[Niti Dixit and Abhishek Tewari are Partners and Zahra Aziz an Associate at S&R Associates, Advocates] On November 8, 2024, a five-judge bench of the Supreme Court of India considered the issue of unilateral appointment of arbitrators and selection of arbitrators from a panel of arbitrators curated by Indian public sector undertakings (“PSUs”), and delivered its judgment in Central...
Analyzing SEBI’s Informal Guidance on Related Parties in Corporate Groups
[Sikha Bansal and Avinash Shetty are with Vinod Kothari & Co] The regime surrounding related party transactions (‘RPT’) under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as significantly amended in 2021) (the ‘LODR Regulations’), is very wide and includes cross RPTs across the group. That is, transactions of a listed entity with related parties of its...
From Rescue to Ruin: The Supreme Court’s Judgment in Jet Airways and the Future of Airline Insolvencies
[Aparna Ravi is a Partner and K J Chendhil Kumar an Associate at S&R Associates, Advocates] On November 7, 2024, the Supreme Court of India in its judgment in State Bank of India v. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch, directed the liquidation of Jet Airways (India) Limited, bringing an end to the five-year long saga of efforts to revive the beleaguered airline. Jet...
Virtual General Meetings: Should They be Legislated?
[Bharat Vasani is Senior Advisor – Corporate Laws and Ayush Lahoti an Associate in the General Corporate Practice, both at the Mumbai office of Cyril Amarchand Mangaldas. An earlier version of this post was published on the Cyril Amarchand Mangaldas Blog] Shareholder meetings form the bedrock of shareholder democracy in a corporate institution. They provide shareholders with the opportunity to...
Perkins to YSL: Analysing the Lack of Equality in India-Seated Multi-Party Arbitration
The landmark decision of the Supreme Court of India in Perkins Eastman Architects DPC & v. HSCC (India) Ltd. has often been praised for putting an end to the rampant practice of unilateral appointments of arbitrators and upholding the principles of impartiality and neutrality in arbitral proceedings (see here and here). The decision was also one of the first instances in Indian arbitration...
Supreme Court Clarifies the Scope of Section 11 of the Arbitration and Conciliation Act, 1996
[Kuberinder Bajaj is a Judicial Law Clerk at the Delhi High Court] The Supreme Court, in its recent judgment in SBI General Insurance Co. Ltd. v. Krish Spinning, has comprehensively explained the scope and standard of judicial scrutiny while adjudicating an application under section 11 of the Arbitration and Conciliation Act, 1996 (“the Act”). The Court retraced the existing jurisprudence on the...
Evaluating GST Compliance Rating in India: Addressing Gaps & Shaping the Future
[Sri Janani Seenivasan and Krishna Ravishankar are 4th year B.A., LL.B. (Hons.) students at National Law University, Jodhpur] The Goods & Services Tax (GST) Compliance Rating is a system introduced by the Indian government under section 149 of the Central Goods and Services Tax Act, 2017 (‘CGST Act’), to assess the compliance behavior of the taxpayers. This system assigns a rating or score to...
Unpacking NCLT Kolkata’s Reversal on Capital Reduction in the Philips India Case
[Shalin Ghosh is a 3rd year B.A., LL.B. (Hons.) student at Maharashtra National Law University, Mumbai] Capital reduction is a common mode of financial restructuring for a company. It is a useful tool for companies to reduce accumulated losses and achieve an optimal capital structure. Organizationally, it is a popular route to provide an exit to minority or dissenting shareholders from a company...
Timeline of filing Application under Section 29A for Extension of Time
[Megha Shaw is an advocate practising in the Supreme Court of India and Sachdev Sharma is a law graduate of NUJS, Kolkata] In Rohan Builders (India) Private Limited v. Berger Paints India Limited (12 September 2024), a division bench of the Supreme Court of India decided on whether an application for extension of time under section 29A of the Arbitration and Conciliation Act, 1996 (the “A & C...
NCLT’s Shift: A Deeper Dive into Merger Schemes and Public Interest
[Arjim Jain and Shruti Asati are 4th Year B.A., LL.B. (Hons.) students at National Law University, Odisha] In a ruling in July, the National Company Law Tribunal (‘NCLT/Tribunal’) rejected a proposed merger scheme involving three interconnected entities, citing concerns that the scheme was not in the public interest. Unlike other cases where the NCLT typically focused on ensuring compliance with...
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