IntlconfservicesmanagementMar2005paper1

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Relation of IT and Insurance in managing Legal Services in India.

By Syed Kamran RAzvi


By Syed Kamran RAzvi1

Abstract

It is the inter-disciplinary approach which is the lead line for any sectoral

development in the increasing global times. IT and Insurance links with legal services

or legal sector to use it as generic term is sub-set.

Like all the services, legal services are also the ones who have large market

share and are growing as part of Service exports. The concept of Management in legal

sector in India may be still in its infancy. However the major competitors today have

introduced the same much earlier.India boasts of about 100000(one hundred thousand) Lawyers and perhaps one

of the largest number of courts. Yet the costs and delays have stalled the growth of

legal services in India like Arbitration, Case Management and other related concepts.

Thus the induction of competitiveness given the opening of this sector

pursuant to WTO Services agreement in 2005(GATS), needs evaluation. There is very

little study done on this subject. Much of the impetus comes from the bilateral Aid

agencies and the government itself.

IN this back-drop the paper works on the status of IT innovation and future

possibilities in the legal sector and also that of concept of Insurance products tailor-

made for legal sector.

The complimentary relationship between any of the Services management and

legal sector is self evident. However the paper restricts itself to the two Insurance and

IT. These two need the most efficient of the services for the reason of Claims

adjudication procedure, adequate protection of copyright, Trademark and

Licensing/franchise regimes, Mergers and Acquisitions, etc.

Legal Services are being encouraged as exports by City-States Like Singapore

and Hong Kong in Asia. They have been successful in challenging predominance of

New York and London as center for adjudication for the complex cases.

Keywords: Level one technology, Court Management, ADR, claims

adjudication, Court software and legal expense insurance, professional indemnity

insurance, Copyright and Patent regime.

1 [email protected]

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Age of Interdisciplinary approach:

Indian challenge in the global scenario can be singled out only on one count. The

conventional approach needs to be dismantled to apply to the new governance

standard.

In an ad of News network TV it says, the US attack on Iraq can have impact on the

remote village many miles away. It is the essence of the message that states the

compulsion and underlies the conclusion for the new and fresh approach.

It is not infinite impact of globalization but it is the increasing acceptance of multi-

disciplinary approach to Solutions.

The alliances are no longer, political or financial, the whole new challenge can be

thrown up by say like GSA(Global Software Alliance) or Pharmaceutical based

growth by Ireland can be the model for many to emulate or Patent regime or

dismantling of existing Patent regime (given the exigencies and repressive impact)

can have absolutely revolutionize the concept of Development and Growth for

continents like Africa whose growth rate is less than 2% 2.

There is now move called Anti-global movement. These movements are often

described as Terrorists. Thus the Risk assessment and management are increasingly

gaining importance as subjects with practical implications.

In past one decade, synthesis of applied knowledge and integration of

conceptual themes, now find common occurrence.

Law has been the oldest essence of civilization. In pursuit of its improvement

systems of Law and mechanisms for implementation of it has been key to

standards/level of civic values or societal standards.

The paper examines the interaction of Insurance and Technology in Law.

These two interactive subjects have tremendous impact on other fields. It seems that

the field of Law is no longer immune.

While Law precedes the change in the society but it seems in Indian context it

has always been the order. Although as on date 99% of legislation owes its existence

to Colonial British experiment on codification of Laws since 1860 i. Some of the

legislation being even prior to the same.

The hierarchy of Courts with exception of Kazis Act, being British in origin, it

has changed very little since then.3

2 WDR,2004 estimates3 Schedule A (map of courts in India)

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Courts and decision making in India:

IN the matter of decision making it is three set of groups namely: Judiciary,

Lawyers and Litigants. It is the interactive nature of the trio which is the

subject matter of study and management.

Indian courts have followed the flexible approach when it came to

interpretation of Law and statutes. So Indian Supreme Court which is the

ultimate Law exponent4in India. Its decisions are binding on all courts in India

as is envisaged in the ;

Article 141. Law declared by Supreme Court to be binding on all courts. -

The law declared by the Supreme Court shall be binding on all courts withinthe territory of India.

142. Enforcement of decrees and orders of Supreme Court and orders as to

discovery, etc. -

(1) The Supreme Court in the exercise of its jurisdiction may pass suchdecree or make such order as is necessary for doing complete justice inany cause or matter pending before it, and any decree so passed ororder so made shall be enforceable throughout the territory of India insuch manner as may be prescribed by or under any law made byParliament and, until provision in that behalf is so made, in suchmanner as the President may by order1prescribe.

(2) Subject to the provisions of any law made in this behalf by Parliament,the Supreme Court shall, as respects the whole of the territory of India,have all and every power to make any order for the purpose of securingthe attendance of any person, the discovery or production of any

documents, or the investigation or punishment of any contempt ofitself.

1. See the Supreme Court (Decrees and Orders) Enforcement Order,

1954 (C.O. 47).

Thus this court draws its sources relying on many judgements passed by Privy Council and Federal Court (pre-1950) and other SupremeCourts in US, Great Britain5. However there are new sources of Judgement tofollow like say Trade, ICJ and so on.

4 It very rarely acts as Law maker as following the doctrine of Separation of Powers.5 House of Lords Committee.

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Access to Justice6 and Technology in Developed world:

The scale of Value for Life varies from system to system and society to

society. It is the disparity which makes this fact more obvious than any other

propagation. In instant case of Law and Justice who are constantly dogged with the

twin challenge of:

Delay andAccess.

Since the dispensation of Justice has human element entrenched in to it, these

two challenges are sensitive in seeking solutions.

In short, the indispensable human element makes the challenge difficult. In

most solutions by technology this has been the case. Here such approach would havea limited success rate, in order to retain the efficacy in the system. Still more

importantly, the eluding confidence of the beneficiaries or users in short the litigants,

and practitioners or more appropriately CITIZENS desired to be retained with

imperative changes or improvisation.

This system was more formal to dismantle. The pace of civilization but

requires the equally adaptive legal methodology, without compromising the quality of

law and Justice.

Some of the fields have become entirely dependant on technology which has

brought in the new legislation which deals with electronic applications and Cyber

applications. Not to mention the increasing complexity of laws (Conflict of Laws)

which is discussed below.

Thus it is the notion of Court Administration where every thing was to go on

record that small recording system like Stenograph machine was invented and is still

popular in many parts of the world.

In India the recording has been done on the typing machines or by hand by the

presiding Judges and the noting on the order sheets. So the acquisition of Level one

technology7 has been very restrictive. It has tremendous potential.ii There is need to

adopt the standards and set the same also. It starts from refurbrished Court room to

whole new range of specialists and super-specialists.

6

Art.21 and 39A of the Constitution of India envisage equal justice and legal aid.7 Term denotes standard of technology available in the US Courts. It is not the same for Indianstandards, it is more of LAN and WAN. Although in past three years it has improved a lot.

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The international usage of technology in Courts has been more litigant focused

whereas in India it is more of Office management equipment with limited internet

options.

As the PC revolutioniii coupled with internet revolution occurred, so the

technology penetration increased with site for paperless world in Courts. It is

unthinkable if not unimaginable. US has adopted universal standards and enactment

called Paper Work Reduction Act.

This coupled with information kiosks like vending machines started to appear

in Courts especially to make the people aware of their rights and preparation before

they launched the proceedings in the court of Law. Family Law and employment laws

were instant popular.

With the advent of ATMs and ECS and EPS new Laws to cover these Banking

transactions were made. Such changes have speeded up induction of technology in

courts.

Reagan era in US further marked global trade relations. This made the changes

in technology simultaneously applied to technology. As the standards evolved. It was

found to be directly cutting delay and access to Justice also. The information was

readily available. This more successful in bringing Justice accessible to those who

could not afford the expensive legal system.iv

Some more examples and perhaps the biggest example being the Stock

Exchanges. Some of the Corporate entities have bigger turnover than most small

nation-states GDP. When the corporate entities began as Charter companies like

British East Indian company, they were heavily regulated and tightly controlled by

statute in their private-ownership.

As the global security markets began to make their impact, so very specialized

legislation was introduced. Here technology has outgrown the reach of Law.

Even the enforcement of best of legislation of Securities have continued to evade the

small investors. Corporate Statutes and those affecting the same have been

continuously evolving with stress on timely Justice. v

These developments have initiated a new kind of Insurance called Employers

Infidelity Insurance. Under this kind of insurance the Corporates or the large

business entities are insured for such indemnifying acts of their employees. Indeed

many important changes have occurred in terms of Employment Law like in UK.

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All these indeed point to the considerable mix of services and the enactments

which traverse or hop in coverage of one topic to another. It is this complexity which

marks the growth of service sector. The model espoused by US and many Europeans 8.

This is further explored in this paper.

Initial Applications of IT9in Courts :

It was exciting and encouraging as it speeded up the process. Although thirty

years hence, the speed of developing a prototype into shelf product has shortened and

the Break Even Point is achieved much faster. In most, cases shelf-life being just six

months. IN Japan according to one estimate is just three months.

This entails cost for what is called upgradation. So in global sense the Price

advantage governs this induction of technology and may at times act as deterrent in

adopting technology for the nations who lack knowledge-based industries10. Indian

competitive advantage is quite unique without really acceding to the race to

bottom.vi

Putting aside, issue of costs. In further examination it is found that the Courts

embraced/adopted technology with equal fervour. It was one of the application areas

identified by the IT industry.

The synergizing of the efforts brought in benefits for the litigants. Tracing the

history of IT based projects for Courts in US is natural. As US was the hub of IT

revolution and innovation.11

One of the first projects initiated in Court rooms was in States like Delaware

which was the centre of most companies for its friendly nature of corporate laws and

Court rulings.

The introduction of court room technology was used for video presentation of

evidence and also the exhibits and discoveries in the Trial. It made the system more

transparent and accountable.12

8 UPA,including FM in India and its advisors feel it is not a model to be emulated by India. Since thetransition from Agriculture is yet to be achieved to provide enhanced skills and updating skills of thelargely unskilled illiterate rural masses. Unlike Chinese who have an ambitious Rural updation of skills

program even in remote region not to mention the literacy rates.9 IT is current expression indeed early technological initiatives were more video-based, followed byvideo conferencing i.e. phone based or ISDN based. IT in real sense came into use only after 1989.10 The Great Digital Divide which is creating tremendous disparities UNDP report,200411 Although the first computer was invented by the British Mathematician, at Cambridge and thecomputer was as big as an average bedroom.www.ibm.com.

12 Court reporting through sketches and audio has been a long tradition in US and West. Now there isCourt TV channel which broadcasts live many trials. Although this has entailed many debate on the

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An interesting situation arose while awarding the costs to the in litigation titled

Science Applications International Corporation V. Superior Court of San Diego

County46 Cal.Rptr.2d 332,337 (Ct.Appl.1995) :

The court went on to criticize the use of technology in this case, pointing out that the prevailing party was awarded damages of $1 million but had litigation costs of$2million, and concluding that: "[i]f a party litigant chooses unwisely to expendmonies in trial presentation in excess of the value of the case, utilizing advancedmethods of information storage, retrieval, and display, when more conventional if lessimpressive methods are available, the party must stand his own costs."

The judge has made the pertinent point here, as the Courts have to depend on the

Public money which has many strings and riders attached to it. So the avoidable costs

and room for experimentation is less here. However the Technology vendors would

counter-argue the same with their cutting costs logic. It seems that the latter argument

has gained ground in cutting costs. However this may not be the case in cutting edge

technology even today when servers today come at the price for PC less than five

years ago.

Thus the bench marking and issues in technology as it progressed over theyears has been well summed up in Article by Prof.Fredric I. Lederer13:

Further, an increasing number of courtrooms include the capability for remote, two-

way testimony via video-conferencing. Indeed as of April, 1998, the AdministrativeOffice of the United States Court reported that at least thirty-four federal districtcourts, encompassing sixty separate locations, are or will soon be equipped for video-conferencing. At least twenty-nine states use or authorize videoconferencing forvarious proceedings, and a few have implemented remote, forensic expert laboratorytestimony. Even appellate courts are using videoconferencing. The United StatesCourts of Appeals for the Second, Tenth, and District of Columbia Circuits usevideoconferencing for oral arguments,

Some other states like Australia which has also pioneered in the use of court room

technology has enacted special provision in the Evidence Act,195814

The technology market today is open to innovation and reaches the markets by

adapting to the needs of a particular market. Cellular or mobile phones is one example

which has led the communications revolutions in countries like India, China etc.

independence of the Judges in high-profile cases. Trial by media is a common phrase these days.13

Chancellor Professor of Law & Director, Courtroom 21, William & Mary Law School, USA14 Victoria Evidence(Audio Visual & Auidio linking)Act,1997 inserting section 42G.

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Unlike the dilemma in renewable or Clean technologies, Communications and

IT has been able to jump straight form the West to the Developing countries, not to

discount the factors contributing.

To draw a small parallel in India, without actually amendments to the

Evidence and Procedural Laws one finds examples and illustrations as below :

Video conferencing for Judicial remand is being used on experimentation basis

in Kanpur and Hyderabad. The use of video tape in prosecution of Terrorists and the

Call details from mobile phones is already admitted in evidence. Under the Gambling

Act all such IT equipment and phones are to be destroyed. This is one of the likely

amendments in the Criminal Procedural code and Evidence Act, which still holds

audio visual evidence as secondary evidence. Although all cases of CBI under the

Prevention of Corruption Act,1988 are based on audio-tapes. Thus the audio forensic

and transcript are important to hold the accused person guilty.

In my own professional experience the courts are not averse to video

conferencing in the Civil trials in India.

Courtroom 2115:

From level one technology and information kiosks in the Court room. An

ambitious project called Courtroom 21 has been launched in 1997 to discuss the

future of the same in application and utility through out US. This might be the bench

mark for future courtrooms around the world as the US puts Legal Services as major

source of exports. Every corporate knows the advantage of NY laws and London laws

for the resolving of commercial disputes and adjudication of the same as well as the

enforcement of the same.16

The Courtroom 21 Project, a joint initiative of the William and Mary Law School andthe National Center for State Courts is now in the process of formulating aninternational protocol for the experimental use of its technology to resolve aninternational family child abduction case. The simulated case will be held onSaturday, April 2, 2005, at William & Mary Law Schools McGlothlin Courtroom.

The nations of the world share a common human tragedy, children abducted by familymembers from one nation to another. With spouses often at war with each other andchildren sheltered by the courts of one nation while immune from judicial action inthe other, resolution of such cases often is enormously difficult. Many nations are

15

In USA.16 Take Dhabol Power Project where Enron invoking of Central Government Counter-guarantees, thePower-agreement fixed Arbitration, London as venue.

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signatories to the Hague Convention on the Civil Aspects of International ChildAbduction, but the convention can only urge efforts at cooperative resolution. In theabsence of a supranational court with jurisdiction over all parties, there is no easysolution to this human dilemma. The Courtroom 21 Project of the College of William& Mary School of Law believes, however, that modern technology may be able to

help resolve at least some of these cases. 17

State of IT in Indian Courts:

Considering the mammoth size of our population and area, Justice at door-step was

aimed to be achieved, by one more aid i.e. Technology. Thus Courtnic was born. NIC

nodal agency for development of Central government office automation and

Networking has been providing consultancy and development of the same. Initially

the High Courts were networked with Supreme Court like display boards and then the

causelist18for the courts were put on the net.

It started only seven years ago. Yet it has picked up at the State capital levels.

In Delhi though the District Courts19 website and networking has been pretty good

although the same has been launched only an year ago. Its web hub is at Patiala House

Courts, and is better managed. Although it limits itself only to listing of cases before

each court and day to day orders. E-filing and other guiding tool for ordinary litigant

is still missing. It has members section which confines to the Judiciary only and not

even the government counsels or the prosecutors. It provides very sketchy details of

forms and format. In short the interactive element is badly missing.

Then still more importantly, Case Management and E-filing which is norm in

Taxation Department recently is still not introduced in Courts. There is both lack of

expertise in inter-disciplinary fields and also the lack of interaction between the three

major stakeholders in any legal system.

Interestingly there is hardly any private players working on the Courtroom technologyand its application suitable to the Indian needs and requirements. There are 250 towns

in India which are very important from the commercial angle and the need for the

legal infrastructure to put on the global economic and digital map is a must. There is

no doubt that the pace of induction of technology in courts and legal system including

legal aid is very slow and indeed dismal. Metropolis India is no indicator of growth.

17

www.courtroom21.com18 www.causelists.nic.in.19 www.delhidistrictcourts.nic.in

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Take the example of the Bhopal Gas Tragedy(1984-2004): a responsive and

update legal system would have helped alleviate the sufferings of the poor citizens

who number a hundred thousand. Such class action suits prove to very helpful.

Indeed it is the biggest sign of complete lack of Corporate accountability in this

country. The Union government (now State government) which is the chief negotiator

in settlement with UCC would have no reliable data on those affected and their status

as on date.

Dow Chemicals which is successor/purchases corporation to UCC on its website20

says :

When the Disaster occurred, the Bhopal plant as operated by Union Carbide Indian

Limited(UCIL), a 51 percent affiliate of Union Carbide Corporation. AT that time ,

Dow had absolutely no connection with either the facility or any of the companies

linked to the incident.

But 16 years after the tragedy, on February 6, 2001 , Dow acquired Union Carbides

shares. Before doing so, as you might expect, the company conducted an exhaustive

assessment to ensure there was absolutely no outstanding liability in relation to

Bhopal.

This means that the Corporations shall shoulder only limited social

responsibility for in the end the profit is the sole motivating factor. In order to curb

such tragedies there is need for legal system which when confronted with such mass

action or omission doesnt crumble under its own administrative response.

E-filing and e-documentation like Electoral Card would have been very

effective for the victims who lived life of misery and went to their graves as neglected

by their own State in clear violation of fundamental rights as ensured in the

Constitution of India.

Take the field of Title search which is often the source of dispute and

limitation factor in Banking loans, sale and purchase or even mortgage services. If the

Municipal Corporation of Delhi opens the details of the properties and the tax arrears

and ownership transfer. So it cuts the bribe, and a Law firm or bank through e-search

and e-certification advise the client, institution or individual. Some of the concept like

Private Farming like in Rajasthan, can be facilitated by such move.

Here an interesting example is of the verification of the vehicle ownership

which was introduced by the Delhi Police in wake of the large number of stolen20 www.bhopal.com/position.htm

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vehicles in Delhi on sale. The police charges only Rs.50 (1.07USD apprx.). Or say

some one violates the traffic rules the vehicle is traced by police through the

integrated network with Transport Department at Delhi. Although DelPol is still a

distant dream.

Similarly there is exhaustive list of applications and benefits in the legal

system which cannot be enumerated in this paper alone. It is not just the technology it

is the human will to find applications. Profit is one of the motives. Yet the government

monopoly in e-governance has severely limited the flow of ideas and implementation

of the same.

The ideal combination of publicprivate-Civil society participation, shall

reach results much faster than anticipated. It lends the stress on localized solutions to

those existing in the world as example to emulate.

Legal Sector :

Exporting legal services is a relatively new concept and leading in Asia are Singapore

and Hong Kong. Singapore commercial code may not have been very acceptable but

its legal system has been acceptable to all major corporations:

An example common legal framework:

Singapore comes to India on account of its familiarity to the British law. Indian firms

having exposure to these laws draw commonality and natural ease.

Therefore, when CDIC a quasi government regulator for Indian Construction

Industry went to SIAC21, Singapore for providing consultancy in establishing the

modern Arbitration Centers for the Indian Construction industry which has disputes to

tune of 115 Mn USD22 stuck in various courts and arbitration centres. Singapore

which accredits its arbitrators through specialized course designed by the National

University of Singapore, will be providing the staff and training.

Another initiative is by US which hopes that after GATS, comes into effect, it

will be able to export its legal services. Indeed US Secretary of State Mr.Colin Powell

on his last visit before presidential elections to Indian stated that this may be very

important export of services. Some of the major US law firms are already in Indian

21 www.siac.org.sg22 Far Eastern Economic Review, October 14,2004

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legal market through Indian partnerships even to the extent of common board in shape

of LLCs.23

Law Firms and Technology

The development of the technology for Law Firms is still remote except for

the in-house applications and maintaining of the client Data Base. It is still rare for

Indian Law Firms to have their clients have an access to their case status and files as

is the practice in most developed nations. Indeed there is little doubt that until and

unless there is application of interactive technology in the Courts, the users and

intended beneficiaries would not apply such interactive face of technology.24

Indeed Wi-Fi25

holds very promising future for such interactive platforms andsoftware. It is time saving and cost effective for Lawyers to work through mobile

offices when not in their office locations. It benefits clients in terms of quality of

service.

Legal Expense Insurance and Professional indemnity Insurance:

In the world of Trade arrangements and often weird myriad of legal arrangements by

its fiction, it is very difficult to presume that the change will not happen or occur in an

open society. Globalization as it is termed is growing much faster and assimilation is

at its best for the open and those waiting for the opportunity and timing of the same.

Two tailor made Insurance products for the Legal sector are very important. They

address two issues that of quality of service and also serving the cost of service.

While professional indemnity insurance is must in major legal systems like the

concept of continuing legal education. In India Bar Associations and Bar Councils are

still wary of the concept. It is not the will sometimes it is the circumstances which

make the acceptability of the idea and concept higher or plausible.

23 Limited liability Corporations (for professional firms like partnership in US)24 An initiative is being launched at Delhi Courts for Court recording system by Civil society headed byauthor and also for development of curriculum in Law Schools through India. Amity Law School wasfirst to respond.25

Starbucks culture is very advantageous to the fixed broad-band or mobile internet services. Aninteresting service is provided to US Attorneys bywww.courtroomconnect.com

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A related aspect on the quality and better management of legal services in

India where the Insurance industry can develop a tailor made product in terms of legal

expenses insurance.

Legal Expenses Insurance26 is like a medical claim policy. When one needs the

legal assistance he has the cover for which he has been paying the premium monthly

or yearly. This premium can vary form region to region and amount of your legal

action possibility on both count Plaintiff or defendant.

Interestingly India can be a very big market but the Insurance companies have

shied away because of the unregulated and somewhat disorganized legal sector.

However it continues to be dilemma and ironical as well that while the Indian

citizens have choice to have the legal cover while traveling abroad to prescribed limits

which by average standards are pretty high. In India TATA-AIG provides in its Travel

Insurance package.

Some other insurance companies also have inbuilt legal cover for those

citizens traveling Abroad.

This policy covers the hiring of Attorney, cost of litigation and even damages

which may be awarded against the insured person.

Thus there is room for innovation and ability to take risk. However the

Insurance market itself is emerging from its traditional model and thus will take some

more time to realize the potential in developing more and more products which are

sector specific.

Contd./-

CONCLUSION:

It is unusual since Industrial revolution that Technology and new financial

concepts have challenged not only legal thinking but the way we implement the law

and run our Judicial and legal system for the purpose of application. People are

already working of virtual court rooms and virtual law firm, latter is already a reality.

However the intrinsic and indispensable human element in dispensation and

achievement of Justice will hold key to the way legal system adopts to these twin26 It has many models like in US,UK, Canada, Australia.

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challenges. Thus in terms of management of Services sector the legal services are an

integral part in the global world. At the same time legal services are Services unto

themselves in term of its Trade value also.

Syed Kamran RazviFlat No.7,137B/12, Zakir Nagar, New Delhi-25. tel :9810078799 9312655151E-mail : [email protected]

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SCHEDULE A

HEIRARCHY OF INDIAN COURTS:

SUPREME COURT OF INDIA

Sits in Division Benches only

HIGH COURT OF STATES SOME TRIBUNALS

(Appellate, Extraordinary, Ordinary, Designated Courts, Regulatory

Company Jurisdiction exercisable Authorities/Securities Commissions,

within the territorial limits of the Boards, NHRC,etc.

said STATE)

1.Sometimes two or more States

has common High Court or Benches in

various parts of a State.

2.They sit in Single and Division Benches.

3.They are the inspecting Judges on District Judges

Jurisdiction Division at District Courts27

Criminal Courts(under CrPC) Civil Court(under CPC)

Each District has District and Sessions Judge (Delhi is one Judicial Distt.)

Session Judges (Offences punishable District Judge Court

by more than three years barring (Appellate and Original Trial of

exception), Appellate and Revision Suits on Pecuniary jurisdiction,

Designated Courts and Bail u/s 438CrPC. Family Courts and Arbitration Act

objections and execution, etc.)

Metropolitan magistrate/Judicial Magistrates/ Civil Judges Court/Small Causes

Executive Magistrates/Revenue Magistrate Court( Arbitration Act objection

(exercising preventive law on reference and execution of Award)

from local Police)

27 At some places the same court acts as Criminal and Civil Courts.

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i Act 57 of 1960 repealed 258 statutes vide this Act called British Statutes(Application to India) Repeal Act,1960

ii National Judicial Academy, Bhopal, MP hosted a conference on Technology and Courts where many of the issues werediscussed to focus on available options and need to develop options suitable to Indian conditions,

iii IBM which invented the main platform for PC which became international standard sold the loss making unit toChinese company for 1.2Bn USD. While Mac continues to carry on, new success players like Dell are surviving making

PC.iv Legal Aid, Poverty Law Centres and legal clinics in the universities across the globe have become popular.

v Indian example of Harsad Mehta and Ketan Mehata and many others have seriously affected the companies whoseshares were attached for more than 10 to 14 years. On the other hand Nick Leesons trial is a contrast although many ofthe small investors did suffer for a short while.

vi Many of the laws that govern corporations are designed to make it possible for them to externalize their costs. TheseLaws vary tremendously from state to state and country to country. The tendency for states to try to outdo each other inaccommodating business has been called a race to the bottom competition because of the way that the states competefor corporate chartering business through increasingly diluted provisions for oversight.Easterbrook and Fischel, TheCorporate Contract pp.1417-18.

IntlconfservicesmanagementMar2005paper1

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