[Ragini Agarwal is a graduate from National Law University, Jodhpur. The author would like to thank Mayank Udhwani for his inputs on the article.] Innoventive Industries v. ICICI Bank (2017) was the first landmark Supreme Court judgment that explained the ethos of the newly introduced Insolvency and Bankruptcy Code, 2016 (“IBC”) as a code that marked a “paradigm shift in law” (at paragraph 11) to...
Asset Allocation for Multi-Cap Funds
[Divya Rau is a final-year law student at Jindal Global Law School] The Securities Exchange Board of India (“SEBI”) issued new guidelines regarding asset allocation by multi-cap funds on 11 September 2020 (“New Circular”). A multi-cap fund refers to “an open ended equity scheme investing across large-cap, mid-cap, small-cap stocks”. Large-caps refer to the top 100 firms by market capitalisation...
Amendment to Section 7 of The IBC: A Well-Intentioned Constitutional Fallacy?
[Ridhi Arora and Hitoishi Sarkar are III Year B.A. LL.B (Hons.) students at Gujarat National Law University] Section 3 of the Insolvency and Bankruptcy (Amendment) Act, 2020 (‘Amendment’), added certain provisos to section 7 of the Insolvency and Bankruptcy Code, 2016 (‘Code’) whereby special conditions were added for real estate allottees to qualify as a financial creditor under the Code. The...
2019 Amendment to Arbitration Law: Foreign Arbitrators in Indian Seated Arbitrations
[Ajar Rab is a partner and Ankit Singh an associate at Rab & Rab Associates LLP, Dehradun] The Indian arbitration legal regime is often a subject of criticism, and the government has tried to plug the loopholes by bringing in several policy changes including amendments to the Arbitration and Conciliation Act 1996 (“Act”). The most recent amendment passed in August 2019 (“Amendment”) was...
ARCs and Insolvency Resolution Plans: The Enigma of Equity vs Debt
[Sikha Bansal is a Partner at Vinod Kothari & Company] A regulatory framework for asset reconstruction companies (ARCs) was introduced in India through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). This intended to put in place a system for clearing up non-performing assets (NPAs) from the books of banks and financial...
The Use of Circumstantial Evidence in Securities Law Enforcement
[Shruti Rajan is a partner in the Financial Regulatory Practice at Trilegal. Vidhi Shah is an associate with the Financial Regulatory Practice at Trilegal.] Quasi-judicial authorities are not bound by strict rules of evidence. It is settled law that they are “entitled to act on material that may not be accepted as evidence in a court of law,” and examine all relevant information and data in...
SEBI’s New Pledge/Re-Pledge System Overhaul: An Appraisal
[Gayatri Puthran is a 3rd Year B.B.A., LL.B. student at the Jindal Global Law School] In a bid to promote ease of doing business, the Securities and Exchange Board of India (‘SEBI’) on 2 September 2020 by way of its circular titled ‘Disclosures on Margin obligations given by way of Pledge/ Re-Pledge in the Depository System’ (‘Disclosure Circular’) dispensed with certain disclosure...
Applicability of the Limitation Act to the IBC: The Curious Case of Veer Gurjar
[Yashika Gupta is a 5th year B.A., LL.B. (Hons.) student at Hidayatullah National Law University, Raipur] On 14 August 2020, the Supreme Court (“SC”), yet again, cleared the air on the applicability of the Limitation Act, 1963 (“Limitation Act”) to the Insolvency & Bankruptcy Code, 2016 (“the Code”). In Babulal Varsharji Gurjar v. Veer Gurjar Aluminium Industries Pvt. Ltd., it categorically...
NCLT’s Riddled Take on Enforcement of Foreign Awards under the IBC
[Sridutt Mishra is a 5th year student and Parthsarthi Srivastava is a 4th year student, both at National Law University Odisha] The Insolvency and Bankruptcy Code, 2016 (‘IBC’) has always witnessed friction with respect to claims arising out of arbitration. In 2018, the Supreme Court settled the highly contested issue of whether an arbitral award pending challenge under section 34 of the...
Expert Evidence in Arbitration: Should India Dip Its Toes in the Hot-Tub?
[Harsh Srivastava is a 5th year B.A., LL.B. (Hons.) student at the National Law School of India University, Bangalore] For long, India has been seen as a ‘non-arbitration friendly’ jurisdiction owing, inter alia, to the length, costs and inefficiency of the proceedings. Efforts have been made to improve the arbitral framework of the country by incorporating international best practices and...
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