UNIT-5th - Business Organizations and E-Governance

CONTENTS
Part-1 : Sole Traders, Partnerships

Companies : The Company’s Act : Introduction, Formation of a Company,

Memorandum of Association, Articles of Association, Prospectus, Shares,
Directors, General Meetings and Proceedings, Auditor, Winding up

Part-2 : E-Governance and Role of

Engineers in E-Governance, Need for Reformed

Engineering Serving at the Union and State Level, Role of I.T. Professionals
in Judiciary, Problem of Alienation and Secessionism in Few States Creating
Hurdles in Industrial Development
Sole trader

1. A sole trader - also known as a sole proprietorship - is a simple business arrangement, in which one individual run and owns the entire
business.
2. In sole proprietorship there is no legal distinction between the owner and the business entity.
3. A sole proprietorship is not necessarily registered or incorporated.
4. It is the most ideal form of business organisation and the ideal choice to run a small or medium scale business.
5. Many sole proprietors do business under their own names because creating a separate business or trade name is not necessary.
Legal aspect and Liability :
1. The important aspect of the sole proprietorship is that there exists a lack of legal formalities. There is no separate law to govern it.
2. The owner is the only risk bearer in a sole proprietorship.
3. Also, he is the one who enjoys all the profits with any other stakeholders.
4. In legal terms, the business and the owner are one and the same. There is no separate legal identity.
5. The liability of a sole proprietor is unlimited.
6. This means that a sole proprietor is subject to potential losses based on the company's obligations.
Advantages of sole trader/proprietorship :
1. Easy Establishment :
i. It is easy to establish. The identity of the proprietor is used as the legal identity of the business as well.
ii. The PAN and Aadhar cards of the promoter can be used to obtain the identity of the business.
2. Easy Operation :
i. Since there is only one single person who is operating the entire business, it is easy to operate business without any hassles and
external interference.
ii. Proprietor becomes the sole decision-maker and does not need to consider any other opinions.
3. Profits :
i. Being a sole proprietor, an individual becomes the sole beneficiary of all the profits.
4. Taxation and Compliances :
i. The Taxation and compliance requirements of proprietorship firms are very minimal.
5. Confidentiality :
i. The proprietor is the sole owner of the business undertaking.
ii. This means that there is no leakage of any information to the third party in any way.
iii. The privacy of business is clearly maintained.
Disadvantages of sole trader/proprietorship :
1. Unlimited Liability :
i. This means that at the occurrence of any loss the proprietor has to meet all the liabilities.
ii. The personal assets of proprietor may get used for discharging any liabilities and debts.
2. Obtaining Funds :
i. It is easy for a registered company to raise loan whereas it is extremely difficult for the sole proprietor to raise the same.
ii. This is due to the risk factor which is associated with the proprietor.
 3. Higher Taxes :
i. A proprietor can also be subject to the incidence of payment of higher taxes.
ii. Proprietorship firms are taxed as if the individual is being taxed.
4. No Business Write-Offs :
i. There are no business write-offs which exist in a proprietorship.
Partnership

1. A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities.
2. The partners in a partnership may be individuals, businesses, interest- based organizations, schools, governments or combinations.
3. The law relating to partnership firm in India is prescribed in the Indian Partnership Act of 1932.
4. This Act lays down the rights and duties of the partners between themselves and other legal relations between partners and third
persons, which are incidental to the formation of a partnership.
Features of Partnership :
1. Formation/Partnership Agreement :
i. According to the act, a firm must be formed via a legal agreement between all the partners. So a contract must be entered into to form
a partnership firm.
ii. Its business activity must be lawful, and the motive should be one of profit.
2. Unlimited Liability :
i. All partners have unlimited liability in the business.
ii. The partners are all individually and jointly liable for the firm and the payment of all debts.
iii. This means that even personal assets of a partner can be liquidated to meet the debts of the firm.
3. Continuity :
i. A partnership cannot carry out in perpetuity.
ii. The death or retirement or bankruptcy or insolvency or insanity of a partner will dissolve the firm.
iii. Also, the partnership of a father cannot be inherited by his son. If all the other partners agree, he can be added on as a new partner.
4. Number of Members :
i. There should be a minimum of two members.
ii. The maximum number may vary according to a few conditions.
5. Mutual Agency :
i. In this type of organisation, the business must be carried out by all the partners together.
ii. Or it can be carried out by any of the partners (one or several) acting on behalf of all of them.
iii. This means every partner is an agent as well as the principal of the partnership.
Types of Partners :

1. Active Partner :
i. He takes active participation in the business of the firm.
ii. He contributes to the capital, has a share in the profit and also participates in the daily activities of the firm.
iii. His liability in the firm will be unlimited.
2. Dormant Partner :
i. Also known as a sleeping partner, he will not participate in the daily functioning of the business.
ii. But he will contribute to the capital. In return, he will have a share in the profits.
iii. His liability in the firm will be unlimited.
3. Secret Partner :
i. He will not represent the firm to outside agents or parties.
ii. His participation with respect to capital, profits, management and liability is same as all the other partners.
4. Nominal Partner :
i. This partner is only a partner in name.
ii. He allows the firm to use the name of his firm, and the attached goodwill.
iii. He does not contribute to the capital and hence has no share in the profits.
iv. His liability in the firm will be unlimited.
5. Partner by Estoppel :
i. One who is not an actual partner but presents himself to be the partner of the firm.
ii. His liability in the firm will be unlimited.
Advantages of Partnership Firm : The following are the major advantages of a partnership firm :

1. Easy to Start :
i. Partnership firms are one of the easiest to start.
ii. The only requirement for starting a partnership firm is a partnership deed. Hence, a partnership can be started on the same day.
iii. An LLP registration takes about 5 to 10 working days.
 2. Decision Making :
i. Decision making in a partnership firm could be faster as there is no concept of the passing of resolutions.
ii. The partners in most cases can undertake any transaction on behalf of the partnership firm without the consent of other partners.
3. Raising of Funds :
i. When compared to a proprietorship firm, a partnership firm can easily raise funds.
ii. Banks also easily sanction credit facilities to partnership firm instead of a proprietorship firm.
4. Sense of Ownership :
i. People in a partnership firm are united for a common cause.
ii. Ownership creates a higher sense of accountability, which paves the way for a diligent workforce.
Disadvantages of Partnership Firm : The disadvantages of a partnership firm are as follows :

1. Unlimited Liability :
i. Every partner is liable personally for the losses of a partnership firm.
ii. The liability created by a partner will also make each of the other partners personally liable.
iii. To limit the liability of partners, the LLP structure was created by the Government.
2. Number of Members :
i. The maximum number of members a partnership firm can have is restricted to 20.
3. Lack of a Central Figure :
i. Combined ownership takes away the possibility of leadership and lack of leadership leads to directionless operations.
4. Trust of the General Public :
i. A partnership firm is easy to start and also operates without much of a structure or regulations. Hence, it often leads to distrust
amongst the general public.
5. Abrupt Dissolution :
i. A partnership firm would be dissolved due to the death or insolvency of a partner.
ii. Such an abrupt dissolution will hamper a business.
Companies Act, 2013

1. The Companies Act 2013 is an Act of the Parliament of India on Indian company law.
2. The act regulates the incorporation, responsibilities, directors and dissolution of a company in India.
3. The Companies Act, 2013 offers a number of provisions for governing all the listed as well as unlisted organizations in India.
4. The Act provides more power to the shareholders and emphasizes more on Corporate Governance.
Salient features of Companies Act, 2013 : Some of the Salient features of the Companies Act, 2013 are as under :

1. Democracy of Shareholders.
2. Supremacy of Shareholders.
3. Strengthening Women Contributions through Board Room.
4. Corporate Social Responsibility.
5. National Company Law Tribunal.
6. Cross Border Mergers.
7. Prohibition on forward dealings and insider trading.
8. Increase in number of Shareholders.
9. Limit on Maximum Partners.
10. One Person Company.
11. Entrenchment in Articles of Association.
12. Electronic Mode.
13. Independent Directors.
14. Serving Notice of Board Meeting.
15. Duties of Director defined.
16. Liability on Directors and Officers.
17. Rotation of Auditors.
18. Auditors performing Non-Audit Services.
19. Financial Year.
20. Rehabilitation and Liquidation Process.
21. Restriction on Composition.
22. Fast Track Mergers.
Company Formation under the Companies Act, 2013 :

1. Under this act, a company may be formed for any lawful purpose by seven or more members to incorporate a public company and two
or more members for a private company or by a single person as One Person Company.
2. The company must subscribe their names into a memorandum and must comply with all the registration requirements under the
Companies Act, 2013.
Steps to be taken to get a new company incorporated :
1. Select at least one suitable name (maximum of six names), indicative of the main objects of the company.
2. Ensure that the name does not resemble the name of any other already registered company by availing the services of checking name
availability on the portal.
 3. Apply to the concerned RoC to ascertain the availability of name. If proposed name is not available, the user has to apply for a fresh
name on the same application.
4. After the name approval the applicant can apply for registration of the new company.
5. Arrange for the drafting of the memorandum and articles of association by the solicitors, vetting of the same by RoC and printing of the
same.
6. Arrange for stamping of the memorandum and articles with the appropriate stamp duty.
7. Login to the portal and fill the following forms and attach the mandatory documents listed in the eForm :
i. Declaration of compliance (Form-1).
ii. Notice of situation of registered office of the company (Form-18).
iii. Particulars of the Director's, Manager or Secretary (Form-32).
8. Submit the eForms after attaching the digital signature; pay the requisite filing and registration fees and send the physical copy of
Memorandum and Article of Association to the RoC.
9. After processing of the Form is complete and Corporate Identity is generated obtain Certificate of Incorporation from RoC.
Memorandum of Association of a company

1. The Memorandum of Association (MOA) of a company defines the constitution and the scope of powers of the company. In other
words, the MOA is the foundation on which the company is built.
2. It identifies the scope of company's operations and determines the boundaries it cannot cross.
3. It is a public document according to Section 399 of the Companies Act, 2013.
4. It contains details about the powers and rights of the company.
Content of the MOA : The following information is mandatory in an MOA :

1. Name Clause :
i. For a public limited company, the name of the company must have the word 'Limited' as the last word.
ii. For the private limited company, the name of the company must have the words 'Private Limited' as the last words.
2. Registered Office Clause :
i. It must specify the State in which the registered office of the company will be situated.
3. Object Clause :
i. It must specify the objects for which the company is being incorporated.
ii. If a company changes its activities which are not reflected in its name, then it can change its name within six months of changing its
activities.
4. Liability Clause :
i. It should specify the liability of the members of the company, whether limited or unlimited.
ii. For a company limited by shares - it should specify if the liability of its members is limited to any unpaid amount on the shares that they
hold.
iii. For a company limited by guarantee - it should specify the amount undertaken by each member to contribute to :
a. The assets of the company when it winds-up.
b. The costs, charges, and expenses of winding up and the adjustment of the rights of the contributors among themselves.
5. Capital Clause :
i. This is valid only for companies having share capital.
ii. These companies must specify the amount of Authorized capital divided into shares of fixed amounts.
iii. Further, it must state the names of each member and the number of shares against their names.
6. Association Clause :
i. The MOA must clearly specify the desire of the subscriber to form a company.
7. For One-Person-Company :
i. The MOA must specify the name of the person who becomes a member of the company in the event of the death of the subscriber.

Articles of Association (AoA) of a company

1. The Articles of Association (AoA) is a document that defines the purpose of a company and specifies the regulations for its operations.
2. The document outlines how tasks should be accomplished within an organization, including the preparation and management of
financial records, and the process of director appointments.
Components of the Articles of Association : It includes the following :

1. Company Name :
i. A company must adopt an official name as a legal entity. It must be present in the articles of association.
ii. Usually, the following suffixes "Pvt. Ltd." or "Ltd." are used to show that an entity is a company.
2. Purpose of the Company :
i. Companies are incorporated for a specific purpose. Primarily, it is a for- profit reason to pursue a certain goal by delivering value to
society.
 ii. The purpose of the organization must be clearly stated in the articles of association.
3. Share Capital :
i. The articles of association will state the number and type of shares comprising a company's capital.
4. Organization of the Company :
i. The document includes legal information about the company, including the registration address, the number of directors and
employees, and the identity of the founders and original shareholders.
5. Shareholder Meetings :
i. The first general shareholder meeting provisions are listed in the shareholder meetings section.
ii. Notices, resolutions, and votes are detailed as well in the section, governing subsequent annual shareholder meetings.
The term prospectus

1. Prospectus means any document described or issued as a prospectus and includes a red herring prospectus or shelf prospectus or any
notice, circular, advertisement or other document inviting offers from the public for the subscription or purchase of any securities of a
body corporate.
2. In simple words, any document inviting offers from the public, for the subscription of shares or debentures is known as prospectus.
3. A prospectus must be in writing. An oral invitation to subscribe is not a prospectus.
4. A document is not a prospectus unless it is an invitation to the public.
5. For any document to consider as a prospectus, it should satisfy following conditions :
i. The document should invite the subscription to public share or debentures, or it should invite deposits.
ii. Such an invitation should be made to the public.
iii. The invitation should be made by the company or on the behalf company.
iv. The invitation should relate to shares, debentures or such other instruments.
Contents of Prospectus : Every prospectus issued by or on behalf of the company shall be dated and signed and shall :

1. Include following Information :

i. Names and addresses of registered office of the company, CS, CFO, auditors, bankers, trustees underwriters as may be prescribed;
ii. Dates of the opening and closing of the issue and declaration of issue of allotment letters and refunds within prescribed time;
iii. A statement by the Board of Directors about separate bank account to manage all monies received out of issue;
iv. Consent of all persons whose addresses are so mentioned;
v. Authority to issue;
vi. Capital structure of the company;
vii. Object of offer;
viii. Object of present business of the company;
ix. Minimum subscription;
x. Details of Directors;
xi. Disclosures.
2. Include following Reports :
i. Reports by the auditors about its financial performance;
ii. Reports about profit and losses for each of the five financial years immediately preceding the financial year of the issue of the
prospectus;
iii. Reports about the business or transactions.
3. Make a declaration about the compliance of the provisions of the Companies Act and a statement to that effect.
4. State such other matter and reports as may be prescribed.
Types of prospectus : There are four types of prospectus, which are as under :

1. Abridged Prospectus :
i. The abridged prospectus is a summary of a prospectus filed before the registrar.
ii. It contains all the features of a prospectus.
iii. An abridged prospectus contains all the useful and materialistic information so that the investor can take a rational decision.
iv. It also reduces the cost of public issue of the capital as it is a short form of a prospectus.
2. Deemed Prospectus :
i. When any company allots or agrees to allot securities for sale to the public the document will be considered as a deemed prospectus
through which the offer is made to the public for sale.
ii. The document is deemed to be a prospectus of a company for all purposes and all the provision of content and liabilities of a prospectus
will be applied upon it.
3. Shelf Prospectus :
i. Shelf prospectus can be defined as a prospectus that has been issued by any public financial institution, company or bank for one or
more issues of securities or class of securities as mentioned in the prospectus.
ii. When a shelf prospectus is issued then the issuer does not need to issue a separate prospectus for each offering he can offer or sell
securities without issuing any further prospectus.
 4. Red herring prospectus :
i. Red herring prospectus is the prospectus which lacks the complete particulars about the quantum of the price of the securities.
ii. Thus red herring prospectus is an incomplete prospectus.
iii. A company may issue a red herring prospectus prior to the issue of prospectus.
iv. This type of prospectus needs to be filed with the registrar at least three days prior to the opening of the subscription list or the offer.
The term shares

1. A share in the share capital of the company, including stock, is the definition of the term ‘Share’. This is in accordance with Section 2(84)
of the Companies Act, 2013.
2. In other words, a share is a measure of the interest in the company's assets held by a shareholder.
3. Shares of any member in a company are movable properties. Also, they are transferable in the manner prescribed in the Articles of the
company.
4. Section 45 of the Act mandates the numbering of every share. This number is distinctive. However, if a person is a holder of the
beneficial interest in the share, then this rule does not apply.
Types of share : According to the Companies Act, 2013, the share capital of a company is of two types :
1. Preferential Share Capital :
i. The preferential share capital is that part of the issued share capital of the company carrying a preferential right for :
a. Dividend Payment : A fixed amount or amount calculated at a fixed rate. This might/might not be subject to income tax.
b. Repayment : In case of a winding up or repayment of the amount of paid-up share capital, there is a preferential right to the payment
of any fixed premium or premium on any fixed scale.
2. Equity Share Capital :
i. All share capital which is not preferential share capital is equity share capital.
ii. Equity shares are of two types :
a. With voting rights.
b. With differential rights to voting, dividends, etc., in accordance with the rules.

Director/Board of Directors in business Organization

1. A director is a person appointed to perform the duties and functions of director of a company in accordance with the provisions of the
Companies Act, 2013.
2. The executive authority controlling the management and affairs of a company vests in the team of directors of the company,
collectively known as its Board of Directors.
3. The Board of Directors oversees how the management serves and protects the long term interests of all the stakeholders of the
Company.
4. The board is entrusted with the responsibility to act in the best interests of the company.
5. The actions and deeds of directors individually functioning cannot bind the company, unless a particular director has been specifically
authorised by a Board resolution to discharge certain responsibilities on behalf of the company.
6. The Companies Act, 2013 does not contain an exhaustive definition of the term "director". Section 2 (34) of the Act prescribed that
"director" means a director appointed to the Board of a company.
7. Section 149(1) of the Companies Act, 2013 requires that every company shall have a minimum number of 3 directors in the case of a
public company, two directors in the case of a private company, and one director in the case of a One Person Company.
8. A company can appoint maximum 15 directors. A company may appoint more than 15 directors after passing a special resolution in
general meeting.
Types of Directors :
1. Residential director
2. Independent director
3. Small Shareholders Directors
4. Women Director
5. Additional Directors
6. Alternate Directors
7. Shadow Director
8. Nominee Directors
The annual general meeting

1. An Annual general meeting refers to the meeting which is held annually by the companies.
2. It is important for every type of company whether it is a private company or a public company, limited by shares or guarantees to
conduct an annual general meeting once in a year.
3. There shouldn't be a gap of more than 15 months between two annual general meetings.
 4. An exception is given when a company is incorporated, in such a case the company may not conduct an annual general meeting in the
year at all.
5. After incorporation, the company needs to conduct an annual general meeting within 18 months.
6. According to Section 166 of the Companies Act, the first meeting after incorporation of the company must be held within 18 months.
Short note on minutes of proceedings of general meeting.
1. Every company shall cause minutes of the proceedings of every general meeting of any class of shareholders or creditors to be prepared
and signed in such manner as may be prescribed and kept within thirty days of the conclusion of every such meeting concerned.
2. The minutes of each meeting shall contain a fair and correct summary of the proceedings thereat.
3. All appointments made at any of the meetings aforesaid shall be included in the minutes of the meeting.
4. The minutes kept in accordance with the provisions shall be evidence of the proceedings recorded therein.
5. No document purporting to be a report of the proceedings of any general meeting of a company shall be circulated or advertised at the
expense of the company.
6. If a person is found guilty of tampering with the minutes of the proceedings of meeting he shall be punishable
The role of auditor under Companies Act, 2013

1. An auditor is an independent professional person qualified to perform an audit.

2. In accounting, an auditor is someone who is responsible for evaluating the validity and reliability of a company or organization's
financial statements.
3. The purpose of the auditors in the company is to protect the interests of the shareholders.
4. The auditor is obligated by law to examine the accounts maintained by the directors and inform them of the true financial position of
the company.
5. Auditor gives his independent opinion to the owners or shareholders of the company to protect and keep the company in a safe
financial condition.
6. Every company shall appoint an auditor who can either be an individual or a firm.
Types of auditor : There are two types of auditors :

A. External auditors :
1. External auditors are independent accounting/auditing firms that are hired by companies subject to an audit.
2. External auditors express their own opinions on whether the financial statements of the company in question are free of material
misstatements.
3. For publicly-traded companies, external auditors could also be required to provide an opinion on the effectiveness of internal controls
over financial reporting.
B. Internal auditors :
1. Internal auditors are those who are employed by the company that they audit.
2. They primarily provide audits related to the effectiveness of the company’s internal controls over financial reporting.
3. Internal auditors are not independent of the company they perform audit procedures for.
Winding up (liquidation) process under the Companies Act, 2013

1. Winding up of a company is defined as the condition when the life of the company is brought to an end.
2. The properties of the company are administered for the profit of its members and its creditors.
Steps of winding up : The following steps are followed in the case of a company winding up :

1. An administrator (liquidator) is appointed in the context of liquefaction or winding up of a company.

2. The liquidator takes control over the company, assembles its assets, pays debts of the company and finally distributes any surplus
amongst the members according to their rights and liabilities.
3. The company has no assets or liabilities at the end of liquefaction or winding up.
4. The dissolution of a company takes place when the assets and liabilities of a company are completely wound up.
5. On the context of winding up, the name of the company is stuck off from the list of companies and its identity as a separate legal
person is lost.
6. If the debts taken by the company is worth more than the assets it owns and no agreements have been made with the creditors, then
the company is considered insolvent and is subjected to compulsory liquidation or compulsory winding up.
E-governance

1. The electronic governance or e-governance implies, government

functioning with the application of ICT ( Information and Communications Technology).
2. Hence e-Governance is basically a move towards SMART governance implying: simple, moral, accountable, responsive and transparent
governance.
Types of e-governance : There are 4 types of e-governance :

1. G2C (Government to Citizens) :

i. This enables citizens to benefit from the efficient delivery of a large range of public services.
ii. Expands the accessibility and availability of government services and also improves the quality of services.
iii. The primary aim is to make government, citizen-friendly.
2. G2B (Government to Business) :
i. Enables the business community to interact with the government by using e-Governance tools.
ii. The objective is to cut red-tapism which will save time and reduce operational costs. This will also create a more transparent business
environment when dealing with the government.
iii. The G2B initiatives help in services such as licensing, procurement, permits and revenue collection.
3. G2E (Government to Employee) :
i. This kind of interaction is between the government and its employees.
ii. ICT tools help in making these interactions fast and efficient and thus increases the satisfaction levels of employees.
4. G2G (Government to Government) :
i. Enables seamless interaction between various government entities.
ii. This kind of interaction can be between various department and agencies within government or between two governments like the
union and state governments or between state governments.
iii. The primary aim is to increase efficiency, performance and output.
Advantages of e-governance :
1. Improves delivery and efficiency of government services.
2. Improved government interactions with business and industry.
3. Citizen empowerment through access to information.
4. More efficient government management.
5. Less corruption in the administration.
6. Increased transparency in administration.
7. Greater convenience to citizens and businesses.
8. Cost reductions and revenue growth.
9. Increased legitimacy of government.
10. Reduces paperwork and red-tapism in the administrative process which results in better planning and coordination between different
levels of government.
11. Improved relations between the public authorities and civil society.
The role of engineers in E-Governance

1. To make governance better an engineer must conduce to E-governance through computers and knowledge of cyber laws.
2. The engineers have to understand the E-governance requirement and develop reports.
3. An engineer must know the limits of state action and regulations by acquainting himself with the laws that are applied by the
bureaucrats.
4. Since an engineer works at different places and sights, he must have the basic knowledge of centre - state relations with reference to
policy of financing the key E-governance projects.
5. The knowledge of Constitution is necessary for him in order to ensure that the rules and regulations under which public and private
sector works, do not violate the provisions of the Constitution.
The need for reform engineering / re-engineering at the Union and State level

1. The need for improving administrative machinery of government in India is universally admitted.
2. The incredible rate of technological progress and the rapid advances in industrialisation, have imposed extraordinary strains on the
traditional machinery of government in India.
3. There has been a rising concern to raise governmental processes effectiveness to a level capable of meeting current and prospective
demands.
4. To make government administration more transparent and accountable while addressing the society's needs and expectations through
efficient public services e-Governance was introduced in India.
 5. For realizing the benefits of e-Governance the re-engineering of governmental processes is a necessary condition.
6. The emphasis is on process redesign to facilitate and ensure best practices in the realm of e-Governance.
7. Process redesign involves the analysis and redesign of workflows and processes between governmental departments to achieve
improvements in performance.
8. Deployment of IT solutions will not necessarily deliver the best results unless the processes are reconfigured to the most appropriate
processes. Otherwise, there is the threat of replacement of manual processes by machine-based processes.
9. Process re-engineering ensures that the processes are redesigned to make them the most effective and deliver the maximum value to
the government, its employees and to the common citizen.
The use of technology in judicial process and role of I.T. professionals in Judiciary

1. The rapid accumulation & slow disposal rate of pending cases has increased burden on our judicial system tremendously.
2. Courts had to maintain all the records in physical manner and the old work methods based on manual systems being continued even
now.
3. The enormous problems being faced by the judiciary due to arrears, backlogs, and delays can be partly resolved by the introduction of
ICT (Information and Communications Technology).
4. Most of the bottlenecks can be partly overcome if a sound judicial management information system is introduced in India.
5. Case Management, File Management, and Docket Management will be vastly improved by resorting to the use of computers.
Role of I.T. professionals in Judiciary :
1. Installing and maintaining software for Video Conferencing, Word Processing, Storage Management etc.
2. Designing and testing computer hardware in various courts.
3. Writing and testing software for Database Management System like Courts database, Judges database, Case database, Litigants
database etc.
4. Designing, setting up and testing software for Encryption, Recognition of Digital Signature, Voice Recognition and Recording, Imaging
and Scanning etc.
5. Managing operating systems of computers installed in various courts.
6. Designing and testing Document Management for storage of judicial documents.
7. Creating programming to support a range of products, from Bar Code to Internet, Website and Email tools.
Alienation

1. Alienation is a theoretical concept developed by Karl Marx that describes the isolating, dehumanizing, and disenchanting effects of working
within a capitalist system of production.
2. An Industrial development system can be seen as a useful vehicle for measuring the degree of alienation among different segments in
the economy.
3. The greater the alienation, the greater can be the deterrent to growth

Secession
1. Secession is the withdrawal of a group from a larger entity, especially a political entity, but also from any organization, union or military
alliance.
2. It is, therefore, a process, which commences once a group proclaims the act of secession (e.g., declaration of independence).
3. The goal is the creation of a new state or entity independent from the group or territory it seceded from.
4. A secession attempt might be violent or peaceful.
Effect of secession on industrial development :

1. Conflict and instability arising due to secession is a major hindrance to the industrial development and progress.
2. Industrial development plays a crucial role in tempering secessionist movements.
3. Industrial growth is severely stifled due to secession. As a result, there is less industry for job creation leading to a swelling population
of unemployed individuals.
4. Hence the markets do not achieve maximum efficiency in the production.
5. Due to this resources are used inefficiently and without long-term vision.
6. This result in steeper cost of providing public goods.
7. The lack of domestic industry forces the particular state to depend upon central government financing.
8. Secession is economically very costly.