MAM 052 Block-3
MAM 052 Block-3
MAM 052 Block-3
Block
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BUSINESS LAWS RELATED TO AGRICULTURE
UNIT 9
Legal System for Business
UNIT 10
Marketing Related Regulations
UNIT 11
Food Safety Standards and Regulations
UNIT 12
Trade Related Laws
PROGRAMME DESIGN COMMITTEE
Prof. R. P. Das, PVC, IGNOU Dr. Anjali Ramtake, Associate
Professor, SOMS, IGNOU
Prof. S.K. Yadav, Director, SoA,
IGNOU Dr. Leena Singh, Assistant Professor,
SOMS, IGNOU
Dr. B.K. Sikka, Former Dean, College of
Agribusiness Management, GBPUAT Prof. Sunil Gupta, SOMS, IGNOU
Dr. V.C. Mathur, Former Professor and Dr. P. Vijayakumar, Associate Professor,
Head, Div. of Agri. Econ. IARI SoA
Dr. Pramod Kumar, Principal Scientist Dr. Mita Sinhamahapatra, Associate
(Agri. Econ.) IARI Professor, SoA
Prof. M. K. Salooja, School of Dr. Mukesh Kumar, Assistant Professor,
Agriculture, IGNOU SoA
Dr. P. K. Jain, Associate Professor and
Programme Coordinator, SoA
Programme Coordinator: Dr. Praveen Kumar Jain
Unit 9 deals with the “Legal system of Business”. This chapter has four components viz. (a)
Introduction to the legal system, and important features (b) Indian Contract Act, 1872, (c) The
Companies Act, 2013, and (d) The Factories Act. Under the Indian Contract Act, 1872, the
important features such as what constitutes a contract, types of contract, and essentials of a valid
contract are elaborately discussed under the Companies Act, 2013 the issues discussed include
(a) the meaning of company and other important definitions, (b) kinds of companies, (c)
Coverage of the Companies Act, 2013 and (d) important features of the company. The Factories
Act, 1948 covered important aspects such as objectives, scope, and applicability of the Act,
approval, licensing, and registration of factories inspecting staff, etc.
Unit 10: Under this unit, four important laws are elaborately discussed. The said laws include
the salient and important features of (a) The Essential Commodities Act, 1955 (b) the
Agricultural Product Marketing commodities (APMC) Act (c) the Consumer Protection Act,
2019 and the Competition Act, 2002. The Essential Commodities Act, 1935 briefly dealt with the
powers of the central government and offenses by companies. The APMC Act broadly dealt with
aspects related to the establishment of markets, the constitution of market commodities, powers,
and functions of the State Agricultural Marketing Board, etc. The Consumer Protection Act,
2019 mainly deals with important definitions, and aspects related to Consumer Protection Courts
and Consumer Disputes Redressal Agencies. The Competition Act, 2002 covered two major
aspects viz. Unfair Trade Practices and Restrictive Trade Practices.
Unit 11: This unit elaborately deals with the important features of the Food Safety and Standard
and Regulation Authority Act in general and specifically with (i) Concepts and principles of food
safety, (b) Hazards to Food Safety, (c) Food Hygiene and (d) The Safety and Standards Rules
and Regulation and (f) Integrated Approach required to Food Hygiene and Safety.
Unit 12 deals with trade-related laws related to intellectual properties including nature and types,
and quarantine requirements for international business. The later requirements are discussed
under two categories viz. Quarantine Regulation in India and natural coordination.
The material provided in this block is supplemented with various examples and activities to
make the learning process simple and interesting. We have also provided Check Your Progress
questions for the self-test at a few places of these units which invariably lead to possible answers
to the questions set in those exercises. What perhaps you ought to do, is to go through units and
jot down important points as you read, in the space provided in the margin. This will help you in
assimilating the content. A list of reference books has been provided at the end of each unit for
further detailed reading.
UNIT 9 LEGAL SYSTEM OF BUSINESS
Structure
9.0 Objectives
9.1 Introduction
9.2 Introduction to Indian Legal System
9.2.1 Meaning of Legal System
9.2.2 Mercantile or Business Law
9.3 Indian Contract Act, 1872
9.3.1 What is a Contract?
9.3.2 Significance
9.3.3 Types of Contract
9.3.4 Essentials of a Valid Contract
9.4 Companies Act, 2013
9.4.1 Introduction
9.4.2 Company: Meaning and Definition (Act, 2013)
9.4.3 Important Kinds of Companies
9.4.4 Important Definitions covered under the Act, 2013
9.4.5 Coverage of the Act, 2013
9.4.6 Important Features of Companies Act, 2013
9.5 The Factories Act, 1948
9.5.1 Objectives, Scope, and Applicability of the ACT
9.5.2 Definitions
9.5.3 Approval, Licensing, and Registration of Factories
9.5.4 The Inspecting Staff
9.6 Let Us Sum Up
9.7 Keywords
9.8 Suggested Readings/References
9.9 Check Your Progress: Possible Answers
9.0 OBJECTIVES
The Legal System of Business is a subject of vast dimensions comprising Business Laws,
Company Laws, Labour Laws, Taxation Laws, etc. A legal system helps one to focus on
how the law evolves and reflects a given society’s values and norms and then becomes
codified and applied. In the present commercial world, we find commercial transactions
taking place every second. These include trading in goods, supply of materials, service
contracts, etc. On account of the volume of contracts being done daily, it was proposed to
make an enactment that shall bind parties to the agreement and necessitate a smooth flow of
commercial transactions. Accordingly, the Indian Contract Act was enacted in the year 1872.
The Contract Act is the mother of all the other acts, which have been enacted based on the
Contract Act.
In India, the Companies Act enacted in the year 1956 was one of the most important pieces
of legislation that empowered the Central Government to regulate the formation registration,
financing, functioning, and winding up of Companies. The Act contained the mechanism
regarding organizational, financial, managerial, and all the relevant aspects of a company.
The Companies Act 1956 however, failed to keep pace with the commercial, business, and
technological changes taking place in the commercial world, hence, the Act, 1956 was
repealed and a new Companies Act was re-enacted in the year 2013 by enlarging, the sope
ambit and coverage of provisions of law. This newly enacted law included a separate section
dealing with Corporate Social Responsibility which is popularly known as CSR.
With the growth in commercial and economic transactions, the new medium of exchange
apart from money has been evaluated such as bills of exchange, hundi, cheques, bank drafts,
and of late the emergence of online business transactions, etc. These documents are
substituting money as a medium of exchange. The Negotiable Instrument Act, 1881 with
necessary amendments made now and then covered all the above aspects. Most importantly,
the dishonor of a cheque for two reasons is made a criminal offense. (s.138 to s.144)
Industrial laws cover a wide range of legal issues such as registration of Trade Union,
Industrial Disputes, Social Welfare Measures related to Bonus, Gratuity, Pensions, Payment
Minimum wages, and Equal Remuneration, etc. Very recently, all the industrial laws were
consolidated, and grouped under four major codes.
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This unit basically aims to explain the important provisions of business laws in brief and
also to understand that these laws are the important successful and hassle-free operation of
business activities.
The Indian Legal system is one of the oldest and most vibrant systems in the world. This is
formulated keeping in mind the diversity of the country and with due respect to the religion,
customs, and business traditions of the people.
In the context of Indian business, some of these transactions and relations concern the
following:
i. Regulation of Restrictive and Unfair Trade or Business Practices,
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ii. Foreign Exchange Management and Regulation,
iii. Insolvency of business persons/Groups,
iv. Promotion of conciliation, and arbitration for settlement of industrial disputes,
v. Regulation of companies incorporated under the Companies Act, 2013,
vi. Negotiable instruments, (Cheque, Promissory Note and Bill of Exchange )
vii. Patents, Trade Marks Copyrights, Designs, etc.
viii. Actionable claims, factoring and forfeiting,
ix. Import and export regulations/ Foreign Trade Policy regulations,
x. Contracts, sale of goods, guarantee, indemnity, bailment, pledge, charge, mortgage,
partnerships, insurance, carriage of goods and freight,
xi. Prevention of food adulteration and regulation of essential commodities,
xii. Regulation of stock exchange and financial securities,
xiii. Regulation and development of Industries/ Institutions,
xiv. Economic offenses,
xv. Conservation of foreign exchange and prevention of smuggling activities,
xvi. Regulation of foreign contributions, foreign capital, etc.
xvii. Excise, import and export duties, tax on income, wealth, etc.
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9.3 INDIAN CONTRACT ACT, 1872
Contract means any agreement between two or more parties/persons, which is enforceable
under the Law. The Law of the contract regulates the actions of parties to the contract.
Contract Act is not exhaustive as it only regulates the freedom of contracting parties for the
smooth functioning of commercial transactions. In this unit, we shall study definitions of the
various terms as per the Indian Contract Act, 1872. Along with the definitions, the module
also covers the different doctrines, which explain the rights between parties to the contract.
9.3.2 Significance
The Contract Act is not limited to any particular field but covers all fields. If we see at the
present era of globalization, liberalization, and industrialization, every organization,
institute, company, government concern, private businessman, and all others are engaged in
business activities either directly or indirectly.
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interest, money, and liability in a contractual obligation. So, the scope ambit, and coverage
of the contract can never end but it will go on expanding with the passage of time.
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2. Implied contract: An implied contract is one that is inferred from the acts or conduct
of the parties or from the circumstances of the cases. Where a proposal or acceptance is
made otherwise than in words, the promise is said to be implied.
3. Tacit contract: Tacit contracts are implied contracts in themselves e.g., taking a ticket
on the bus during a journey. Cash withdrawn from ATM (Automatic Teller Machine) is
one of the best examples of a tacit contract.
4. Quasi-contract: A quasi-contract is created by law. Thus, quasi-contracts are strictly
not contracts as there is no intention of parties to enter into a contract. It is a legal
obligation that is imposed on a party who is required to perform it. A quasi-contract is
based on the principle that a person shall not be allowed to enrich himself at the expense
of another. For example, a person orders a perishable item online by providing the
address for delivery. The delivery is made, but to the wrong address (neighbor) who
accepts without denial. Now the neighbor will be made liable to pay the original
customer who ordered it under Quasi-contract.
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Thus, an agreement becomes a valid contract if it has the following elements:
1) Proper and valid offer and its proper and valid acceptance
2) Intention to create a legal relationship
3) Free and genuine consent
4) Capacity of parties to enter into a contract (above 18 years of age with a sound mind)
5) Lawful consideration: It must also be adequate. The price paid or promised to be paid
is regarded as consideration.
6) Lawful object (The object should not be contrary to the provisions of law)
7) Agreement not expressly declared void
8) Certainly and the Possibility of performance
9) Legal formalities
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9.4 COMPANIES ACT, 2013
9.4.1 Introduction
During the British Era, the Companies Act, of 1913 was in force in India. After attaining
independence in 1947 followed by the launching of the first five-year plan in the year 1950-
51, India came out with Industrial Policy 1956 which recommended the promotion and
development of companies across India. To give a broad legal framework to companies, the
Indian Companies Act, of 1956 was enacted with the primary purpose and objective to
consolidate and amend laws relating to Companies and other associations and also to
provide a new basis for the operations of corporate in independent India. The primary focus
and objective of the Companies Act, 1956 was to regulate the formation, functioning, and
winding up of companies. Due to the passage of time, the law was regularly and
substantially amended between 1956-2012. Finally, to keep pace with the growing need for
companies to have an equal and level playing field, the Company Act, 1956 was
comprehensively revised and a new Companies Act was enacted in the year 2013 by duly
repealing the 1956 Act.
The objective of the Companies Act is also to consolidate and amend laws relating to
companies. The Act, 2013 is aimed to regulate the (i) incorporation of companies, (ii)
responsibility of a company and directors, and (iii) Dissolution of the company, etc.
The Companies Act, 2013 has provided for the registration of the following companies:
1. Private Company (s-2 (68))
2. Public Company (s-2 (71))
3. Statutory Company (Eg. LIC, RBI created under respective Acts)
4. Registered Company (e.g. under the Companies Act, 2013)
5. Limited Liability Company
6. Listed Company s.2(52) It refers to a company that has any of its securities listed on
any recognized stock exchange
7. Unlimited Liability Company (s.2 (92))
8. Association not for Profit
9. Government Company (S.2 (45))
10. Foreign Company (s.2 (42))
11. Public Financial Institutions (s-2 (72))
12. Unregistered Company (s.3 (75))
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9.4.4 Important Definitions Covered under the Act, 2013
Section 2 of the Companies Act, 2013 has defined 95 terms. The following definitions are
considered relevant for our learners. The learners who would like to know further details
may please refer to the original Companies Act, 2013, published in the “Gazette of India”.
1. Accounting Standards (s-2(2))
2. Auditing Standards (s-2(7))
3. Authorised Capital (s.2.8)
4. Banking Company (s.2.4)
5. Company (s.2(20))
6. Financial Institutions (s.2.39)
7. Financial Statement (s.2.40)
8. Foreign Company (s.2(42))
9. Free Reserves (s.2.43)
10. Government Company (s.2.45)
11. Holding Company (s.2(46))
12. Listed Company (2.52)
13. Net Worth (2.67)
14. Official Liquidator (s.2(61))
15. Private Company (s.2(68))
16. Public Company (s.2(71))
17. Registrar of Companies (s.2(74))
18. Registrar (s.2(75))
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Chapter 10: Audit and Auditors (s.139 to 148)
Chapter 11: Appointment and Qualifications of Directors (s.149 to 172)
Chapter 12: Meeting of Board and its powers (s.173 to 195)
Chapter 13: Appointment and Remuneration of Managerial Personnel (s.196 to 205)
Chapter 14: Inspection, Inquiry and Investigation (s.206 to 229)
Chapter 15: Companies, Arrangements and Amalgamative (s.230 to 240)
Chapter 16: Prevention of Oppression and Mismanagement (s.241 to 246)
Chapter 17: Registered Values (s.247)
Chapter 18: Revival names of Companies from the Register Companies (s.248 to 252)
Chapter 19: Revival and Rehabilitation of sick Companies (s.253 to 270)
Chapter 20: Winding up (s.270)
Part I By Tribunal (s.271-303)
Part II By Voluntary Winding up (s.304-323)
Part III Provision applicable to every mode of Winding up (s.324-365)
Chapter 21: Part I: Companies Authorised to Register under the Act (s.366-374)
Part II: Winding up of unregistered Companies (s.375-378)
Chapter 22: Companies incorporated outside India (s.379 to 393)
Chapter 23: Government Companies (s.394 to 395)
Chapter 24: Registration Offices and Fees (s.396 to 404)
Chapter 25: Companies to furnish information or Statistics (s.405)
Chapter 26: Nidhis (s.406)
Chapter 27: National Company Law Tribunal (NCLT) and Appellate Tribunal (NCLAT)
(s.407 to 434)
Chapter 28: Special Courts (s.435 to 470)
Chapter 29: Schedules I to VII
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4. Introduction of Corporate Social Responsibility: With the stipulation that a
certain class of companies spends a certain percentage (amount) of money every year
on activities/initiatives reflecting corporate social responsibility.
5. Introduction of National Company Law Tribunal (NCLT) and National
Company Law Appellate Tribunal (NCCAT) to replace the Company Law Board
(CLB) and Board of Industrial and Financial Reconstruction (BIFR).
6. Proposal to apply ‘Fast Track’ and simplified procedure for mergers and
amalgamation of a certain types of companies after obtaining approval from the
Indian Government.
7. Provision for Cross Border Mergers (both ways), a foreign company merging
with an Indian Company and vice versa but with prior approval of RBI.
8. Prohibition on Forward Dealings and Insider Trading. The Directors and key
managerial officials of the company are prohibited from purchasing shares of the
company if such person is reasonably expected to have access to sensitive
information.
9. Increase in the number of shareholders: The Companies Act, 2013 enhanced the
number of maximum shareholders in a private company from 50(as per the Act,
1956) to 200.
10. Imposition of limit or maximum number of partners/ persons: The limit imposed
on persons/ persons in any association/ partnership may be as per the limit prescribed
but it should not exceed 100.
11. Provision for a new form of Private Company i.e. One person one company: The
Act provided to have only one Director and one Shareholder contrary to the
requirement of a minimum of two directors and shareholders in the case of a private
company under the old Act, 1956.
12. Provision for the introduction of Electronic mode: The Act, 2013 proposed the
introduction of E-Governance for various company processes like maintenance and
inspection of documents in electronic form, the option of keeping of books of
accounts in electronic form, the need for placing a financial statement on company’s
website.
13. Provision to keep at least one Resident as Director in the Board: Every company
has the duty and responsibility to have at least one Director who has stayed in India
for a total period of not exceeding 182 days in the previous calendar year.
14. Provision for Independent Director: The listed companies are duty-bound to have
at least one-third of the Board as independent Directors. The independent Directors,
however, shall not hold the position beyond two years.
15. Codification of duties of Director: Under the old Act, 1956 a Director had fiduciary
(legal or ethical relationship of trusts) duties towards the company. However, under
the Companies Act, the duties to be performed by the Directors are clearly defined.
16. Imposition of Liability upon Directors and Officers: The Act, 2013 empowered
the company to indemnity (compensation for harm or loss caused to the company) its
Directors and Officers for the losses or damage incurred.
17. Provision for Rotation of Auditors: The Act, 2013 provided for the rotation of
Auditors and Audit firms in the case of publically treated companies.
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18. Rehabilitation of Liquidation Process: The entire gamut of the rehabilitation and
liquidation process of companies has been time-bound/ specific during financial
crises faced by the company.
In India the, first Factories Act was passed in 1881. This Act was basically designed to
protect children and to provide a few measures for the health and safety of the workers.
This law was applicable to only those factories, which employed 100 or more workers. In
1891 another factories Act was passed which extended to the factories employing 50 or
more workers.
The Act extends to the whole of India. It applies to all factories including factories
belonging to the Central or any State Government unless otherwise excluded. The benefits
of this Act are available to persons who are employed in the factory and be covered within
the meaning of the term "worker" as defined in the Act.
It would, therefore, be desirable to discuss the meaning and definition of the term "factory"
and "worker". Since the term "factory" refers to the manufacturing process, it would be
helpful to know the meaning of the term "manufacturing process" as defined by the Act.
9.5.2 Definitions
i) Factory: Section 2(m) of the Factories Act, 1948 defines “factory” to mean any premises
including the precincts thereof-
whereon ten or more workers are working or were working on any day of the
preceding twelve months, and in any part of which a manufacturing process is being
carried on with the aid of power, or is ordinarily so carried on.
Whereon, twenty or more workers are working or were working on any day of the
preceding twelve months, and in any part of which a manufacturing process is being
carried on without the aid of power, or is ordinarily so carried on.
It specifically excludes: A mine subject to the operation of the Mines Act, 1952, or a
mobile unit belonging to the armed forces of the Union, a railway running shed, or a
hotel, restaurant, or eating place.
ii) Manufacturing Process: CS 2(k) The expression "manufacturing process" has been
defined in Section 2(k) to mean any process:
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i. Making, altering, repairing, ornamenting, finishing, packing, oiling, washing,
cleaning, breaking up, demolishing, or otherwise treating or adapting any article or
substance with a view to its use, sale, transport, delivery, or disposal; or
ii. Pumping oil, water, sewage, or any other substance; or
iii. Generating, transforming, or transmitting power; or
iv. Composing types for printing, printing by letter press, lithography, photogravure,
or other similar processes or book binding; or
v. Constructing, reconstructing, refitting, finishing, or breaking up ships or vessels; or
vi. Preserving or storing any article in cold storage.
iii) Worker: Section 2 (1) of the Factories Act, 1948 defines a "worker" to mean a person
employed, directly or through any agency (including a contractor) with or without
knowledge of the principal employer, whether for remuneration or not, in any manufacturing
process, or in cleaning any part of the machinery or premises used for a manufacturing
process or in any other kind of work incidental to, or connected with, the manufacturing
process, or the subject of the manufacturing process but does not include any member of the
armed forces of the Union.
iv) Occupier: Section 2 (n) of the Act defines "occupier" of a factory to mean the person
who has ultimate control over the affairs of the factory: Provided that -
i) in the case of a farm or other association of individuals, any one of the individual
partners or members thereof shall be deemed to be the occupier;
ii) in the case of a company, any one of the directors shall be deemed to be the
occupier;
iii) in the case of a factory owned or controlled by the Central Government or any
State Government, or any local authority, the person or persons appointed to
manage the affairs of the factory by the Central Government, the State
Government, or the local authority, as the case may, be shall be deemed to be the
occupier.
v) Other Definitions
‘Adult’ means a person who has completed his 18th year of age. [Section 2 (a)]
‘Adolescent’ means a person who has completed his 15th year of age but has not
completed his 18th year. [Section 2 (b).]
‘Calendar year’ means the period of twelve months beginning with the first day of
January in any year. [Section 2 (bb).]
‘Child’ means a person, who has not completed his 15th year of age. [Section (c).]
‘Young Person’ means a person, who is either a child or an adolescent. [Section 2
(d)]
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‘Day’ means a period of twenty-four hours beginning at midnight [Section 2 (e).]
‘Week’ means a period of seven days beginning at midnight on Saturday night or
such other night as may be approved in writing for a particular area by the Chief
Inspector of Factories. [Section 2 (f)]
‘Relay and Shift means’ where work of the same kind is carried out by two or more
sets of workers working during different periods of the day, each of such sets is
called a ‘relay’ and each of such periods is called `shift'. [Section 2 (r)].
‘Worker’ [Section 2 (f)]: A worker means a person employed directly or indirectly
with or without the knowledge of the principal employer (whether for remuneration
or not) in any manufacturing process or in cleaning any part of machinery or
premises used for a manufacturing process etc.
The occupier is required to submit full building plans along with necessary particulars of
specifications according to which the building is to be got approved in accordance with the
rules.
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Check Your Progress 9.3
Note: a) Use the space given below for your answers.
b) Check your answer with those given at the end of the unit.
1) What are the scope and applicability of the Factories Act in India?
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In this unit, we have understood the Indian legal system, and the basic need of law to form a
legal system for legislation. Law is an important element and is the body of rules and
regulations framed by the Authority vested with the power (eg. Legislative Executive and
Judiciary) with regard to human conduct and actions which can be enforced in a court of
law. We have understood mercantile law, and different business laws as business laws are an
important branch of civil law that deals with laws relating to business transactions.
We have deliberated to understand the meaning of a Contract and the difference between a
contract and an agreement. Kinds of contract (void, voidable, valid), competency to enter
into a contract, consideration, essential elements of a contract, and also remedies available
for breach of contract. We have also discussed briefly the following aspects under the new
Companies Act, 2013 viz. (a) Evolution of Company Law, the meaning of the definition of
Company, kinds of Companies, important definitions, coverage of the Act, 2013, and salient
features of Companies Act, 2013.
The Factories Act, 1948 was passed with an intention of making the work life of persons
employed in factories free from hazards and injuries. The protection is afforded to all
workers men, women, and children. Women and children are given special protection, as
they are considered more vulnerable. As the employer prepares the environment, the law
seeks to regulate the same in the interests of the workmen. The law provides for scrutiny of
the place and approval of plans and specifications before they are registered under the Act
for the purpose of ensuring the health, safety, and welfare of the workers. Appropriate
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standards are also prescribed. Working hours of adults are made subject to regulations.
Employment of children below the age of 14 is prohibited. The law regulates the
employment of minors who are permitted to work. Law provides for the entitlement of
annual leave with wages. Special provisions are also envisaged to meet certain eventualities.
The Act provided for various health and social welfare-related measures.
9.7 KEYWORDS
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Precincts: Precincts mean a space enclosed by a wall. For any `premises' to be
categorized as factory two conditions must be fulfilled: Ten or more persons are
employed in the premises using power or be employed not using power and twenty
or more workers must be employed not using power.
Premises: Premises means open land or land with a building or building alone.
Therefore salt works where the process of converting seawater into salt is carried on
in the open comes within `premises' as defined in the Act
Procedural Law: The rules by which a court hears and determines what happens
in civil lawsuits, or criminal or administrative proceedings.
Promise: An accepted proposal.
Protest: It is the formal certificate issued by the notary as an acknowledgment of
noting.
Quorum: Minimum number of persons
Stale Cheque: The cheque becomes stale when six months expire from the date
mentioned in the cheque. Once the cheque becomes stale, then it is not valid and
cannot be enforceable.
Statute: A statute is a formal written enactment of a legislative authority that
governs a state, city, or county.
Substantive Law: The statutory or written law that defines rights and duties, such as
crimes and punishments (in criminal law), civil rights, and responsibilities in civil
law.
Unenforceable Agreement: An agreement which, though valid, cannot be enforced
due to some technical defect.
Unilateral Contracts: A contract in which only one party has still to fulfill his
obligation, while the other party has already fulfilled his own at the time of the
formation of the contract itself.
1. Marc Galanter (ed.), Law and Society in Modern India (1997 ) Oxford,
2. Robert Lingat, The Classical Law of India (1998), Oxford
3. U. Baxi, The Crisis of the Indian Legal System (1982). Vikas, New Delhi.
4. Duncan Derret, The State, Religion, and Law in India (1999). Oxford University
Press, New Delhi.
5. H.M. Seervai, Constitutional Law of India (1996), Tripathi.
6. D.D. Basu, Shorter Constitution of India (1996), Prentice - Hall of India (P) Ltd.,
New Delhi.
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7. Sunil Deshta and Kiran Deshta, Law and Menace of Child Labour (2000) Armol
Publications, Delhi.
8. Indian Law Institute, Law and Social Change: Indo-American Reflections, Tripathi
(1988)
9. J.B. Kripalani, Gandhi: His Life and Thought, (1970)Ministry of Information and
Broadcasting, Government of India
10. M.P.Jain, Outlines of Indian Legal History, (1993), Tripathi, Bombay.
11. Agnes, Flavia, Law and Gender Inequality: The Politics of Women's Rights in India
(1999), Oxford
12. Business and Corporate Laws by SK Aggarwal & K Singhal
13. Business Laws and Practice published by Sultan Chand & Sons
14. Bare Act on Indian Contract Act, 1872
15. visit www.vakilno1.com
16. S.C.Srivastava, Commentaries on the Factories Act, (1948), Universal Book
Company, New Delhi (1999).
17. Company law and practice published by Sultan Chand and sons
18. Business Laws and Practice published by Sultan Chand & Sons
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Agreement not expressly declared void; Certainty of meaning; Possibility of
performance; and legal formalities.
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UNIT 10 MARKETING RELATED REGULATIONS
Structure
10.0 Objectives
10.1 Introduction
10.2 The Essential Commodities Act, 1955
10.2.1 Powers of the Central Government to Control Production, Supply and
Distribution of Essential Commodities (Section 3 (1))
10.2.2 Appeals against the Orders (Section 6 C)
10.2.3 Offences by Companies (Section 10)
10.3 Agricultural Produce Marketing Committee (APMC) Act
10.3.1 Establishment of Markets
10.3.2 Constitution of Market Committee
10.3.3 Conduct of Business and Powers and Duties of Market Committee
10.3.4 State Agricultural Marketing Board: Functions and Powers
10.4 The Consumer Protection Act, 2019
10.4.1 Back Drop
10.4.2 Objectives (Act, 1986)
10.4.3 Major Milestones
10.4.3.1 Amendment Act, 2019 (No. 34 of 1991)
10.4.3.2 Amendment Act, 1993 (No. 50 of 1993)
10.4.3.2 Amendment Act, 2002 (Act 62 of 2002)
10.4.4 Consumer Protection Act, (CPA) 2019
10.4.5 Scheme of CPA, 2019
10.4.5.1 Objectives
10.4.5.2 Application of the Act, 2019
10.4.5.3 Important Definitions
10.4.5.4 Consumer Protection Council (CPCs)
10.4.5.5 Central Consumer Protection Authority (CCPA)
10.4.6 Consumer Dispute Redressal Commission
10.4.7 Mediation
10.4.8 Product Liability
10.4.9 Offences and Penalties
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10.5 The Competition Act, 2002
10.5.1 Commencement and Objectives of the Act
10.5.2 Important Definitions
10.5.3 Competition Commission of India
10.5.4 To Ensure Freedom of Trade
10.5.5 Functions
10.5.6 Composition of the Commission
10.0 OBJECTIVES
10.1 INTRODUCTION
Marketing-related Acts provide guidelines and an environment for the smooth conduct of the
business operation. Among these acts, the important acts are (i) Essential Commodities Act,
1955 (ii) Agricultural Produce Marketing Committee Act, (iii) Consumer Protection Act,
2019, and (iv) the Competition Act, 2002.
The Essential Commodities Act, 1955 is an important piece of legislation with an object to
securing fair and equitable distribution of essential commodities at fair prices to the public
and punishing hoarders and black marketers dealing with essential commodities. Agriculture
is a state subject under the constitution of India, hence APMC Acts are passed by respective
state governments.
APMC Acts regulate (i) the establishment of private markets/ yards, (ii) direct purchase
centers, (iii) consumer/ farmers markets for direct sale, (iv) systems for creating an effective
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infrastructure for the marketing of agricultural produce, (v) bring transparency in the pricing
system, (vi) enable the farmers to get the timely payment, (vii) promotion of Public Private
Partnership in the management and development of agricultural markets in the country.
The Indian Parliament enacted Consumer Protection Act in December 1986. It came into
force w.e.f. April 15, 1987. By July 1987, all the provisions came into operation. The act
makes provisions to include both tangible goods and intangible services (henceforth referred
to as products) purchased from a trader or service provider (henceforth referred to as a
company). This Consumer Protection Act was substantially changed, accordingly, a new
Consumer Protection Act was passed in the year 2019. The new Act, of 2019 has introduced
several special features. The details are discussed elaborately in this unit.
The MRTP Act, 1969 was also replaced by Competition Act, 2002. The object of the Act,
2002 was to ensure that the economic system in India does not lead to the concentration of
economic power into a few hands. Towards this end, the emergence of monopolies was to be
controlled and monopolistic and restrictive trade practices were prohibited.
Essential Commodity: Sec (2 (a)) – Essential commodity includes one or more of the
following:
Cattle fodder including oil cakes and other concentrates
Coal including coke and other derivatives
Components, parts, and accessories of automobiles
Cotton and woolen textiles
Drugs as defined under section 3(b) of the Drugs and Cosmetics Act 1940
Foodstuff including edible oil and oil seeds
Iron and steel including manufactured products of Iron and steel
Paper including newsprint, paper board, and strawboard
Petroleum and petroleum products
Raw cotton, whether ginned or unginned, and cotton seeds
Raw jute
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defense of India or the efficient conduct of military operations, may by order for regulating or
prohibiting the production, sale, supply, distribution, of any essential commodities.
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In the case of food grains and edible oils, price as determined as per section 3 B of the
Act, and
In the case of sugar, the price as determined under section 3 C of the Act, and
Any other essential commodity as per provisions of section 3(3) of the Act.
False statements (S.9): Any person who makes a false statement or signs false information
shall be punishable with imprisonment for a term which may extend to 5 years or with a fine
or both.
Power of the court to publish names, place of business, etc. of companies convicted
under the Act: (Section 10 B)
Where any company has been convicted offense under this act or any order made under this
act then the court has the power to publish the name of the company, the place of business of
the company nature of contravention in any newspaper at the cost of the company.
No such publication is possible if the person has preferred an appeal until it becomes
annulled. Such expenses are to be recovered, as they are the fines imposed by the court.
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If the central government is of the opinion that a situation has arisen where, in the interest of
production, supply, or distribution of essential commodity, then the central government may
by notification in the official gazette specify such order to be a special order for summary
trial under this section and such notification to be tabled before both the houses of parliament.
Protection of action taken under the Act (Section 15): No suit prosecution or legal
proceeding shall be taken under the act on the government or any of the officers authorized
by the government for the act done in good faith.
Prosecution of public servants (S. 15A)
When any person who is a Public Servant is accused of any offense alleged to have been
committed by him while executing functions under the act and has done any breach of his
duties then the court need not take cognizance of the offense except with the previous
sanction of:
a) Central Government, if the person is employed with the central government
b) State Government, if the person is employed with the state government.
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2) Write a brief note about the power of the central government under the Essential
Commodities Act, 1955.
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Agricultural Markets in most parts of India are established and regulated under the State
APMC Acts. The State Agricultural Produce Marketing (Development and Regulation) Act,
2003, is an Act to provide for the development of an efficient marketing system, promotion
of agri-processing and agricultural export, and lay down procedures and systems for putting
in place an effective infrastructure for the marketing of agricultural produce. The different
state governments have adopted the provisions from the model APMC act from different
states. There is no compulsion on the growers to sell their produce through existing markets
administered by APMC.
The Act provides for the establishment of private markets/ yards, direct purchase centers,
consumer/ farmers markets for direct sale, systems for putting in place an effective
infrastructure for the marketing of agricultural produce, transparency in the pricing system,
and payment to farmers on the same day, promotion of Public Private Partnership in the
management and development of agricultural markets in the country. Provision is also made
for Special Markets for commodities like Onions, Fruits, Vegetables, Flowers, etc.
As per section 3 of the Act, legal persons, growers of any agricultural practice within the area
for which a market is proposed and local authorities are permitted to apply for the
establishment of new markets for agricultural produce. Under the existing law, markets are
set up at the initiative of State Governments alone. Private persons, farmers, and consumers
can establish more than one market, in a market area.
In every market area, there may be a market yard and sub-market yards managed by the
Market Committee, private markets yards/ private markets, and farmers/ consumer markets
managed by a person other than the Market Committee.
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agriculturist who does not bring his produce to the market area for sale will not be eligible for
election to the APMC.
Every Market Committee shall have a Chairman and a Vice-Chairman, elected from amongst
representatives of agriculturists.
Publicizing data on arrivals and rates of agricultural produce brought into the market area for
sale and promoting public-private partnerships in the management of agricultural markets.
The Market Committee may maintain and manage the market yards and sub-market yards;
register or refuse to register and renew, suspend or cancel the registration of market
functionaries, regulate/ supervise the auction of notified agricultural produce, agreements of
sales, weighment, delivery, payment, etc.
The Market Committee undertake the settlement of disputes arising out of any transaction
connected with the marketing of notified agricultural produce; take steps to prevent
adulteration of notified agricultural produce and promote public-private partnership for
carrying out extension activities in its area viz., collection, maintenance, and dissemination of
information in respect of production, sale storage, processing, prices, and movement of
notified agricultural produce. The Market Committee take measures for the prevention of
purchases and sales below the minimum support prices as fixed by the Government from time
to time; levy rates, charges, and fees; regulate the entry of traffic into the market yard;
prosecute persons for violating the provisions of this Act, impose penalties for contravening
the provisions of the Act.
The Model Act, 2003 has also provided for contract farming chapter (VII) Regulation of
Trading (Chapter VIII), etc.
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10.3.4 State Agricultural Marketing Board: Functions and Powers
In order to coordinate market activities and for the development, promotion, and regulation of
agricultural marketing the State Government is empowered to establish and constitute a State
Agricultural Marketing Board. The State Agricultural Marketing Board would be responsible
for (i) setting up a separate marketing extension cell in the Board to provide market-led
extension services to farmers; (ii) promoting grading, standardization, and quality
certification of notified agricultural produce, and (iv) to set up a separate Agricultural
Produce Marketing Standards Bureau (Section-73 - Functions and powers of Bound).
The Board is responsible for the coordination of working of the Market Committees;
planning the development of Agricultural Produce Markets; administering the State Market
Development Fund; giving direction and guiding the Market Committees. Money received by
or on behalf of the Board shall be credited to a Marketing Development Fund, which could be
utilized for: market survey, research, grading, standardization, quality certification, etc.;
development of quality testing and communication infrastructure, development of media,
cyber and long-distance infrastructure relevant to the marketing of agricultural and allied
commodities. (Section-79 utilization of marketing development fund).
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2) Explain the procedure of constituting a market committee under the APMC Act.
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3) What are the functions and power of the State Agricultural Marketing Board?
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10.4 THE CONSUMER PROTECTION ACT, 2019
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The 1993 Amendment is aimed:
(i) To enable consumers to file class actions on behalf of a group of consumers having a
common interest.
(ii) To file complaints relating to Restrictive Trade Practices adopted by the trader.
(iii) To enable Self Employed Consumers to file complaints against defects in the goods
purchased exclusively for earning their livelihood.
(iv) To include ‘housing construction within the scope and ambit of Services.
(v) To enhance the pecuniary jurisdiction of all three Consumer Foras.
(vi) To empower Consumer Foras to punish for filing frivolous or vexatious complaints.
(vii) To include ‘legal heir or representative’ within the definition of Consumer.
(viii) To reduce the limitation period for filing complaints to one year from two years.
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10.4.5.1 Objectives
The objectives of the Act, 2019 are aimed:
(i) To provide for the protection of the interests of consumers, and for the said purpose.
(ii) To establish: (a) authorities for timely and effective administration (CCPA).
(iii) Institutions for settlement of consumers' disputes (CDRC).
(iv) To deal with matters connected or incidental thereto.
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10.4.5.4 Consumer Protection Council (CPCs)
The Constituents and Composition of Consumer Protection Councils at the National, State,
and District levels are explained through the following graphical representation.
The New Definitions included under the Act, 2019 mostly related to E-Commerce,
Contracts, etc. (nearly 23 sections added):
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The inquiries or the investigation made by the Director General should be submitted
to the CCPA.
CCPA is to be established by Central Government and to have an Investigation Wing
headed by Director General.
Note:
DG : Director General
ADG : Additional Director General
JDS : Joint Directors
DyDG : Deputy Director General
ADG : Assistant Director General
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(i) District collector
(ii) Commissioner of Regional Office of CA
(iii) Central Authority
Power of CCPA
The powers of CCPA are broadly related:
(i) To refer matters relating to:
(a) Violation of the rights of consumers,
(b) Unfair Trade Practices or
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(c) False or misleading advertisement for investigation or to other regulators
established the Act, (S.19).
(ii) To resale goods or withdrawal of services which are dangerous, hazardous, or unsafe
or reimburse the prices of goods or services to consumers of goods and services, and
(iii) To discontinue practices that are unfair and prejudicial to consumer interest (S.20).
(iv) To issue directions to concerned traders or manufacturers or endorsers or advertisers
to discontinue advertisement or modify the same (S.20(1).
(v) To impose penalties in respect of false or misleading advertisement upon the
manufacturer or an endorser up to a maximum of Rs. Ten lakh.
The officers (DG, DC, CRO) have been vested with the power to search the premises and
seize the goods. These powers are analogous to powers conferred under Cr.Pc, 1973.
10.4.7 Mediation
The Act 2019, provided for:
(i) Establishment of Consumer Mediation Cell attached with (a) District Consumer
Dispute Redressal Commission, (b) State Consumer Dispute Redressal
Commission, and (c) National Consumer Dispute Commission Redressal
(ii) Empanelment of mediators
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(iii) Nomination of Mediators from the panel.
(iv) Duty of the Mediator to disclose certain facts.
(v) Procedure for mediation.
(vi) Settlement through Mediation
(vii) Recording settlement and passing of the order.
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2) Mention the purposes of Consumer Protection Act (CPA) 2019.
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the production, distribution, sale, or price of, or, trade in goods or provision of
services;
(e) “Commission” means the Competition Commission of India (CCI) established under
this Act.
(f) “Consumer” means any person who—
(i) buys any goods for a consideration which has been either paid fully or partly, or
promised to pay either fully or partly, or otherwise and includes any user of such
goods by other than the person who buys such goods for consideration when
such use is made with the approval of such person (the original buyer), whether
such purchase of goods is for resale or for any commercial purpose or for
personal use;
(ii) hires or avails of any services for a consideration which has been either paid fully,
or partly, or promised to pay fully or partly and includes any beneficiary of such
services other than the person who hires or avails of the services for
consideration paid or promised, when such services are availed of with the
approval of the first-mentioned person whether such hiring or availing of services
is for any commercial purpose or for personal use.
(i) “goods” means goods as defined in the Sale of Goods Act, 1930 (8 of 1930) and
includes— (A) products manufactured, processed or mined; (B) debentures, stocks and
shares after allotment; (C) in relation to goods supplied, distributed or controlled in
India, goods imported into India;
(j) “Member” means a Member of CCI including Chairperson)
(k) “notification” means a notification published in the Official Gazette;
(i) “Person” includes—
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals,
(vi) any corporation,
(vii) anybody corporate,
(viii) a co-operative society
(ix) a local authority;
(x) every artificial juridical person.
(m) “practice” includes any practice relating to the carrying on of any trade by a person
or an enterprise;
(o) “price”, in relation to the sale of any goods or to the performance of any services,
includes every valuable consideration, whether direct or indirect, or deferred, and
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includes any consideration which in effect relates to the sale of any goods or to the
performance of any services although ostensibly relating to any other matter or thing;
(p) “public financial institution” means a public financial institution specified under the
section specified therein.
(q) “regulations” means the regulations made by the Competition Commission of India
(CCI)
(r) “relevant market” means the market which may be determined by the Commission
with reference to the relevant product market or the relevant geographic market or with
reference to both markets;
(s) “relevant geographic market” means a market comprising the area in which the
conditions of competition for the supply of goods or provision of services or demand
of goods or services are distinctly homogenous and can be distinguished from the
conditions prevailing in the neighboring areas;
(t) “relevant product market” means a market comprising all those products or services
which are regarded as interchangeable or substitutable by the consumer, by reason of
characteristics of the products or services, their prices, and intended use;
(u) “service” means service of any description which is made available to potential users
and includes the provision of services in connection with the business of any industrial
or commercial matters such as banking, communication, education, financing,
insurance, chit funds, real estate, transport, storage, material treatment, processing,
supply of electrical or other energy, boarding, lodging, entertainment, amusement,
construction, repair, conveying of news or information and advertising;
(v) “shares” means shares in the share capital of a company carrying voting rights and
includes— (i) any security which entitles the holder to receive shares with voting
rights; (ii) stock except where a distinction between stock and share is expressed or
implied;
(w)“statutory authority” means any authority, board, corporation, council, institute,
university, or any other body corporate, established by or under any Central, State, or
Provincial Act for the purposes of regulating the production or supply of goods or
provision of any services or markets thereof.
(x) “trade” means any trade, business, industry, profession, or occupation relating to the
production, supply, distribution, storage, or control of goods and includes the provision
of any services;
(y) “turnover” includes the value of the sale of goods or services;
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1. To prevent practices from having an adverse effect on Competition
2. To promote and sustain competition in markets
3. To protect the interest of Consumers and
10.5.5 Functions
The functions of the CCI are:
To ensure that the benefit and welfare of the customers are maintained in the Indian
Market.
To accelerate inclusive economic growth through ensuring fair and healthy
competition in the economic activities of the nation.
To ensure the efficient utilization of the nation’s resources through the execution of
competition policies.
To undertake competition advocacy.
To function as an Antitrust Ombudsman for small organizations.
To scrutinize any foreign company that enters the Indian market through a merger or
acquisition to ensure that it abides by India’s competition laws – the Competition Act,
2002.
To ensure interaction and cooperation with the other regulating authorities in the
economy
To ensure that the sectoral regulatory laws are agreeable with the competition laws.
To act as a business facilitator, by ensuring that a few firms do not establish
dominance in the market and that there is a peaceful co-existence between the small
and the large enterprises
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Total Strength. : Three (two+one)
This has further been reduced to three members and one chairperson by the Cabinet. This
move was taken to produce a faster turnaround in hearings and speedier approval, thereby
stimulating the business processes of corporates and resulting in greater employment
opportunities in the country.
The chairperson and the members are usually full-time members.
The eligibility for becoming Members of the Commission: The Chairperson and every
other Member shall be a person of ability, integrity, and who, has been, or is qualified to be a
judge of a High Court, or, has special knowledge of, and professional experience of not less
than fifteen years in international trade, economics, business, commerce, law, finance,
accountancy, management, industry, public affairs, administration or in any other matter
which, in the opinion of the Central Government, may be useful to the Commission.
10.5.8 Challenges
The CCI faces multiple challenges while implementing the Competition Laws. The
challenges could be both internal and external.
The constant and continuous change in the way businesses are undertaken and the
evolving antitrust issue is proving to be a significant challenge for the CCI.
The emerging business models are based on a digital economy and e-commerce. This
proves to be a problem for the CCI as the current competition laws talk only of assets
and turnovers.
The number of benches of the CCI needs to be increased to pronounce judgments
more speedily on competition cases.
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The inclusion of parameters in the competition and antitrust laws such as data
accessibility, network effects, etc. is important to ensure that the Competition laws are
relevant in a digital economy.
Check Your Progress 10.4
Note: a) Use the space given below for your answers.
b) Check your answer with those given at the end of the unit.
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10.7 KEYWORDS
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other acts that are declared unlawful by statute. It can also be referred to as deceptive trade
practices.
Restrictive Trade Practice: Maximise profits and market power, traders often attempt to
indulge in certain trade practices which tend to obstruct the flow of capital into the stream of
production. It may also bring manipulation of prices or conditions of delivery or affect the
flow of supplies in the market so as to impose unjustified costs.
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2) A Market Committee shall be constituted for every market area. Members would consist
of ten agriculturists possessing qualifications as prescribed to be elected by the Managing
Committee members of the primary agricultural cooperative societies functioning in the
market area and by the Sarpanch & members of the village Panchayat. Seven of them are
to be elected from among the committee members of Primary Agricultural Societies. Of
the 10 representatives of agriculturists at least one should be from a scheduled
Caste/Tribe; one from the Other Backward Class and one-woman member. Every Market
Committee shall have a Chairman and a Vice-Chairman, elected from amongst
representatives of agriculturists.
3) Setting up a separate marketing extension cell; promoting grading, standardization, and
quality certification, Coordination the working of the Market Committees; planning the
development of Agricultural Produce Markets; administering the State Market
Development Fund; giving direction and guiding the Market Committees.
1) To regulate matters relating to a) Violation of the Rights of Consumers, (b) Unfair Trade
Practices, (c)False or misleading advertisement pre-judicial to the interest of the Public and
Consumers, and (d) To promote, protect and enforce the rights of consumers
1). The CCI was established under the Act, 2002 for the purpose of administration,
implementation, and enforcement of provisions in the Act,2002.
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UNIT 11 FOOD SAFETY STANDARDS AND
REGULATION
Structure
11.0 Objectives
11.1 Introduction
11.2 Concepts and Principles of Food Safety
11.2.1 Definition
11.2.2 Principles of Safe food
11.2.3 Why Safe Food?
11.3 Hazards to Safe Food
11.3.1 Biological Hazards including Biotechnological
11.3.2 Chemical Hazards including Allergenic Hazard
11.3.3 Physical Hazards
11.4 Food Safety and Standards Act
11.4.1 Genesis for a Uniform and Integrated Act
11.4.2 Objectives of the Act
11.4.3 Features of the Act
11.4.4 Chapters and Sections of the Act
11.4.5 Important Provisions of the Act
11.5 Food Safety and Standard Rules and Regulations
11.5.1 Food Safety and Standard Rules
11.5.2 Food Safety and Standard Regulations
11.6 Food Hygiene
11.6.1 Food
11.6.2 People
11.6.3 Facilities and Equipment
11.7 Integrated Approach to Food Hygiene and Safety
11.8 Let Us Sum Up
11.9 Key Words
11.10 References
11.11 Answers to Check Your Progress
11.0 OBJECTIVES
After reading this unit, the learner shall be able to:
define the principles of food safety;
identify and characterize different types of food hazards viz. physical, chemical,
and biological;
describe salient features of the Food Safety and Standards Act, 2006;
state important facets of Food Safety and Standards Rules and Regulations; and
designate the principles of food hygiene and safe food.
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11.1 INTRODUCTION
“We are what we eat” is an old proverb. Our nutritional status, health, and physical and
mental faculties depend on the food we eat and how we eat it. The safety of food is an
essential and fundamental requirement for quality food. Our Supreme Court has also
ruled it in the way back in 2013 (center for public interest litigation vs. Union of India,
judgment dated 22nd October, 2013) as a constitution right, and WHO articulates -
“Access to sufficient amounts of safe and nutritious food is key to sustaining life and
promoting good health.” Food safety & hygiene which was very well embedded in our
Indian ethos is taking a backseat in the growing culture of eating out and fast foods/
take away foods. The probability of contamination of food with hazards has increased
manifold, in recent times, due to the globalization of food raw materials, processes, and
products. At the same time, consumers are becoming aware and conscious of the
importance of nutrition, food safety, and hygiene as well as their rights to Safe Food.
The Government of India enacted the Food Safety and Standards Act, 2006 with the
primary objective to consolidate laws relating to food and establishing the Food Safety
and Standards Authority of India to lay down science-based standards for articles of
food and to regulate their manufacture, storage, distribution, sale, and import, to ensure
availability of safe and wholesome food for human consumption and other related
matters to set the self-compliance path, by involving all stakeholders, to ensure
availability of safe food to the Nation. The new scientific-based food law and its
regulations, 2011 and 2017 through continuous improvement in enforcement and their
harmonization with Codex standards have laid the foundations and templates for safe
and hygienic food in the country. Safe food can be produced by adopting good hygienic
practices throughout the food chain from farm to fork. This unit covers the basic
aspects of food safety, hazards to safe food, salient features of the Food Safety and
Standards Act, 2006, and its rules and regulations.
“Enjoyment of life and its attainment, including the right to life and human
dignity encompasses, within its ambit availability of articles of food, without
insecticides or pesticides residues, veteri nary drugs residues, antibiotic residues,
solvent residues, etc.” reads the October 22 judgment in response to a petition for
an independent committee to evaluate the harmful effects of soft drinks on
human health. (Centre for Public Interest Litigation vs. Union of India)
Source: http://www.foodsafetynews.com/2013/10/indias-supreme-court-declares-
constitutional-right-to-unadulterated-food/#.V9ZEyMWLDIU
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11.2.1 Definition
“Food Safety” means assurance that food is acceptable for human consumption
according to its intended use (S. 2(9) of FSSAI Act, 2006) as per the WHO and Food
Safety and Standards Act, 2006. It calls upon stakeholders in the food chain to ensure
and facilitate that “All conditions and measures that are necessary during production,
processing, storage, distribution and preparation of food that when ingested does not
represent an appreciable risk to health”. Let us see- “What is Unsafe Food?”
The Food Safety and Standards Act, 2006 defines- “Unsafe Food” (S. 2zz of Act, 2006)
as an article of food whose nature, substance, or quality is so affected as to render it
injurious to health. The definition also lists twelve natural or intentional causes through
which food could be Unsafe.
Processes for making food safe: Let us check the processes which make the food safe.
The following processes help in the production of safe food: (a) safe and hygiene
production and handling of raw materials and finished products; (b) safe and hygiene
procurement, processing, packaging, storage, transportation, and distribution of raw
materials and finished products;(c) safe and hygiene preparation and serving of
different food products; and (e) safe disposal of waste materials and
expired/recalled/returned/leftover food products.
Thus, food safety is a set of good practices undertaken from farm to fork under a
hygienic domain. The importance of safe food is explained to concertize its principles
and practices at floor level.
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11.2.3 Why Safe Food?
Foodborne Diseases (FBD) are a major public health concern (WHO). Although most
commonly associated with self-limiting diarrhoea or vomiting, millions of people fall
ill every year and many die as a result of eating unsafe food. FBDs are under-reported
but preventable. According to the WHO Fact sheet (2015) on Food Safety following
useful and relevant information on safe food.
a) Unsafe food containing harmful bacteria, viruses, parasites, toxins, or chemical
substances, causes more than 200 diseases – ranging from diarrhoea to cancers.
b) An estimated 600 million (almost 1 in 10 people in the world) fall ill after eating
contaminated food and 4,20,000 die every year, resulting in the loss of 33 million
healthy life years.
c) Children under 5 years of age carry 40% of the food-borne disease burden, with
1,25,000 deaths every year.
d) Diarrhoeal diseases are the most common illnesses resulting from the consumption
of contaminated food, causing 550 million people to fall ill and 2,30,000 deaths
every year.
e) Food safety, nutrition, and food security are inextricably linked.
f) Unsafe food creates a vicious cycle of disease and malnutrition, particularly
affecting infants, young children, the elderly, and the sick. Thus, food-borne
diseases impede socio-economic development by straining healthcare systems and
harming national economies, tourism, and trade.
The advantages of Safe Food are: (a) It provides uncontaminated food of good quality
to consumers and (b) it ensures the prevention of food-borne diseases. Thus, it can be
said that a safe food supply that will not endanger consumer health and good quality
food is essential for proper nutrition. It would ensure the prevention of foodborne
diseases, and provide consumers with unadulterated food of good quality. It also
promotes participation in international trade in food products and stimulates economic
development.
4
2. State the importance of safe food in any developing economy
………………………………………………………………………………………
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Activity 10.1:
Prepare an awareness pamphlet/ poster on Safe Food.
5
pesticides, veterinary drugs, fungicides, and environmental contaminants and as
well as lubricants and cleaners.
C. Physical hazard is any physical material not normally found in food that causes
illness or injury. Physical hazards include glass, wood, stones, and metal which
may cause illness and injury.
Table 11.1: Examples of Hazards
Physical Hazards Chemical Hazards Biological Hazards
Metal Growth stimulants Microbiological
Plasticisers and packaging
Stones Pathogenic Bacteria
migration
Spore forming
Wood Chemical residues
Non-spore forming
Plastic Pesticides Parasites and protozoa
Parts of pests Cleaning fluids Viruses
Insulation Material Allergens Mycotoxins
Bone Toxic metals; Lead and cadmium
Fruit pits Food chemicals; preservatives,
processing
aids, polychlorinated biphenyls
(PCBs),
printing inks, Prohibited
substances
Veterinary residues, antibiotics
6
Food poisoning/food- intoxication due to microbes is very common; some of the food-
borne diseases are given below in Table 11.2:
Table 11.2: Common Food-borne Diseases and their Causative Organisms
S.No. Causal organism Disease
1. Staphylococcus aureus Gastroenteritis
2. Clostridium botulinum Botulism
3. Bacillus cereus Diarrhoea
4. Salmonella typhi Enteric fever typhoid, food-borne salmonellosis
5. Escherichia coli Gastroenteritis, diarrhoea
7
cleaning and sanitizing agents.
Naturally occurring toxins: mycotoxins, phytohaemagglutinin, pyrrolizidine
alkaloids, grayanotoxin, mushroom toxins, scombrotoxin (histamine), ciguatera,
shellfish toxins (see shellfish poisoning), tetrodotoxin, among many others.
c) Processing contaminants are generated during the processing of foods (e.g.
heating, fermentation). They are absent in the raw materials and are formed by
chemical reactions between natural and/or added food constituents during
processing. Examples of such contaminants are nitrosamines, polycyclic aromatic
hydrocarbons (PAH), heterocyclic amines, histamine, acrylamide, furan, benzene,
trans-fat, monochloropropanediol (MCPD), semicarbazide, 4-hydroxynonenal (4-
HNE), and ethyl carbamate.
d) Emerging food contaminants: While many food contaminants have been known
for decades, the formation and presence of certain chemicals in foods have been
discovered relatively recently. These are the so-called emerging food
contaminants, e.g. acrylamide, furan, benzene, perchlorate, perfluorooctanoic
acid (PFOA), 3-monochloropropane-1,3-diol (3-MCPD), 4-hydroxynonenal
and (4-HNE).
e) Allergenic hazards: Food allergens could be hazardous to consumers. The food
products should not contain allergens if not declared on the food label. Symptoms
of an allergic reaction could range from a skin rash or slight itching of the mouth to
migraine headaches to anaphylactic shock and death. This is not to be treated the
same as food intolerance which is an abnormal response to food and symptoms may
include cramps, diarrhoea, and bloating. The foods which could be a potential
source of allergens are Peanuts, Milk, Eggs, Soya, Wheat, sulphites, and
Mustard.
11.3.3 Physical Hazards
Physical contamination can occur at any stage of the food chain and therefore all
reasonable precautions must be taken to prevent this type of contamination. While
harvesting, farm produce comes into contact with a variety of external materials known
as a physical contaminants. Physical contamination consists of two major groups viz.,
organic matter and inorganic matter. The former includes plant parts, debris, weed
seeds, poisonous seeds of Dhatura and Akra, other food grains, dead insects, excreta,
damaged grains, broken, fragments, nooks, rodent hair, uric acid, etc., while the latter
consists of lump of earth, pebbles, stones, dust, etc. The proportion of these
contaminants in the sample determines the quality of the produce and also the shelf life.
However, the produce must be cleaned, graded, and packed in suitable gunny bags/
packing material free from any infestation before storing or marketing the same.
Examples of physical contamination include:
Pieces of machinery can fall into food during manufacture. Most manufacturers
protect against this type of contamination by installing metal detectors on the
production lines which reject food if anything metallic is present.
8
• Stones, pips, bones, twigs, pieces of shell.
• Foreign objects can enter food during handling so care must be taken to adhere
to good food handling practices (e.g. do not wear jewellery or smoke in a
food room).
Activity 11.2:
Identify possible hazards in any two food items.
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
9
11.4 FOOD SAFETY AND STANDARD ACT
The Food Safety and Standards Act, 2006 (FSSA)received the assent of the President
on 23rd August, 2006 and thereafter published in the Gazette of India (Extraordinary)
Part I, Section 1 dated 24th August, 2006. The Preamble of Act No 34 of 2006
encompassed- “An Act to consolidate the laws relating to food and to establish the
Food Safety and Standards Authority of India for laying down science-based standards
for articles of food and to regulate their manufacture, storage, distribution, sale, and
import, to ensure availability of safe and wholesome food for human consumption and
for matters connected therewith or incidental thereto.”
11.4.1 Genesis for a Uniform and Integrated Act
A pressing need for having a new Integrated Food Law (IFL) was articulated by
various stakeholders viz. the State Governments, Industry, R&D Institutions, etc,
before the enactment of this act, from time to time, due to the following reasons:
a. A multiplicity of food laws and standards setting, and enforcement agencies
create confusion in the minds of consumers, traders, investors, and
manufacturers.
b. Varied quality/safety standards regarding admissibility and levels of food
additives and contaminants, food colours, preservatives, etc. lead to harassment
of manufacturers of food products and other stakeholders and restrict innovation
in food products.
c. The thin spread of manpower, food laboratories, and other resources under
various authorities administrating these laws, is not conducive to the effective
fixation of food standards and their enforcement.
d. Such a situation is detrimental to the growth of the nascent food processing
industry, which is so vital for generating employment and enhancing the income
of farmers in our country.
11.4.2 Objectives of the Act
The main objectives of the Food Safety and Standards Act, 2006 are to:
a. consolidate the laws relating to food,
b. establish the Food Safety and Standards Authority of India for laying down science-
based standards for articles of food,
c. regulate the manufacture, storage, distribution and sale, and import of articles of
food to ensure the availability of safe and wholesome food for human consumption
and
d. pool infrastructure, manpower, testing facilities for better standard fixation and
enforcement through their proper re-deployment,
10
Food Safety and Standards Authority of India (FSSAI), an autonomous statutory body
under the Ministry of Health and Family Welfare, was established on 05th Sept, 2008
under the Act to:
1) Lay down Science based standards for food
2) Regulate, manufacture, storage, distribution & sell of food
3) Ensure the availability of safe and wholesome food
The Act applies to every person who is in the Food business, -either as a small hawker
or a large Food Business Operator (FBO), and makes it mandatory to keep the food
safe and fit for human consumption.
11.4.3 Features of the Act
i. Covers the entire country
ii. Shift from multi-level and multi-departmental control to a single line of
command.
iii. Focus on self-compliance, with an onus on Food Business Operators (FBO), as
against the regulatory regime under the Prevention of Food Adulteration Act
(PFA) 1954.
iv. Standard Setting includes Risk assessment and new scientific developments
v. Empowers States to issue Registration and License
vi. Effective, transparent, and accountable regulatory framework. Well-defined
functions and powers
vii. Regulations of Food Imported in Country
viii. Provision for graded penalties
ix. Regulations for imported food products
x. Structuring of Food Recall
xi. Surveillance
xii. Training and Awareness Programmes
11
Standards Duties, and Functions of Food
Authority of India Authority, Central Advisory
Committee, Scientific panels, and
Committee
3. 3 General Principles 18 General principles to be followed
of Food Safety in the administration of Act
4. 4 General Provisions 19-24 Food Additives, Contaminants,
As to Articles of Pesticides, Genetically Modified
Food foods, Functional foods, Packaging
and Labelling, Restrictions of
Advertisement
5. 5 Provisions relating 25 All imports of articles of food
to Import subject to this Act
6. 6 Special 26-28 Responsibilities of the Food
responsibilities for Business Operator and other
Food Safety associates, Liabilities of
manufacturers, etc. Food Recall
Procedure
7. 7 Enforcement of the 29-42 Authorities responsible for
Act enforcement of the Act, Licensing
and registration of Food business,
Food Safety Officer and his
powers, procedure for launching
prosecution
8. 8 Analysis of Food 43-47 Recognition and accreditation of
laboratories, Food analyst,
sampling and food analysis, and
his Functions, Sampling and
Analysis.
9. 9 Offenses and 48-67 Graded penalty and punishment
Penalties depending upon the gravity of the
offense
Penalty for (a) substandard food,
misbranded food, misleading
advertisement, food containing
extraneous matter, etc.
10. 10. Adjudication and 68-80 Adjudication, Establishment of
Food Safety Food Safety Appellate Tribunal,
Appellate Tribunal Procedure and powers of the
tribunal, Special Court and Public
Prosecutor, Appeal, time limit for
prosecutions
11. 11. Finance, Accounts, 81-84 Budget, Finance, Accounts,
12
Audit and Reports Annual Report of Food Authority
12. 12. Miscellaneous 85-101 Power of Central Government to
issue directions to Food Authority
and State Government.
Framing Rules, Regulations,
Science based Standards, and
guidelines in relation to articles of
food, and for accreditation of
Certification bodies/ Laboratories,
Repeal
The First Schedule Section Classification of Zones I to V
5(i)
The Second Section 97 Acts and Orders Repealed
Schedule
13
Government to carry out the objects of the Act. The Main Functions of the Food
Authority are as under:
a) To prescribe standards and guidelines for articles of food, regulate/monitor
manufacturing, processing, distribution, sale, and import of food so as to ensure
safe and wholesome food for the people.
b) To take all such steps to ensure that the public, consumers, interested parties,
and all levels of Panchayats receive rapid, reliable, objective, and
comprehensive information.
c) To promote consistency between international technical standards and domestic
food standards.
d) To promote general awareness of food safety and food standards.
e) To prescribe the mechanism and guidelines for accreditation of certification
bodies for food safety management systems.
f) To prescribe the limits or use of food additives, crop contaminants, pesticide
residues, heavy metals, antibiotics, etc.
5. Sections 18: General Principles of Food Safety: The general principles to be
followed while implementing the provisions of the Act by the Central Government,
the Food Authority, the State Governments, and other agencies are enumerated
under this section: The general principles to be kept in mind are:
(i) To achieve an appropriate level of protection of Human Life and Health;
(ii) Protection of consumer interests including fair practices in all kinds of Food
Trade with reference to food safety standards and practices;
(iii) To carry out provisional risk management measures necessary to ensure an
appropriate level of health;
(iv) Protection of farmers' interests; Provisions of this act shall not apply to any
farmer or fisherman or farming operations or crops or livestock or
aquaculture, and supplies used or produced in farming or products of crops
produced by a farmer at farm level or fisherman in his operations.
(v) Risk Analysis;
(vi) Transparent Public consultation & information;
(vii) Prevalent fair practices and conditions in food trade in the country and
(viii) Due consideration of international standards.
The Food Authority should, while discharging its functions, take into account the
prevailing practices and conditions in the country including agricultural practices,
handling, storage, and transport conditions including international standards and
practices, etc. The said authorities shall be guided by the general principles of Food
Safety such as risk analysis, risk assessment, risk management, risk
communication, transparent public consultation, protection of consumer interests,
etc. It empowers the Food Authority to notify other general principles from time to
time as per the requirements.
14
6. Section 23: Packaging and Labelling: As per this section, no person shall
manufacture, distribute, sell or expose for sale or dispatch or deliver to any agent or
broker for the purpose of sale, any packaged food products which are not marked
and labelled in the manner as may be specified under relevant regulations. Every
food business operator should ensure that the labelling and presentation of food do
not mislead consumers.
7. Section 24: Restrictions of Advertisement and prohibition as to unfair trade
practices: As per this section, no advertisement shall be made of any food which
misleads or deceives or contravenes the provisions of the Act or the rules and
regulations made thereunder. It also provides for prohibition as to any unfair trade
practice for the purpose of promoting the sale, supply, use, and consumption of
articles of food or adoption of any unfair or deceptive practice to mislead the public
regarding the standards, quality, quantity, grade or making false or misleading
representatives concerning the need for or usefulness or giving of any guarantee of
the efficacy to the public that is not based on an adequate or scientific justification
thereof.
8. Section 26: Responsibilities of the Food Business Operator: As per this section,
Food Business Operator (FBO) is duty-bound to ensure that the articles of food
satisfy the requirements provided under the Act, the rules and regulations made
thereunder at all stages of production, processing, import, distribution and sale
within the businesses under his control. This section also provides that no food
business operator shall himself or by any person on his behalf manufacture, store,
sell or distribute any article of food (i) which is unsafe or (ii) misbranded or sub-
standard or contains extraneous matter or (iii) for which a license is required which
is for the time being prohibited by the Food Authority or the Central Government or
the State Government in the interest of public health. The food business operator
shall not employ any person who is suffering from an infectious, contagious, or
loathsome disease.
9. Section 28: Food Recall Procedures: This section stipulates that if a food business
operator considers or has reason to believe that a food that he has processed,
manufactured, or distributed is not in compliance with the provisions of the Act, or
the rules and regulations made thereunder, he shall immediately initiate procedures
to withdraw the food in question from the market and the consumers by indicating
the reasons for its withdrawal and inform the competent authorities and co-operate
with them if the food business operator considers or has reasons to believe that a
food which he has placed on the market may be injurious to human health and shall
inform the competent authorities about the action taken to prevent risks to the
consumer.
10. Section 30: Commissioner of Food Safety of the State: This section empowers
the State Government to appoint the Commissioner of Food Safety for the State
for efficient implementation of food safety and standards and other requirements
laid down under the Act or the rules and regulations made thereunder.
15
It enumerates the functions of the Commissioner of Food Safety as under:
(a) to prohibit the manufacture, storage, distribution, or sale of any article of food in
the interest of public health,
(b) to carry out a survey of the industrial units engaged in the manufacture or
processing of food,
(c) to conduct or organize training programmes for the personnel, generating
awareness on food safety,
(d) to ensure an efficient and uniform implementation of the standards, sanction
prosecution for offenses,
(e) to sanction prosecution for offenses punishable with imprisonment under this Act,
and
(f) such other functions as the State Government may prescribe in consultation with
the Food Authority.
11. Section 31: Licensing and Registration of Food Business: This section provides
that no person shall commence or carry on any food business except under a license
issued by a Designated Officer authorised by the Commissioner of Food Safety. An
appeal against the order of the Designated Officer shall lie with the Commissioner
of Food Safety.
This section also provides that this section is not applicable to small-scale
industries, cottage industries, petty manufacturers who manufacture and sell any
article of food, retailer, hawker, itinerant vendor, temporary stall holders, or tiny
food business operators. However, they have to register their business with the
concerned Authority as specified under regulations.
12. Section 36: Designated Officer: The provision empowers the Commissioner of
Food Safety of the State to appoint, by an order, the Designated Officer who shall
not be below the rank of a sub- Divisional Officer, to be in charge of food safety
administration in such areas as may be specified. This section also stipulates that
there shall be a Designated Officer for each district. It further enumerates the
functions to be performed by the Designated Officer as detailed below:
(a) To issue or cancel the license of food business operators,
(b) To prohibit the sale of any article of food which is not as per prescribed standards,
(c) To receive reports and samples of the article of foods from the Food Safety
Officer under his jurisdiction and get them analysed,
(d) To make recommendations to the Commissioner of Food Safety,
(e) To sanction to launch prosecutions in case of contraventions punishable with
imprisonment,
(f) To maintain a record of all inspections made by Food Safety Officers,
(g) To get investigated any complaint made in writing,
16
(h) To investigate any complaint which may be made in writing against the Food
Safety Officer, and
(i) To perform such other duties as may be entrusted to him by the Commissioner of
Food Safety.
13. Section 37: Food Safety Officer: This section empowers the Commissioner of
food safety to appoint Food Safety Officers in consultation with the State
Government, by notification, for such local areas as the government may assign to
them for the purpose of performing its functions under the Act. This section also
provides that the State Government may authorize any officer of the State
Government having the prescribed qualifications to perform the functions of a Food
Safety Officer within a specified jurisdiction.
14. Section 38: Powers of Food Safety Officer: This section specifies in detail, the
powers of the Food Safety Officer, which include (a) taking a sample of any article
of food or substances and (b) seizure any article intended for food which appears to
the Food Safety Officer to be in contravention of the Act or the regulations or
orders made thereunder, etc.
Power to enter and inspect any place where the article of food is manufactured,
stored for sale, etc. It provides that the Food Safety Officer shall, in exercising the
powers of entry upon, and inspection of any place under this section, follow, as far
as may be, the provisions of the Code of Criminal Procedure, 1973 relating to the
search or inspection of a place by a police officer executing a search warrant issued
under the Criminal Procedure Code, 1973. In case the seized article is perishable in
nature and if the food safety officer is satisfied that it is unfit for human
consumption, the authority may destroy the same after giving notice to the vendor.
15. Section 40: Purchaser may have food analysed: It enables the purchaser of any
article of food to get analyzed such food by the Food Analyst after informing the
food business operator at the time of purchase of his intention to have such article
so analyzed. In case the Food analyst finds the sample in contravention of the
provisions of the Act, he shall forward the report to the designated officer to follow
the procedure prescribed under the Act (Section 42 procedure for launching
prosecution) as per this section, if the report of the Food Analyst shows that the
article of food is not compliance with the Act, the purchaser is entitled to get a
refund of the fees paid by him.
16. Section 42: Procedure for launching prosecution: The Food Safety Officer is
responsible for inspecting food business drawing samples and sending them to Food
Analyst for analysis. It is the duty of the Food analysts to test the sample and send
the analysis report within fourteen days to the designated officer with a copy to the
commissioner of Food Safety. This Section lays down the procedure for launching
prosecutions. Designated Officer, after scrutiny of the report of the Food Analyst
shall decide as to whether the contravention is punishable with imprisonment or fine
only, and in the case of contravention punishable with imprisonment, he shall send
17
his recommendations within fourteen days to the Commissioner of Food Safety for
sanctioning prosecution. This section also provides that the Commissioner of Food
Safety shall, if he so deems fit, decide within the prescribed period by the central
government as per the gravity of the offense, whether the matter be referred to (a) a
court of ordinary jurisdiction in case of offenses punishable with imprisonment for a
term up to three years; or(b) a Special Court in case of offenses punishable with
imprisonment for a term exceeding three years where such Special Court is
established and in case no Special Court is established, such cases shall be tried by a
court of ordinary jurisdiction.
17. Section 43: Recognition and Accreditation of laboratory, research institutions,
and referral food laboratory: The section contains the provisions relating to the
recognition and accreditation of laboratories, research institutions, and referral food
laboratories. It empowers the Food Authority to, (i) recognize by notification any
food laboratory and research institution as accredited by the National Accreditation
Board for Testing and Calibration Laboratories (NABL) or similar accreditation
agency to carry out analysis of samples by the Food Analysts; (ii) establish or
recognize by notification one or more referral food laboratory or laboratories to
carry out the functions entrusted to the referral food laboratory, (iii) frame
regulations specifying (a ) the functions of food laboratory and referral food
laboratory, (b) the procedure for submission of samples of articles of food to the
laboratory for analysis or tests, etc.
18. Section 45: Food Analysts: Section 45 empowers the Commissioner of Food
Safety of the State to appoint Food Analysts for specified local areas assigned to
them by the commissioner of safety. However, no person who has any financial
interest in the manufacture or sale of any article of food shall be appointed as a
Food Analyst. Further, different Food Analysts may be appointed for different
articles of food.
19. Section 46: Functions of Food Analyst: This section specifies the functions of
Food Analysts. The Food Analyst shall analyze the samples of the article of food
sent to him by the Food Safety Officer or by any other person authorized under the
Act. The Food Analyst shall send a copy of the report of the result of such analysis
to the Designated Officer within fourteen days from the date of receipt of such
sample. An appeal against the report of the Food Analyst shall lie before the
designated Officer who shall if he so decides, refer the matter to the referral food
laboratory as notified by the Food Authority for opinion.
20. Section 47: Sampling and Analysis: The section enumerates procedures for taking
sampling and analysis of articles of foods. It is specified that when a sample of any
article of food or adulterant is taken by the Food Safety Officer he in turn shall, by
the immediate succeeding working day, send the sample in accordance with the
rules prescribed for sampling to the Food Analysts for the area concerned for
analysis and report. An article of food or adulterant seized unless destroyed shall be
produced before the Designated Officer as soon as possible and in any case not later
18
than seven days after the receipt of the report of the Food Analyst. The Designated
Officer, Food Safety Officer, Authorised Officer, and Food Analyst are required to
follow the procedures specified under regulations.
21. Section 48: General Provisions relating to Offences: The section covers general
provisions relating to offenses. As per this section, a person may render any article
of food injurious to health by one or more ways of (a) adding any article or
substance to the food, (b) using any article or substance as an ingredient in the
preparation of the food, (c) abstracting any constituents from the food or (d)
subjecting the food to any other process or treatment.
While determining whether any food is injurious to health, due regard shall be had
to the particular health sensitivities of a specific category of the consumer where the
food is intended for that category of consumers but also to the probable cumulative
effect of food of substantially the same composition on the health of a person
consuming it in ordinary quantities. For the purposes of the section on Offences and
penalties, “injury” includes any impairment, whether permanent or temporary and
“injurious to health” shall be construed accordingly.
22. Section 49: General Provisions relating to Penalty: This section provides that
while adjudging the quantum of penalty, the adjudicating officer, or the Tribunal,
will have the regard to:
a) the amount of gain or unfair advantage, wherever quantifiable, made as a result
of the contravention;
b) the amount of loss caused or likely to cause to any person as a result of the
contravention;
c) whether the contravention is without his knowledge; and
d) any other relevant factor.
23. Section 50: Penalty for Selling Food, not of the Nature or Substance or Quality
Demanded: As per this section any person, who sells to the purchaser’s prejudice any
food which is not in compliance with the provision of this Act or the regulation made
there under, or of the nature or substance or quality demanded by the purchaser, is
liable to a penalty not exceeding five lakh rupees.
Further, the small-scale industries, cottage industries, petty manufacturer who himself
manufactures and sell any article of food, retailer, hawker, itinerant vendor, or
temporary stall holder shall be liable for such non-compliance to a penalty not
exceeding twenty-five thousand rupees.
24. Section 51: Penalty for Sub-standard Food: The penalty for manufacturing for
selling, storing, or import of any article, etc., of sub-standard food for human
consumption either by himself or any other person is liable to a fine which may extend
to five lakh rupees.
25. Section 52: Penalty for Misbranded Food: Any person who either by himself or by
19
any other person on his behalf manufactures for sale or stores or sells or distributes or
imports any article of food for human consumption which is misbranded, is liable to a
penalty, which may extend, to three lakh rupees.
26. Section 53: Penalty for Misleading Advertisement: The person who publishes a
misleading advertisement either falsely describes any food or is likely to mislead the
public is liable for a fine extending to ten lakh rupees.
27. Section 54: Penalty for Food Containing Extraneous matter: Any person either by
himself or any other person authorised by him, manufactures for sale or stores or
sells or distributes or imports any article of food for human consumption containing
extraneous matter is liable to a penalty which may extend up to Rs.one lakh.
28. Section 55: Penalty for Failure to Comply with the Directions of Food Safety
Officer: As per this section, if a food business operator or importer without reasonable
ground, fails to comply with the requirements of the Act or the rules, regulations, or
orders issued thereunder, as directed by the Food Safety Officer, is liable to a penalty
which may extend to two lakh rupees.
29. Section 56: Penalty for Unhygienic or Unsanitary Processing or Manufacturing
of Food: The penalty for unhygienic or unsanitary processing or manufacturing of
food for human and consumption by a person himself or any other person on his
behalf, is liable to a fine which may extend to one lakh rupees.
30. Section 57: Penalty for Possessing Adulterant: The section provides a penalty for
processing adulterant either by himself or any person authorised by him and makes it
liable to a penalty not exceeding ten lakh rupees.
31. Section 59: Punishment for Unsafe Food: The section contains provisions for
punishment for unsafe food and makes the offense punishable, where such failure or
contravention:-
(i) does not result in injury, with imprisonment for a term which may extend to six
months and also with a fine which may extend to one lakh rupees;
(ii) results in a non-grievous injury, with imprisonment for a term which may
extend to one year and also with a fine which may extend to three lakh rupees.
(iii) results in a grievous injury, with imprisonment for a term which may extend to six
years and also with a fine which may extend to five lakh rupees; and
(iv) results in death, with imprisonment for a term which shall not be less than seven
years but which may extend to imprisonment for life and also with a fine which
shall not be less than ten lakh rupees.
32. Section 63: Punishment for Carrying out a Business without License: The
punishment for carrying out a business of manufacturing, selling, storing or
distributing, or importing any article of food without a license by any person or a food
business operator either himself or by any person on his behalf, who is required to
obtain a license under the Act, is liable for punishment with imprisonment for a term
20
which may extend to six months and also with a fine which may extend to five lakh
rupees.
33. Section 65: Compensation in case of Injury or Death of Consumer: This section
provides for compensation in case of causing injury or death of consumer and makes
the offender (who himself or by any other person on his behalf manufacturers or
distributes or sells or import any article of food causing injury to consumer) liable to
pay compensation to the victim or the legal representative of the victim (a) a sum not
less than rupees five lakhs in case of death; (b) sum not exceeding rupees three lakhs
in case of grievous injury; and (c) a sum not exceeding rupees one lakh, in all other
cases of injury.
In the case of death, an interim relief must be paid to the next of kin within thirty days
of the incident. Where any person is held guilty of an offense leading to grievous
injury or death, the Adjudicating Officer or the court may cause the name and place of
residence of the person held guilty, the offense, and the penalty imposed to be
published at the offender’s expense in newspapers or in any other manner as the
Adjudicating Officer or the court may direct in case of grievous injury or death of the
consumer. The adjudicating officer may also order for cancellation of the license,
recall of food from the market, forfeiture of establishment and property, or issue
prohibition orders in other cases.
34. Section 68: Adjudication: The section empowers the State Government to notify an
officer not below the rank of Additional District Magistrate of the district where the
alleged offense is committed, as the Adjudicating Officer for adjudication in the
manner as may be prescribed by the central government. Such Adjudicating Officer
shall have the powers of a civil court and all proceedings before him shall be deemed
to be judicial proceedings within the meaning of sections 193 (punishment for false
evidence) and 228 (Intentional insult to public servant sitting in Judicial Proceedings)
of the Indian Penal Code (45 of 1860) and shall be deemed to a court for the purposes
of Sections 345 (Procedure in certain cases of contempt) and Section 346 (Procedure
where the court considers that the case should not be dealt with under S.345) of the
Code of Criminal Procedure, 1973 (2 of 1974). Any person who is aggrieved by a
decision of an Adjudicating Officer may appeal to the Commissioner of Food Safety
or such other officer, within thirty days from the date on which the order was served
on the person desiring to make an appeal if a Food Appellate Tribunal has not been
established.
35. Section 70: Establishment of Food Safety Appellate Tribunal: The central, as well
as state government, is vested with the power to establish Food Safety Appellate
Tribunal to hear appeals. The Appellate Tribunal shall consist of one person only as
the presiding officer of the Food Safety Appellate Tribunal to be appointed by the
central government or the state government as the case may be.
36. Section 89: Overriding effect of this Act over all other Food Related Laws: The
section provides for the overriding effect of the Act over all other food-related laws for
lifetime being in force.
21
37. Section 92: Power of Food Authority to make Regulations: The section empowers
the Food Authority to make regulations with the previous approval of the central
government, by the notification which is consistent with the provisions of the Act and
rules for carrying out the provisions of the Act. It enumerates the various matters in
respect of which the Authority can make regulations, such as notifying standards and
guidelines in relation to articles of food meant for human consumption; notifying
procedure for the licensing and registration of food business for the manufacture,
processing or sale of safe food, notifying guidelines for the manufacture, and sale of
food including genetically modified articles of food, health, and functional foods or
any other foods; issue codes of recommended practices in consultation with the
concerned organizations as regards the execution and enforcement of the Act and of
regulations and orders made under it, etc.
38. Section 97: Repeal and savings: This section seeks to repeal the enactment and
orders specified in the second schedule on dates fixed by the central government in
this regard such repeal shall not affect
(i) the previous operations of the enactments under repeal or anything duly done or
suffered thereunder; or
(ii) any right, privilege, obligation, or liability acquired, accrued, or incurred under
any of the enactments under repeal; or
(iii) any penalty, forfeiture, or punishment incurred in respect of any offenses
committed against the enactments and orders under repeal; or
(iv) any investigation, legal proceedings, or remedy in respect of any such penalty,
forfeiture, or punishment, and
(v) any such investigation, legal proceedings, or remedy may be instituted,
continued, or enforced and any such penalty, forfeiture, or punishment may be
imposed, as if the Act had not been passed.
39. First Schedule annexed with Act: This outlines the zones from which the states
and the union territories will get representation’ in the Food Authority. The entire
states and UTs in the country are distributed under 5 zones.
40. Second Schedule annexed with Act: This section gives the details of the food
Act/ Orders, which are repealed on commencement of the provisions of the Act.
Such repeated laws include:
(a) Prevention of Food and Adulteration Act, 1954,
(b) The Food Products Order 1955,
(c) The Meat Food Products Order 1973,
(d) The Vegetable Oil Products Order 1947
(e) The Edible Oils Pack Aging (Regulations) Order 1998,
(f) The Milk and Milk Products Order, 1992, etc.
22
Check Your Progress 10.3
Note: a) Use the spaces given below for your answers.
b) Check your answer with those given at the end of the unit.
1. What are the objectives of the Food Safety and Standards Act, 2006?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
Activity 10.3:
Prepare a Power Point Presentation indicating important features of Act.
23
the concerned law. Regulations are directives with legal bindings and are the standards set
by the Authority for enforcing the law. These are structured and approved after taking into
consideration the public at large. The violation is liable for penalty or punishment or both.
The rules and regulations as notified are enumerated here.
11.5.1 Food Safety and Standard Rules
This has been notified as per the powers conferred by section 91 of the Act. The structure
includes three chapters and ten forms. The salient features include: (a) Describes the
qualification and duties of the Food Safety commissioner, Designated Officer, and Food
Safety Officer; (b) Sampling procedure, and manner of taking samples;, (c) the Function
of the Food analyst and the analysis report; (d) Adjudication procedure, appeal, Food
Safety Appellate Tribunal, Special courts; (e)Integrates with the acts/rules/orders; (f)
facilitates scientific approach in the regulatory framework, & scientific developments,
provide specificity and traceability of content; (g) Unified Licensing Procedures and
application forms, Clear line of distinction between licensing and registration and (h)
Standards have been systematically arranged taking into consideration Codex
classification.
11.5.2 Food Safety and Standard Regulations
Section 92 of the Act specifies that Authority may make regulations, consistent with Act,
to carry out provisions of the Act. The authority has from time to time brought out a
number of regulations. The notified regulations are listed here:
a) Food Safety and Standards (Licensing and Registration of Food Businesses)
Regulation, 2011:
b) Food Safety and Standards (Food Product Standards and Food Additives) Regulation,
2011
c) Food Safety and Standards (Prohibition and Restriction on Sales) Regulation, 2011
d) Food Safety and Standards (Packaging and Labelling) Regulation, 2011
e) Food Safety and Standards (Contaminants, Toxins, and Residues) Regulation, 2011
f) Food Safety and Standards (Laboratory and Sampling Analysis) Regulation, 2011
g) Food Safety and Standards (Food or Health Supplements, Nutraceuticals, Foods for
Special Dietary Uses, Foods for Special Medical Purposes, Functional Foods, and
Novel Food) Regulations, 2016
h) Food Safety and Standards (Food Recall Procedure) Regulation, 2017
i) Food Safety and Standards (Import) Regulation, 2017
j) Food Safety and Standards (Approval for Non-Specified Food and Food Ingredients)
Regulations, 2017.
k) Food Safety and Standards (Organic Food) Regulation, 2017.
l) Food Safety and Standards (Fortification of Foods) Regulations, 2018
m) Food Safety and Standards (Alcoholic Beverages) Regulations, 2018
24
n) Food Safety and Standards (Food Safety Auditing) Regulation, 2018
o) Food Safety and Standards (Packaging) Regulation, 2018
p) Food Safety and Standards (Advertising and Claims) Regulation, 2018
q) Food Safety and Standards (Recognition and Notification of Laboratories)
Regulation, 2018
r) Food Safety and Standards (Recovery and Distribution of Surplus food) Regulation,
2019
s) Food Safety and Standards (Safe food and balanced diets for children in school)
Regulations, 2020
t) Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020
u) Food Safety and Standards (Labelling and Display) Regulations, 2020
v) Food Safety and Standards Authority of India (Recruitment and Appointment)
Regulations, 2018
25
regulation covers about 377 vertical standards for various types of food as well as
microbiological requirements, and 9000 provisions for use of 400 additives. The
details may be seen at the link:
https://www.fssai.gov.in/upload/uploadfiles/files/Food_Additives_Regulations.pdf.
The amendments may also be referred, please.
(iii) Food Safety and Standards (Prohibition and Restriction on Sales) Regulation,
2011: This regulation broadly contains subjects related to prohibition and
restrictions on sale. The regulation covers details of (a) the Sale of certain
admixtures prohibited, (b) the Restriction on the use of certain ingredients, (c)
Prohibition & Restriction on the sale of certain products- Prohibition on the use of
carbide gas in the ripening of Fruits, and Products which require AGMARK Seal
/BIS Seal. The details may be seen at the link:
https://www.fssai.gov.in/upload/uploadfiles/files/Prohibition_Regulations.pdf. The
amendments may also be referred to, please.
(iv) Food Safety and Standards (Packaging and Labelling) Regulation, 2011: The
salient features include: (a) Packaging, (b) Labelling of pre-packed foods, (c)
Manner of Declaration, (d) Specific Requirements/ Restrictions on the manner of
Labelling, (e) Restriction on Advertisement, (f) Exemption from Labelling
requirements and (g) Notice of addition, admixture or deficiency in Food. This
regulation has been divided into two regulations: (i) Food Safety and Standards
(Packaging) Regulations, 2018; and (ii) Food Safety and Standards (Labelling and
Display) Regulations, 2019. These two regulations supersede this regulation. The
details may be seen at the link:
https://fssai.gov.in/upload/uploadfiles/files/Packaging_Labelling_Regulations.pdf
The amendments may also be referred please.
(v) Food Safety and Standards (Contaminants, Toxins, and Residues)
Regulation, 2011: This regulation is an example of horizontal standard along
with Packaging and Labelling Regulations as these are applicable to all food
products. The regulations contain- (a) metal contaminants and their limits, (b)
Crop contaminants and naturally occurring toxic substances with their limits, (c)
Residues (restriction on the use of insecticides), Limits of biotoxins in Fish and
Fishery Products, (d) Maximum Residue Limits (MRLs) of insecticides, antibiotic
and pharmacologically and the substances in different foods and (e) limits of
biotoxins in fish and fish products and (f) other contaminants with prescribed
maximum level (ML). The details and amendments may be seen at the link:
https://fssai.gov.in/upload/uploadfiles/files/Contaminants_Regulations.pdf
(vi) The Food Safety Standards (Food Recall Procedure) Regulations 2017: This
regulation contains: (a) key definitions, (b) the objective behind the food recall
procedure, (c) the scope and ambit of the food recall procedure, (d) procedure to
be followed while initiating food recall process, (e) operation of food recall
system, (f) recall communication, etc. It also contains the following schedules:
Sch. 1: Food recall information as per regulation 6(3)
26
Sch. 2: Food recall status report format as per regulation 9(2)
Sch. 2: Food recall termination request format as per regulation 12(1)
(vii) Food Safety and Standards (Labelling and Display) Regulations, 2020: This
regulation prescribes the labelling requirements of pre-packaged foods and the
display of essential information on the premises. The labelling requirements are
(a) Name of the food, (b) List of ingredients in descending order, (c) Nutritional
information, (d) Declaration regarding veg or non-veg, (e) Declaration regarding
food additives, (f) Name and complete address of manufacturer or packer, (g)
FSSAI logo and license number, (h) Net content by weight or volume, retail sale
price, and consumer care details. (i) Lot/Code/Batch identification, (j) Date
Marking - “Date of manufacture or packaging” and Expiry/ Use by and manner of
declaration of date of manufacturer or expiry/use by, (k) labelling of imported
foods, (l) Country of origin for imported products, (m) Instructions for use, (n)
declaration regarding food allergens and (o) Symbol for food material not meant
for human consumption. The details may be seen at the link:
https://fssai.gov.in/upload/notifications/2020/12/5fd87c6a0f6adGazette_Notificati
on_Labelling_Display_14_12_2020.pdf. The amendments may also be referred,
please.
The regulations are continuously upgraded and the amendments with regulations
should be checked regularly. https://fssai.gov.in/cms/food-safety-and-standards-
regulations.php
27
Activity 10.4:
Study the Food Safety Compliance System (FoSCoS-https://foscos.fssai.gov.in/)
28
training of the food handlers with reinforced schedules and their proper supervision and
monitoring shall play an important role in minimizing the level of contamination.
29
Control of foodborne pathogens at source is not always easy. Many pathogens survive
in the environment for long periods of time. They can be transmitted to humans by a
variety of routes - water, soil, sewage, crops, etc. The safety of foods (especially
microbiological) can be principally assured by:
1. The application of good hygienic practices during production, processing (including
labelling), handling, distribution, storage, sale, preparation, and use.
2. The above in conjunction with the application of the Hazard Analysis Critical
Control Point (HACCP) system. This preventative system offers more control than
end-product testing because the effectiveness of microbiological examination in
assessing the safety of food is limited.
The integration approach to food hygiene and safety requires:
Good Agricultural Practices (GAP)
Good Animal Husbandry Practices (GAHP)
Good Veterinary Practices (GVP)
Good Hygienic Practice (GHP)
Good Manufacturing Practice (GMP)
Hazard Analysis Critical Control Point (HACCP)
Microbiological Risk Assessment (MRA)
Quality management: ISO series
Total Quality Management (TQM)
30
11.8 LET US SUM UP
Food-borne diseases constitute a public health concern, and unhygienic preparation of
food provides plenty of opportunity for contamination, growth, or survival of food-
borne pathogens. The probability of contamination of food with hazards has increased
manifold, in recent times, due to globalization, urbanization, changes in consumer
demand and lifestyle, international travel, environmental pollution, deliberate
adulteration, and natural and man-made disasters. The scenario calls for strong
foundations and templates for safe and hygienic food. Food Safety is a concept that
gives assurance that food is acceptable for human consumption according to its
intended use; and five key principles for the production of safe food are: (a) Keep
Clean; (b) Separate raw and cooked food; (c) Cook thoroughly; (d) Keep food at a safe
temperature and (e) Use safe water and raw materials.
Food-borne disease is caused by ingestion of food contaminated with food safety
hazards that gain access to the food at any point in the food chain, from primary
production, through processing, storage, distribution, and at the consumer level. The
three types of hazards are biological biotechnological, and chemical including
allergenic hazards and physical. All are important, but biologicals are of major concern
to the food processing sector.
The Food Safety and Standard Act, 2006 (FSSA) -Act No 34 of 2006 received the
assent of the President on 23rd August 2006, and the Preamble of the Act covered the
essence of “An act to consolidate the laws relating to food and to establish the Food
Safety and Standards Authority of India for laying down science-based standards for
articles of food and to regulate their manufacture, storage, distribution, sale, and
import, to ensure availability of safe and wholesome food for human consumption and
for matters connected therewith or incidental thereto.” The Act repealed eight
laws/orders which were in operation prior to the enforcement of FSSA and included-
The Prevention of Food Adulteration Act, 1954; The Fruit Products Order, 1955; The
Meat Food Products Order, 1973; The Vegetable Oil Products (Control) Order,
1947; The Edible Oils Packaging (Regulation) Order, 1998; Solvent Extracted Oil, De
oiled Meal, and Edible Flour (Control) Order, 1967 and The Milk and Milk Products
Order, 1992. The FSS Act, 2006 has been structured into 12 Chapters comprising 101
Sections and two Schedules. Food Safety and Standards Authority of India (FSSAI), an
autonomous statutory body under the Ministry of Health and Family Welfare, was
established on 05th Sept 2008 to implement the Act.
The provisions of the Act are executed through Rules and Regulations. The FSSAI has
brought out a number of regulations and continuously issues amendments for making
them relevant as per requirements. The important regulations include Licensing and
Registration of Food Business; Food Products Standards and Food Additives;
Contaminants, Toxins, and Residues; Prohibition and Restriction on sales; Packaging;
Labelling and Display; Advertising and Claim; Food Recall Procedure; Laboratory and
Sampling Analysis and Import. The regulations prescribe the requirements, and their
violation is liable for penalty or punishment or both.
31
Hygiene is directed towards keeping safe food as stay safe food by elimination of food-
borne illnesses through the reduction of opportunities for food contamination and
correction of contamination that does occur. The integrated approach for food hygiene
and safety includes (a) Control at source; (b) Product design and process control, (c)
Good hygienic practice, and (d) application of a Preventive approach such as HACCP.
“Schedule 4” of Food Safety and Standards (Licensing and Registration of Food
Businesses) Regulations, 2011 gives the General Hygienic and Sanitary practices to be
followed by the Food Business Operators (FBOs).
Food safety is the responsibility of all stakeholders, and everyone should play a
positive role in ensuring the availability of safe and nutritious food for society.
11.9 KEYWORDS
Adulterant : Adulterant means any material which is or could be
employed for making the food unsafe or sub-standard,
misbranded, or containing extraneousmatter.
Extraneous Matter : Means any matter contained in an article of food which
may be carried from the raw materials, packaging
materials, or process systems used for its manufacture or
which is added to it, but such matter does not render such
article of food unsafe.
Food : Means any substance, whether processed, partially
processed, or unprocessed, which is intended for human
consumption and includes primary food to the extent
defined in the clause, Genetically modified or engineered
food or food containing such ingredients, infant food,
packaged drinking water, alcoholic drink, chewing gum,
and any substance, including water used into the food
during its manufacture, preparation or treatment but does
not include any animal feed, live animals unless they are
prepared or processed for placing on the market for human
consumption, plants prior to harvesting, drugs and
medicinal products, cosmetics, narcotic or psychotropic
substances.
Food Additive : Means any substance not normally consumed as a food by
itself of used as a typical ingredient of the food, whether or
not it has nutritive value, the intentional addition of which
to food for a technological (including organoleptic) purpose
in the manufacture, processing, preparation, treatment,
packing, packaging, transport or holdingof such food results,
or may be reasonably expected to result (directly or
indirectly), in it or its by-products becoming a component
of or otherwise affecting the characteristics of such food but
32
does not include” contaminants” or substances added to food
for maintaining or improving nutritional qualities.
Food Authority : Food Authority means the Food Safety and Standards
Authority of India, established under Section 4 of the
Act.
Food Business Operator : Food Business Operator in relation to food business
means a person by whom the business is carried on or
owned and is responsible for ensuring the compliance of
this Act, rules, and regulations made thereunder.
Food Hygiene : All conditions and measures necessary to ensure the
safety and suitability of food at all stages of the Food
Chain.
Food Safety : Food Safety means assurance that food is acceptable
for human consumption according toits intended use
Food Safety
Management System : Food Safety Management System means the adoption of
Good Manufacturing Practices, Good Hygienic Practices,
Hazard Analysis and Critical Control Points, and such
other practices as may be specified by regulation, for the
food business.
Food Safety Officer : Means and officer appointed under Section 37of the Act.
Good Agricultural
Practices : Practices of primary food producers (such as farmers and
fishermen) that are necessary to produce safe and
wholesome agricultural food products conforming to
food laws and regulations.
Good Manufacturing
Practices : Conformity with codes of practices, industry standards,
regulations, and laws concerning the production,
processing, handling, labelling, and sale of foods
declared by industry, local, state, national, and
international bodies to protect the public from illness.
Product adulteration and fraud
Hazard : Hazard means a biological, chemical, or physical agent
in, or condition of, food with the potential to cause an
adverse health effect.
Manufacturer : Manufacturer means a person engaged in the business of
manufacturing any article of food for sale and includes
any person who obtains such article from another person
and packs and labels it for sale or only labels it for such
33
purposes.
Notification : Notification means a notification published in the Official
Gazette
Primary Food : Primary Food means an article of food, being a produce
of agriculture or horticulture or animal husbandry and
dairying or aquaculture in its natural form, resulting from
the growing, raising, cultivation, picking, harvesting,
collection or catching in the hands of a person other than
a farmer or fisherman.
Risk : Risk in relation to any article of food, means the
probability of an adverse effect on the health of
consumers of such food and the severity of that effect,
consequential to a food hazard.
Sample : Sample means a sample of any article of food taken under
the provisions of this Act or any rules and regulations made
thereunder.
Standard : Standard in relation to any article of food, means the
standards notified by the Food Authority.
Tribunal : Tribunal means the Food Safety Appellate Tribunal,
established under Section 70 of the Act.
11.10 REFERENCES
1. FSSAI. 2021. Manual for Food Safety Officers, Food Safety and Standards
Authority of India, New Delhi.
https://fssai.gov.in/upload/knowledge_hub/16230060e42ededcc7dFSO_Manual_05
_07_2021_.pdf
2. IGNOU. 2009. Unit 2 &3 Food Safety and Quality Requirements and Food Safety
and Standard Act, 2006, Block 1, Course: Food Laws and Standards Study material
for PG in Food Safety and Quality Management (PGDFSQM) Programme,
IGNOU, New Delhi.
3. IGNOU. 2015. Training Manual on Food Safety and Hygiene for Housewives,
IGNOU, New Delhi
4. Lydia Z. 2013. Food Safety News, Retrieved on 10th September 2016
http://www.foodsafetynews.com/2013/10/indias-supreme-court-declares-
constitutional-right-to-unadulterated-food/#.V9ZEyMWLDIU
5. WHO. 2006. Five Keys to Safer Food Manual, Department of Food Safety,
Zoonoses and Food-borne Diseases, World Health Organization, Geneva.
34
6. WHO. 2009. Codex Alimentarius - Food hygiene: Basic Texts, 4th Edition, World
Health Organization and Food and Agriculture Organization (FAO) of the United
Nations, Rome.
7. WHO. 2015. Retrieved on 11-09-2016
http://www.who.int/mediacentre/factsheets/fs399/en/
Links : Food Safety Standards Authority of India: https://fssai.gov.in/
Food Safety Act: https://fssai.gov.in/index.php?page=act-rules-regulations.php
Rules: https://fssai.gov.in/cms/food-safety-and-standards-rules--2011.php 4.12.2021
Regulations: https://fssai.gov.in/cms/food-safety-and-standards-regulations.php
Food Safety Compliance System: https://foscos.fssai.gov.in/
35
within the intestine and cause illness.
Food Intoxication: Alternatively, toxins may be produced in the foodstuff or
within the intestine, to produce symptoms very soon after ingestion
36
things are to be undertaken for proper functioning. Regulations are directives with
legal bindings and are the standards set by the Authority for enforcing the law.
2. Licensing and Registration: This regulation primarily prescribes the procedure for
registration and licensing (State and Central) of food businesses and sanitary and
hygienic requirements for all Food Businesses. Schedule 4 comprising five parts
outlays the General Hygienic and sanitary practices to be followed by food business
operators. The Registration and Licensing may be undertaken through online mode
through Food Safety Compliance System (FoSCoS- https://foscos.fssai.gov.in/) the
FSSAI. The details may be seen at the link:
https://www.fssai.gov.in/upload/uploadfiles/files/Licensing_Regulations.pdf.
37
UNIT 12 TRADE RELATED LAWS
Structure
12.0 Objectives
12.1 Introduction
12.2 Intellectual Property Rights (IPR)
12.2.1 Nature of Intellectual Property Rights
12.2.2 Types of Intellectual Property Rights
12.3 Quarantine Requirements for International Business
12.3.1 Quarantine Regulation in India
12.3.2 National Coordination
12.4 Let Us Sum Up
12.5 Keywords
12.6 Suggested Readings/References
12.7 Check Your Progress: Possible Answers
12.0 OBJECTIVES
After studying this unit, the learner will be able to
Explain the concept of Intellectual Property Rights (IPR);
Discuss the nature and types of Intellectual Property Rights;
Identify the need for quarantine to promote safe agricultural trade; and
Underline the Plant Quarantine Regulations in India.
12.1 INTRODUCTION
Trade is an act or process of buying selling or exchange of goods and services. It is an
important social activity because society needs an uninterrupted supply of goods forever
increasing and ever-changing but never-ending human wants. It enhances the standard of
living of consumers. Trade has taken birth with the beginning of human life and shall
continue as long as human life exists on the earth. Trade can be divided into the
following two types, viz.
a) Internal or Home or Domestic trade.
b) External or Foreign or International trade
1
Internal or Home or Domestic Trade involves the process of buying and selling goods
and services within the confines of national boundaries of the nation. Most of the Gross
Domestic Product (GDP) of the nation comes through internal or domestic trade.
Imports and exports are the two important components of international trade.
International trade is the exchange of goods and services between two or more countries,
across their international borders. Trade between nations is regulated by laws to protect
consumers and domestic industries. These trades’ related laws promote free trade and fair
competition and prohibit anti-competitive business practices. Intellectual Property Rights
(IPRs) are the rights given to persons over the creations of their minds. Quarantine refers
to the state of isolation of people, animals, or things (such as plants) out of a certain area
to prevent disease or pests.
Intellectual property rights (IPR) and Quarantine laws requirements have become
important in the face of changing trade environment which is characterized by the
following features namely global competition, high innovation risks, short product cycle,
need for rapid changes in technology, high investments in research and development
(R&D), production and marketing and need for highly skilled human resources.
The term Quarantine remains associated with the procedure of detention and inspection
inter alia of animal diseases and was later adopted to cover protective efforts for the
exclusion of pests and diseases of farm and horticultural crops, as well as forests and fruit
trees. Thus the plant and animal quarantine came into existence and was acknowledged as
a positive means of control for plants pests and diseases of animals through control of the
international movement of plants and plant materials and animals.
2
Industrial Property, which includes inventions (patents), trademarks, industrial
designs, and geographic indications of source; and
Copyright is a legal term used to describe the rights that creators have over their
literary and artistic works such as novels, poems, plays, films, musical works,
artistic works such as drawings including technical drawnage, paintings,
photographs and sculptures, and architectural designs, computer programmes,
databases, maps, etc.
What is IPR?
Intellectual Property (IP) refers to the creation of the mind, such as inventions literary
and artistic works designs and symbols, names, and images used in the camera (WIPO
definition).
Intellectual Property Rights (IPRs) refer to the legal ownership by a person or business of
an invention/ discovery attached to a particular product/ process which protects the owner
against unauthorized copying or limitation.
Trade Secrets also have an infinite life but they don’t have to be renewed. IPR can be
assigned, gifted, sold, and licensed like any other property, unlike other moveable and
immovable properties, these rights can be simultaneously held in many countries at the
same time. IPR can be held only by legal entities i.e., who have the right to sell and
purchase the property. In other words, an institution, which is not autonomous may not be
in a position to own intellectual property. These rights especially, Patents, Copyrights,
Industrial Designs, Integrated Circuits (ICs) Layout Design, and Trade Secrets are
associated with something new or original in nature, and therefore, what is known in the
public domain cannot be protected through the rights mentioned above. Improvements
and modifications made over known things can be protected. It would, however, be
possible to utilize geographical indications for protecting some agriculture and traditional
products. GI is a sign used on products that have a specific geographical origin and
possess qualities or a reputation that are due to that origin.
3
Check Your Progress 12.1
Note: a) Use the space given below for your answers.
b) Check your answer with those given at the end of the unit.
1) What is IPR's?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
4
iv) Registered (industrial) design (The Designs Act, 2000)
v) Protection of IC layout design(Integrated Circuit Layout Designs Act, 2000)
vi) Geographical indications (The Geographical Indications of Goods
(Registration and Protection) Act, 1999)
vii) Protection Plant Varieties (The Protection of Plant Varieties and Farmers
Rights Act, 2001)
viii) Other Related Legislation(The Biological Diversity Act, 2002)
1. Patents
‘Patent’ means a patent for any invention granted under the relevant law.
A patent is an exclusive right granted by a country to the owner of an invention to make,
use, manufacture and market the invention, provided the invention satisfies certain
conditions stipulated in the law. Exclusive right implies that no one else can make, use,
manufacture or market the invention without the consent of the patent holder.
This right is available for a limited period of time. In spite of the ownership of the rights,
the use or exploitation of the rights by the owner of the patent may not be possible due to
other laws of the country which has awarded the patent.
These laws may relate to health, safety, food, security, etc. Further, existing patents in a
similar area may also come in the way. A patent in the law is a property right and hence,
can be gifted, inherited, assigned, sold, or licensed. As the right is conferred by the State,
it can be revoked by the State under very special circumstances even if the patent has
been sold or licensed or manufactured, or marketed in the meantime.
The patent right is territorial in nature and inventors/their assignees will have to file
separate patent applications in countries of their interest, along with necessary fees, for
obtaining patents in those countries.
The Indian Patent Act: The first Indian patent laws were first enacted in the year 1856
followed by the enactment of the Indian Patents and Designs Act, 1911. These laws were
modified from time to time. The new patent laws were made after the independence in
the form of the Indian Patent Act 1970. This Act has now been radically amended to
become fully compliant with the provisions of Trade Related Intellectual Properties
(TRIPS). The most recent amendment was made in the year 2005 which was preceded by
the amendments in 2000 and 2003. While the process of bringing out amendments was
going on, India became a member of the Paris Convention, Patent Cooperation Treaty,
and Budapest Treaty.
Product Patent vs Process Patent: Patents are generally granted on the product (called
product patent) as well as the process (called Process Patent). Under the Process Patent,
5
the patent is granted for a particular manufacturing process, and not to the product itself.
Product patent, on the contrary, protects the product, as the name suggests.
The salient and important features of the amended Act are explained here.
Definition of invention:-A clear definition has now been provided for an invention,
which makes it at par with definitions followed by most countries. Invention means a
new product or process involving an inventive step capable of industrial application. New
invention means any invention or technology which has not been anticipated by
publication in any document or used in the country or elsewhere in the world before the
date of filing of a patent application with complete specification i.e., the subject matter
has not fallen in the public domain or it does not form part of the state of the art.
Term of the patent: The term of the patent will be 20 years from the date of filing for all
types of inventions.
Application: In respect of patent applications filed, the following aspects will have to be
kept in mind:
Claim or claims can now relate to a single invention or group of inventions linked so
as to form a single inventive concept
The patent application will be published 18 months after the date of filing.
The applicant has to request for examination 12 months within publication or 48
months from the date of application, whichever is later
Provisional Specification:-A provisional specification is usually filed to establish the
priority of the invention in case the disclosed invention is only at a conceptual stage and a
delay is expected in submitting a full and specific description of the invention. Although
a patent application accompanied by provisional specification does not confer any legal
patent rights to the applicants, it is, however, a very important document to establish the
earliest ownership of an invention.
Complete Specification: It may be noted that a patent document is a techno-legal
document and it has to be finalized in consultation with an attorney. Submission of the
complete specification is necessary to obtain a patent. Contents of a complete
specification would include the following
1. Title of the invention.
2. Field to which the invention belongs.
3. Background of the invention including prior art giving drawbacks of the known
inventions & practices.
4. Complete description of the invention along with experimental results.
5. Drawings diagram/ flow chart etc. essential for understanding the invention.
6. Specific embodiments if any.
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7. Abstract.
8. Claims, which are statements, related to the invention on which legal proprietorship is
being sought. Therefore the claims have to be drafted very carefully.
Compulsory license: Any time after three years from the date of sealing of a patent, an
application for the compulsory license can be made on fulfillment of any of the following
conditions.
1. Reasonable requirements of the public with respect to the patented invention have not
been satisfied
2. Patented invention is not available to the public at a reasonably affordable price
3. Patented invention is not worked within the territory of India
Protection of new plant variety:- New plant varieties can now be protected in India
under the New Plant Variety and Farmers Rights Protection Act, 2001. New plant
varieties cannot be protected through patents.
There are 5 main criteria to decide whether a plant variety is really new or not. These are
distinctiveness, uniformity, stability, novelty, and denomination.
The variety shall be deemed to be distinct if it is clearly distinct from any other
variety whose existence is a matter of common knowledge at the time of filing of
the application. (Distinctiveness)
The variety shall be deemed to be uniform if, subject to the variation that may be
accepted from the particular features of its propagation, it is sufficiently uniform
in its relevant characteristics. (Uniformly)
The variety shall be deemed to be stable if its relevant characteristics remain
unchanged after repeated propagation or, in the case of a particular cycle of
propagation at the end of each such cycle. (Stability)
The variety shall be deemed to be new if, at the date of filing of the application
for breeder right, propagating or harvesting material of the variety has not been
sold or otherwise disposed of to others, by or with the consent of the breeder for
the purpose of exploitation of the variety. (Novelty)
The variety shall be designated by a denomination, which will be its generic
designation. The premise is that the variety denomination must be its generic
designation class for a requirement that 'denomination must enable the variety to
be identified. (Denomination)
2. Copyrights
Copyright is a right, which is available for creating an original literary or dramatic or
musical, or artistic work. The Copyright Act, 1957 as amended from time to time in the
years 1983, 1984, 1992, 1994, and 1999 governs copyright protection in India. Copyright
gives protection for the expression of an idea and not for the idea itself. For example,
many authors write textbooks on physics covering various aspects like mechanics, heat,
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optics, etc. The registration can be done at the Office of the Registrar of Copyrights in
New Delhi. It is also to be noted that the work is open for public inspection once the
copyright is registered.
Coverage provided by copyright: The Copyrights extend to or cover the following
aspects:
i) Literary, dramatic, and musical work. Computer programs/software are covered
within the definition of literary work.
ii) Artistic work
iii) Cinematographic films, which include soundtrack and video films.
iv) Recording on any disc, tape, perforated roll, or other devices.
Copyright, unlike the case with patents, protects the expression and not the ideas.
Infringement of copyright: Copyright gives the creator of the work the right to
reproduce the work, make copies, translate, adapt, sell or give on hire and communicate
the work to the public. Any of these activities done without the consent of the author or
his assignee is considered as an infringement of the copyright. There is a provision of
‘fair use in the law, which allows copyrighted work to be used for the purpose of
teaching, research, and development. In other words, making one photocopy of a book
for teaching students may not amount to an infringement, but making many photocopies
of the book or other materials for commercial purposes would definitely be considered as
an infringement.
Moral right in copyright
There is one associated right with copyright, which is known as the ‘moral right’, which
cannot be transferred and is not limited by the term. This right is enjoyed by the creator
for avoiding obscene representation of his /her works. Moral rights are the embodiment
of the natural rights of artists over what he has created. Moral rights are separate from the
economic rights of the copyright owner. Moral rights apply to (a) literary work, (b)
artistic work, (c) musical works, (d) dramatic works, and (e) cinematograph films
including television programmes.
Transfer of copyright: The owner of the copyright in an existing work or the
prospective owner of the copyright in a future work may assign the copyright to any
person, either wholly or partially in the following manner.
i) For the entire world or for a specific country or territory; or
ii) For the full term of the copyright or part thereof; or
iii) Relating to all the rights comprising the copyright or only part of such rights.
3. Industrial Designs
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We see so many varieties and brands of the same product (e.g. car, television, personal
computer, a piece of furniture, etc.) in the market, which look quite different from each
other. If the products have similar functional features or comparable price tags, the eye
appeal or visual design of a product determines the choice. Even if the similarities are not
close, a person may decide to go for a more expensive item because that item has a better
look or color scheme.
Design as per the Indian Designs Act, 2000 means, only the features of shape,
configuration, pattern, ornament, or composition of lines or colours applied to any article
- whether in two-dimensional or three-dimensional or in both forms - by any industrial
process or means, whether manual, mechanical or chemical, separate or combined, which
in the finished article appeal to and are judged solely by the eye; but it does not include
any mode or principle of construction or anything which is in substance a mere
mechanical device and does not include any trade mark, or property mark or any artistic
work.
In this context an article means any article of manufacture and any substance, artificial, or
partly artificial and partly natural; and includes any part of an article capable of being
made and sold separately. Stamps, labels, tokens, cards, etc cannot be considered an
article for the purpose of registration of design because once the alleged design i.e.,
ornamentation is removed only a piece of paper, metal, or like material remains and the
article referred to ceases to exist. An article must have its existence independent of the
designs applied to it. So, the design as applied to an article should be integral to the
article itself.
The essential requirements for the registration of design
1. The design should be new or original, not previously published or used in any country
before the date of application for registration is made. The novelty may reside in the
application of a known shape or pattern to a new subject matter.
2. The design should relate to features of shape, configuration, pattern or ornamentation
applied or applicable to an article. Thus, designs of industrial plans, layouts, and
installations are not registrable under the Designs Act, 2000.
3. The design should be applied or applicable to any article by any industrial process.
Normally, designs of artistic nature such as paintings, sculptures, and the like which
are not produced in bulk by any industrial process are excluded from registration under
the Designs Act, 2000.
4. The features of the designs in the finished article should appeal to and be judged solely
by the eye.
5. Any mode or principle of construction or operation or anything, which is in substance
a mere mechanical device, would not be a registrable design.
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6. The design should not include any trademark or property mark or artistic works.
7. It should be significantly distinguishable from known designs or a combination of
known designs.
8. It should not comprise or contain scandalous or obscene matters.
Duration of the registration of a design:- The total term of a registered design is 15
years. Initially, the right is granted for a period of 10 years from the date of registration,
which can be extended, by another 5 years by making an application to the Controller
before the expiry of the initial 10 years period. The proprietor of the design may make the
application for a such extension even as soon as the design is registered.
4. Trademarks
Trademark, as per Trade Marks Act, 1999 means a mark capable of being represented
graphically and which is capable of distinguishing the goods or services of one person
from those of others and may include the shape of goods, their packaging, and
combination of colours.
A trademark is a distinctive sign, which identifies certain goods or services as those
produced or provided by a specific person or enterprise. Trademarks may be one or a
combination of words, letters, and numerals. They may also consist of drawings,
symbols, three-dimensional signs such as the shape and packaging of goods, or colours
used as distinguishing features. Collective marks are owned by an association whose
members use them to identify them with a level of quality. Certification marks are given
for compliance with defined standards. (Example ISO 9000.). A trademark provides to
the owner of the mark by ensuring the exclusive right to use it to identify goods or
services or to authorize others to use it in return for some consideration (payment). The
enactment of the Indian Trademarks Act 1999 is a big step forward from the Trade and
Merchandise Marks Act 1958 and the Trademark Act 1940.
Certification Trademarks and Collective Marks:- Certification trademark means a
mark capable of distinguishing the goods or services in connection with which it is used
in the course of trade which are certified by the proprietor of the mark in respect of origin
material made of manufacture of goods or performance of services, quality, accuracy or
other characteristics from goods or services not so certified and registrable.
Certification trade marks mean a guarantee mark that indicates that the goods to which it
is applied are of a certain quality or are manufactured in a particular way or come from a
certain region or use some specific material or maintain a certain level of accuracy. The
goods must originate from a certain region rather than from a particular trader.
Certification marks are also applicable to services and the same parameters will have to
be satisfied. Further, these marks are registrable just like any other trademark. AGMARK
used in India for various food items is a kind of certification mark although it is not
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registered as a certification mark; the concept of a certification mark was not in vogue at
the time of the introduction of AGMARK.
A Collective mark means a trademark distinguishing, the goods or services of members
of an association of persons (not being a partnership within the meaning of the Indian
Partnership Act, 1932), which is the proprietor of the mark from those of others.
Term of a registered trademark:-The initial registration of a trademark shall be for a
period of ten years but may be renewed from time to time for an unlimited period by
payment of the required renewal fees.
5. Protection of Geographical Indications
Indications that identify a good as originating in the territory of a member or a region or a
locality in that territory, where a given quality reputation or other characteristics of the
good is attributable to its geographical origin. In India, Geographical Indications
(popularly known as GI) are governed by the Geographical Indications of goods
(Registration and Protection) Act, 1999. The primary objective of this Act is to provide
for the registration and better protection of Geographical Indications relating to goods.
The term GI has been defined as "Geographical Indications" in relation to goods, which
means an indication that identifies such goods as agricultural goods, natural goods, or
manufactured goods as originating, or manufactured in the territory of a country, or a
region or locality in that territory, where a given quality, reputation or other
characteristics of such goods is essentially attributable to its geographical origin and in
the case where such goods are manufactured goods one of the activities of either the
production or of processing or preparation of the goods concerned takes place in such
territory, region or locality, as the case may be.
Applicants for GI's registration:-Any association of persons or producers or any
organization or authority established by or under any law for the time being in force
representing the interest of the producers of the concerned goods, who are desirous of
registering geographical indication in relation to such goods shall apply in writing to the
Registrar in such form and in such manner and accompanied by such fees as may be
prescribed for the registration of the geographical indication.
Term of GI protection: - The registration of a GI shall be for a period of ten years but
may be renewed from time to time for an unlimited period by payment of the renewal
fees.
6. Protection of Integrated Circuit Layout Design (IC)
The Integrated Circuit Layout Design provides protection for semiconductor IC layout
designs. India has now in place the Semiconductor Integrated Circuits Layout Design
Act, 2000 to give protection to IC layout design. Layout design includes a layout of
transistors and other circuitry elements and includes lead wires connecting such elements
and expressed in any manner in a semiconductor IC.
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7. Protection of Undisclosed Information
The secret is defined as “secret in the sense that it is not, as a body or in the precise
configuration and assembly of its components known among or readily accessible to
persons within the circles that normally deal with the kind of information in question.”
Undisclosed information, generally known as trade secret / confidential information,
includes formula, pattern, compilation, programme, device, method, technique or process.
Protection of undisclosed information is least known to players of IPR and also least
talked about, although it is perhaps the most important form of protection for industries,
R&D institutions, and other agencies dealing with IPRs.
8. Other Related Legislation
India has enacted the Biological Diversity Act, 2002 to ensure the maintenance,
sustenance, and development of its biodiversity. The prime objective of the Biological
Diversity Act, 2002 is to provide for the conservation of biological diversity, sustainable
use of its components, and fair and equitable sharing of the benefits arising out of the use
of biological resources, knowledge, and other related matters. The Act has specific
provisions about ownership of intellectual property rights associated with the exploitation
of biodiversity. The Act, 2002 also provided for regulation of access to Biological
Diversity, the constitution of the Natural Biodiversity Authority, the State Biodiversity
Board, etc. The other Act having its influence over other Acts related to IPR is the
Information technology Act, 2000 which looks at the security aspect of material being
transacted on the internet.
Check Your Progress 12.2
Note: a) Use the space given below for your answers.
b) Check your answer with those given at the end of the unit.
1) What is a patent?
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3) What does copyright cover?
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The genesis of WTO in 1995 and the harmonization of Sanitary and Phytosanitary (SPS)
measures have opened a new perspective on world trade. International Plant
Protection Convention (IPPC) is the nodal agency for harmonizing plant quarantine
activities. India is a signatory member of IPPC. In line with IPPC rules and regulations,
The Plant Quarantine (Regulation of Import in India) Order, 2003 (PQ Order) was
framed and came into force on 1st January 2004. PQ Order is based on scientific analysis
of pest risk and the quarantine pests are notified after carrying out Pest Risk Analysis
(PRA).
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1) What is quarantine?
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Plant quarantine will be justified only when the pest has no natural means of spread and
when they are based on biological considerations only, i.e., pest/pathogen introduction
risks and the available safeguards. Import of agricultural commodities in India is
regulated by Plant Quarantine (Regulation of imports into India) order 2003.
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12.3.2 National Coordination
Most of the plant material enters the country as air cargo or airmail parcels. Passengers
going abroad also bring seed/planting material with them. The Seed Policy 1988 and
2002 now permits private enterprises to introduce more material in certain cases under
'Open General Licence'. Bulk consignments for consumption or sowing are brought by
ships, and small research consignments are through air freight or post. Therefore, the
customs department, postal department, the International Airport Authority, and the Port
Authority of India are also involved. Various research institutes under the Indian Council
of Agricultural Research (ICAR) and the Council of Scientific & Industrial Research
(CSIR) systems, agricultural universities, state departments of agriculture, and private
individuals/agencies are the ultimate users of the introduced germplasm material in crop
improvement programmes.
Very effective linkages among all the government agencies are required so that while the
introduced planting material is made available to the user clients without undue delay, all
the required quarantine safeguards are observed to prevent the introduction of foreign
pests and diseases. The customs department, postal department, the International Airport
Authority, and Port Authority of India ensure that the consignments/post-parcels
containing seeds/planting materials are cleared promptly and are sent compulsorily to the
plant quarantine services.
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12.4 LET US SUM UP
A brief overview of the IPRs has been discussed with principal kinds of IP viz. patents,
copyrights, trademarks industrial design, Geographical Indications and Integrated Circuit
Layout Design with coverage area also mentioned in brief. Quarantine acts as a filter and
not as a barrier to international business. Vigilant quarantine activities safeguard the
agricultural resources of India from the ingress of exotic invasive plant pests and animal
diseases. Brief information about the requirements of quarantine in international business
with quarantine regulations in India is mentioned.
12.5 KEYWORDS
Intellectual Property: Intellectual Property refers to creations that are represented in a
physical or recorded form.
Secret: Secret in the sense that it is not, as a body or in the precise configuration and
assembly of its components known among or readily accessible to persons within the
circles that normally deal with the kind of information in question.
Undisclosed information: Undisclosed information generally known as trade secret /
confidential information includes formulas, patterns, compilations, programmes, devices,
methods, techniques, or processes.
Article: Any kind of movable property including any goods and stores consigned from
one party to another as a shipment and covered by a bill of entry of customs, shipping or
airway bill, and/ or invoice in the course of international trade.
Bio-control Agent: Any biological agent such as a parasite, predator, parasitoid,
microbial organism, or self-replicating entity that is used for the control of pests.
Consignment: Quantity of seeds, plants, and plant products or any regulated article
consigned from one party to other at any one-time shipment and covered by a
phytosanitary certificate, bill of entry of customs, shipping/airway bill, or invoice.
Import permit: Official document authorizing the importation of a consignment in
accordance with specified phytosanitary requirements.
Issuing authority: An authority as envisaged under Schedule-IV of this order or duly
notified by the Central Government from time to time either generally or specifically for
issuance of import permit.
Pest risk analysis: The process of evaluating biological or other scientific and economic
evidence to determine whether a pest should be regulated and strength of any
phytosanitary measures to be taken against it.
Phytosanitary certificate: A certificate issued in the model format prescribed under the
International Plant Protection Convention of the Food & Agricultural Organization and
issued by an authorized officer at the country of origin of consignment or re-export.
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Point of entry: Any seaport, airport, or land-border check-post or rail station, river port,
foreign post office, courier terminal, container freight station, or inland container depot
notified as specified in Schedule-I or Schedule-II or Schedule-III as the case may be.
Post-entry quarantine: Growing of imported plants in confinement for a specified
period of time in a glass house, screen house, poly house, or any other facility, or isolated
field or an off-shore island that is established in accordance with guidelines/standards and
is duly approved and certified by an inspection authority notified under this order.
Quarantine pest- means a pest of potential economic importance to the area endangered
thereby and not yet present there, or present but not widely distributed and being
officially controlled.
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2) Countries have laws to protect intellectual property for two main reasons. One is to
give statutory expression to the moral and economic rights of creators in their
creations and such rights of the public in access to those creations. The second is to
promote, as a deliberate act of Government policy, creativity and the dissemination
and application of its results and to encourage fair trading, which would contribute
to economic and social development in view of the immense commercial value of
the intellectual property.
3) IPRs are territorial rights except for copyright, which is global in nature in the
sense. These rights are awarded by the State and are monopoly rights implying that
no one can use these rights without the consent of the right holder.
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undue delay, all the required quarantine safeguards are observed to prevent the
introduction of foreign pests and diseases. The customs department, postal
department, the International Airport Authority, and Port Authority of India should
ensure that the consignments/post-parcels containing seeds/planting materials are
cleared promptly and are sent compulsorily to the plant quarantine services.
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