[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...
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...
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...
Direct Overseas Listing: Assessing the Viability of Proposed Reforms
[Suneha Kasal and Swini Khara are III year law students at NALSAR University of Law, Hyderabad] Considering the ongoing evolution and internationalization of capital markets across the globe and change in the complexion of Indian companies, the Securities and Exchange Board of India (SEBI) recently acknowledged that the current regulatory framework on ‘direct overseas listing of equity shares’...
Real Estate Intermediaries: A Missed Opportunity in the Recent ECB Framework?
[Bhavin Gada, Soumya Shanker and Sharan Sanil are with M/s Economic Laws Practice, Advocates and Solicitors. The views of the authors are personal] Recently, the Reserve Bank of India (“RBI”), through the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, consolidated all the erstwhile foreign exchange regulations governing the borrowing and lending in foreign currency or...
Amendment to Insider Trading Regulations: An Incentive for Insiders?
[Bhavin Gada, Soumya Shanker and Mehak Gupta are with M/s Economic Laws Practice, Advocates and Solicitors. The views of the authors are personal] On 31 December 2018, the Securities and Exchange Board of India (“SEBI”) issued an amendment to the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”). The amendment was pursuant to the recommendations made in the...
NCLAT Interprets the Definition of “Financial Debt” under Insolvency Law
[Medhashree Verma and Kavya Lalchandani are 3rd year B.B.A, LL.B. students at National Law University Odisha, Cuttack] In a recent judgment in Jignesh Shah v. IL&FS Financial Services Limited & Anr., the National Company Law Appellate Tribunal (NCLAT) dealt with the interpretation of the term ‘financial debt’ under the Insolvency and Bankruptcy Code, 2016. It is only when the debt...
Venue vs. Seat: A Curious Case for the Indian Judiciary’s Self-Restraint
[Divpriya Chawla is an associate with a law firm in Delhi] The crucial importance of the choice of the ‘seat’ in an international arbitration is universally accepted and cannot be overstated due to its impact on the questions of applicable law, nature of supervisory jurisdiction, post-award challenge proceedings, and enforceability (2015 International Arbitration Survey). Despite the profound...
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