This paper presents a system which can recognise hand poses & gestures from the Indian Sign Language (ISL) in real-time using grid-based features. This system attempts to bridge the communication gap between the hearing and speech impaired and the rest of the society. The existing solutions either provide relatively low accuracy or do not work in real-time. This system provides good results on both the parameters. It can identify 33 hand poses and some gestures from the ISL. Sign Language is captured from a smartphone camera and its frames are transmitted to a remote server for processing. The use of any external hardware (such as gloves or the Microsoft Kinect sensor) is avoided, making it user-friendly. Techniques such as Face detection, Object stabilisation and Skin Colour Segmentation are used for hand detection and tracking. The image is further subjected to a Grid-based Feature Extraction technique which represents the hand's pose in the form of a Feature Vector. Hand poses are then classified using the k-Nearest Neighbours algorithm. On the other hand, for gesture classification, the motion and intermediate hand poses observation sequences are fed to Hidden Markov Model chains corresponding to the 12 pre-selected gestures defined in ISL.Using this methodology, the system is able to achieve an accuracy of 99.7% for static hand poses, and an accuracy of 97.23% for gesture recognition.