The collegium controversy

What is the collegium system?

It is a system under which appointments and transfers of judges are decided by a forum of the Chief Justice of India and the four senior-most judges of the Supreme Court. It has no place in the Indian Constitution.

What does the Constitution actually prescribe?

Article 124 deals with the appointment of Supreme Court judges. It says the appointment should be made by the President after consultation with such judges of the High Courts and the Supreme Court as the President may deem necessary. The CJI is to be consulted in all appointments, except his or her own.

Article 217 deals with the appointment of High Court judges. It says a judge should be appointed by the President after consultation with the CJI and the Governor of the state. The Chief Justice of the High Court concerned too should be consulted.

How and when did the other system evolve?

The collegium system has its genesis in a series of three judgments that is now clubbed together as the “Three Judges Cases”. The S P Gupta case (December 30, 1981) is called the “First Judges Case”. It declared that the “primacy” of the CJI’s recommendation to the President can be refused for “cogent reasons”. This brought a paradigm shift in favour of the executive having primacy over the judiciary in judicial appointments for the next 12 years.

How did the judiciary come to get primacy?

On October 6, 1993, came a nine-judge bench decision in the Supreme Court Advocates-on Record Association vs Union of India case — the “Second Judges Case”. This was what ushered in the collegium system. The majority verdict written by Justice J S Verma said “justiciability” and “primacy” required that the CJI be given the “primal” role in such appointments. It overturned the S P Gupta judgment, saying “the role of the CJI is primal in nature because this being a topic within the judicial family, the executive cannot have an equal say in the matter. Here the word ‘consultation’ would shrink in a mini form. Should the executive have an equal role and be in divergence of many a proposal, germs of indiscipline would grow in the judiciary.”

How final was this?

Justice Verma’s majority judgment saw dissent within the bench itself on the individual role of the CJI. In a total of five judgments delivered in the Second Judges case, Justice Verma spoke for only himself and four other judges. Justice Pandian and Justice Kuldip Singh went on to write individual judgments supporting the majority view. But Justice Ahmadi had dissented and Justice Punchhi took the view that the CJI need not restrict himself to just two judges (as mentioned in the ruling) and can consult any number of judges if he wants to, or none at all.

For the next five years, there was confusion on the roles of the CJI and the two judges in judicial appointments and transfers. In many cases, CJIs took unilateral decisions without consulting two colleagues. Besides, the President became only an approver.

What was done to deal with the confusion?

In 1998, President K R Narayanan issued a presidential reference to the Supreme Court as to what the term “consultation” really means in Articles 124, 217 and 222 (transfer of HC judges) of the Constitution. The question was if the term “consultation” requires consultation with a number of judges in forming the CJI’s opinion, or whether the sole opinion of the CJI constituted the meaning of the articles. In reply, the Supreme Court laid down nine guidelines for the functioning of the coram for appointments/transfers; this came to be the present form of the collegium (see box).

Besides, a judgment dated October 28, 1998, written by Justice S P Bharucha at the head of the nine-judge bench, used the opportunity to strongly reinforce the concept of “primacy” of the highest judiciary over the executive. This was the “Third Judges Case”.

What are the arguments against the collegium system?

Experts point to systemic errors such as:

* The administrative burden of appointing and transferring judges without a separate secretariat or intelligence-gathering mechanism dedicated to collection of and checking personal and professional backgrounds of prospective appointees;

* A closed-door affair without a formal and transparent system;

* The limitation of the collegium’s field of choice to the senior-most judges from the High Court for appointments to the Supreme Court, overlooking several talented junior judges and advocates.

What moves were taken to correct these?

The Law Commission in its 214th Report on ‘Proposal for Reconsideration of Judges cases I, II and III’ recommended two solutions:

* To seek a reconsideration of the three judgments before the Supreme Court.

* A law to restore the primacy of the Chief Justice of India and the power of the executive to make appointments.

What is the suggested alternative to the collegium?

A National Judicial Commission remains a proposal. The Constitution (98th Amendment) Bill was introduced in the Lok Sabha by the NDA government in 2003. It provided for the constitution of an NJC to be chaired by the CJI and with two of the senior-most judges of the Supreme Court as its members. The Union Law Minister would be a member along with an eminent citizen to be nominated by the President in consultation with the Prime Minister. The Commission would decide the appointment and transfer of judges and probe cases of misconduct by judges, including those from the highest judiciary.

SC guidelines on appointments

1 The term “consultation” with the Chief Justice of India in Articles 124 (2), 217(1) and 222 (1) requires consultation with a plurality of judges in the formation of the opinion of the CJI. The sole, individual opinion of the CJI does not constitute consultation.

2 The CJI can only make a recommendation to appoint a judge of the Supreme Court and to transfer a Chief Justice or puisne judge of a High Court in consultation with the four senior-most judges of the Supreme Court. As far as the High Courts are concerned, the recommendation must be made in consultation with the two senior-most judges of the Supreme Court.

3 Strong cogent reasons do not have to be recorded as justification for a departure from the order of seniority in respect of each senior judge who has been passed over. What has to be recorded is the “positive reason for the recommendation”.

4 The views of the judges consulted should be in writing and should be conveyed to the Government of India by the CJI along with his views to the extent set out in the body of this opinion.

5 The CJI is obliged to comply with the norms and the requirement of the consultation process in making his recommendations.

6 Recommendations by the CJI without [such compliance] are not binding upon the government.

7 The transfer of High Court judges is judicially reviewable only if the CJI took the decision without consulting the other four judges in the Supreme Court collegium, or if the views of the Chief Justices of both High Courts [involved in the transfer] are not obtained.

8 The CJI is not entitled to act solely in his individual capacity, without consultation with other judges of the Supreme Court, in respect of materials and information conveyed by the Government for non-appointment of a judge recommended for appointment.

9 The CJI can consult any of his colleagues on the appointment of a HC judge to the Supreme Court or transfer of a puisne judge. The consultation need not be limited to colleagues who have occupied the office of a judge or Chief Justice of that particular High Court .

Constitution of India

Constitution of India

Preamble

WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN, SOCIALIST, SECULAR, DEMOCRATIC, REPUBLIC and to secure to all its citizens:-

JUSTICE, social, economic and political;

LIBERTY of thought, expression, belief, faith and worship;

EQUALITY of status and of opportunity; and to promote among them all

FRATERNITY assuring the dignity of the individual and the unity and integrity of the nation;

IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.

The Constitution of India :

Parts

Part 1

The Union and its Territory...Art.( 1-4 )

Part II
Citizenship...Art.( 5-11 )

Part III
Fundamental Rights...Art.( 12-35 )

Part IV
Directive principles of State policy...Art.( 36-51 )

Part IVA
Fundamental Duties...Art.( 51A )

Part V
The Union...Art.( 52-151 )

Part VI
The States...Art.( 152-237 )

Part VII
The States in Part B of the first Schedule...Art.( 238 )

Part VIII
The Union Territories...Art.( 239-243 )

Part IX
Panchayats...Art.( 243-243zg )

Part IX A
Municipalities...Art.( 243-243zg )

Part X
The Scheduled and Tribal areas...Art.( 244-244A )

Part XI
Relations between the Union and the States...Art.( 245-263 )

Part XII
Finance, Property, Contracts, and Suits...Art.( 264-300A )

Part XIII
Trade, commerce and intercourse within the territory of India...Art.( 301-307 )

Part XIV
Services under the Union and the States...Art.( 308-323 )

Part XIVA
Tribunals...Art.( 323A-323B )

Part XV
Elections..Art.( 324-329A )

Part XVI
special provisions relating to certain classes...Art.( 330-342 )

Part XVII
Official Language...Art.( 343-351 )

Part XVIII
Emergengy Provisions..Art.( 352-360 )

Part XIX
Miscellanious...Art.( 361-367 )

Part XX
Amendment of the constitution...Art.( 368 )

Part XXI
Temporary, Transitional and special provisions...Art.( 369-392 )

Part XXII
Short title, Commencement, authorative text in Hindi and repeals...Art.( 393-395 )

Schedules

FIRST SCHEDULE
[Articles 1 and 4]
I. The States
II. The Union Territories

SECOND SCHEDULE
[Articles 59(3), 65(3), 75(6), 97, 125, 148(3), 158(3), 164(5),186 and 221]
Part A
Provisions as to the President and the Governors of States
Part B
[Repealed.]
Part C
Provisions as to the Speaker and the Deputy Speaker of the House of the People and the Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of the Legislative Assembly and the Chairman and the Deputy Chairman of the Legislative Council of a State
PART D
Provisions as to the Judges of the Supreme Court and of the High Courts
PART E
Provisions as to the Comptroller and Auditor General of India

THIRD SCHEDULE
[Articles 75(4), 99, 124(6), 148(2),164(3), 188 and 219]
Forms of Oaths or Affirmations

FOURTH SCHEDULE
[Articles 4(1) and 80(2)]
Allocation of seats in the Council of States

FIFTH SCHEDULE
[Article 244(1)]
Provisions as to the Administration and Control of Scheduled Areas and Scheduled Tribes
Part A
General
Part B
Administrative and control of Scheduled Areas and Scheduled Tribes
Part C
Scheduled Areas
Part D
Amendment of the Schedule

SIXTH SCHEDULE
[Articles 244(2) and 275(1)]
Provisions as to the Administration of Tribal Areas in [the States of Assam, Meghalaya, Tripura and Mizoram]

SEVENTH SCHEDULE
(Article 246)
List I-Union List
List II-State List
List III- Concurrent List

EIGHTH SCHEDULE
[Articles 344(1) and 351]
Languages

NINTH SCHEDULE
(Article 31B)
Validation of certain Acts and Regulations

TENTH SCHEDULE
[Articles 102(2) and 191(2)]
Provisions as to disqualification on ground of defection

ELEVENTH SCHEDULE
[Article 243G]

TWELTH SCHEDULE
[Article 243W]

APPENDIX I
The Constitution ( Application to Jammu and Kashmir ) Order, 1954.

APPENDIX II
Re-Statement, with reference to the present text of the Constitution, of the exceptions and modifications subject to which the Constitution applies to the State of Jammu and Kashmir.

APPENDIX III
Extracts from the Constitution (Forty-fourth Amendment ) Act, 1978.

AAA Rating of US

The United States lost its top-notch AAA credit rating from Standard & Poor's on Saturday, and the credit-rating agency said the nation's economic outlook is negative. The following Q&A explains what that means and how S&P thinks the US can improve its rating.

What is Standard & Poor's?

Standard & Poor's (S&P) is an independent agency that conducts analysis and provides intelligence on international markets. The data it provides is presented in the form of credit ratings, indices, investment research and risk evaluations and solutions. Investors use these materials to make business decisions.

What is a credit rating?

A credit rating is a calculated opinion about the ability or willingness of a person, corporation or government to meet its financial obligations in full and on time.

Investors use credit ratings to make decisions, but do not base them on ratings alone. Other factors that they may take into consideration include the current make-up of their investment portfolios, investment strategies and timelines, tolerance for risk and an estimate of an investment's value compared to other investment opportunities.

How does Standard & Poor's calculate credit ratings?

S&P combines quantitative measures with qualitative assessments to calculate credit ratings. Within those qualitative assessments are assumptions, or projection estimates, of figures that may not already exist, but are likely to in the future.

What does the drop in the US credit from AAA to AA+ mean?

S&P's credit ratings are presented in the form of a grade, ranging from D to AAA.

According to S&P, a credit rating of AAA means that the evaluated body has an "extremely strong capacity to meet financial commitments." The AA rating means that it has a "very strong capacity to meet financial commitments."

While the difference may seem negligible, it's not. The demotion means S&P sees a negative outlook for the US economy. If the US government does not employ policies to reverse this trend, its credit rating may fall even lower - which may cause alarm for investors who are currently invested or planning on investing in the US market.

Why was the US credit rating downgraded?

S&P downgraded the US credit rating because of its debt and deficit burden. The nation currently spends more money than it takes in, and is having trouble paying back its loans.

Washington recently agreed to raise the country's debt limit so it could borrow more funds and not default on credit payments. S&P does not believe that this is an adequate solution to the country's financial troubles. It says political gridlock is preventing the country from dealing effectively with the issue.

How will the downgraded credit rating affect Americans?

Some experts believe it could result in higher interest rates for home mortgages, credit cards, car loans and other loans to consumers and businesses.

What does the US need to do to repair its S&P credit rating?

The country needs to prove it can meet its financial obligations - not just by borrowing more money, but by maintaining a healthy balance of credit to debt.

S&P has implied that it may take years before the US' credit rating is restored to AAA standing.

Have other countries experienced credit downgrades?

Japan's S&P credit rating was downgraded to an AA+ in 2001. Earlier this year, it was downgraded again to a AA-. Other countries, like Canada and Australia, have also been downgraded in the past. None of these downgrades have had lasting detrimental effects on the respective economies.

_______________________________

What will be the impact or effect on USA after the downgrade by S&P

1. The interest rates the USA government pays to finance the growing national debt will rise

2. The interest rates will go up on Basic credit facilities -- like mortgages, student loans and credit cards

3. Rise in consumer interest

4. Will become more difficult to get the loans

5. Job loss – as companies will try to save money

6. gold prices will go up

7. Silver prices will go up

8. Less profits from stock market

What will happen now as American lost AAA credit rating?

There is no option nothing is going to change as World has no option but to continue and treat America as the Leader and No.1 but in next 25 Years china will become No.1 if same policies are followed by American politicians, the policies which damage American Economy.
China has accumulated more than $1.16 trillion in the securities

Currently dollar is enjoying the status of world currency but now dollar is losing that status very slowly.

Now this will give rise to gold and silver prices as rich countries and rich people will start to invest in gold and silver.

The U.S. currency’s portion of global currency reserves dropped to 60.7 percent in the period ended March 31, from a peak of 72.7 percent in 2001, data from the International Monetary Fund

WPI and CPI

What is meant by inflation?

Inflation indicates the rise in price of a basket of commodities on a point-to-point basis. It basically suggests an increase in the cost of living over a period of one year. For instance, you buy 10 essential commodities on January 1, 2004, for Rs 100. If the same set of 10 commodities costs Rs 105 on January 1, 2005, the inflation rate would be 5%. It would mean that the prices are rising at 5% per annum. The rate of inflation is high if the prices are rising by 7%-8% or more and low if the prices are rising at 2%-3%. A decline in prices results in deflation which is not good for the economy. Economists believe that moderate inflation is good for a growing economy as it provides incentives for growth.

What is the Wholesale Price Index (WPI)?

To calculate inflation, the inflation-computing agency collects the prices of identified commodities. The agency can take into account wholesale prices, retail prices or factory-gate prices. As wholesale markets are few in number, it is easier to collect the prices of goods traded there. The Wholesale Price Index (WPI) takes into account the wholesale prices of over 400 commodities.

The base year for the present WPI index, which is computed by the ministry of commerce and industry, is 1993-94. The 100-point index is subdivided into three groups. The primary articles, which include food and non-food agriculture products, have a weight of 22.02% in the index. Manufactured goods have the highest weight of 63.75%. Fuel and power account for 14.23%. The government is now ready with a revised index with a new base year.

Why does the WPI need revision?

The WPI must reflect the consumption pattern of people in order to truly reflect the price rise. To be effective, the basket of commodities whose prices are tracked must be relevant. For instance, not many people were using cellphones in 1993-94 but are using them extensively now. So their prices and those of mobile services have become important. An index that does not take into account the changing prices of mobile services won’t be relevant in today’s context.

Similarly, consumption patterns change with an increase in income. People spend more on clothes, recreation and holidays as incomes rise. But less amounts (as percentage of income)on food and other essential items.

The working group on WPI, headed by Planning Commission member Abhijit Sen, has worked out a new index. The base year of the new index will be upgraded to 2000-01. And the basket of commod-ities will be expanded to around 1,200 to reflect the post-liberalisation consumption pattern.

What is the Consumer Price Index (CPI)?

The CPI (industrial workers) is based on changes in prices at the retail level. The index, worked out by the ministry of labour, is used to measure the cost of living. CPI is used by the government, private sector, embassies, etc to compute the dearness allowance (DA). The government is also revising the CPI (IW). The base year will be upgraded to 2001 from 982. There is an index for urban non-manual employees (CPI-UNME) too for which the base year is 1984-85 and an index for agricultural labours (CPI-AL) with base year 1986-87. These indices serve different purposes.

What are the other inflation indices?

The working group on WPI is also working on the Service Price Index (SPI) and the Producer Price Index (PPI). The share of the service sector in the Gross Domestic Product (GDP) has gone up from about 28% in 1950 to over 50% now. Also, service tax has emerged as an important source of revenue for the exchequer. In view of the importance of this sector in national income, the working group has made a case for measuring changes in the prices of services.

As for PPI, it would reflect changes in the prices of manufactured items at the factory-gate. It will not consider taxes, trade margins and transport costs. The government ultimately proposes to replace the WPI with the PPI, which is considered an improvement over the former.