[Simran Sharma is a fourth year B.A.,LL.B (Trade and Investment Law Hons.) student at National Law University, Jodhpur} The Securities and Exchange Board of India (SEBI) provided informal guidance in June this year on the interpretation of the “inter se transfer exemption” under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Takeover Code”). This post aims to...
Capital Reduction: Tax Conundrums
[Sumit Bansal (Partner), Shivani Chhabra (Associate) and Taranjeet Singh (Associate) are with S&R Associates, Advocates] Capital reduction refers to the technique of reducing a company’s share capital in any form. It is a mechanism usually adopted by companies for re-modelling their capital structure, amongst other means (viz., buy-back of shares and redemption of preference share capital)...
Tussle for Jurisdiction: CCI vs. The Controller General of Patents
[Jishnudeep Kolay and Saumya Bapna are second-year B.A. LL.B (Hons.) students at the National Law School of India University, Bengaluru] In July 2023, the Delhi High Court in Telefonaktiebolaget LM Ericsson v. Competition Commission of India (‘Ericsson II’) ruled that in an issue of abuse of dominance by a patentee in the exercise of their rights under the patent, the Patents Act, 1970 will...
Supreme Court’s Caution against an Infinite Corporate Insolvency Resolution Process
[Praveen Sharma is a 5th Year Student at MNLU Mumbai] Earlier this month, in RPS Infrastructure Ltd. v. Mukul Kumar (2023INSC816), the Supreme Court addressed a crucial issue concerning the timing of claims in the corporate insolvency resolution process (CIRP). The Court was deciding on the question of whether a claim relating to an arbitral award, undergoing an appeal process under section 37 of...
Establishing Performance Validation Agency: Examining SEBI’s Consultation Paper
[Daksh Kasliwal and Prakhar Singh are 3rd year BSW LL.B. (Hons.) students at Gujarat National University, Gandhinagar] Recently, the Securities and Exchange Board of India (SEBI) has taken multiple steps to enhance the regulatory landscape to foster a more reliable and secure market environment for investors and entrepreneurs. Weeks after releasing a consultation paper to control unregistered...
Navigating the Data Integration Conundrum: A Closer Look at IBC
[Aayushi Choudhary and Vaibhav Gupta are fourth year students of Gujarat National Law University, Gandhinagar] The Insolvency and Bankruptcy Code, 2016 (IBC) brought about a major change in the landscape of corporate insolvency proceedings in the country. Nevertheless, despite the IBC’s transformative potential, its effective implementation has been hampered by a significant challenge: the...
Analysing the Tax Implications of Bonus Shares
[Arjim Jain is a 3rd year B.A. LL.B. (Hons.) student at National Law University, Odisha] The ruling in DCIT v. Smt Aruna Chandok rendered on 5 September 2023 by the Delhi Bench of the Income Tax Appellate Tribunal (“ITAT”) has shed light on a crucial aspect of taxation in India – the treatment of bonus shares under the Income Tax Act (“IT Act”). In this landmark decision, the ITAT has...
A Bank’s Post-Merger Liability for Pre-Merger Crimes
Earlier this month, the Supreme Court in Religare Finvest Limited v. State of NCT of Delhi (2023INSC819) considered the question whether the transferee bank in a merger can be fastened with corporate criminal liability for offences committed by the officials of the transferor bank prior to a merger of the two entities. The Court answered in the negative given the specific facts and circumstances...
Restoring Equity: Supreme Court on Liquidator Discretion in IBC Bidding Process
[Priyanshu Mishra is a III year BA, LLB (Hons) student at the National Law School of India University, Bengaluru] Recently, in Eva Agro Feeds Pvt Ltd v Punjab National Bank (2023INSC809), the Supreme Court decisively clarified the extent of authority granted to a liquidator in rejecting the final bid within an online bidding process. This legal dispute revolved around the rights of the highest...
SC Expands Scope of Enquiry under Section 11 of the Arbitration Act
[Raghav Bhatia is an advocate practising at the Supreme Court of India. He can be contacted at [email protected]] In April this year, the Supreme Court of India in NTPC Ltd. v. SPML Infra Ltd. has expanded the scope of enquiry to be exercised by a court while referring the disputes for arbitration under section 11 of the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’). Background...
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