[Divyanshu Sharma is a 3rd Year BA LLB (Hons.) student at National Law University, Delhi] The debate regarding the disparity in director remuneration between professional and promoter-group directors has been reignited in a recent study conducted by Institutional Investor Advisory Services. The study has unearthed numerous instances wherein the remuneration granted to promoter CEOs in India is 50...
Social Impact Investing in India- A Road Less Travelled
[Aashna Soman is a 5th-year B.A., LL.B. (Hons.) student at ILS Law College, Pune] The concept of impact investing arose to fill the lack of public resources to fund development programs in financially poor countries. Impact Bonds (“IBs”) are innovative financial instruments that pull private investment to finance high-impact social programs. The implementation of impact bonds aids in financing...
Voluntary Separation of Chairperson and MD/CEO Roles: Analysing SEBI’s Recent Move
[Priankita Das is an undergraduate student pursuing B.A. LL.B. (Business Law Hons.) at Dr. Ram Manohar Lohiya National Law University, Lucknow] By way of its board meeting on February 15, 2022, the Securities and Exchange Board of India (“SEBI”) amended its mandate on the separation of the roles of chairperson and managing director/chief executive officer (“MD/CEO”) of listed companies to be...
A Progressive Stance of the CCI in Ascertaining ‘Enterprise’
[Ashutosh Rajput and Anand Singh are 3rd year B.A.,L.L.B. (Hons.) student at Hidayatullah National University, Raipur] The Competition Commission of India (CCI) in CJ Darcel Logistics Ltd. v. Dumper and Dumper Truck Union Lime Stone (7 February 2022) has issued a cease-and-desist order against the Dumper and Dumper Truck Union Lime Stone (DDTU) for contravening sections 3(3)(a) and 3(3)(b) read...
Separating Managing Director and Chairperson: An Economically Sound Decision by SEBI?
[Adhip Ray is a 5th year BA.LLB (Hons.) student at Amity Law School, Kolkata and is the founder of the startup consultancy WinSavvy.com and is a consultant for Patent Professional Corporation (Patent PC), an intellectual property law firm based out of California.] The Securities and Exchange Board of India (SEBI) had, in its March 2018 board meeting, approved an amendment to the Securities and...
Supreme Court on Whether Advance Paid is an Operational Debt under IBC
[Rohit Sharma is a Partner at Mamta Binani & Associates, Mumbai By way of its judgment dated 4 February, 2022 in Consolidated Construction Consortium Limited v. Hitro Energy Solutions Private Limited, the Supreme Court held that an amount given as advance to another person in lieu of availing goods or service shall be construed as an operational debt and the payer of the amount shall come...
Credit Rating Agencies In India: A Critique of SAT’s Ruling Against Care Rating
[Sidharth Pattnaik and Sneha Rath are 4th Year B.B.A., LL.B. (Hons.) and 3rd Year B.A., LL.B. (Hons.) students respectively at National Law University Odisha] In this post, we focus on the developments around Care Rating Agency’s (CARE) alleged dereliction of its duty to rate Reliance Communications’ (RCom) creditworthiness over a period of four quarters, and the subsequent initiation of inquiry...
SBI v. Mahendra Kumar Jajodia: Resolving Ambiguity in the Personal Guarantor Jurisprudence?
[Dhaval Hemesh Sheth is a second-year student at National Law University, Delhi.] On 27 January 2022, the National Company Law Appellate Tribunal (‘NCLAT’) in the matter of State Bank of India v. Mahendra Kumar Jajodia (‘Mahendra Kumar case’) ruled that an application filed under section 95(1) of the Insolvency and Bankruptcy Code, 2016 (‘Code’) before the National Company Law Tribunal (‘NCLT’)...
‘Group of Companies’ Doctrine in the Amazon-Future Dispute: Analysis under Indian Law
[Chinmayanand Chivukula is an Advocate based in Hyderabad] The ‘group of companies’ doctrine originated in France in the ICC case of Dow Chemical France v. Isover Saint Gobain. In essence, it requires non-signatories to be bound by an arbitration agreement if such mutual intention can be made out amongst the entities within a group of companies. The purpose of the doctrine is to deconstruct...
Will the Budget Proposal to Reduce Appeals by the Revenue Department Make Tax Litigation More Efficient?
[Surya Prakash BS is a chartered accountant and law graduate working at DAKSH, a non-profit working on transforming the law and justice systems. He has handled finance and tax functions at corporates in his previous roles. Views are personal] The 2022 Union Budget makes one more attempt to reduce the volume (the number of cases) and velocity (frequency of filing) of income tax litigation. The...
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