[Saksham Gahoi is a 4th Year Student of National Law Institute University, Bhopal] Introduction What can be constituted as a work within or outside the scope of work under a construction contract has been a point of dispute amongst parties resulting in numerous commercial arbitrations. This leads to another question whether such work which is outside the scope of contract entitles a party to...
Status of Homebuyers in Corporate Insolvency: Will Ordinance Assure Relief and Returns?
[Swaha Sinha is a 3rd year B.A. LL.B. (Hons.) student at Symbiosis Law School, Pune] The Insolvency and Bankruptcy Code (the Code) has been subject to endless scrutiny and suggested changes, with some being implemented through recent amendments. Most strikingly, the Ministry of Corporate Affairs constituted an expert panel to recommend amendments to this ground-breaking statute, resulting in the...
Tying vs Bundling Arrangements: An Attempt at Resolving the Lacuna in Indian Law
[Karan Trehan and Prakhar Bhatnagar are II year B.A. LL.B. (Hons.) students at the NALSAR University of Law, Hyderabad] Various types of conditional arrangements exist in the commercial markets. They are conditional in that their conclusion is made subject to acceptance by other parties of additional obligations which, by their “nature or according to commercial usage”, may or may not have...
Cross Border Mergers in India: RBI Notification and Some Implications
[Roshni Menon is a 5th year B.A., LL.B (Hons.) student at School of Law, Christ University in Bangalore] Upon tracing the history of cross border mergers in India, one finds that the erstwhile Companies Act, (“1956 Act”) did contain provisions relating to the subject, however limited in its application. This law permitted a merger between a foreign company and an Indian company where the...
Section 29A of the Insolvency Code: A Critique of its Impact & Recent Developments
[Varun Khandelwal is a Third Year B.A., LL.B. (Hons.)student at The W. B. National University of Juridical Sciences (NUJS)] Introduction The insolvency regime in India is still in its nascent stage and it has not been too long since the Bankruptcy Law Reforms Committee submitted its report, which laid the foundation of the Insolvency and Bankruptcy Code, 2016(the “Code”). Initially, theCode...
Testing the Validity of a Type of Shareholders’ Agreements in India
[Priya Garg is a 4th year student at the West Bengal National University of Juridical Sciences (WBNUJS)] In the Indian context, shareholders’ agreements (SHAs) have been widely categorized into two types – one, that impose restrictions on the transferability of shares held by the shareholders who happen to be the parties to the SHA (type 1 SHA) and the other, which deal with the matters relating...
Jaypee Infratech Case: Discerning the Reach of Avoidance Proceedings
[Sikha Bansal is a Senior Associate at Vinod Kothari & Company, and can be reached at [email protected] or [email protected]] In IDBI Limited v. Jaypee Infratech Limited (order dated May 16, 2018), the National Company Law Tribunal, Allahabad Bench (NCLT), dealt with a crucial aspect of insolvency proceedings, namely vulnerable transactions. The resolution professional (RP) of...
Investment by FPIs in Securitised Debt Instruments
[Anita Baid is a Senior Manager at Vinod Kothari Consultants P. Ltd] Investments by foreign portfolio investors (FPIs) in unlisted debentures and securitised debt instruments (SDIs) issued by Indian companies was allowed pursuant to a notification dated 27 February, 2017 issued by the Securities and Exchange Board of India (SEBI). Earlier in November, 2016, the Reserve Bank of India (RBI) had...
CCI Order on the Scope of Section 3(3) and Confidentiality under Leniency Regulations: A Critique
[Amitav Singh is a lawyer based in Lucknow and a graduate of NUALS Kochi] Recently, the Competition Commission of India (CCI) passed an order in Nagrik Chetna Manch v Fortified Securities Solutions & Ors. wherein it found six out of seven parties before it guilty of bid rigging under section 3(3)(d) of the Competition Act, 2001 (the Act) and imposed a total fine of nearly Rs. 3.5 crore. In...
Financial Exposure of Secured Creditors and the Relevance of Vertical Comparison in Resolution
[Richa Saraf is a Legal Advisor at Vinod Kothari Consultants Pvt. Ltd.] An effective conduct of the corporate insolvency resolution process calls for an insight into the ranking of claims of various creditors. In most resolution plans, one finds that the financial creditors are paid a particular value as settlement of claims, and no specific provision exists as to how this amount is to be...
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