ArchiveJanuary 2011

Constitutional Challenge to IPAB and Copyright Board

Spicy IP reports that two writ petitions have been admitted by the Madras High Court challenging the constitutionality of the Intellectual Property Appellate Board (IPAB) [Shamnad Basheer v. Union of India] and the Copyright Board [SIMCA v. Union of India]. The challenge is based on separation of powers grounds; and if one were to apply the principles laid down by the Supreme Court in the NCLT...

Procedural leniency under the Negotiable Instruments Act

Over the past few years, the Supreme Court has gone a long way towards reducing the use of section 138 of the Negotiable Instruments Act (“Act”) as the basis for the vicarious liability of directors. In February last year, National Small Industries v. Harmeet Singh Pantial, the Supreme Court emphasised the high standards required in order to invoke vicarious liability of creditors under section...

Balco Arbitration Award: Section 111A of the Companies Act

A CNBC-TV 18 report and interview indicate that an arbitration panel has rejected Sterlite’s right to acquire the balance 49% in Balco by way of exercise of a call option. The report states: The arbitration panel comprised of two former chief justices of India and a third senior judge. When Sterlite acquired Balco’s 51% stake for Rs 550 crore in 2001 it was all fine, it had a call option to buy...

General Anti-Avoidance Rule – UK Committee

Developments in Indian tax law over the last five years or so have brought to the fore the contentious issue of whether it is desirable to enact a General Anti-Avoidance Rule [“GAAR”] in India, and, if so, whether it is likely to be effective. As we have noted, the Direct Taxes Code proposes to introduce a significantly broad GAAR in India, with limited guidance as to its application. In this...

RBI Sub-Committee on Microfinance

With several legal and regulatory issues affecting the microfinance sector lately, more so in the state of Andhra Pradesh, the Reserve Bank of India (RBI) had appointed a sub-committee under the chairmanship of Mr. Y.H. Malegam to “study issues and concerns in the microfinance sector in so far as they related to the entities regulated by the [RBI]”. The keenly awaited report, which was expected...

A Case For Mandatory Dematerialisation of Securities

In yesterday’s Financial Express, Prof. Jayanth Varma makes a compelling case for abolition of physical share certificates and for mandatory dematerialisation of all shares. To supplement the arguments he makes, dematerialisation also impacts the manner in which transfers of shares are recognised in law. In the case of physical shares, a transfer obtains legal effect only if it is registered by...

To Indemnify or Not?

One of the key considerations while drafting or negotiating a contract is how to deal with consequences of violation of the contract by one of the parties. There are two possibilities. One is a simple claim for breach of contract. The other is the inclusion of a specific clause for indemnification. Of the two, the use of the indemnification clause has gained popularity, especially in large...

SEBI’s Consent Order in the Reliance ADAG Case

On January 14, 2011, SEBI passed a consent order in the matter relating to shares of Reliance Communications Limited (RCL). SEBI had earlier initiated investigations into transactions entered into by two companies within the ADA group of companies, being Reliance Infrastructure Limited (RIL) and Reliance Natural Resources Limited (RNRL), and some of their officers on the ground that loans taken...

The Red Jaguar: Apparent Authority and Tortious Liability

Ironically, many significant propositions in private law have been advanced in the course of a court’s attempt to unravel a transaction or scheme engineered by a rogue with considerable ingenuity – so much so that judges not infrequently ask the question “which of two innocent parties should bear the loss caused by a rogue” (See, for example, Re Jones [1926] All ER Rep 36). The immediate context...

Dealing With the Anti-IPO Sentiment

We usually come across reports of companies preparing or filing for IPOs in order to take advantage of listings on stock exchanges. On the other hand, companies also often display resistance for undertaking IPOs as they are accompanied by costs such as full-blown regulatory oversight and public scrutiny. This is so even when the companies have grown to a significant size and there is a vibrant...

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Recent Posts

Topics

Recent Comments

Archives

web analytics