State government jurisdiction in fixing
wages. The act is legally non-binding, but statutory. Payment of wages below the minimum
wage rate amounts to forced labour.
FACTORIES ACT, 1948
The main objective of Factories Act, 1948 is to ensure adequate safety measures and to
promote the health and safety and welfare of the workers employed in factories. The Act
also makes provisions regarding employment of women and young persons (including
children and adolescents), annual leave with wages etc. The Act extends to whole of India
including Jammu and Kashmir and covers all manufacturing processes and establishments
falling within the definition of ‘Factory’ as defined u/s 2(m) of the Act.
CONSUMER PROTECTION ACT 1986
Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to
protect interests of consumers in India. It makes provision for the establishment of
consumer councils and other authorities for the settlement of consumers' disputes and for
matters connected therewith. Consumer Protection Councils are established at the national,
state and district level to increase consumer awareness.
The Central Consumer Protection Council
It is established by the Central Government which consists of the following members:

13.  The Minister of Consumer Affairs – Chairman
 Such number of other official or non-official members representing such interests as
may be prescribed.
State Consumer Protection Council
It is established by the State Government which consists of the following members:
 The Minister in charge of consumer affairs in the State Government – Chairman.
 Such number of other official or non-official members representing such interests as
may be prescribed by the State Government.
 Such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.
The State Council is required to meet as and when necessary but not less than two meetings
every year.
TRADEMARK ACT, 1999
Indian trademark law statutorily protects trademarks as per the Trademark Act, 1999 and
also under the common law remedy of passing off. Statutory protection of trademark is
administered by the Controller General of Patents, Designs and Trade Marks, a government
agency which reports to the Department of Industrial Policy and Promotion (DIPP), under
the Ministry of Commerce and Industry. The law of trademark deals with the mechanism of
registration, protection of trademark and prevention of fraudulent trademark. The law also
provides for the rights acquired by registration of trademark, modes of transfer and
assignment of the rights, nature of infringements, penalties for such infringement and
remedies available to the owner in case of such infringement.
RIGHT TO INFORMATION ACT, 2005
The Right to Information Act (RTI) is an Act of the Parliament of India "to provide for setting
out the practical regime of right to information for citizens" and replaces the erstwhile
Freedom of information Act, 2002. The Act applies to all States and Union Territories of
India except Jammu & Kashmir. Under the provisions of the Act, any citizen may request
information from a "public authority" (a body of Government or "instrumentality of State")
which is required to reply expeditiously or within thirty days. The Act also requires every
public authority to computerise their records for wide dissemination and to proactively
certain categories of information so that the citizens need minimum recourse to request for

14. information formally. This law was passed by Parliament on 15 June 2005 and came fully
into force on 12 October 2005. The first application was given to a Pune police station.
Information disclosure in India was restricted by the Official Secrets Act 1923 and various
other special laws, which the new RTI Act relaxes. It codifies a fundamental right of citizens.
COMPANIES ACT, 2013
Companies Act, 2013 is an Act of the Parliament of India which regulates incorporation of a
company, responsibilities of a company, directors, and dissolution of a company. The 2013
Act is divided into 29 chapters containing 470 sections as against 658 Sections in the
Companies Act, 1956 and has 7 schedules. The Act has replaced The Companies Act,
1956 (in a partial manner) after receiving the assent of the President of India on 29 August
2013. The Act came into force on 12 September 2013 with few changes like earlier private
companies maximum number of member was 50 and now it will be 200. A new term of "one
person company" is included in this act that will be a private company and with only 98
provisions of the Act notified.
NEW CONCEPTS:
 One Person Companies (OPC)
 Women Directors
 Corporate Social Responsibility.
 Registered Valuers
 Rotation of Auditors
 Class Action
 Dormant Company
 Fast Track Mergers
 Serious Fraud Investigation Office
BLACK MONEY (Undisclosed Foreign Income and Assets) AND
IMPOSITION OF TAX ACT, 2015
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,
2015 (popularly Black Money Act) is an Act of the Parliament of India. It aims to curb black
money, or undisclosed foreign assets and income and imposes tax and penalty on such
income. The Act has been passed by both the Houses of the Parliament. The Act has
received the assent of the President of India on 26 May 2015. It came into effect from 1 July
2015.

15. CONCLUSION
Legal aspects are an indispensable part of a successful business environment in any country.
They reflect the policy framework and the mindset of the government structure of that
country. They ensure that every aspect is taken care of and is functioning as per the
statutory framework of the country. Every firm must take into account these legal aspects
while framing the basic objectives. It is vital for the efficient and proper functioning of the
firm and it also helps to know the rights, responsibilities and the challenges that it may have
to face.
There are numerous laws in India which covers Central, State and Special laws.
Unfortunately majority of them are of obsolete nature. A committee have been formed by
Prime Minister Narendra Modi on 27th June 2014 (Ramanujam Committee) to identify the
obsolete laws. The committee will identify the laws which they believed hamper governance
by creating avoidable confusion. The committee will be chaired by R.Ramanujam, Secretary
in the PMO, V.K Bhasin, Former Secretary; Legislative Department will be its other member.
The committee has identified total 1741 Central Acts for repeal out of total 2781 Central
Acts existing as on 15th October 2014 on the Statutes Book.
A business forever cannot exist in vacuum. There exists an external environment which
affects the business. It is the duty of the firm to operate according to the legal aspects they
are liable to oblige. Unless otherwise a firm works accordingly, it can hamper the mere
existence of the firm.