Traditionally in Indian society, the contributions of homemakers towards the development of their houses and the economy have been undermined and often not recognised at all. Many in this patriarchal setup claim that women ‘fit’ the role of a homemaker and hence it is not important to recognise their contributions. However, times have changed and different legislations and judgments have been passed in favour of recognising people of different sexes as equals. But what was not recognised was the contribution made by different people in different ways on both the micro- and macro-economic scale.
Interestingly, it took a completely unrelated statute to understand a homemaker’s contribution to society, at least economically. This is not the first case where such income is determined on a notional basis but a thorough analysis with reasons in the instant judgment warrants commendation. Recently, the Supreme Court of India in Kirti and Anr. v. Oriental Insurance Company has recog
A Letter of Comfort [LoC] is a financial instrument that is usually given by the parent company or the promoter, attesting to the financial soundness and solvency of the obligor (the company receiving the credit from the lenders). A lot of debate has already taken place with regard to the enforceability of such an instrument that could not be put under the strict definition of a guarantee.
But the similarities between the two instruments cannot be ignored. A typical contract of guarantee also has three parties where a third person (the parent company or the promoter, in this case) acts as a surety for the principal debtor (obligor or the company taking the loan) to the lender. A contract of guarantee has its own rules of enforcement given under the Indian Contract Act, 1872. However, the position of LoC as being covered under the Act has been a contentious issue.