[Naman Katyal is a II year B.A., LL.B. (Hons) student at Gujarat National Law University] The conundrum regarding the competence of an operational creditor not incorporated under the laws of India to file a plea for initiation of Corporate Insolvency Resolution Process (‘CIRP’) under section 9 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) has come to the fore again with the decision of the...
Dave Committee on Strengthening SEBI’s Recovery Mechanism: Missed Opportunities
[Rohan Deshpande practices as a Counsel at the Bombay High Court] On December 14, 2017, the Securities and Exchange Board of India (SEBI) formed a High Level Committee chaired by Justice Anil R. Dave, a former judge of the Supreme Court. One of the terms of reference of the Committee was to review the enforcement mechanism of SEBI, particularly the recovery mechanism under securities laws. The...
Decriminalisation of Section 138: A Half-Baked Remedy
[Srihari Gopal and Vedant Malpani are fifth year students at Gujarat National Law University, Gandhinagar] On June 8, 2020, the Ministry of Finance released a notification inviting comments on a proposal to decriminalise 39 minor offences. The proposal comes in a long line of measures initiated by the government to revive businesses and ‘unburden’ the courts in light of the Covid-19 related...
Two-tier Arbitration in India: An Unclear Path
[Gaurav Jairaj is a 3rd year student at National Law University Odisha and Gaurav Kumar a 3rd year student at Dr. Ram Manohar Lohiya National Law University Lucknow] Arbitration generally confers supremacy to the party autonomy. It gives flexibility to parties to adopt the rules and procedures for resolution of disputes between them. Two-tier arbitration or appellate arbitration is the reflection...
Hub and Spoke Cartels: A Perspective on Future Investigations
[Aditya Goyal and Shreya Chandhok are students at National Law Institute University, Bhopal] Amidst the ever-increasing anti-competitive concerns and the inadequacy of the present competition regime to tackle the emerging issues, the Indian Government introduced the draft Competition (Amendment) Bill, 2020 in March this year. One of the proposed amendments in the Bill widens the scope of...
Fixing Limits to the Number of Assignments for an Insolvency Professional: A Bad Idea
[Ragini Agarwal and Mayank Udhwani are 5th Year B.A. LL.B. (Hons.) students at National Law University, Jodhpur] In its latest Discussion Paper, the Insolvency and Bankruptcy Board of India (‘IBBI’) has proposed to issue guidelines for imposing a cap on the number of assignments that an insolvency professional (‘IP’) can take up at a time. In this post, the authors argue that setting a limit on...
Equalisation Levy in India: The Impediments of Extra-Territoriality
[Vedangini Bisht and Shubham Chaudhary are third year students at National Law University, Delhi] India recently passed its Finance Act 2020 to expand the scope of equalisation levy, a type of digital service tax, charged to non-residential e-commerce businesses. However, the Act (passed on March 27, 2020) has extra-territorial application, since it attempts to tax the income earned from...
Foray into Global Capital Markets: Is India Inc. Ready for It?
[Eshvar Girish is a 5th year BBA LLB student at Christ University] Recently, the Union Cabinet approved a proposal to allow the listing of Indian companies overseas directly, without being listed on the domestic stock exchanges. India Inc. has perceived this approval as a much-needed move. Keeping this in mind, this post aims to analyze the implications of direct listing of Indian companies...
Stamp Duty Amendments on Securities Transactions: The Impact of Covid-19
[Bhavna Hemrajani is a 4th year student at Amity Law School Delhi (affiliated to Guru Gobind Singh Indraprastha University Delhi)] The Finance Act, 2019 amended the Indian Stamp Act, 1899 to insert section 9A, which deals with ‘Instruments chargeable with duty for transactions in stock exchange and depositaries’, and section 9B, which relates to instruments ‘chargeable with duty for transactions...
GST Implication on Director’s Remuneration: CBIC’s Circular
[Ashutosh Choudhary (BA.LLB) and Anuj Jain (BBA.LLB) are 3rd year students at National Law University Odisha] The issue of applicability of Goods and Services Tax (“GST”) on the remuneration of directors has prevailed since the very inception of the legislation. The bone of contention that needs to be settled is whether the remuneration paid to directors by companies falls within the ambit of...
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