how to reduce cost of litigation.

To,                               January 21st 2013

Honorable Chief Justice of India,

Supreme Court of India, New Delhi.

Minister of law and Justice, Govt of India,

4th floor, Shastri Bhawan, new Delhi.

Honorable the Chief Justice,

Punjab & Haryana High Court, Chandigarh.

SUB; Improving fiscal health of Judiciary for better infrastructure.

Sir,

1.     It is a general perception in public that litigation is very expensive and out of reach of common man. When people talk of high Cost of litigation, they do not talk about Rs 500/- or Rs 1000/- on court fees. They talk of cost of “face Value”. The public perception is that Judges decide cases on the basis of “Face Value” i.e. in favor of those advocates who have either links, connections, kith and kin of judges or designated senior advocates. In last 20 years, “Face Value” has come to be accepted criteria of decision. Value of 'Facts' and ‘Acts’ have been lost somewhere along the way. If one wants case to be decided in his favor then one to engage ‘senior’ advocate or ‘Kith and Kin’ and thus cost of litigation shoots up.

2.     Cost of litigation can be reduced to some extent by enhancing the cost of “face value”. Several advocates make applications and beseech their known and friendly judges to designate them as ‘Senior Advocates’. Why? If they are already senior in their own fields they do not need such a designation. The designation is required to give them “face Value” and thus enhance their personal fees. Clients hire Sr. Advocates for their “face value” and such clients would not mind paying part of such “face value” to H’ High Court by way of special court fee for engaging ‘senior’ advocates. The fee can be given any name, like infrastructure court fee or special court fee etc. It may vary from Rs 50,000/- to Rs 1,00,000/- wherever designated senior advocates appear. DRTs are already charging Rs 1,00,000/- as court fee with no complaints.

3.     This special court fee for ‘senior’ advocates will not affect 99% of the advocates nor rich clients. The additional fee so collected can be useful for improving infrastructure. However many clients will start engaging other 99% of advocates thereby reducing cost of litigation for general public.

4.     The next type of advocates having “face value” are ‘Kith and Kin’ of Judges. All cases wherever Kith and Kin are engaged be listed before Hon’ble the Chief Justice or outstation Judges. If such an executive order is issued, “face Value” of kith and kin will evaporate sooner than expected, roster will be normal within one month and cost of litigation will come down drastically.

5.     During British times there was no designation as Sr. Advocates. It is now a scandal. There should be relaxations in norms for kith and kin like those for SC/BC. Kith and kin be designated as Senior Advocates the moment they get a license to practice/ (or at time they are born) or the moment their relatives is employed as a Judge. (Pun intended).

Suggestions to improve fiscal health / infrastructure:-

A.     There should be court fee wherever senior advocates are engaged for both respondent and petitioner.

B.     Cases wherever “Kith and Kin” are engaged be listed only before Hon’ble the Chief Justice or outstation Judges.

C.     Criteria for designation as Senior advocates be relaxed for kith and kin of Judges like relaxation given to backward people. Kith and Kin of Judges be automatically designated as ‘Senior’ the moment they become lawyers / their relatives becomes judge.

D.     Remove such designations from statute books. All lawyers are equal before law.

KD Aggarwal

Advocate.

Together, we can and with WILL make the system more just and prosperous.

Change has a considerable psychological impact. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better. King Whitney Jr.

Why FDI in retail will lead to unemployment and inflation in India ?

What is FDI in retail?

FDI (Foreign Direct Investment) in retail means that foreigners will invest their money in India;-

a)     In buying property – thereby increasing prices, leading to inflation.

b)     Creating infrastructure i.e. building modern technology Malls – which technology is not new already available in India.

c)     Sell foreign made goods in India thereby taking away Indian money to foreign lands by way of profits.

Why FDI leads to unemployment?;

1. Because of lower needs of employees.

A local retailer in a shop of 8’ *10’ has 1-2 proprietors having 3-4 salesmen plus 4-5 support salesmen for packaging and delivery. Thus a space of 80-100 square feet gives employment to at least 10 persons or one person per 10 sq feet.

Whereas a Mall has one counter of minimum 12‘ * 15’ has only one salesman the entire mall has an average size of 197,000 square feet.

http://www.statisticbrain.com/wal-mart-company-statistics/

Number of employees are 20,00,000 in total of 4723 stores. That means 423 employees per store having an average area of 197,000 square feet or one person per 465 square feet. Indian retailers in same area employ 46-47 persons.

So unemployment has increased by whopping by almost 50 times or 47 employees per 500 square feet or in other words FDI reduces employment by 47 employees per 500 square feet.

2. Because of lower Indian made goods sold in India.

Today 100% products manufactured in India are sold in Indian markets. Under FDI they will buy only 30% of their needs from India meaning Indian factories will have to produce at only 30% levels making them unviable. Indian factories will be forced to close and factories will open in China making Indians unemployed and Chinese more employed. 20 crores of Indian homes will go in darkness.

Why FDI leads to inflation?;

Automatic increase in prices of Gas, petrol and diesel;

Previously India was importing gold and petrol and thus price of dollar was hovering about Rs 50. Now with FDI in retail all retail items are being imported from USA and being bought in dollars. Thus dollar rates have gone up from 50 to Rs 60+ and even Rs 70 initially. This has led to increase in petrol, gas, diesel which in turn leads to increase in cost of all items due to increase in transportation costs.

Increase in inland and transportation costs;

Previously all goods were locally transported. Now most goods have to travel all the way from USA to India and this is additional costs incurred for bring goods inland to Indian ports and then to local retail malls.

Increase of cost of goods because of increased cost of salary and materials which is paid to foreign workers in dollars;

Now goods are first handled by Americans in USA who are paid in dollars where minimum wages are $9 per hour or $ 4500 per moth or Rs 3,00,000 per person. All this salary is paid in USA to USA employees but borne by Indians buying foreign goods in India and added to cost of goods sold in India. This leads to multiplier effect whereby even Indian goods inch up higher to match price of foreign goods leading higher prices / inflation.

Increased input cost;

All foreign goods are manufactured in China which then transports to USA and than businessman in USA exports to India or some goods are made in USA or other countries. All there cost is incurred in Dollars which was Rs 50 per dollar so all goods are priced much higher because of implicit cost (incurred in Dollars whether of materials, labour, land or other inputs). This leads to cascading effect whereby even Indian goods inch up higher to match price of foreign goods leading higher prices / inflation.

Myths busted;

Direct Purchasing from farmers at higher prices

Direct sales to Consumers at cheaper rates.

There is practically no direct purchasing from farmers. Foreigners are not coming to India to enrich Indian farmers or Indian public but to enrich USA and themselves at cost of Indian public. Farmer of Punjab know it by 1^st hand experience that Pepsi promised to buy Potato and tomato from them for manufacture of potato chips and tomato sauce but after getting clearance they said size of Indian potato is small and taste of Indian tomato is too khatta hence they imported all their needs from abroad. Same is with MacDonald’s who are buying shiploads of vegetables from abroad giving impetus to farmers of USA and UK. One may compare prices of vegetables in Malls and their prices in traditional shops which are 20-30% cheaper.

More jobs:

Congress is calculating number of jobs on the basis of people to be employed in Foreign Malls they are not considering reduction of jibs due to malls which is 50 times more. For every one person employed in a mall about 50 will loose jobs leading to millions of homes going in darkness in India.

More income by more taxes;

Because of higher price there is higher sales tax, central tax, Octroi  and also in some cases there is custom duty and import duty. All these taxes and duties will be added in prices. Who will pay it- The Indian consumer by its hard earned money.

Kapil Dev Aggarwal

Top ranked economist Yahoo.answers india economics. 2011

When to retire?

Should we choose our own date for Retirement ?

Everyone has to work, for livelihood, for self, family or children but till what age, we or self employed are required to do work for the sole sake of livelihood.

I define retirement as making work optional. Retirement or the state of feeling retired is about being able to do what you want, when you want, where you want, with whom you want, at the time you want, on your terms, regardless of your age.

We all can choose our own age and time to retire. Once we feel that we do not need to work for the sake of living and that we will be able to live off the income generated by our savings, Capital and investments, it is time to start living not for the sake of working for others but to pursue our hobbies and desires.

There is no concept of "Income Inequality". This whole issue is a non-issue. We have chosen what we do for a living based on our own motivations, our own decisions on what we like to do, what we are able to do, what gives us satisfaction and what will also provide for our family. We knew what our income opportunities were when we first got into this profession – We are not wealthy, we are not one of the 1%, the 10%,the 20% - and we don't care. We have a great family, a modest home, a reliable car and we are happy. Part of our happiness stems from simply not envying others, and not worrying about what others have and we don’t.

Buddha said;

There are sufferings or unhappiness. 

The cause of suffering is desires and attachments.

To reduce your suffering or unhappiness,

Reduce your desires and attachments.

I should also say that at one point everyone of us have worries about wealth and wanted to make lots of money, we all had opportunities, some of us made it and some not, and many of our colleagues made lots more, but this is not an issue to worry us anymore. This is not what life is all about. This money and the rewards we ultimately seek are not financial. We are a much happier, much healthier, and much saner person to realize it.

We don’t have to work for sake of others or merely for the sake of competition. We are complete in ourselves. We are not inferior to anyone else that we need to compete with others. The day we stop climbing and put the ladder down, we can have a quality life.

There is a saying in India in Hindi – 

पूत कपूत तो क्यों धन संचे,पूत सपूत तो क्यों धन संचे ! (Poot kaput to kyon dhan sanchay, poot spoot to kyon dhansanchay.) 

(if we have spoiled children than there is no need to save money for him as he will eventually destroy whatever you have saved for him and if he is capable child than also there is no need to save money for him as he can make his own money like we all did).

So why each one of us get so tensed about future of our kids. We do not have to spoon feed our children even after their education. That can lead to disastrous consequences for them. A word for our brother Judges, when you decide a case in favor of children of your friends or colleagues, you are not only violating code of conduct but loudly saying that such children are invalids who always needs crutches in life. If you feel that being children of your friends and colleagues, they are special Children, there is a home built for special children- Mother Teresa’s Home for special Children.  

There is an old adage;

First I was dying to finish school and start college.

And then I was dying to finish college and start working

And then I was dying to marry and have children

And then I was dying for my children to get admitted to ‘good’ educational Institutions

And then I was dying for their livelihood.

And now I am dying ……… and suddenly I realize I forgot to live.

When is the time to stop working for livelihood and start living? That is time when you are able to do what you want, when you want, where you want, with whom you want, at the time you want. When you can say no to work and do not have to work for livelihood and have made enough for you and your family to live off from the income from your savings, capital and investments.

How do you determine the amount of retirement savings you will need to retire? By applying a simple mathematical formula. Determine how much annual income you will need in retirement, to live the lifestyle you want — that should be in today's Rupees. Multiply that amount by balance number of years you expect to live and you'll arrive at what I call your Financial Independence Number (FIN). For example, if you decide you'll need Rs 2,50,000 per year in retirement, and you expect to live upto 90 years, then at;

Age of 50 - your FIN is 2,50,000* 40 = RS 1,00,00,000/- only.

Age of 60 - your FIN is 2,50,000* 30 = RS   75,00,000/- only.

Age of 70 - your FIN is 2,50,000 * 20 = RS  50,00,000/- only.

Age of 80 - your FIN is 2,50,000 * 10 = RS  25,00,000/- only.

At age of eighty you will still earn Rs 5,00,000 as annual income as rental or interest without touching your principle. Your capital will go on multiplying because savings / rental income / interest will be more than inflation.

Think. It is never too late to live. I 'retired' at the age of 42, when i no longer have to work to feed myself, my family or my guests.

In the end what matters is you. Have you lived the life you wanted to live. do it now.

Kapil Dev

Typical govt servent in India

Office time as of now 9 Am to 5 PM

Actual timings and 'work' for many of our servants;

10 AM to 10.40 AM - Coming to office.

10.40 AM to 11.20 AM - Hello, hi to colleagues discussion about day before where they had chicken or food and then disussion about its quality, comparison of food quality with other places and whole office joins. (exceptions of few diligent employees or discussion about today's headlines in various newspapers)

11.20 Am to 11.30 AM Opening of files checking of letters.

11.30 AM to 11.50 PM - tea time Gup Shup

11.50 Am to 12.30 PM doing office work

12.30 Pm onwards preparing for lunch time, discussing the intended work criticizing letters blaming people, politicians colleagues seniors juniors etc in general 

2.30 PM coming back from Lunch.

2.30 PM to 3.30 PM finding ways and means on how decline or how to refer the matter to someone else to deal with and saying either; It is hot or It is rainy or it is too cold or it is too pleasant to work etc making notings shifting work or finding reasons not to work.

3.30 PM to 4.10 PM tea time

4.15 PM pack up time and another round of Gup Shup.

4.30 PM to 5.00 PM leave office.