[Megha Shaw is an Incoming Associate at S&A Law Offices and Ashish Kumar is a fourth year student at NMIMS, Bangalore] In the recent case of Swadesh Kumar Agarwal v Dinesh Kumar Agarwal, the Supreme Court of India (“SC”) has explained the scope of section 11(6) vis-à-vis section 14(1)(a) of the Arbitration and Conciliation Act, 1996 (“Act”). Section 14(1)(a) encapsulates the termination of an...
Navigating an Alternative Route for Hostile Raiders
[Chandragupt is a 5th year B.A.,LL.B.(Hons.) student and Varnika Pasricha is a 5th year B.B.A.,LL.B.(Hons.) student, both at the Jindal Global Law School] The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 2011 [“SAST Regulations”] envisage two types of offers – mandatory open offers and voluntary open offers. While mandatory open offers are...
Hostile Takeover Cannot be a Defence to CCI Notification Requirements
[Mohsin Rahim is a 5th Year B.B.A. L.L.B. (Hons.) Student at Jindal Global Law School, O.P. Jindal Global University, Sonipat, Haryana] On May 17, 2022, the Competition Commission of India (“CCI”) passed an order imposing a penalty of INR 1 crore on Veolia Environment S.A. under section 43A of the Competition Act 2002 (“Act”) for violating section 6(2) and section 6(2A) of the Act, as Veolia...
Tackling ESG Mislabels and Greenwashing: SEC in the BNY Mellon Case
[Salini Augusty and Nikash John are 5th-year students from the School of Law, Christ (Deemed to be University), Bengaluru] Sustainable development has progressively become a driving factor in the age of conscious investments. This ‘green factor’ is arguably exploited by corporates to misdirect investors for their gains. The environment, social, and governance, better known as the ESG, though...
Call for Papers: Cochin University Law Review
[Announcement on behalf of Cochin University Law Review] The Editorial Board of Cochin University Law Review (CULR), the flagship publication of School of Legal Studies, Cochin University of Science and Technology (CUSAT), is inviting submissions for Volume XLV proposed to be published in December 2022. CULR (ISSN No: 0970-0331), is a quarterly law journal published with the collective efforts of...
Ratification of Director’s Breach of Duty: Opportunity to Evade Liability?
[Arjun Tyagi is a fourth year B.A., LL.B. (Hons.) student at National Law University Odisha.] Directors of companies owe fiduciary and ‘statutory’ (section 166 of the Companies Act 2013) duties to the company, its employees and the shareholders. Common law principles provide ratification of breach of duty by directors, if the shareholders pass a resolution agreeing to absolve directors from...
Call for Papers: Scholasticus
[Announcement on behalf of Scholasticus] Scholasticus (ISSN 0975-1157) is one of the earliest publications by National Law University, Jodhpur, established with the objective of promoting academic research and fostering debate in the field of Banking & Finance. The Journal has been re-launched after a gap of a few years, and is now published under the aegis of the Centre of Studies in Banking...
Foreign Directors in a Protectionist Regime
[Ajitesh Arya and Mitakshara Singh are the 4th year BA LLB (Hons.) students at NALSAR University of Law, Hyderabad] In a bid to further tighten the noose on the investments coming in from China, Hong Kong, and other neighboring countries, the Ministry of Corporate Affairs (MCA) through notification GSR 410E dated 1 June 2022 has made amendments to the Companies (Appointment and Qualifications of...
Digital Assets and the Case to Redefine “Securities” under Indian Law
[Harsh N Dudhe and Pranay Bhardwaj are Year IV Students at NALSAR, Hyderabad] On June 1, 2022, the US Attorney’s Office in the Southern District of New York had alleged charges of wire fraud and money laundering in connection with a scheme to commit insider trading in non-fungible tokens (NFTs). In this indictment in United States of America v. Nathaniel Chastain, it was stated that Nathaniel...
Covid-19 and Company Law: The Impact of Digitalisation
[Dharini Shanker is a 1st Year LL.B student at Campus Law Centre, University of Delhi] The Company Law Committee (“Committee”), set up to make recommendations to the Government for reforms directed at promoting greater ease of business in India and the effective implementation of the Companies Act, 2013 (“Act”), the LLP Act, 2008 and the Rules made thereunder, has submitted its report in March...
Applicability of Significant Beneficial Owner Provisions to Limited Liability Partnerships
[Gaurav Pingle is practising company secretary and can be reached at [email protected]] With an intention to regulate limited liability partnerships (‘LLPs’) more stringently, the Ministry of Corporate Affairs (‘MCA’) issued a notification dated February 11, 2022 (‘MCA Notification’) whereby certain provisions of the Companies Act, 2013 are now applicable to LLPs. The said amendment falls...
Should India Allow Fractional Share Investing?
[Ajith Kidambi is a V year student at the NALSAR University of Law, Hyderabad] Fractional share investing could finally be a reality in the Indian stock market. The Company Law Committee, which the Ministry of Corporate Affairs constituted in 2019, had released its third report in April 2022, making several recommendations to the government to improve the ease of doing business in India and...
Call for Submissions: Trade Law and Development
[Announcement on behalf of Trade Law and Development] The Board of Editors of Trade, Law and Development is pleased to invite original, unpublished manuscripts for publication in the Winter ’22 Issue of the Journal (Vol. 14, No. 2) in the form of ‘Articles’, ‘Notes’, ‘Comments’ and ‘Book Reviews’. Founded in 2009, the philosophy of Trade, Law and Development has been to generate and sustain a...
The Supreme Court Reiterates the Status of Recovery Certificates under the IBC
[Abhyudaya Yadav and Adhiraj Lath are 4th year B.A., LL.B. (Hons.) students at Dharmashastra National Law University, Jabalpur] Recently, the Supreme Court of India (“Court”) in Kotak Mahindra Bank Ltd. v. A. Balakrishnan dealt with the issue of whether the issuance of a recovery certificate by a Debt Recovery Tribunal (“DRT”) can be treated as a “financial debt” within the meaning of section...
Scrutinizing the Status of Settlement Agreements Under the IBC
[Neelabh Niket is a 4th Year B.A., LL.B. (Hons.) student at Hidayatullah National Law University in Raipur] On 3 June 2022, the New Delhi Bench of the National Company Law Tribunal (NCLT) in Ahluwalia Contracts (India) Limited v. Logix Infratech Private Limited (Ahluwalia) rekindled the debate on the commencement of the Corporate Insolvency Resolution Process (CIRP) by creditors on the premise of...
Call for Blog Posts: The HNLU Corporate and Commercial Law Society Blog
[Announcement on behalf of the HNLU Corporate and Commercial Law Society Blog] The HNLU Corporate and Commercial Law Blog is established under the Corporate and Commercial Law Society of Hidayatullah National Law University, Raipur and is entering its third year of operation. The Society is an independent, student-run body formed by corporate law enthusiasts of HNLU solely intending to promote...
Supreme Court on Commercial Wisdom of the Committee of Creditors
[Rohit Sharma is a Partner at Mamta Binani & Associates, Mumbai] In a judgment dated 3 June 2022 in Vallal RCK v. Siva Industries and Holdings Limited, the Supreme Court sought to hold, once again, that the commercial wisdom of the Committee of Creditors (‘CoC’) is supreme. Apart from the paramountcy of the commercial wisdom of the CoC, the Court also noted the tremendous importance of...
Call for Papers: Journal on Governance
[Announcement on behalf of the Journal on Governance] National Law University, Jodhpur is an institution of national prominence established under the National Law University, Jodhpur Act, 1999 by Rajasthan State Legislation. The University is established for the advancement of learning, teaching, research and diffusion of knowledge in the field of law. About the Journal The Centre for Corporate...
CCI Treats Non-Commercial Economic Entity as “Enterprise”
[Saloni Neema is a 3rd Year law student at Damodaram Sanjivayya National Law University Visakhapatnam] On June 3, 2022, the Competition Commission of India (“CCI”) passed a cease-and-desist order against the Amateur Baseball Federation of India (“ABFI”) for violating sections (4)(2)(a)(i), 4(2)(b)(i), and 4(2)(c) of the Competition Act, 2022 (“Act”). This post aims to critically analyze this...
Open Banking and Competition in Retail Financial Markets
[Sourav Paul is a 3rd Year B.A. LL. B (Hons.) student at the National University of Juridical Sciences, Kolkata] Rapid technological innovations are changing the fundamentals of the retail financial markets, thereby opening up a new frontier for competition in the industry. The harbingers of the radical changes in the retail banking segment are fintech start-ups, who are deploying innovative...
Blockchain Arbitration in India: Adopting the Hybrid Model Envisaged by Mexican ‘Kleros’ Case
[Raghav Saha and Harshit Upadhyay are 3rd year B.A LL.B (Hons.) students at Gujarat National Law University, Gandhinagar] The recent developments in the domain of blockchain arbitration are redefining the traditional dispute resolution mechanism. Recently, a Mexican court upheld the legal validity of an arbitral award reached using the blockchain arbitration platform, ‘Kleros.’ The idea of...
Call for Papers: Comparative Constitutional Law and Administrative Law Journal
[Announcement on behalf of the Comparative Constitutional Law and Administrative Law Journal] National Law University, Jodhpur is one of India’s premier law schools, situated in the vibrant and colourful city of Jodhpur, Rajasthan. It was established in 1999 as part of a vision of excellence in legal education through innovative methods of learning and focus on interdisciplinary studies. The...
Duomatic Principle: Neither Mere Substantial Compliance nor a Normative Right
[Sahil Aggarwal is a 4th year B.A., LL.B. (Hons.) student at National Academy of Legal Research and Studies (NALSAR), in Hyderabad and Akshat Baghmar is a 5th year B.A., LL.B. (Hons.) student at Maharashtra National Law University, Aurangabad] In its recent judgment in Mahima Datla v. Dr. Renuka Datla (2022), the Supreme Court reaffirmed the application of the ‘Duomatic’ principle in Indian...
Call for Blog Posts: Corporate Law Board of All India Legal Forum
[Announcement on behalf of the All India Legal Forum] The Corporate Law Board is an autonomous board of the All India Legal Forum. It is an initiative to engage in a discussion around corporate law and policy in India and across the globe. The Board adopts a cross-jurisdictional and multi-disciplinary approach in analysing the various corporate law issues, regulatory framework and policy...
Can Government Companies be Brought under the Aegis of the IBC?
[Shradha Sharma is a banking and finance lawyer at a law firm in India] Government companies are defined under section 2(45) of the Companies Act, 2013 (“Act”) to mean any company in which not less than 51 percent of the paid-up share capital is held by the central government or state government(s), or partly by the central government and partly by one or more state governments, and includes the...
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