From c6e619e15a176af0aa065070c1af272e6e40e12d Mon Sep 17 00:00:00 2001 From: Reena Singh <45616864+ReenaSingh07@users.noreply.github.com> Date: Fri, 13 Sep 2024 17:34:08 +0530 Subject: [PATCH] fix(Hero image): preload image link (#473) --- package-lock.json | 2 +- package.json | 2 +- src/atoms/image/image.tsx | 25 +- src/atoms/image/types.ts | 1 + src/helpers/image-helpers/image-helpers.ts | 11 +- .../__snapshots__/date-updated.test.tsx.snap | 2 +- src/molecules/header-card/header-card.tsx | 2 +- src/molecules/hero-image/hero-image.tsx | 11 +- src/molecules/hero-image/types.ts | 2 + .../related-story-card.test.tsx.snap | 1 + .../related-story-card/related-story-card.tsx | 10 +- .../__snapshots__/generic-story.test.tsx.snap | 3189 +++++++++++++++++ src/templates/generic-story/generic-story.tsx | 2 +- .../live-blog.validation.test.tsx.snap | 3189 +++++++++++++++++ src/templates/live-blog/live-blog.tsx | 2 +- src/types/config.ts | 1 + 16 files changed, 6429 insertions(+), 23 deletions(-) diff --git a/package-lock.json b/package-lock.json index 16b6261d..cd17b533 100644 --- a/package-lock.json +++ b/package-lock.json @@ -1,6 +1,6 @@ { "name": "@quintype/amp", - "version": "2.19.1", + "version": "2.19.2-fix-img-preload.3", "lockfileVersion": 2, "requires": true, "packages": { diff --git a/package.json b/package.json index 0ec30986..9e6fbbd9 100644 --- a/package.json +++ b/package.json @@ -1,6 +1,6 @@ { "name": "@quintype/amp", - "version": "2.19.1", + "version": "2.19.2-fix-img-preload.3", "description": "Quintype's AMP component library for publisher apps to create amp layouts", "main": "dist/index.js", "types": "dist/index.d.ts", diff --git a/src/atoms/image/image.tsx b/src/atoms/image/image.tsx index 06af968e..97aac0bd 100644 --- a/src/atoms/image/image.tsx +++ b/src/atoms/image/image.tsx @@ -5,6 +5,7 @@ import { withConfig } from "../../context"; import { LightboxGallery } from "../lightbox-gallery"; import { base64FallbackImage } from "../../helpers/image-helpers"; import { Head } from "../index"; +import get from "lodash.get"; export const BaseImage = ({ metadata, @@ -16,6 +17,7 @@ export const BaseImage = ({ lightbox = true, story, useFallbackImage = false, + disableImgPreload = false, ...rest }: ImageTypes) => { const cdnImage = config.publisherConfig["cdn-image"]; @@ -42,20 +44,35 @@ export const BaseImage = ({ imgAttrs.alt = "fallback image"; } if (!imgAttrs.src) return null; - imgAttrs.layout = "responsive"; imgAttrs.width = imgAspectRatio[0]; imgAttrs.height = imgAspectRatio[1]; + const isHeroImage: boolean = get(imgAttrs, ["data-hero"], "false") === "true"; + const imgSrcSet = get(imgAttrs, ["srcset"]); + const imgSrcSetUrl = imgSrcSet?.split(" ")?.[0]; + const imgSrc = imgSrcSetUrl || get(imgAttrs, ["src"]); + return ( - - + + ) : ( + + - + + )} {lightbox ? ( diff --git a/src/atoms/image/types.ts b/src/atoms/image/types.ts index 6d1b376a..fb178f93 100644 --- a/src/atoms/image/types.ts +++ b/src/atoms/image/types.ts @@ -12,6 +12,7 @@ export interface ImageTypes extends Common { lightbox?: string | boolean; useFallbackImage?: boolean; story?: Story; + disableImgPreload?: boolean; } interface ImageMetadata { diff --git a/src/helpers/image-helpers/image-helpers.ts b/src/helpers/image-helpers/image-helpers.ts index be4ce51b..0d50912c 100644 --- a/src/helpers/image-helpers/image-helpers.ts +++ b/src/helpers/image-helpers/image-helpers.ts @@ -6,14 +6,9 @@ export const getImgSrcAndSrcset = ({ opts, slug, metadata, aspectRatio, cdnImage const imgOpts = isGumlet ? { format: "auto", ...opts } : opts; const src = focusedImagePath({ opts: imgOpts, slug, metadata, aspectRatio, cdnImage }); let srcset = ""; - const srcsetOpts = [{ ...imgOpts, w: 640 }]; - srcsetOpts.forEach((val, i) => { - if (i === srcsetOpts.length - 1) { - srcset += `${focusedImagePath({ opts: val, slug, metadata, aspectRatio, cdnImage })} ${val.w}w`; - } else { - srcset += `${focusedImagePath({ opts: val, slug, metadata, aspectRatio, cdnImage })} ${val.w}w, `; - } - }); + const srcsetOpt = { ...imgOpts, w: 640 }; + srcset += `${focusedImagePath({ opts: srcsetOpt, slug, metadata, aspectRatio, cdnImage })} ${srcsetOpt.w}w`; + return { src, srcset }; }; diff --git a/src/molecules/date/updated/__snapshots__/date-updated.test.tsx.snap b/src/molecules/date/updated/__snapshots__/date-updated.test.tsx.snap index c540345b..7dceb22b 100644 --- a/src/molecules/date/updated/__snapshots__/date-updated.test.tsx.snap +++ b/src/molecules/date/updated/__snapshots__/date-updated.test.tsx.snap @@ -2,7 +2,7 @@ exports[`DateUpdated should match snapshot 1`] = ` `; diff --git a/src/molecules/header-card/header-card.tsx b/src/molecules/header-card/header-card.tsx index 22a73f64..a6361f6b 100644 --- a/src/molecules/header-card/header-card.tsx +++ b/src/molecules/header-card/header-card.tsx @@ -43,7 +43,7 @@ export const DefaultHeaderCard = ({ story, config, storyType }: HeaderCardProps) return (
- +
diff --git a/src/molecules/hero-image/hero-image.tsx b/src/molecules/hero-image/hero-image.tsx index e9375c42..6da1b526 100644 --- a/src/molecules/hero-image/hero-image.tsx +++ b/src/molecules/hero-image/hero-image.tsx @@ -27,7 +27,7 @@ const StyledFigcaption = styled.div` text-align: left; padding-top: 8px; `; -export const HeroImageBase = ({ story }: HeroImageBaseTypes) => { +export const HeroImageBase = ({ story, config }: HeroImageBaseTypes) => { const metadata: HeroImageMetadata = get(story, "hero-image-metadata", null); const slug: string | null = get(story, "hero-image-s3-key", null); if (!slug || !metadata) return null; @@ -35,12 +35,17 @@ export const HeroImageBase = ({ story }: HeroImageBaseTypes) => { const attribution: string | null = get(story, "hero-image-attribution", null); const caption: string | null = get(story, "hero-image-caption", null); const altText: string | null = get(story, "hero-image-alt-text", null); - + const disableImgPreload: boolean = get(config, ["opts", "optimizeAmpHtml"], true); return ( <> - {altText + {altText {caption && } diff --git a/src/molecules/hero-image/types.ts b/src/molecules/hero-image/types.ts index d1d3b9ce..61f6a7dc 100644 --- a/src/molecules/hero-image/types.ts +++ b/src/molecules/hero-image/types.ts @@ -1,4 +1,6 @@ +import { Config } from "../../types/config"; import { Story } from "../../types/story"; export interface HeroImageBaseTypes { story: Story; + config?: Config; } diff --git a/src/molecules/related-story-card/__snapshots__/related-story-card.test.tsx.snap b/src/molecules/related-story-card/__snapshots__/related-story-card.test.tsx.snap index 4a8e856e..fa398b9a 100644 --- a/src/molecules/related-story-card/__snapshots__/related-story-card.test.tsx.snap +++ b/src/molecules/related-story-card/__snapshots__/related-story-card.test.tsx.snap @@ -7,6 +7,7 @@ exports[`RelatedStoryCard should render default 1`] = ` > { }); } } - + const disableImgPreload: boolean = get(config, ["opts", "optimizeAmpHtml"], true); return ( - {imgAltText + {imgAltText {headline} diff --git a/src/templates/generic-story/__snapshots__/generic-story.test.tsx.snap b/src/templates/generic-story/__snapshots__/generic-story.test.tsx.snap index 4e8fb108..573a4e33 100644 --- a/src/templates/generic-story/__snapshots__/generic-story.test.tsx.snap +++ b/src/templates/generic-story/__snapshots__/generic-story.test.tsx.snap @@ -4168,6 +4168,3195 @@ exports[`GenericStory Template should render 1`] = ` /> The Supreme Court today pronounced its judgment detailing the reasons for ordering a floor test in the Madhya Pradesh Legislative Assembly, in view of the recent political crisis in the state [Shivraj Singh Chouhan v. Speaker, Madhya Pradesh Legislative Assembly].

", + "title": "", + "type": "text", + }, + ], + "version": 17, + }, + Object { + "card-added-at": 1586768274836, + "card-updated-at": 1586771733373, + "content-id": "69938439-efdf-47cb-8a22-e137de7e1203", + "content-version-id": "01e0db3a-41af-4cc2-b763-913e2f1adaf4", + "id": "69938439-efdf-47cb-8a22-e137de7e1203", + "metadata": Object { + "attributes": Object {}, + "social-share": Object { + "image": Object { + "attribution": null, + "caption": null, + "key": "barandbench/2020-03/980fbb13-7d99-46bf-b9d1-8fcbe0aa17c1/SC_Leaders.jpg", + "metadata": Object { + "file-name": "SC Leaders.jpg", + "file-size": 1105549, + "focus-point": Array [ + 1411, + 1242, + ], + "height": 1934, + "mime-type": "image/jpeg", + "width": 2560, + }, + "url": null, + }, + "message": null, + "shareable": false, + "title": "Governor must bear in mind that purpose of ordering trust vote is not to displace governments: SC on Madhya Pradesh Political Crisis", + }, + }, + "status": "draft", + "story-elements": Array [ + Object { + "description": "", + "family-id": "eed6d9d0-1fcd-45f1-9a13-013351e94b38", + "id": "70c4126f-b3df-4809-8bac-15146e5c6496", + "metadata": Object {}, + "page-url": "/story/ecfc249c-a760-49b5-bfd6-485773ab14c6/element/70c4126f-b3df-4809-8bac-15146e5c6496", + "subtype": null, + "text": "

The political crisis, triggered by the resignation of 22 members of the Congress party in Madhya Pradesh, was brought to an end after the Supreme Court directed for a floor test on March 19.

", + "title": "", + "type": "text", + }, + Object { + "description": "", + "family-id": "a80b93ca-254d-4a8b-958d-00548dd8687f", + "id": "9c846f50-83ff-44c2-8f60-66c42e0cbe42", + "metadata": Object { + "linked-story": Object { + "headline": "[Breaking] Madhya Pradesh Political Crisis: Supreme Court directs Floor Test to be held on March 20", + "highlighted-headline": null, + "highlighted-text": "", + "id": "6066e82b-b09f-4157-b872-ed2a05c8821c", + "story-content-id": "6066e82b-b09f-4157-b872-ed2a05c8821c", + }, + "linked-story-id": "6066e82b-b09f-4157-b872-ed2a05c8821c", + }, + "page-url": "/story/ecfc249c-a760-49b5-bfd6-485773ab14c6/element/9c846f50-83ff-44c2-8f60-66c42e0cbe42", + "subtype": "also-read", + "text": "[Breaking] Madhya Pradesh Political Crisis: Supreme Court directs Floor Test to be held on March 20", + "title": "", + "type": "text", + }, + ], + "version": 15, + }, + Object { + "card-added-at": 1586769147391, + "card-updated-at": 1586771733373, + "content-id": "8e000f11-e872-4883-bc68-8b93ce55d19e", + "content-version-id": "1d5531b8-e064-4e23-abfd-717774ee0165", + "id": "8e000f11-e872-4883-bc68-8b93ce55d19e", + "metadata": Object { + "attributes": Object {}, + "social-share": Object { + "image": Object { + "attribution": null, + "caption": null, + "key": "barandbench/2020-03/980fbb13-7d99-46bf-b9d1-8fcbe0aa17c1/SC_Leaders.jpg", + "metadata": Object { + "file-name": "SC Leaders.jpg", + "file-size": 1105549, + "focus-point": Array [ + 1411, + 1242, + ], + "height": 1934, + "mime-type": "image/jpeg", + "width": 2560, + }, + "url": null, + }, + "message": null, + "shareable": false, + "title": "Governor must bear in mind that purpose of ordering trust vote is not to displace governments: SC on Madhya Pradesh Political Crisis", + }, + }, + "status": "draft", + "story-elements": Array [ + Object { + "description": "", + "family-id": "82f3f817-4274-4754-982c-905c54586354", + "id": "272b53da-c30a-4242-9bd2-28062e09c970", + "metadata": Object {}, + "page-url": "/story/ecfc249c-a760-49b5-bfd6-485773ab14c6/element/272b53da-c30a-4242-9bd2-28062e09c970", + "subtype": null, + "text": "

By way of background, after the ex-Congress legislators were “taken captive”, BJP leaders approached the Speaker of the Assembly on March 10 and tendered the resignation letters of the captive MLAs

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Then Chief Minister Kamal Nath, on March 13, addressed a letter to Governor Lalji Tandon, offering to hold a floor test once the MLAs are released. The Congress then issued a whip to ensure the presence of all its members at the budget session of the state assembly which was to commence on March 16.

Governor Tandon then sent a letter to Nath, urging him to gain the trust vote on the floor of the House.

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When the session commenced on March 16, the MLAs belonging to the Madhya Pradesh Congress were absent. The Governor once again wrote to the CM, asking him to hold the trust vote on March 17.

", + "title": "", + "type": "text", + }, + Object { + "description": "", + "family-id": "9f25aa21-54c7-4ba9-880e-b931adc2c0c0", + "id": "07c034f9-7b67-460b-b8f2-092c4b33fb0e", + "metadata": Object {}, + "page-url": "/story/ecfc249c-a760-49b5-bfd6-485773ab14c6/element/07c034f9-7b67-460b-b8f2-092c4b33fb0e", + "subtype": null, + "text": "

Meanwhile, BJP MLAs from Madhya Pradesh moved the Supreme Court seeking a direction to conduct a floor test in the state assembly.

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Around the same time, the MP Congress to approach the Supreme Court, challenging the Governor's direction to hold a floor test.

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After hearing the matter for three days, the Court directed for a floor test to be held.

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In today's judgment passed by the Bench of Justices DY Chandrachud and Hemant Gupta, a number of issues surrounding the crisis are addressed. These include the powers of the Governor and the Speaker, as well as the trend of defection being seen in various states.

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Powers of the Governor

The primary issue before the Court was whether the Governor is entrusted with the authority to call for a trust vote in the course of a running assembly.

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At the outset, the Court dismissed warnings that it should not enter the realm of politics by adjudicating on such issues.

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\\"As the ultimate arbiter of the constitutional text, this Court is tasked with ensuring that each branch of government operates within the limits placed upon it by the Constitution, including in the realm of democratic politics…

...Merely because the prima facie determination made by the Governor was of the political support enjoyed by the incumbent government or the action demanded was a political process (the floor test) is not a reason for this Court not to hear the matter.\\"

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The Court went on to note that the question of whether a Governor can call for a trust vote in an already constituted legislative assembly is not entirely res integra. After referring to the Suprmee Court's decision in SR Bommai v. Union of India, the Court held,

", + "title": "", + "type": "text", + }, + Object { + "description": "", + "family-id": "e1675f96-3f49-466e-9b4c-52be266bb2bf", + "id": "bceac042-9e97-4a38-a10b-daeb9741cf3e", + "metadata": Object { + "attribution": "Supreme Court", + "content": "\\"As a matter of constitutional law, it would not be correct to proceed on the basis that the constitutional authority entrusted to the Governor to require the Council of Ministers to prove their majority on the floor of the House can only be exercised at the very inception after general elections are held and not when the Governor has objective reasons to believe that the incumbent government does not command the confidence of the house. The Governor is not denuded of the power to order a floor test where on the basis of the material available to the Governor it becomes evident that the issue as to whether the government commands the confidence of the house requires to be assessed on the basis of a floor test.\\"", + }, + "page-url": "/story/ecfc249c-a760-49b5-bfd6-485773ab14c6/element/bceac042-9e97-4a38-a10b-daeb9741cf3e", + "subtype": "quote", + "text": "
\\"As a matter of constitutional law, it would not be correct to proceed on the basis that the constitutional authority entrusted to the Governor to require the Council of Ministers to prove their majority on the floor of the House can only be exercised at the very inception after general elections are held and not when the Governor has objective reasons to believe that the incumbent government does not command the confidence of the house. The Governor is not denuded of the power to order a floor test where on the basis of the material available to the Governor it becomes evident that the issue as to whether the government commands the confidence of the house requires to be assessed on the basis of a floor test.\\"
Supreme Court
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The Bench further warned that entrusting such a function to the Governor is not to destabilise an existing government, and that such a decision would be amenable to judicial review.

It also called for circumspection on the part of the Governor while calling for a floor test.

\\"In exercising the constitutional authority to demand a trust vote, the Governor must do so with circumspection in a manner that ensures that the authority of the House to determine the existence or loss of confidence in the government is not undermined. Absent exigent and compelling circumstances, there is no reason for the Governor to prevent the ordinary legislative process of a no confidence motion from running its due course.\\"

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The Court went on to detail what is expected of the role of the Governor.

\\"The Governor is an appointee of the President but does not represent either a political ideology or a political view. The Governor is expected to discharge the role of a constitutional statesman. The authority of the Governor is not one to be exercised in aid of a political dispensation which considers an elected government of the day to be a political opponent.\\"

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Moreover, it noted that the Governor's powers should not be used to destabilise governments.

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\\"In discharging this crucial role, it is necessary that the Governor bear in mind that the purpose underlying the entrustment of the authority to require a trust vote is not to displace duly elected governments but to intervene with caution when the circumstances which are drawn to the attention of the Governor indicate a loss of majority. This power is granted to the Governor to ensure that the principle of collective responsibility is maintained at all times and must be exercised with caution.\\"
Supreme Court
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With regard to the present case, the Court ruled that in view of the resignation of the 22 MLAs (which were accepted by the Speaker) and the Chief Minster's refusal to conduct a floor test on March 16, the Governor was justified in calling for a floor test to be conducted.

Referring to earlier instances where the Court has ordered floor tests to be conducted in various states, the Court said,

\\"...with the communication of the Governor for convening a trust vote immediately after the Governor‘s address, the session of the Legislative Assembly was adjourned till 26 March 2020 despite the House having already convened. This would have allowed the state of political uncertainty in Madhya Pradesh to continue and furnish avenues for political bargaining on terms which cannot be regarded as legitimate. It is with a view to obviate illegitimate and unseemly political bargaining in the quest for political power that this Court has consistently insisted upon the convening of a trust vote at the earliest date.\\"

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Speaker's discretion v. Governor's prerogative

The Court went on to deliberate on the argument forwarded by Senior Advocate Abhishek Manu Singhvi that convening a trust vote at this stage will impinge on the discretion of the Speaker to determine whether the resignations should be accepted.

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In this regard, the Court held,

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\\"The holding of a trust vote operates in a distinct field from the issue as to whether one or more individual members of the Legislative Assembly have embarked upon a voluntary act of resignation or have incurred the wrath of the Tenth Schedule...the pendency of the proceedings before the Speaker cannot be a valid basis to not have the confidence of the House in the government determined by the convening of a floor test.\\"
Supreme Court
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The fact that the Speaker in the present case accepted the resignations tendered by six of the twenty-two members on March 14 weakened this argument, the Court said.

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Fluid allegiances and Horse-trading

While making a reference to the often-fluid allegiances of democratically elected representatives, the Court refused to express an opinion on the same.

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Alluding to the trend of MLAs being held \\"captive\\", the Court said that if violence and coercion exist, it would undermine a free and fair vote in the assembly. The Governor and the Court must take measures to ensure that the sanctity of the trust vote is maintained, the Bench observed.

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Commenting further on what has been termed as 'resort politics', the Court observed,

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\\"The spectacle of rival political parties whisking away their political flock to safe destinations does little credit to the state of our democratic politics. It is an unfortunate reflection on the confidence which political parties hold in their own constituents and a reflection of what happens in the real world of politics. Political bargaining, or horse-trading, as we noticed, is now an oft repeated usage in legal precedents. ̳Poaching‘ is an expression which was bandied about on both sides of the debate in the present case. It is best that courts maintain an arm‘s length from the sordid tales of political life.\\"
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Justice Chandrachud further called for legislation to deal with breakdown in the composition and allegiances of political parties due to private allurements offered to Members as opposed to public policy considerations.

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On these grounds and more, the Court decided to order the floor test on March 19.

Terming the reliefs sought by the Madhya Pradesh Congress as “manifestly misconceived”, the Court held,

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\\"The court cannot issue a direction mandating that a trust vote cannot be convened if any one or more Members do not remain present in the House. Whether or not to remain present is for the individual Members to decide and they would, necessarily be accountable for the decisions which they take, both to their political party and to their constituents.\\"

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During the hearings held last month, Senior Advocate Mukul Rohtagi appeared for the BJP MLA petitioners. Senior Advocate Maninder Singh appeared for the rebel MLAs, and Solicitor General Tushar Mehta represented the Governor.

On the other side, Senior Advocate Dushyant Dave appeared for the Madhya Pradesh Congress petitioners, Senior Advocate Abhishek Manu Singhvi appeared for the Speaker, and the Senior Counsel Kapil Sibal represented former Chief Minister Kamal Nath.

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[Read the judgment]

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India, in general, and the Legal World, in particular, became poorer with the passing away of Shri Ashok Desai, fondly called as Ashokbhai by all.

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A Legend in Legal Circles, he was the former Attorney General of India, Solicitor General of India, and Advocate General of Maharashtra. As a Senior Advocate, he was par excellence and admired by all in the Legal World.

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In more than one sense, Ashokbhai was a Spiritual Philosopher, possessed of unselfish Love, Chittshuddhi (cleansing of heart) and achieving Moral Upliftments of highest levels.

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There are very few people in life one can come across like him- ever so smiling- ever so helpful- ever so kind- ever so loving.

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As a Lawyer, he was simply one of the most outstanding of all. Extraordinarily brilliant, very well prepared in Law and Facts, extremely polite to the Bench and to his opponents. Yet, with his fair presentation in a very soothing voice, he could win over both the Bench and the Bar. Also, as a human being, he was highly accomplished. Possessed of noble virtues derived from his great Parents, highly educated, extremely well read and well informed, and widely travelled, Ashokbhai was an intellectual of a very high order. A great speaker and a patient listener; that made him an extremely enjoyable conversationalist, full of wit and information. Evenings spent with him would be treasured for a life-time.

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He had a very deep love for humanity and the Nation. He never missed reminding all who knew him, as to what was right and what was wrong in Public Life. His observations and remarks were a good guide to understand the state of the Nation.

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His humour in such conversation was lethal and apt. He could regale Friends for hours with his stories from his life time’s experiences.

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Ashokbhai had a deep understanding of Religions and was highly spiritual. He followed tenets of Buddhism and practised them in his own life. His beliefs were never dogmatic or rigid, but were very moderate and humane.

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Ashokbhai’s life journey is a classic example of what was said once, “Do not seek death… Death will find you… But, seek the road which makes death fulfilment.”

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Ashokbhai passed away peacefully and gracefully, today morning. Even in Death, he chose the Buddhist Path of Renunciation. But, Ashokbhai will never be forgotten for all his Deeds. His life will be an example for generations to come.

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He leaves behind his wife, Suvarnaben, also an accomplished human being in her own right and a true life-time partner, his sons, Jai and Harsh, daughter Ami, and grandchildren on whom he doted.

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He also leaves behind large number of Friends and Admirers who will never forget him for all that he gave them.

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For my wife Ami and me, Ashokbhai was a source of nourishment in our lives, and a constant Friend, Philosopher and Guide.

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As Tagore famously said, Ashokbhai’s, “Life was beautiful like summer flowers and death like autumn leaves.”

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May his soul Rest in Eternal Peace.

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A decision was recently rendered by a rare sitting of a five-member bench of the National Company Law Appellate Tribunal (NCLAT) in the matter of V Padmakumar v. Stressed Assets Stabilisation Fund (SASF) & Anr.

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One of the ancillary issues which came to be considered was whether reflection of debt in the books of accounts tantamounts to acknowledgment of debt under Section 18 of the Limitation Act, 1963, and thereby extends the period of limitation.

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The decision was not a unanimous one – it was a majority decision of 4:1. The majority concluded that the filing of balance sheet being mandatory under the Companies Act, 2013, it cannot be treated to be an acknowledgement under Section 18.

The dissent concludes that the recording of debt will be valid acknowledgment under Section 18. With respect, the author through this article, has attempted to conclude that it is in fact the dissent that is correct and should hold the field.

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The decision of the majority can be summarised as follows:

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  • Filing of Balance Sheet being mandatory under Section 92(4) of the Companies Act, the same cannot be treated to be an acknowledgement under Section 18 of the Limitation Act.

  • If the argument is accepted that the Balance Sheet of the ‘Corporate Debtor’ amounts to acknowledgement under Section 18 then in such case, it is to be held that no limitation would be applicable because every year, it is mandatory for the ‘Corporate Debtor’ to file Balance Sheet.

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Let us focus on few statutory and regulatory provisions pertaining to preparation of the financial statements.

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I. At the Stage of Preparation of Accounts

Section 128(1) of the Companies Act provides that every company shall prepare books of accounts and financial statements which give “true and fair view” of the state of the affairs of the company. Similarly, Section 129(1) mandates that the financial statements shall give a “true and fair view” of the state of affairs of the company and comply with the accounting standards notified under Section 133.

One of the accounting standards notified under Section 133 is Indian Accounting Standard – 1 (“Ind AS – 1”) which clearly provides that the financial statements shall present a true and fair view of the financial position, financial performance and cash flows of an entity with faithful representation of the effects of transactions.

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II. At the Stage of Auditing of Accounts

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It is important to consider one of the duties of the auditors as mandated by Section 143(2) whereunder the auditor has to make an audit report which after taking into consideration the accounts and financial statements, give a “true and fair view” of the state of the company’s affairs.

Implicit in this is the duty to verify transactions and take a prudent decision as to their recognition in the books of accounts. If the transaction appears to be true and fair, the auditor puts her seal of authenticity on it.

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III. At the Stage of Presentation before the Shareholder

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The financial statements are laid in the annual general meeting. The same is also accompanied by a Directors’ Responsibility Statement under section 134(3)(c). The purpose of this statement is to state that the directors have made judgments and estimates that are reasonable and prudent so as to give a “true and fair view” of the state of affairs of the company.

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IV. True and Fair View - The Common Thread

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In view of the above, one can now appreciate that \\"true and fair view of the company affairs\\" is one of the most important objectives of preparing the financial statements. The board of directors applies its mind and the auditors undertake an extensive exercise to authenticate the books.

Hence, whatever is recorded in the books of accounts & financial statements, is presumed to give a true and fair view. Thus, there is a sanctity attached in law to the audited books of accounts.

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This was echoed by the Supreme Court in Ishwar Dass Jain v. Sohan Lal, when it held that the rationale behind admissibility of parties' books of account as evidence is that the regularity of habit, the difficulty of falsification, and the fair certainty of ultimate detection give them, to a sufficient degree, a probability of trustworthiness.

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V. Acknowledgment of debt: The Jurisprudence

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The interplay of accounting for debt in the books of accounts and its consequent effect under the Limitation Act can be traced back to an early decision of the Chancery Division in Re Atlantic and Pacific Fibre Importing and Manufacturing Co Ltd, which was approved by the King’s Bench Division in Jones v. Bellgrove Properties Ltd.

Here, it was held that a balance sheet prepared and signed by the directors and the auditors as the agents of the company and then presented at the general meeting constitutes a good acknowledgment for the purposes of extending the limitation.

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The Indian jurisprudence is not limited only to the aspect of period of limitation, but the proposition is applied in various other fields of law like taxation, arbitration, civil procedure code, etc. as well.

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In terms of Income Tax Act, 1961, the Gujarat High Court in Ambika Mills Ltd. v. CIT, held that the liability in respect of unpaid wages was acknowledged by the assesse company at the end of each year in its balance sheets and hence those amounts retained the character of liabilities owing to the annual acknowledgments made by the assessee company.

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Similarly, the Madras High Court in CIT vs. Tamilnadu Warehousing Corporation, has held that once debt was shown as liability by the assessee in the books of accounts, the department was wrong in holding that it was assessable as income because there was no cessation of liability.

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The Supreme Court had the occasion to consider the plea of debt being acknowledged under the Negotiable Instruments Act, 1881 in AV Murthy v. BS Nagabasavanna, wherein it was held that if the amount borrowed by the respondent is shown in the balance sheet, it may amount to acknowledgement.

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While considering Order 6 Rule 12, the Bombay High Court in Deccan Chronicle Holdings Ltd v. Tata Capital Financial Services Ltd held that an admission in the balance sheet of a company unless contradicted or refuted, would operate as an estoppel and would be the decisive factor for passing a decree for admission.

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It’s not as if the point of view that the financial statements have been made under compulsion of law has not been raised or is decided for the first time. The Calcutta High Court, as far back as in 1962 in Bengal Silk Mills Co. Vs. Ismail Golam Hossain Ariff, held that statement of a liability in the balance sheet amounted to acknowledgement of a debt giving rise to a fresh period of limitation, notwithstanding the fact that the balance sheet was prepared under 'compulsions of statute’.

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More specifically, the Delhi High Court in Shahi Exports Pvt. Ltd. v. CMD Buildtech Pvt. Ltd concluded that it is a well-established position that an entry made in the company's balance sheet amounts to an acknowledgement of the debt and has the effect of extending the period of limitation under Section 18 of the Limitation Act.

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Finally, the Supreme Court has also held in unequivocal terms that entries in the books of accounts would amount to an acknowledgement of the liability within the meaning of Section 18 of the Limitation Act.

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However, it is pertinent to note that there is one important caveat that has been explained by the Delhi High Court. Sometimes, the directors in their report explain certain transactions. Therefore, in explaining the statements in the balance sheets, the directors' report must be taken together to find out the true meaning and purport of the statements.

In such a scenario, the Delhi High Court speaking through Justice AK Sikri (as he then was) in Sheetal Fabrics v. Coir Cushions Ltd, laid down that a statement in the balance sheet indicating liability is to be read along with the directors' report to see whether both so read would amount to an acknowledgement.

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The majority members of the NCLAT have not considered the above aspects – both legal as well as accounting – while delivering the judgment on the issue.

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  1. The books of accounts hold an important status in the eyes of law and cannot be wished away simply because they are prepared under compulsion of law.

  2. There was a compulsion upon the directors to prepare the financial statements but there was no compulsion upon them to make any particular admission.

  3. They faithfully discharged their duty and in doing so they made honest admissions of the company's liabilities. Those admissions, though made in discharge of their duty, are nevertheless conscious and voluntary admissions.

  4. The NCLAT (majority) has unfortunately not dealt with Sections 128 129, 143 and 134 of the Companies Act, 2013 as well as the decisions cited above.

  5. The sanctity attached in law to the financial statements has been respected when the dispute is in the realm of taxation, company law, insolvency, arbitration, civil procedure code, negotiable instruments, etc. and has rightly stood the test of time.

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The minority decision has referred to few aspects discussed above. It is hoped that the majority decision is corrected and the minority view is upheld by the Supreme Court as and when the occasion so arises.

Failure to do so would lead to difficulty, as this five-member bench decision is binding on all the benches of NCLAT and would certainly apply with full force before NCLT benches.

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Till then, we can only seek recourse to the words of Chief Justice Hughes who wrote that a dissenting decision is “an appeal to the brooding spirit of the law, to the intelligence of a future day, when a later decision may possibly correct the error into which the dissenting judge believes the court to have been betrayed.”

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The author is a dually qualified professional. He is a graduate of Campus Law Centre, Faculty of Law, University of Delhi and a Fellow Chartered Accountant. He currently practices law in the courts of Delhi. He can be reached at mail@deepakjoshi.in

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The Supreme Court today refused to hear the petition filed by Jamiat Ulema-e-Hind against communalization of the Nizamuddin Markaz issue, unless the Press Council of India (PCI) was made a party to the case.

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Advocate-on-Record Ejaz Maqbool urged the Court that there was violence due to the constant news reporting around the Tablighi Jamaat members.

However, the Bench headed by Chief Justice of India SA Bobde maintained in the hearing conducted through video conferencing,

\\"We cannot curb the freedom of press.\\"

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Maqbool persisted with the Court that in Karnataka, there have been incidents of violence owing to the reportage, and that names of people have been made public.

In response, CJI Bobde stated that if it was a question of killing, defamation \\"then your remedy is somewhere else,\\" but \\"if it's a question of larger reporting then PCI has to be made party.\\"

The case is now likely to be heard next week.

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The Bench led by CJI SA Bobde was hearing a plea by Jamiat Ulema-e-Hind which had claimed that the media has communalised the Nizamuddin Markaz event, where about 2,500 individuals congregated in the midst of the Coronavirus outbreak.

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The plea filed by Advocate Ejaz Maqbool states that reports on the Tablighi Jamaat by certain sections of print and electronic media has \\"demonised the entire Muslim community.\\"

The plea further states that this demonization of the community has led to serious \\"threat to life and liberty of Muslims\\", and has thus led to the violation of their \\"Right to life under Article 21.\\"

The petition says that most of the reports presented the facts in a twisted manner, using phrases like \\"Corona Jihad\\", \\"Corona Terrorism\\" or \\"Islamic Resurrection\\".

The petitioner organisation contends that if there is any delay in ordering a directive to stop communal reporting regarding the Markaz issue, it would only “promote ill-will, enmity and hatred towards the Muslim community in India.”

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The petition has listed “several social media posts” which “wrongly showed Muslims doing deliberate acts to spread COVID-19.” The plea has also given links to fact check reports that have gone on to prove that such reports were malicious and “were old unrelated videos.”

Further, the plea noted that while such reports demonising the Muslim community have flooded social media, platforms like Twitter have taken no action in accordance with their standard practice and guidelines.

One of the fake social media posts highlighted in the plea was a mass Muslim religious gathering where an act of “mass sneezing” was reported. However, the petition has given links to fact check reports highlighting how it was a Sufi practice which was falsely reported as an effort to spread the Coronavirus pandemic.

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The petition stated that such fake reports were in violation of the Supreme Court's order of March 31, by which the media was directed to publish “official version of reports” dealing with the COVID-19 outbreak. It is stated,

“Media was directed to maintain a strong sense of responsibility and ensure that unverified news capable of causing panic would not be disseminated.”

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The petition had prayed for strict action against “sections of media spreading bigotry and communal hatred in relation to the Nizamuddin Markaz issue”. It goes on to highlight that the recent Delhi riots was one of the “worst communal riots in the Union territory’s history” and that communalising the Tablighi Jamaat meet puts the “law and order situation of the entire state\\" at risk.

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All Rights Reserved ", + "description": "We have finally migrated our website to better architecture! While the fancy new website will be up in a few months, we have fixed issues related to payment and login in the meantime. You will need to log in anew. If you have forgotten your password, you can generate one by clicking on the forgot password link (it works!). Send any questions or feedback to contact@newslaundry.com.", + "publisher-logo": null, + "title": "Newslaundry", + }, + "sections": Array [], + "sketches-host": "https://www.vikatan.com", + }, + } + } storyType="text" /> diff --git a/src/templates/generic-story/generic-story.tsx b/src/templates/generic-story/generic-story.tsx index b7266a2f..102ef40a 100644 --- a/src/templates/generic-story/generic-story.tsx +++ b/src/templates/generic-story/generic-story.tsx @@ -80,7 +80,7 @@ export const GenericStory = ({ story, config }: CommonTemplateTypes) => { - + diff --git a/src/templates/live-blog/__snapshots__/live-blog.validation.test.tsx.snap b/src/templates/live-blog/__snapshots__/live-blog.validation.test.tsx.snap index 7857111d..61420506 100644 --- a/src/templates/live-blog/__snapshots__/live-blog.validation.test.tsx.snap +++ b/src/templates/live-blog/__snapshots__/live-blog.validation.test.tsx.snap @@ -4114,6 +4114,3195 @@ exports[`The LiveBlog Default Template should match snapshot 1`] = ` /> The Supreme Court today pronounced its judgment detailing the reasons for ordering a floor test in the Madhya Pradesh Legislative Assembly, in view of the recent political crisis in the state [Shivraj Singh Chouhan v. Speaker, Madhya Pradesh Legislative Assembly].

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The political crisis, triggered by the resignation of 22 members of the Congress party in Madhya Pradesh, was brought to an end after the Supreme Court directed for a floor test on March 19.

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By way of background, after the ex-Congress legislators were “taken captive”, BJP leaders approached the Speaker of the Assembly on March 10 and tendered the resignation letters of the captive MLAs

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Then Chief Minister Kamal Nath, on March 13, addressed a letter to Governor Lalji Tandon, offering to hold a floor test once the MLAs are released. The Congress then issued a whip to ensure the presence of all its members at the budget session of the state assembly which was to commence on March 16.

Governor Tandon then sent a letter to Nath, urging him to gain the trust vote on the floor of the House.

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When the session commenced on March 16, the MLAs belonging to the Madhya Pradesh Congress were absent. The Governor once again wrote to the CM, asking him to hold the trust vote on March 17.

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Meanwhile, BJP MLAs from Madhya Pradesh moved the Supreme Court seeking a direction to conduct a floor test in the state assembly.

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Around the same time, the MP Congress to approach the Supreme Court, challenging the Governor's direction to hold a floor test.

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After hearing the matter for three days, the Court directed for a floor test to be held.

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In today's judgment passed by the Bench of Justices DY Chandrachud and Hemant Gupta, a number of issues surrounding the crisis are addressed. These include the powers of the Governor and the Speaker, as well as the trend of defection being seen in various states.

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Powers of the Governor

The primary issue before the Court was whether the Governor is entrusted with the authority to call for a trust vote in the course of a running assembly.

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At the outset, the Court dismissed warnings that it should not enter the realm of politics by adjudicating on such issues.

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\\"As the ultimate arbiter of the constitutional text, this Court is tasked with ensuring that each branch of government operates within the limits placed upon it by the Constitution, including in the realm of democratic politics…

...Merely because the prima facie determination made by the Governor was of the political support enjoyed by the incumbent government or the action demanded was a political process (the floor test) is not a reason for this Court not to hear the matter.\\"

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The Court went on to note that the question of whether a Governor can call for a trust vote in an already constituted legislative assembly is not entirely res integra. After referring to the Suprmee Court's decision in SR Bommai v. Union of India, the Court held,

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\\"As a matter of constitutional law, it would not be correct to proceed on the basis that the constitutional authority entrusted to the Governor to require the Council of Ministers to prove their majority on the floor of the House can only be exercised at the very inception after general elections are held and not when the Governor has objective reasons to believe that the incumbent government does not command the confidence of the house. The Governor is not denuded of the power to order a floor test where on the basis of the material available to the Governor it becomes evident that the issue as to whether the government commands the confidence of the house requires to be assessed on the basis of a floor test.\\"
Supreme Court
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The Bench further warned that entrusting such a function to the Governor is not to destabilise an existing government, and that such a decision would be amenable to judicial review.

It also called for circumspection on the part of the Governor while calling for a floor test.

\\"In exercising the constitutional authority to demand a trust vote, the Governor must do so with circumspection in a manner that ensures that the authority of the House to determine the existence or loss of confidence in the government is not undermined. Absent exigent and compelling circumstances, there is no reason for the Governor to prevent the ordinary legislative process of a no confidence motion from running its due course.\\"

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The Court went on to detail what is expected of the role of the Governor.

\\"The Governor is an appointee of the President but does not represent either a political ideology or a political view. The Governor is expected to discharge the role of a constitutional statesman. The authority of the Governor is not one to be exercised in aid of a political dispensation which considers an elected government of the day to be a political opponent.\\"

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Moreover, it noted that the Governor's powers should not be used to destabilise governments.

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\\"In discharging this crucial role, it is necessary that the Governor bear in mind that the purpose underlying the entrustment of the authority to require a trust vote is not to displace duly elected governments but to intervene with caution when the circumstances which are drawn to the attention of the Governor indicate a loss of majority. This power is granted to the Governor to ensure that the principle of collective responsibility is maintained at all times and must be exercised with caution.\\"
Supreme Court
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With regard to the present case, the Court ruled that in view of the resignation of the 22 MLAs (which were accepted by the Speaker) and the Chief Minster's refusal to conduct a floor test on March 16, the Governor was justified in calling for a floor test to be conducted.

Referring to earlier instances where the Court has ordered floor tests to be conducted in various states, the Court said,

\\"...with the communication of the Governor for convening a trust vote immediately after the Governor‘s address, the session of the Legislative Assembly was adjourned till 26 March 2020 despite the House having already convened. This would have allowed the state of political uncertainty in Madhya Pradesh to continue and furnish avenues for political bargaining on terms which cannot be regarded as legitimate. It is with a view to obviate illegitimate and unseemly political bargaining in the quest for political power that this Court has consistently insisted upon the convening of a trust vote at the earliest date.\\"

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Speaker's discretion v. Governor's prerogative

The Court went on to deliberate on the argument forwarded by Senior Advocate Abhishek Manu Singhvi that convening a trust vote at this stage will impinge on the discretion of the Speaker to determine whether the resignations should be accepted.

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In this regard, the Court held,

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\\"The holding of a trust vote operates in a distinct field from the issue as to whether one or more individual members of the Legislative Assembly have embarked upon a voluntary act of resignation or have incurred the wrath of the Tenth Schedule...the pendency of the proceedings before the Speaker cannot be a valid basis to not have the confidence of the House in the government determined by the convening of a floor test.\\"
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The fact that the Speaker in the present case accepted the resignations tendered by six of the twenty-two members on March 14 weakened this argument, the Court said.

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Fluid allegiances and Horse-trading

While making a reference to the often-fluid allegiances of democratically elected representatives, the Court refused to express an opinion on the same.

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Alluding to the trend of MLAs being held \\"captive\\", the Court said that if violence and coercion exist, it would undermine a free and fair vote in the assembly. The Governor and the Court must take measures to ensure that the sanctity of the trust vote is maintained, the Bench observed.

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Commenting further on what has been termed as 'resort politics', the Court observed,

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\\"The spectacle of rival political parties whisking away their political flock to safe destinations does little credit to the state of our democratic politics. It is an unfortunate reflection on the confidence which political parties hold in their own constituents and a reflection of what happens in the real world of politics. Political bargaining, or horse-trading, as we noticed, is now an oft repeated usage in legal precedents. ̳Poaching‘ is an expression which was bandied about on both sides of the debate in the present case. It is best that courts maintain an arm‘s length from the sordid tales of political life.\\"
Supreme Court
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Justice Chandrachud further called for legislation to deal with breakdown in the composition and allegiances of political parties due to private allurements offered to Members as opposed to public policy considerations.

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On these grounds and more, the Court decided to order the floor test on March 19.

Terming the reliefs sought by the Madhya Pradesh Congress as “manifestly misconceived”, the Court held,

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\\"The court cannot issue a direction mandating that a trust vote cannot be convened if any one or more Members do not remain present in the House. Whether or not to remain present is for the individual Members to decide and they would, necessarily be accountable for the decisions which they take, both to their political party and to their constituents.\\"

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During the hearings held last month, Senior Advocate Mukul Rohtagi appeared for the BJP MLA petitioners. Senior Advocate Maninder Singh appeared for the rebel MLAs, and Solicitor General Tushar Mehta represented the Governor.

On the other side, Senior Advocate Dushyant Dave appeared for the Madhya Pradesh Congress petitioners, Senior Advocate Abhishek Manu Singhvi appeared for the Speaker, and the Senior Counsel Kapil Sibal represented former Chief Minister Kamal Nath.

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[Read the judgment]

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India, in general, and the Legal World, in particular, became poorer with the passing away of Shri Ashok Desai, fondly called as Ashokbhai by all.

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A Legend in Legal Circles, he was the former Attorney General of India, Solicitor General of India, and Advocate General of Maharashtra. As a Senior Advocate, he was par excellence and admired by all in the Legal World.

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In more than one sense, Ashokbhai was a Spiritual Philosopher, possessed of unselfish Love, Chittshuddhi (cleansing of heart) and achieving Moral Upliftments of highest levels.

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There are very few people in life one can come across like him- ever so smiling- ever so helpful- ever so kind- ever so loving.

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As a Lawyer, he was simply one of the most outstanding of all. Extraordinarily brilliant, very well prepared in Law and Facts, extremely polite to the Bench and to his opponents. Yet, with his fair presentation in a very soothing voice, he could win over both the Bench and the Bar. Also, as a human being, he was highly accomplished. Possessed of noble virtues derived from his great Parents, highly educated, extremely well read and well informed, and widely travelled, Ashokbhai was an intellectual of a very high order. A great speaker and a patient listener; that made him an extremely enjoyable conversationalist, full of wit and information. Evenings spent with him would be treasured for a life-time.

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He had a very deep love for humanity and the Nation. He never missed reminding all who knew him, as to what was right and what was wrong in Public Life. His observations and remarks were a good guide to understand the state of the Nation.

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His humour in such conversation was lethal and apt. He could regale Friends for hours with his stories from his life time’s experiences.

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Ashokbhai had a deep understanding of Religions and was highly spiritual. He followed tenets of Buddhism and practised them in his own life. His beliefs were never dogmatic or rigid, but were very moderate and humane.

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Ashokbhai’s life journey is a classic example of what was said once, “Do not seek death… Death will find you… But, seek the road which makes death fulfilment.”

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Ashokbhai passed away peacefully and gracefully, today morning. Even in Death, he chose the Buddhist Path of Renunciation. But, Ashokbhai will never be forgotten for all his Deeds. His life will be an example for generations to come.

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He leaves behind his wife, Suvarnaben, also an accomplished human being in her own right and a true life-time partner, his sons, Jai and Harsh, daughter Ami, and grandchildren on whom he doted.

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He also leaves behind large number of Friends and Admirers who will never forget him for all that he gave them.

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For my wife Ami and me, Ashokbhai was a source of nourishment in our lives, and a constant Friend, Philosopher and Guide.

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As Tagore famously said, Ashokbhai’s, “Life was beautiful like summer flowers and death like autumn leaves.”

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May his soul Rest in Eternal Peace.

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A decision was recently rendered by a rare sitting of a five-member bench of the National Company Law Appellate Tribunal (NCLAT) in the matter of V Padmakumar v. Stressed Assets Stabilisation Fund (SASF) & Anr.

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One of the ancillary issues which came to be considered was whether reflection of debt in the books of accounts tantamounts to acknowledgment of debt under Section 18 of the Limitation Act, 1963, and thereby extends the period of limitation.

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The decision was not a unanimous one – it was a majority decision of 4:1. The majority concluded that the filing of balance sheet being mandatory under the Companies Act, 2013, it cannot be treated to be an acknowledgement under Section 18.

The dissent concludes that the recording of debt will be valid acknowledgment under Section 18. With respect, the author through this article, has attempted to conclude that it is in fact the dissent that is correct and should hold the field.

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The decision of the majority can be summarised as follows:

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  • Filing of Balance Sheet being mandatory under Section 92(4) of the Companies Act, the same cannot be treated to be an acknowledgement under Section 18 of the Limitation Act.

  • If the argument is accepted that the Balance Sheet of the ‘Corporate Debtor’ amounts to acknowledgement under Section 18 then in such case, it is to be held that no limitation would be applicable because every year, it is mandatory for the ‘Corporate Debtor’ to file Balance Sheet.

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Let us focus on few statutory and regulatory provisions pertaining to preparation of the financial statements.

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I. At the Stage of Preparation of Accounts

Section 128(1) of the Companies Act provides that every company shall prepare books of accounts and financial statements which give “true and fair view” of the state of the affairs of the company. Similarly, Section 129(1) mandates that the financial statements shall give a “true and fair view” of the state of affairs of the company and comply with the accounting standards notified under Section 133.

One of the accounting standards notified under Section 133 is Indian Accounting Standard – 1 (“Ind AS – 1”) which clearly provides that the financial statements shall present a true and fair view of the financial position, financial performance and cash flows of an entity with faithful representation of the effects of transactions.

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II. At the Stage of Auditing of Accounts

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It is important to consider one of the duties of the auditors as mandated by Section 143(2) whereunder the auditor has to make an audit report which after taking into consideration the accounts and financial statements, give a “true and fair view” of the state of the company’s affairs.

Implicit in this is the duty to verify transactions and take a prudent decision as to their recognition in the books of accounts. If the transaction appears to be true and fair, the auditor puts her seal of authenticity on it.

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III. At the Stage of Presentation before the Shareholder

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The financial statements are laid in the annual general meeting. The same is also accompanied by a Directors’ Responsibility Statement under section 134(3)(c). The purpose of this statement is to state that the directors have made judgments and estimates that are reasonable and prudent so as to give a “true and fair view” of the state of affairs of the company.

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IV. True and Fair View - The Common Thread

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In view of the above, one can now appreciate that \\"true and fair view of the company affairs\\" is one of the most important objectives of preparing the financial statements. The board of directors applies its mind and the auditors undertake an extensive exercise to authenticate the books.

Hence, whatever is recorded in the books of accounts & financial statements, is presumed to give a true and fair view. Thus, there is a sanctity attached in law to the audited books of accounts.

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This was echoed by the Supreme Court in Ishwar Dass Jain v. Sohan Lal, when it held that the rationale behind admissibility of parties' books of account as evidence is that the regularity of habit, the difficulty of falsification, and the fair certainty of ultimate detection give them, to a sufficient degree, a probability of trustworthiness.

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V. Acknowledgment of debt: The Jurisprudence

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The interplay of accounting for debt in the books of accounts and its consequent effect under the Limitation Act can be traced back to an early decision of the Chancery Division in Re Atlantic and Pacific Fibre Importing and Manufacturing Co Ltd, which was approved by the King’s Bench Division in Jones v. Bellgrove Properties Ltd.

Here, it was held that a balance sheet prepared and signed by the directors and the auditors as the agents of the company and then presented at the general meeting constitutes a good acknowledgment for the purposes of extending the limitation.

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The Indian jurisprudence is not limited only to the aspect of period of limitation, but the proposition is applied in various other fields of law like taxation, arbitration, civil procedure code, etc. as well.

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In terms of Income Tax Act, 1961, the Gujarat High Court in Ambika Mills Ltd. v. CIT, held that the liability in respect of unpaid wages was acknowledged by the assesse company at the end of each year in its balance sheets and hence those amounts retained the character of liabilities owing to the annual acknowledgments made by the assessee company.

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Similarly, the Madras High Court in CIT vs. Tamilnadu Warehousing Corporation, has held that once debt was shown as liability by the assessee in the books of accounts, the department was wrong in holding that it was assessable as income because there was no cessation of liability.

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The Supreme Court had the occasion to consider the plea of debt being acknowledged under the Negotiable Instruments Act, 1881 in AV Murthy v. BS Nagabasavanna, wherein it was held that if the amount borrowed by the respondent is shown in the balance sheet, it may amount to acknowledgement.

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While considering Order 6 Rule 12, the Bombay High Court in Deccan Chronicle Holdings Ltd v. Tata Capital Financial Services Ltd held that an admission in the balance sheet of a company unless contradicted or refuted, would operate as an estoppel and would be the decisive factor for passing a decree for admission.

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It’s not as if the point of view that the financial statements have been made under compulsion of law has not been raised or is decided for the first time. The Calcutta High Court, as far back as in 1962 in Bengal Silk Mills Co. Vs. Ismail Golam Hossain Ariff, held that statement of a liability in the balance sheet amounted to acknowledgement of a debt giving rise to a fresh period of limitation, notwithstanding the fact that the balance sheet was prepared under 'compulsions of statute’.

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More specifically, the Delhi High Court in Shahi Exports Pvt. Ltd. v. CMD Buildtech Pvt. Ltd concluded that it is a well-established position that an entry made in the company's balance sheet amounts to an acknowledgement of the debt and has the effect of extending the period of limitation under Section 18 of the Limitation Act.

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Finally, the Supreme Court has also held in unequivocal terms that entries in the books of accounts would amount to an acknowledgement of the liability within the meaning of Section 18 of the Limitation Act.

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However, it is pertinent to note that there is one important caveat that has been explained by the Delhi High Court. Sometimes, the directors in their report explain certain transactions. Therefore, in explaining the statements in the balance sheets, the directors' report must be taken together to find out the true meaning and purport of the statements.

In such a scenario, the Delhi High Court speaking through Justice AK Sikri (as he then was) in Sheetal Fabrics v. Coir Cushions Ltd, laid down that a statement in the balance sheet indicating liability is to be read along with the directors' report to see whether both so read would amount to an acknowledgement.

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The majority members of the NCLAT have not considered the above aspects – both legal as well as accounting – while delivering the judgment on the issue.

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  1. The books of accounts hold an important status in the eyes of law and cannot be wished away simply because they are prepared under compulsion of law.

  2. There was a compulsion upon the directors to prepare the financial statements but there was no compulsion upon them to make any particular admission.

  3. They faithfully discharged their duty and in doing so they made honest admissions of the company's liabilities. Those admissions, though made in discharge of their duty, are nevertheless conscious and voluntary admissions.

  4. The NCLAT (majority) has unfortunately not dealt with Sections 128 129, 143 and 134 of the Companies Act, 2013 as well as the decisions cited above.

  5. The sanctity attached in law to the financial statements has been respected when the dispute is in the realm of taxation, company law, insolvency, arbitration, civil procedure code, negotiable instruments, etc. and has rightly stood the test of time.

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The minority decision has referred to few aspects discussed above. It is hoped that the majority decision is corrected and the minority view is upheld by the Supreme Court as and when the occasion so arises.

Failure to do so would lead to difficulty, as this five-member bench decision is binding on all the benches of NCLAT and would certainly apply with full force before NCLT benches.

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Till then, we can only seek recourse to the words of Chief Justice Hughes who wrote that a dissenting decision is “an appeal to the brooding spirit of the law, to the intelligence of a future day, when a later decision may possibly correct the error into which the dissenting judge believes the court to have been betrayed.”

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The author is a dually qualified professional. He is a graduate of Campus Law Centre, Faculty of Law, University of Delhi and a Fellow Chartered Accountant. He currently practices law in the courts of Delhi. He can be reached at mail@deepakjoshi.in

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The Supreme Court today refused to hear the petition filed by Jamiat Ulema-e-Hind against communalization of the Nizamuddin Markaz issue, unless the Press Council of India (PCI) was made a party to the case.

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Advocate-on-Record Ejaz Maqbool urged the Court that there was violence due to the constant news reporting around the Tablighi Jamaat members.

However, the Bench headed by Chief Justice of India SA Bobde maintained in the hearing conducted through video conferencing,

\\"We cannot curb the freedom of press.\\"

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Maqbool persisted with the Court that in Karnataka, there have been incidents of violence owing to the reportage, and that names of people have been made public.

In response, CJI Bobde stated that if it was a question of killing, defamation \\"then your remedy is somewhere else,\\" but \\"if it's a question of larger reporting then PCI has to be made party.\\"

The case is now likely to be heard next week.

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The Bench led by CJI SA Bobde was hearing a plea by Jamiat Ulema-e-Hind which had claimed that the media has communalised the Nizamuddin Markaz event, where about 2,500 individuals congregated in the midst of the Coronavirus outbreak.

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The plea filed by Advocate Ejaz Maqbool states that reports on the Tablighi Jamaat by certain sections of print and electronic media has \\"demonised the entire Muslim community.\\"

The plea further states that this demonization of the community has led to serious \\"threat to life and liberty of Muslims\\", and has thus led to the violation of their \\"Right to life under Article 21.\\"

The petition says that most of the reports presented the facts in a twisted manner, using phrases like \\"Corona Jihad\\", \\"Corona Terrorism\\" or \\"Islamic Resurrection\\".

The petitioner organisation contends that if there is any delay in ordering a directive to stop communal reporting regarding the Markaz issue, it would only “promote ill-will, enmity and hatred towards the Muslim community in India.”

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The petition has listed “several social media posts” which “wrongly showed Muslims doing deliberate acts to spread COVID-19.” The plea has also given links to fact check reports that have gone on to prove that such reports were malicious and “were old unrelated videos.”

Further, the plea noted that while such reports demonising the Muslim community have flooded social media, platforms like Twitter have taken no action in accordance with their standard practice and guidelines.

One of the fake social media posts highlighted in the plea was a mass Muslim religious gathering where an act of “mass sneezing” was reported. However, the petition has given links to fact check reports highlighting how it was a Sufi practice which was falsely reported as an effort to spread the Coronavirus pandemic.

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The petition stated that such fake reports were in violation of the Supreme Court's order of March 31, by which the media was directed to publish “official version of reports” dealing with the COVID-19 outbreak. It is stated,

“Media was directed to maintain a strong sense of responsibility and ensure that unverified news capable of causing panic would not be disseminated.”

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The petition had prayed for strict action against “sections of media spreading bigotry and communal hatred in relation to the Nizamuddin Markaz issue”. It goes on to highlight that the recent Delhi riots was one of the “worst communal riots in the Union territory’s history” and that communalising the Tablighi Jamaat meet puts the “law and order situation of the entire state\\" at risk.

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All Rights Reserved ", + "description": "We have finally migrated our website to better architecture! While the fancy new website will be up in a few months, we have fixed issues related to payment and login in the meantime. You will need to log in anew. If you have forgotten your password, you can generate one by clicking on the forgot password link (it works!). Send any questions or feedback to contact@newslaundry.com.", + "publisher-logo": null, + "title": "Newslaundry", + }, + "sections": Array [], + "sketches-host": "https://www.vikatan.com", + }, + } + } storyType="live-blog" /> diff --git a/src/templates/live-blog/live-blog.tsx b/src/templates/live-blog/live-blog.tsx index 2a9593d2..4980fabc 100644 --- a/src/templates/live-blog/live-blog.tsx +++ b/src/templates/live-blog/live-blog.tsx @@ -76,7 +76,7 @@ export const LiveBlog = ({ story, config }: CommonTemplateTypes) => { - + diff --git a/src/types/config.ts b/src/types/config.ts index 15ae703f..886ec599 100644 --- a/src/types/config.ts +++ b/src/types/config.ts @@ -150,6 +150,7 @@ export interface ConfigOpts { domainSlug?: string | null; templates?: object; slots?: SlotsTypes; + optimizeAmpHtml?: boolean; render?: { headerCardRender?: (props: Config) => any; navbarRender?: (props: NavbarTypes) => any;