Slides of Basis of legal environment & court system

1. Legal Environment &
Court System

2. Meaning of Law
 ‘Law’ derived from stoic term ‘Lag’ means ‘stable’ or ‘universal’.
 Set of rules to determine work.
 A discipline to manage all activities.
 Entire body of rules and principles.
 Mechanism to regulate human conduct.
 System of rules and guidelines.
 It is made by govt. & enforced through social institutions
 It shapes political, economic and social conditions of a country.
 Ignorance of law is not excused.

3. What is law
System of rules
Lays down standards to which we ought to
conform
Legal rule, moral rule and social convention
Difference is: Failure to adhere to legal rules
may result in a penalty
Law is never static it is always changing.

4. Definitions of Law
 According to Black’s Law dictionary, “ Law is that which must
be obeyed and followed by citizens subject to sanction or legal
consequences.”
 According to Austin, “ Law is a rule of conduct imposed and
enforced by the sovereign.”
 According to Holland, “ A law is a general rule of external
action, enforced by a sovereign authority.”
 Acc. MacIver, “ Without Law there is no order and without
order men are lost not knowing where to go and what to do.”

5. Nature of Law
 Law is supreme in nature.
 Law is changeable.
 Law varies according to nation, society, politics and religion.
 Law regulates the conduct.
 Equal treatment.
 Law punishes wrong doers.
 Law is applied by sovereign authority.
 It aims peace.

6. Types of Law
Substantive & Procedural Law(sarwan &
karyabidhi)
Civil & Criminal Law (dewani &
phaujdari)
Private & Public Law
National & International Law

7. Concept of Business Law
 Part of civil law governs and regulate business
 Deals with business related activities
 Guides trade, commerce and industries
 Commercial law, mercantile law, corporate law
 Law related to contract, sales of goods, agency,
company, indemnity and guarantee, bailment and
pledge, insurance, banking, FITT etc.

8.  body of laws that govern business transaction.
 brings the uniformity in the business activities
within the country
 important role in solving the business related
problems and cases
 Helps in creating favorable environment for the
business activities
Concept of Business Law

9. Definitions of
Business Law
 Acc. To M.C. Kuchhal, “The term mercantile law may be
defined as that branch of law, which comprises laws
concerning trade, industry and commerce.”
 Glos and Baker, “ B.L. is that portion of legal system
which guarantees an orderly conduct of business affairs
and their settlement of legitimate disputes in a just
manner.”
 A.k.Sundaran, “B.L. provides legitimacy, security, control
and incentives to business activities. It also protects rights
and interests of consumers, of labours, business and
society.”

10. Importance of Business
Law
Development of industry and trade
Regulation and systematization of business
Safeguard the interest of businessmen
Minimize uncertainties
Maintain discipline
Clarify rights and power
Inform the responsibilities
Settle disputes

11. Sources of Nepalese
Business Law
 Customs and usages (pratha , ritiriwaj)
 Precedent (najir)(judicial decisions)
 Statutory law (vidhyiki kanun)
 British mercantile law
 Indian mercantile law
 Commercial treaties and agreement
 Logical expressions and opinions of experts

12. Legal Environment
 It is the surrounding connected with law
 to manage and regulate the economic, social, religious and political
aspects of human life
 It consists of laws, rules, regulations, acts and rulings of court
 The laws which are passed by the government for business operation
create legal environment of business
 shape the business environment
 and give a good introduction to the rights and responsibilities of
business people under current laws of business.

13. Definitions of Legal
Environment:
 Koontz and Fulmer: “Legal environment are
various laws, court decisions and governmental
regulations that influences our lives and business
operation.”
 Professor Dr. Prem Raj Pant: “Legal environment
refers to the framework of laws, regulation and
court decisions intended to encourage, guide and
control business activities.”

14. Importance of Legal Environment
of Business
 Helps in formation and commencement of
Business
 Helps in the operation of the business
 Helps in expansion of business relation
 Adaptation
 Stability
 Dynamism

15. Importance of Legal Environment
of Business
 Legal environment of business provides every business
manager a sound knowledge about the rules, regulation and
laws relating to business.
 Legal environment of business helps in protecting the rights
and interest of business, consumers, employees and society
by providing peace and security, justice and remedy.
 It provides grounds on which business activities can be carried
out providing facilities to law abiders and punishment to law
breakers.

16. It helps in regulating business activities
through legal provisions they can be related
to licensing, wages, labor relations,
monopoly, foreign investment, environmental
protection etc.
It provides legal framework and protects
business from unhealthy competitions.
It safeguards society from unfair and
unethical business behavior.
Importance of Legal Environment
of Business

17. Court System
 government office having legal authority to hear and decide
on the suits between the two disputing parties.
 institutions established by law to solve legal disputes
impartially by following the procedures presented by law.
 authentic institutions to give rational decision in
controversial matters and protect the fundamental rights of
people and maintain the rule of law in the country.
 provide justice promptly easily to the people and to see that
the rights of the people are not violated.

18. Definitions of Court system
 According to government litigation act 2049, section
2(b) “Court refers to a bench of judges and other
officers having authority as per the Nepalese law in
the force to perform judicial functions and other
authority.”
 Section 2(c)of Sanskshipt karyabidhi Ain 2028, “
court refer to an office or other authority or
authorities who hear litigation.”
 Black’s Law dictionary, “ Court is an organ of
government, belonging to the judicial department,
whose function is the application of laws to
controversies brought before it and public
administration of justice.”

19. Three tiers of courts
(article 127)
Supreme Court
High Courts
District Court
(There is also the provisions of
Special court and Constitutional court)

20. Jurisdiction
 Jurisdiction is defined as the power and
authority enjoyed by the court to hear and
decide the cases on the desk of judges.
 Some countries apply the developed legal
system where separate courts are
established for civil and criminal cases.

21. District Court
(Powers & Functions)
 To receive the complaint letter from plaintiff.
 To issue summon duly to defendant.
 To obtain response letter from defendant.
 To call witness in criminal case.
 To listen evidences.
 To make decision in matters of controversy on
the basis of law and evidences.
 To issue interim order.

22. High Courts
(Powers & Functions)
 To protect fundamental rights issue the suitable orders like
Habeas corpus, Mandamus, certiorari, Prohibition, quo-
warranto.
 To hear case prescribed by law and as per the order of
Supreme Court.
 To hear appeal.
 To receive writ application.
 To hear complaints.
 To inspect subordinate courts .
 To demand case file from subordinate courts & give decision
& send case file to subordinate court back.

23. Supreme Court
(Powers & Functions)
Ordinary Jurisdiction:
 To hear original cases and appealed cases.
 To review the decision made.
 To receive cases from subordinate courts.
 To order the subordinate courts to revise the
cases decided by them.
 To hear petition.
 To review and revise one’s own final decision.

24. Extraordinary
Jurisdictions
of Supreme Court
 Declare any law void which is against constitution
 Habeas-corpus(Bandi Pratyakshikaran)
 Mandamus or “we command”(paramadesh): Order of the court
to perform certain duty.
 Certiorary(utpreshan): Cancel the wrong decisions or decisions
made illegally.
 Prohibition(pratishedh): Order made by the court to stop any act.
E.g. stay order.
 Quo-warranto(adhikar prichha): Questions the authority of
someone how that authority performed that work, which law has
provided power to that authority for such work.

25. Civil Procedure
the process of protecting, securing civil
right according to existing law.
the process of protecting, securing civil
right according to existing law.
the process to implement the content of
law.
the process by which one may obtain
remedy in the court.

26. Five chained process for civil
procedure
(Acc.to Salmond)
Summon:
Pleading:
Proof:
Judgment:
Execution:

27. Provision of Nepalese constitution
pertaining to business
Mentioned in article 17 and article 51(d)
 In article17under Right to freedom Every citizen shall
have the freedom to practice any profession, carry on
any occupation, and establish and operate any
industry, trade and business in any part of Nepal.
 No restriction will get imposed on any business
activities except which may disturb harmonious
Relations among people of different communities
 which may be contrary to public health, decency or
morality of the general public

28.  In article 51. (d) Policies of the State Relating to
economy, industry and commerce that The State shall
pursue the following policies
 to enhance national economy through partnership and
independent development of the public, private and
cooperative sectors,
 to achieve economic prosperity by way of optimum
mobilization of the available means and resources,
while focusing on the role of private sector in economy,
Provision of Nepalese constitution
pertaining to business

29.  to encourage and mobilize the economic sector in the overall
national development, while providing for regulation to maintain
all of its activities,
 to make equitable distribution of the available means and
resources and benefits of economic development,
 to diversify and expand markets for goods and services, while
promoting exports through development and expansion of
industries
Provision of Nepalese constitution
pertaining to business

30.  to protect the interests of consumers by maintaining trade fairness
and discipline by making national economy competitive, while ending
activities such as creating black marketing, monopoly, artificial
scarcity and restricting competition,
 to protect and promote domestic industries and resources and accord
priority to domestic investment based on Nepalese labour, skills and
raw materials for the development of national economy,
 to give priority to domestic investment for the development of
national economy,
 to encourage foreign capital and technological investment in areas of
import substitution and export promotion,
Provision of Nepalese constitution
pertaining to business

31.  to make the obtaining of foreign assistance
transparent,
 to utilize knowledge, skill, technology and capital of
the nonresident Nepalese in the national
development,
 to give dynamism to the economic development
by establishing coordination between the States
and the Federation in relation to industrial
corridors, special economic zones, national
projects and projects involving foreign investment.
Provision of Nepalese constitution
pertaining to business

32. Changing dimensions of
legal environment in Nepal
Political dimension
Socio-cultural dimension
Economic dimension
Religious dimension
Global dimension
Technological dimension