[Falaq Patel is a 4th Year BBA-LLB student at Symbiosis Law School, Hyderabad] The Payment and Settlement Systems Act, 2007 (the ‘Act’) is a legislation designed to provide the Reserve Bank of India (‘RBI’) with regulatory and supervisory powers over all payment systems in India and authorise it to set up a committee of its central board, known as the Board for Regulation of Payment and...
Can a Resolution Professional Initiate Insolvency Resolution on behalf of a Corporate Debtor?
[Ajay Sharma is a 4th Year B.A.LL.B (Hons.) student at the National University of Advanced Legal Studies, Kochi] Introduction The Insolvency and Bankruptcy Code, 2016 has been undergoing a crucial jurisprudential evolution. From the very inception of the Code, it is appreciable that the Government and the adjudicating authorities have been seeking to resolve all the issues through amendments or...
Injunction in Investment Arbitration: Union of India v. Khaitan Holdings
[Aman Deep Borthakur is a 4th year student at the National Law School of India University, Bangalore] Introduction After two failed attempts at injuncting different investment arbitration cases, the Union of India recently made another attempt before the Delhi High Court. In Union of India v. Khaitan Holdings (Mauritius) Ltd and Ors.), the Union of India sought an interim injunction against...
Corporate Insolvency and the Creditor-Guarantor Dilemma
[Akash Santosh Loya is a final year student of the 5-year B.A. LL.B. (Hons.) course at the National University of Advanced Legal Studies] Introduction There have been a number of decisions dealing with the rights of a creditor vis-à-vis guarantor under the Insolvency and Bankruptcy Code, 2016 (IBC). The adjudicating authorities have provided sufficient clarity on myriad issues ranging from...
Constitutionality of IBC viz-a-viz Operational Creditors: Swiss Ribbons Judgment
[Ashish Rana is an Advocate on Record in the Supreme Court of India] This post is in continuation from my previous post “Binani Judgment: Ray of Hope for Operational Creditors”. Recently, in Swiss Ribbons vs. Union of India, the Supreme Court has upheld the constitutional validity of the Insolvency and Bankruptcy Code, 2016 against various challenges. In this post, I shall be dealing only with...
Assignment in Arbitration: Scope and Issues in India
[Krishan Singhania is Managing Partner and Alok Vajpeyi an Associate at Singhania & Co] Arbitration is a binding voluntary alternative dispute resolution process by a private forum chosen by the parties. It can broadly be divided into three stages, first being the pre-arbitration stage (prior to the time when the dispute arises), second is during the course of arbitration...
Buyback during Pendency of Amalgamation: SEBI Order in the Wipro Case
The SEBI (Buy-back of Securities) Regulations, 2018 states in regulation 24(ii) that a company shall not announce a buy-back when a scheme of amalgamation or compromise or arrangement pursuant to the provisions of the Companies Act, 2013 is pending. Such a proscription against buy-back operates because a scheme of amalgamation is a material transaction and could potentially alter the fundamental...
Supreme Court Rules on the Arbitration and Conciliation (Amendment) Act, 2015
[Raghav Kohli is a III year B.A., LL.B. (Hons) student at Gujarat National Law University] On 23 January 2019, a division bench of the Supreme Court of India in Rajasthan Small Industries Corporation Limited v. M/s Ganesh Containers Movers Syndicate set aside an order of the Rajasthan High Court, which had allowed an application for appointment of a substitute arbitrator under sections 11 and 15...
Actions against Independent Directors for Dishonour of Cheques
The question of liability of independent directors is a sensitive one given such directors carry substantial risk without having an influence in the day-to-day management of the company. Hence, the Companies Act, 2013 introduced a specific carve out in section 149(12) by which an independent director cannot be made liable for acts pertaining to the company except in limited circumstances “which...
Expansion of the Rights of Secured Creditors to Recover Debts
[Isha Gupta is a III Year B.A.LLB. (Hons.) student at National Law University, Delhi] The legislature and the judiciary have both adopted a rather pro-creditor approach towards insolvency in the recent past, which is apparent from the enactment of Insolvency and Bankruptcy Code 2016 (“IBC”) and the decision of the Supreme Court in Swiss Ribbons Pvt Ltd v Union of India, wherein the Court upheld...
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