Last week, the Supreme Court issued its ruling on whether non-performing assets/loans (NPAs) can be transferred between banks without the concurrence of the borrowers. The case involved a transfer of NPAs (relating to the borrower, APS Star Industries Ltd.) from ICICI Bank to Kotak Mahindra Bank. The borrower was in liquidation. When the assignee Kotak Mahindra Bank sought before the Company...
Corporate Governance: India and China Compared
While a fairly extensive body of literature that compares India and China has developed in the economics and business spheres, comparative analyses of the legal regime in these two countries is somewhat nascent. In that regard, a new book China, India and the International Economic Order, edited by Professors M. Sornarajah and Wang Jiangyu at the Faculty of Law, National University of Singapore...
Arbitration: MSM Satellite v. World Sport Group – Part 2
(The following is the continuation of this previous post, and has been contributed by Vijay Kumar, a lawyer and a company secretary by qualification, who is practising as an Advocate in the Chennai High Court with the law firm of Iyer and Thomas) Comments a. The Dispute in reality is between MSM and WSGML and the question is whether MSM is liable to WSGML under the facilitation deed. This...
Arbitration: MSM Satellite v. World Sport Group – Part 1
(The following post has been contributed by Vijay Kumar, a lawyer and a company secretary by qualification, who is practising as an Advocate in the Chennai High Court with the law firm of Iyer and Thomas) Appeal in the Bombay High Court MSM Satellite (Singapore) Ltd (MSM) had filed a suit against World Sport Group (Mauritius) Limited (WSGML) and had moved a notice of motion before the Learned...
A New Edition of the Consolidated FDI Policy
On April 1 this year, the Government gave effect to a consolidation exercise by locating all policies relating to FDI in a single document known as the Consolidated FDI Policy (as discussed here). That was not meant to be a static policy, but something that was to be reviewed every six months. Lo and behold, promptly at the end of the first six-month period, the Government today issued a revised...
FDI: Shares for Consideration Other than Cash
In another of a series of discussion papers, the Department of Industrial Policy & Promotion (DIPP) has issued one on issue of shares for consideration other than cash. In the past, foreign investment policy has mandated that shares be issued by Indian companies to foreign investors under the automatic route only against remittances received through normal banking channels. The only...
Proposal for FDI in Limited Liability Partnerships
Limited liability partnerships (LLPs), which are a relatively novel concept to India, have been recognised since April 1, 2009. LLPs are different from general partnerships in several ways, but there are two prominent differences. First, partners in LLPs carry limited liability for acts of the firm. Second, the partnership firm possesses separate legal personality and to that extent it has...
SEBI Order on MCX Stock Exchange
SEBI yesterday issued a detailed order rejecting the application of MCX-SX to commence trading in several exchange segments. The background of the case and the gist of SEBI’s order are available at Business Standard and Livemint. SEBI’s conclusion is based on a legal analysis (a fairly intensive one for a regulator) of various issues as well its assessment of whether the applicant is a ‘fit and...
Outbound Acquisitions by Indian Companies
Professor Afra Afsharipour at the University of California, Davis, School of Law has posted an interesting paper “Rising Multinationals: Law and the Evolution of Outbound Acquisitions by Indian Companies”. Although several leading Indian companies have embarked on large overseas acquisitions, the law in this area has not been the subject-matter of serious academic study. To that extent, this...
ECJ on In-house Lawyers and Legal Privilege
On September 14, 2010, the European Court of Justice (ECJ) issued its judgment in the case of Akzo Nobel and Akcros Chemicals on the question whether communication with in-house lawyers is protected by legal professional privilege. The case involved an investigation by European Commission authorities of possible anti-competitive practices wherein officials took copies of a number of documents...
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