Category: Uncategorized
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Ascertaining Legal Ramifications of Compensation Agreements- Part III (In Search of Common Law Defences to Statutory Violations)
[The following post, the third in a series, has been contributed by Rahul Sibal, 4th year student of NALSAR Hyderabad. The first two posts in the series are available here and here.] In the previous post it was argued that section 166 of the Companies Act, 2013 (the ‘Act’), which partially codified the common law…
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Restrictions on Layering of Subsidiaries Now Effective
In two earlier posts published in July (here and here), our guest contributors had voiced their trenchant criticism of the Government’s move to introduce restrictions of the ability of companies to create layers of subsidiaries. After a round of consultation, the Ministry of Corporate Affairs (MCA) has decided to implement the restrictions, which have now…
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NCLAT Ruling on Maintainability in the Tata Sons Case
Earlier this week, the National Company Law Tribunal (“NCLAT”) issued its ruling in Cyrus Investments Pvt Ltd v. Tata Sons Ltd on whether the Mistry group’s action for oppression and mismanagement in respect of Tata Sons is maintainable. Although the NCLAT ruled that the Mistry group’s petition did not meet the requirements of maintainability under…
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Supreme Court Decodes “Dispute” under the Insolvency and Bankruptcy Code
[Guest post by R. Jawahar Lal and Sanjeev Jain, who are Partners, and Apoorva Agrawal, who is an Associate, all at PRA Law Offices, New Delhi. Disclosure: PRA Law Offices represented Kirusa Software Private Limited (Operational Creditor) before the Supreme Court, the National Company Law Appellate Tribunal at New Delhi and the National Company Law…
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NCLAT Excludes Proceedings under the Constitution from Moratorium
[Guest post by Aayush Mitruka, a lawyer based in Delhi.] In an earlier post, I had discussed the moratorium provision (i.e., section 14) under the Insolvency and Bankruptcy Code, 2016 (the “Code”), the legislative intent behind the provision and its impact on proceedings for dishonor of cheques under the Negotiable Instruments Act, 1881. More recently, in…
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Conversion of Tata Sons into a Private Limited Company: In Whose Interest?
The proposed conversion of Tata Sons Limited from a public limited company to a private limited company has reignited the corporate governance issues that the Tata Group has faced over the last year or so. Menaka Doshi has an interesting piece (and an accompanying interview with two corporate lawyers) in BloombergQuint that sets out some…
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Private Equity Investors as Promoters in an Initial Public Offer
[Guest post by Rashmi Ramanath, who is a 5th year B.A., LL.B. (Hons.) student at Jindal Global Law School in Sonipat] The Initial Public Offering (IPO) of SKS Microfinance was a first of its kind. It was for the first time that a group of four venture capitalists led by Sequoia Capital India were named as promoters to an issue. Vikram…
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Moratorium under the Bankruptcy and Insolvency Code: Impact on Proceedings for Cheque Dishonour
[Guest post by Aayush Mitruka, a lawyer based in Delhi. An earlier version of this post was published in the newsletter of ICSI – Pune chapter.] The Insolvency and Bankruptcy Code, 2016 (the “Code”) is an all-encompassing legislation which is, inter alia, aimed at a structured and time-bound process for insolvency resolution and liquidation. Chapter II…
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Director as “Any Person Aggrieved” under Insolvency and Bankruptcy Code
[Guest post by Vaidehi Shankar, Associate at Mundkur Law Partners, Bangalore. The views and opinions expressed herein are those of the author in her personal capacity and do not, in any way or manner, reflect the position or opinion of Mundkur Law Partners] On August 31, 2017, the Supreme Court delivered one of the first…
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Court’s Power to Terminate Arbitrator’s Mandate: SC Settles Long Outstanding Debate
[Guest post by Sumit Rai, who is an independent counsel in Mumbai, practicing with special focus on international and domestic arbitration as well as arbitration related litigation] In HRD Corporation v Gail (India) Ltd. (decided on August 31, 2017), the Supreme Court held that for any infraction of section 12(5) read with the Seventh Schedule…
