Miscellaneous Links -Glossary of technical terms


Ab initio

From the very beginning.


Actionable Claim

It is a claim to a debt other than a debt secured by a mortgage of immovable property or hypothecation of movable property.



Admitting for hearing a petition of Appeal/Revision/Review.



A duty or tax payable on the value of goods produced.



A person who acts for or on behalf of another person. Section 182 of the Indian Contract Act, 1872 defines an agent as "a person employed to do any act for another or to represent in dealings with third persons". The person for whom such act is done, or who is represented, is called the ‘principal’. There are various kinds of agents:

  1. Broker: An agent whose ordinary course of business is to negotiate and make contracts for the sale and purchase of goods and other property, of which he is not entrusted with possession or documents of title.
  2. Clearing & Forwarding Agent: Is one whose business is the receiving and transmission of goods.
  3. Commission Agent: One who sells/buys goods for another and receives commission, for such act, as a percentage of the amount involved in each contract.
  4. Del Credere Agent: Is an agent who, for extra remuneration (known as del credere commission) undertakes to guarantee the payment of goods which have been sold by him on behalf of his principal; usually, agents are not liable for securing payments from customers because they do not have title to the goods.
  5. Factor: Is a mercantile agent who in the ordinary course of business is entrusted with the possession of goods to sell them; he has a ‘lien’ (right to retain goods rightfully and continuously in his possession) on the goods.
  6. Mercantile Agent: Is one who, in the ordinary course of business, has the authority to sell or buy goods, or to consign goods for the purpose of sale, or to raise money on the security of goods.


It is a liquid formed by the fermentation of sugar solutions; used as a stimulant and an intoxicating spirit.



Process of writing-off or liquidating an asset or loan periodically on an installment basis.



It is a petition for redressal of grievance filed by a dealer before the JCCT (Appeal) objecting to an order under the Act.


Arhat Sale

It is sale by an agent, on behalf of a principal, of goods consigned by the latter to the former. The goods remain the property of the principal and the agent receives commission for services rendered to the principal on account of sales effected by him; amount received on account of sale are transmitted to the principal along with a statement of sale known as a sale patti.



It refers to an Article of the Constitution of India which has a total of 395 Articles.


Balance Sheet

It is the Statement of Affairs of a company as on a particular date; it depicts the value of all assets, all liabilities and capital held by the company as on that date.


Bank Guarantee

It is a guarantee given by a Bank in favour of a person wherein the Bank undertakes to pay the amount mentioned in it on behalf of the person in whose favour the guarantee is given in case such person does not make the payment himself.


Bill of Entry

It is a certificate delivered to the Customs authorities by the importer of goods containing particulars of goods to be imported and the place of origin of the consignment.


Bill of Exchange

It is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money to, or to the order of, a certain person or to the bearer of the instrument.


Bill of Lading

It is a receipt for goods delivered to a common carrier for transportation; it is a document of title to the goods.



It is a written account of all particulars (like description, quantity, rate and value) of goods sold to a purchaser. A pro-forma invoice is an interim invoice in the same form as an invoice; the particulars contained in a pro-forma invoice are liable to change once the final invoice is made.



See LR/TR.


Body Warrant (BW)

A warrant of arrest issued under the PDR Act against a person who owes money to the Government.


Calendar Year

The period of 12 months beginning on the 1st of January.


Cash Flow

It is the actual receipts and payments, in cash, of a firm over a period of time.


Certified Copy

A copy of a document is a certified copy only if it contains a certificate of a public officer that it is a true copy of the document contained in his office.



It is an encumbrance or claim on property wherein the interest in the property is not transferred.



Chattel is any article of personal property comprising goods. It consists of movable property such as furniture and household goods generally, as distinct from fixture or land.



It denotes Cost, Insurance and Freight and a contract of this nature means that the price fixed includes not only the cost of materials but also the insurance premium and freight payable on account of the goods.


Concurrent List

List III of the Seventh Schedule to the Constitution of India setting out matters on which both the Union Parliament and the State Legislatures are competent to enact laws. In the event of a conflict between an enactment on the same matter by the Union Parliament and a State Legislature, the law as enacted by the Union Parliament shall prevail.



A person transferring goods to another person, known as the Consignee, whether as a result of sale or otherwise.


Credit Note

A note usually given by a supplier of goods stating that an allowance for goods returned, defects in goods, short-supply of goods or overpricing shall be allowed to the purchaser whose account is credited by the amount of the Credit Note; the purchaser does not have to make payment to the extent of the amount mentioned in the Credit Note.


Declared Goods

Goods declared, under section 14 of the CST Act, to be of ‘special importance’ in inter-state trade and commerce.


CWJC (Civil Writ Judicature Court)

A civil writ filed before the Honble’ High Court for issue of the high prerogative writs.


De facto

It means "in fact" or in actuality; it signifies a thing actually done.


De jure

Means "as per law" or "by right".



A person carrying on the business of buying and selling goods whether by himself or on behalf of a principal.



It is an instrument of debt issued by a limited liability company and it carries a fixed rate of interest payable to its holder irrespective of profits earned by the company.


Debit Note

A note given usually by a purchaser of goods to the supplier of the said goods stating the account of the supplier has been debited by the amount mentioned in the Debit Note thereby meaning that the amount payable to him now stands reduced by such amount; the purposes of issuing such a note are similar to that of issuing a Credit Note.



A facility whereby an industry is granted permission (u/s 23A of the Act) to retain the tax collected by it for a certain period of time instead of depositing it in the Government Treasury.


Discounted Cash Flow (DCF)

It is the process of determining the Present Value of a cash flow.


Distress Warrant (DW)

A warrant issued under the PDR Act to attach the property of a person who has defaulted in the payment of amount due to Government.


DSCR (Debt Servicing Coverage Ratio)

It is a measure of the ability of a unit to pay off its debts; more specifically, it is the capacity of the firm to repay term loans and interest thereon. It is calculated by dividing the net cash inflow by the term loan and interest thereon.


E-mail (Electronic Mail)

A system of correspondence whereby letters or similar documents are exchanged between users of the Internet or any Wide area Network.



The process of signing on the back of a document like a Bill/Invoice/RR/ LR which has the effect of transferring the title of the goods to the person in whose favour the endorsement is made.


Et al

An abbreviation, used generally in writs or pleadings, meaning "And another" or "and others".


Ex parte

Proceeding by one party in the absence of another. (Wharton)


Exchange Rate

It is the rate, notified by the Reserve Bank of India, of Indian currency vis-à-vis any foreign currency.


Excise Duty

It is a duty charged on goods produced inside the country during manufacture or before sale to domestic consumers.



A facility whereby an industry is granted permission (u/s 7(3) of the Act) to purchase raw materials free of tax or sell finished goods free of tax.


Financial Year

The period of 12 months beginning on the 1st of March.



A plastic disc made specially for the purpose of storing information generated by computer systems; similar to a diskette.


FOB/FOR (Free on Board/Free on Rail)

Such a contract means that the risk and expenses up to the point of delivery to a carrier are to be borne by the seller; the property in goods passes from the seller to the purchaser upon delivery by the former to the carrier who then acts as the agent of the latter.


Foreign Exchange

It means foreign currency and includes all obligations payable in foreign currency.



A person in whose hands a debt is attached i.e. who is warned not to pay money which he owes to another person when the latter is indebted to the person warning or giving notice.


Gross Turnover (GTO)

It is the aggregate of sale prices received or receivable by a dealer in respect of sales effected by him.


I.E. (Id est)

It means "that is".


IA (Interlocutory Application)

A request made to the court for issue of interim direction during the pendency of the case.



Generally used in reported judgements wherein an earlier ruling or book is cited or referred to. It means in the same place or passage or book or ruling which has been cited earlier.


In extenso

Points of a document/submission/petition set out or described in detail.


In limine

Dismissed without notice and reasons.



It is an order for goods generally used in foreign trade.


Inter alia

Among other things.


Interim Order

Order made by a court during the pendency of the case.


Interlocutory Order

An order made by the court during the pendency of a suit before the final hearing on the merits of a case; it is an order made to secure some purpose which is essential to the progress of the suit.



A universal data bank housing all sorts of information and shared by users all over the World who are linked to it and form part of it; the information is stored in computer systems all of which are linked in a Wide Area Network.


I.P.R. (Industrial Policy Resolution)

A resolution approved by the Cabinet and published by the Industries Department whereby incentives are notified to industries for industrial development.


I.R.R. (Internal Rate of Return)

It is the rate of return at which the Net Present Value of a project is zero; the rate at which the present value of cash inflows is equal to the present value of the cash outflows.



It is a contractual agreement under which the owner of an asset (lessor) agrees to allow the use of an asset by another party (lessee) in consideration of periodic lease rental payments for a specified period.


Letter of Attorney

It is an instrument authorizing another person, called the Attorney, to appear on behalf of or represent the person making the instrument at a proceeding.


Letter of Credit (LC)

It is a letter written by one person requesting another person to make payments to/give credit to a third person and containing a promise by the ‘writer’ to repay the amount paid/advanced by the second person.



A person to whom a licence has been granted under the Indian Electricity Act.


Local Area

An area administered by a local body like a Municipality, a District Board, a Local Board, a Union Board, a Panchayat etc.


Loco Citato (Loc. Cit.)

In that part of the work which has just been referred to.


L.P.A. (Letters Patent Appeal)

It is an appeal filed under clause 10of the Letters Patent constituting the High Court of Judicature where final order passed by hon’ble Single Judge is in challenge before Division Bench.


LR/TR (Lorry Receipt/Transport Receipt)

A receipt issued by the transport company/transporter for goods accepted by it for assignment from one place to another; it is also a document of title to the goods. Bilty is the Hindi term for an RR/TR/LR.


Major Head

Denotes heads of Expenditure and Receipts in the Budget; each department of the Government is allotted a ‘Head’ which is actually a number. The accounts of the Government are divided into such ‘Major Heads’.


Mens rea

It is the state of mind with a guilty intention. It is the wrong or unlawful intention behind the commission or doing of an act.


Methylated Spirit

It is Spirit mixed with some substance in such manner so that the mixture becomes unfit for use as a beverage.


Metric Tonne

A unit of weight which is equal to 1000 Kg.


Minor Head

Sub-division of Major Heads for better financial management.



Wrongful exercise of lawful authority or doing a lawful act in an unlawful manner.



Miscellaneous Judicial Case /Jurisdiction.


Modus Operandi

The manner of doing of an act or business.



It is a security for a debt wherein the interest in an immovable property is transferred to the creditor for the purpose of securing repayment of the aforesaid debt.



Means any local area declared to be a Municipality or a public corporation created by law to act as an agency of administration and local self-government.



It is the identical application, to a particular case, of a principle or procedure prescribed for a different case with necessary changes in points of details.


Net Present Value (NPV)

It is the present value of the difference between the future cash flows associated with a project and the investment required for acquiring the project.



It is the amount of fund leftover after all outside liabilities of a business are discharged and it is available for distribution among the owners; it is the aggregate of paid up capital and "free reserves". Put simply, it is the difference between the assets and the outside liabilities of a firm.



It is a legislative device employed to give effect to certain provisions over other provisions found either in the same enactment or some other enactment.



Prescribed Authority.


PBT (Profit Before Tax)

It is the amount leftover after deducting Administrative and Selling Expenses, Interest and Depreciation from the Gross Profit.


PC (Personal Computer)

A computing system meant for data or document processing by a single user.


PDR Act (Public Demand Recovery Act)

A Statute which lays down the mechanism for the realization or collection of amount due to the Government.



Brief narration of the points decided in a judicial proceeding, usually recorded at the beginning of a judgement.


Present Value

It is the current value of money to be received in the future (the worth of money received today is more than an identical sum receivable in the future). The Present Value is derived by discounting (as opposed to compounding) money to be received in the future at a rate which is usually equal to the cost of capital or the prevalent rate of interest (also known as the "time value" of money).


Profit and Loss Account (P/L Account)

It is a statement which reflects the profit earned or loss incurred by a business during a particular period; it reflects, inter alia, the purchases, sales, opening and closing stock, expenses and other income of the business during the aforesaid period.



It primarily means the arithmetical excess of the price received over the total of all costs incurred by the seller.



A sequence of instructions, written in computer language, whereby the computer executes commands and carries out its functions.



It is the process of testing the strength of alcoholic spirits; in effect, it is a measure of the alcohol content of a liquor. A liquor containing a certain specified amount of alcohol is called proof spirit.

  Bulk Litre - A measure of volume of foreign liquor.
  London Proof Litre (LPL) - A measure of weight of foreign liquor.
  Over Proof (OP) - Containing more alcohol than proof spirit contains.
Under Proof (UP) - Containing less alcohol than proof spirit contains.



Registered Dealer.


Reason to believe

Finally concluding, on the basis of information in the possession of the person, that a certain state of affairs or condition actually exists.



He is a person who receives money belonging to another person for the settlement of account.


Rectified Spirit

It is a spirit which has been purified by a process of distillation.



To reject or to disallow.


Res judicata

A case or a suit already adjudicated by the Court.



It is a petition for redressal of grievance filed by a dealer before the Commissioner of Commercial Taxes or the Commercial Taxes Tribunal.


ROE (Return on Equity)

It is the Net Profit of a firm divided by funds invested in the firm and belonging to the owner; such funds are made up of the owner’s Capital and the free reserves.


RR (Railway Receipt)

A receipt issued by the railway for goods accepted by it for assignment from one station to another; it is a document of title to the goods.



The judgement rendered by a court of law; a decision on a point of law arising out of a dispute.



A document made and given by a broker or agent to his Principal stating that the goods mentioned therein have been sold on his behalf; it also mentions the quantity and value of the goods so sold.



It is the sensitive index of the Bombay Stock Exchange made up of the market values of the shares of certain selected companies. The said market values are assigned certain weights in accordance with the importance of the Company or the frequency of trading of the shares of the Company; the sensex reflects the evaluation by the investors of the Capital Market.



A facility whereby an industry is granted permission (u/s 22 or 23 of the Act) to adjust the amount of tax paid by it on the purchase of its raw materials from the amount of sales tax payable on the sale of its finished goods.



It is the unit of capital of a limited liability company; the value assigned to it is paid by its holder as capital contribution and forms part of the capital of the company.



It means situation, location or site.


SLP (Special Leave Petition)

A petition to file an appeal before the Hon’ble Supreme Court under Article 136 of the Constitution.


Speaking Order

An order by merely perusing which one can see that it contains an error of law. It requires no elaborate argument to prove that such an order contains an error of law; the error of law is obvious and glaring.


State List

List II of the Seventh Schedule to the Constitution of India setting out matters on which the State Legislatures only are competent to enact laws.



It is an order made by a Court restraining an Authority from carrying out an order passed by such or similar Authority.



It includes the fully paid up shares in a Company.


Suo Motto

The process of initiating proceedings by a Public Authority on its own accord without a prayer or petition of the other party.


A term generally employed in reported judgements for purposes of referring to points discussed earlier; it means "over" or "above".



Amount payable (over and above tax) by a dealer as a fixed percentage of the total tax payable by him; it is, in effect, a tax on tax.



The Tax Payer's Identification Number (TIN) is new unique registration number that is used for identification of dealers registered under VAT. It consists of 11 digit numerals and will be unique throughout the country. First two characters will represent the State Code as used by the Union Ministry of Home Affairs. The set-up of the next nine characters may, however, be different in different States. TIN is being used for identification of dealers in the same way like PAN is used for identification of assesses under Income Tax Act. All the dealers seeking for new registration under VAT or Central Sales Tax will be allotted new TIN as registration number, however every State Commercial Tax Department have made provisions to issue new TIN to their existing dealers replacing old registration/ CST number.



It is a compulsory charge on property, income or a transaction imposed by and payable to Government.


Ultra vires

Doing of an act beyond the powers of the person or Body doing the act.


Union List

List I of the Seventh Schedule to the Constitution of India setting out matters on which the Union Parliament alone is competent to enact laws.



Having no legal force or effect; not valid.



Curable and good until avoided; a contract or act is voidable when an imperfection or defect can be cured or removed by the confirmation of the person who could take advantage of it. It can be affirmed or rejected by the will of one of the parties.



A written/formal order issued by a court directing the person to whom it is addressed to do or refrain from doing some act specified therein.