[Rajat Sethi (Partner), Sumit Bansal (Partner) and Oshika Nayak (Associate) are at S&R Associates] The Ministry of Corporate Affairs (“MCA”) notified section 234 of the Companies Act, 2013, as amended (the “Companies Act”), and rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, as amended (the “Companies Merger Rules”), on April 13, 2017, to permit merger and...
Denying Input Tax Credit to Bona Fide Recipients Where GST is Not Paid by the Supplier
[Shubham Sharma is a 2nd year BBA LLB (Hons.) law student at Chanakya National Law University] A key distinction between GST and the pre-GST tax regime is that GST promises to eliminate the “cascading effect of taxes” or “tax on tax” that sellers often suffer from. Input tax credit (ITC) under GST is one such core concept that furthers this objective. ITC is the tax that a business pays on a...
Call for Papers: 11th Securitisation Summit 2023
[Announcement on behalf of the Indian Securitisation Foundation] Indian Securitisation Foundation invites researchers, law students and legal scholars to write original and unpublished research paper (5 pages to 15 pages) on any of the following topics, of relevance to securitisation/direct assignment and similar structured finance topics in Indian context, with a global flavour. Bankruptcy...
Interpretation of DTAAs: A Special Case of Explicitly Applying Vienna Convention for Treaty Interpretation
[Shantanu Singh is a 4th year B.A., LL.B. (Hons.) student at Dharmashastra National Law University, Jabalpur] In India, international treaties are not immediately incorporated into domestic law. Under the “dualism” approach, separate legislation is necessary for India to execute treaty-based international law. Treaties, according to Indian courts, are part of public international law and thus are...
Preserving the IBC’s rationale: The Tussle with the Benami Act
[Rohan Srivastava and Rupam Dubey are currently B.A., LL.B. (Hons.) students at the National Law School of India University, Bengaluru] Presently, the Supreme Court is considering an appeal in the C Ramasubramaniam Liquidator v. Deputy Commssioner of Income Tax (Benami Prohibition) , which will potentially establish the extent to which the Insolvency and Bankruptcy Code (‘IBC’), [year] is given...
Unraveling “Materiality” in SEBI’s Consultation Paper: Legal Perspectives and Recommendations
[Shantanu Dhingra is a 3rd year law student at the National Law University Odisha] The Securities and Exchange Board of India (SEBI) on 20 February 2023 released a consultation paper focused on streamlining disclosures by listed entities, intending to strengthen compliance with the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Central to this post is the notion of...
Liability of Authorized Signatory of a Company to Pay Interim Compensation Under the Negotiable Instruments Act, 1881
[Khush Bhachawat is a III year B.A., LL.B. (Hons.) student at NALSAR University of Law, Hyderabad] The Bombay High Court (“HC”) recently held that authorised signatory of a company who signs a cheque on its behalf is not a ‘drawer’ of the cheque and hence is not liable to pay interim compensation under section 143A of the Negotiable Instruments Act, 1881 (“NI Act”) in a case of...
Promissory Estoppel Revisited: Comment on State of Jharkhand v. Brahmputra Metallics Ltd.
[Kaustav Saha is a Lecturer at Jindal Global Law School. His research interests include private law and legal theory.] The doctrine of promissory estoppel has had a somewhat unprincipled evolution in Indian law, particularly in its relation to the doctrine of consideration and, more pertinently to this post, in its role and character as a public law remedy. In this context, the case of State of...
Analyzing Directors’ Duty of Care under the Companies Act, 2013
[Rishabh Mohnot is a lawyer working in Mumbai and Hrithik Merchant a law student at the National Law School of India University, Bangalore] With the increasing proliferation of companies and their influence, there is a growing need to understand the responsibilities vested on their decision-makers. The Companies Act, 2013 (“2013 Act”) places a duty of care on the key decision-makers in a company...
Breaking the Rules: When Crowdfunding Platforms Cross the Line in Raising Capital
[Mohammad Kaif is a penultimate year student at Campus Law Centre, Faculty of Law, University of Delhi] Crowdfunding has become increasingly popular as a way to raise funds, where numerous individuals invest in a project or a company, usually via an internet-based platform. Some companies have used crowdfunding platforms to issue securities in violation of the provisions of Private Placement...
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