[Ojaswi Shankar is with ICICI Bank in Mumbai] In Orator Marketing Private Limited v. Samtex Desinz Private Limited (26 July 2021), the Supreme Court held that a person who has advanced an interest-free loan to a corporate entity would be a ‘financial creditor’ and, hence, competent to initiate a corporate insolvency resolution process (“CIRP”) under section 7 of the Insolvency and Bankruptcy...
Qualitative Tests for Accredited Investors: A Comparative Study
[Mehek Wadhwani and Rishi Raj are third-year students of B.A. LL.B. (Hons.) at MNLU Aurangabad] The Securities and Exchange Board of India (SEBI) recently ushered in the concept of a new class of investors in the Indian securities market, termed as accredited investors or qualified investors or professional investors. On 3 August 2021, the SEBI (Alternative Investment Funds) Regulations, 2012...
Recourse to Appropriate Proceedings against Personal Guarantor of Corporate Debtor
[Akansha Uboveja is a fifth-year B.A., LL.B. (Hons.), student at Hidayatullah National Law University, in Raipur] Recently, the National Company Law Appellate Tribunal (NCLAT) in Nitin Chandrakant Naik v. Sandhiya Industries LLP clarified the position of personal guarantors in corporate insolvency resolution proceedings (CRIP) initiated against a corporate debtor under the Insolvency and...
Call for Papers: HNLU Conference on “Calibrating Corporate Governance in New Economy”
[Announcement on behalf of Hidayatullah National Law University, Raipur] Established in 2003, Hidayatullah National Law University, Raipur is one of the leading law schools in the country. In a short span of time, HNLU has carved out a niche in the realm of legal education across India and the legacy is soaring towards newer heights day by day. Named after the great legal luminary Justice...
‘Ordinary Course of Business’ Defence under the IBC: Origin and Scope
[Saai Sudharsan Sathiyamoorthy is an advocate practising at the Madras High Court and is one of the Chief Specialist Editors of Wadhwa Law Chambers Guide to Insolvency & Bankruptcy Code (2nd edition, 2021). He can be contacted at [email protected].] One way that the Insolvency & Bankruptcy Code, 2016 (“the Code”) seeks to secure pro rata distribution among similarly placed...
Retention of Title Clauses – An Indian Perspective
[Malavika Devaya is an associate at Poovayya & Co., Advocates & Solicitors.] A retention of title (ROT) clause is a provision that may be included in commercial contracts and purports to protect the seller’s interests by maintaining title to the goods with the seller until the occurrence of a future event, usually the receipt of payment. These clauses are, however, not very commonly...
Can Air India Trigger Turbulence on the Enforcement Proceedings of Cairn Energy?
[Subodh Asthana and Madhur Bhatt are penultimate year law students at Hidayatullah National Law University, Raipur] Cairn Energy PLC has approached the US District Court for the Southern District of New York (“US Court”) seeking enforcement of a $1.2 billion arbitration award against India. It won the award in December 2020 for proving the breach of fair and equitable treatment (“FET”)...
Unsuccessful Party & Post Award Interim Measures
[Rohan Tigadi runs an independent dispute resolution & litigation practice in Bangalore, Karnataka. He is an alumnus of National Law University Jodhpur] Section 9 of the Arbitration and Conciliation Act, 1996 (“Act”) permits a party to arbitral proceedings to seek interim measures from court ‘even after making of the arbitral award but before it is enforced in accordance with Section 36 of...
Fortitude Learning: Online certificate course on International Dispute Settlement from September 24 – 27, 2021
[Announcement on behalf of Fortitude Learning] Through this course, we seek to provide the participants with an in-depth knowledge of the growing relevance of international dispute settlement mechanisms, especially international arbitration globally. This course is curated to provide the participants with a comprehensive understanding of various aspects of International Arbitration. Topics to...
Call for Papers: NLSIR
[Announcement on behalf of the NLSIR] The NLSIR is the flagship law review of the National Law School of India University, Bangalore, India. It is a bi-annual, student edited, peer-reviewed law review providing incisive legal scholarship on contemporary legal issues. NLSIR has the distinction of being cited twice by the Supreme Court of India, with the latest one in the landmark judgment in...
Repudiatory Breach of Contract: Right to Affirm Fettered in India
[Sriram Venkatavaradan and Saai Sudharsan Sathiyamoorthy are Advocates practicing at the Madras High Court and can be reached at [email protected] and [email protected] respectively] Where one party to a contract indicates by words or through conduct that he does not intend to perform his obligations, he is said to have repudiated the contract by his actions [Stephen A. Smith, Atiyah’s...
Provisional Attachment Orders under GST: Exception or the Norm?
[Amritesh Anand is a penultimate year student at NALSAR University of Law, Hyderabad] Enforcement authorities under the GST regime have been vested with a powerful tool under section 83 of the Central Goods & Services Tax Act, 2017 (“CGST Act”) to carry out provisional attachment of property of assessees. The rationale is to ensure that Government interest in revenue is not prejudiced by...
The Dilemma of Interest-Free Loans as Financial Debt under IBC
[Sanskar Modi and Vijpreet Pal are 3rd year BA LLB (Hons.) students at National Law Institute University, Bhopal (NLIU)] Recently, the Supreme Court, in the case of Orator Marketing v. Samtex Desinz decided that a lender who has advanced interest-free loans to a corporate body would fall under the definition of financial creditor and thereby could initiate the Corporate Insolvency Resolution...
Call for Submissions: The Law and Technology Society’s Essay Writing Competition
[Announcement on behalf of the Law and Technology Society, NLSIU, Bengaluru] The Law and Technology Society of NLSIU, Bengaluru is a group committed to exploring the boundless contours of the intriguing interface between law and technology. The main objective of the Society is to develop up-to-date learning opportunities in this field by organizing a series of fantastic events. The Dialogue is a...
CCI’s Rigid Approach in Holding Discount Control Policy Anti-Competitive
[Yagya Sharma is a 5th year BA LLB student at Institute of Law, Nirma University] On 23 August 2021, the Competition Commission of India (CCI) in In Re: Alleged anti-competitive conduct by Maruti Suzuki India Limited in implementing discount control policy vis-à-vis dealers has imposed a penalty of ₹200 crores and passed a cease-and-desist order against Maruti Suzuki India Limited (MSIL). The...
Call for Papers: Indian Journal of Arbitration Law
[Announcement on behalf of the Indian Journal of Arbitration Law] The Indian Journal of Arbitration Law [“IJAL”] is a bi-annual, open-access journal published by the Centre for Advanced Research and Training in Arbitration Law [“CARTAL”]. It is indexed on Kluwer Arbitration, HeinOnline, Westlaw and SCC Online. IJAL is the leading journal on arbitration law in India, with a global readership. It...
Orator Marketing v. Samtex Desinz: Highlighting the Importance of Time Value of Money
[Shivankar Sukul and Vedaant S. Agarwal are IV-year law students at the National Law University, Jodhpur] The Supreme Court of India (“the Court”) in Orator Marketing Pvt Ltd v. Samtex Desinz Pvt Ltd, (“Orator”) held an interest free term loan as a ‘financial debt’ in clear defiance of the statutory scheme under the Insolvency and Bankruptcy Code, 2016 (“the Code”), which necessitates...
Invitation to Participate: 6th Gary B. Born Essay Competition
[Announcement on behalf of the Indian Journal of Arbitration Law] The Centre for Advanced Research and Training in Arbitration Law and Indian Journal of Arbitration Law are pleased to announce that they will be organizing the 6th Gary B. Born Essay Competition on International Arbitration, 2021. About the Organizers National Law University Jodhpur: The National Law University, Jodhpur...
Online Certificate Course on “Competition Law and Policy”
[Announcement on behalf of Bettering Results] Bettering Results (BR) is conducting an online certificate course on the “Competition Law and Policy” from September 11- September 18, 2021. Through this Certificate Course, we seek to provide the participants with an in-depth knowledge of the growing relevance of competition law all around the globe. Competition Law is a rapidly growing...
Coverage of Future Misconduct under Oppression and Mismanagement
[Priya Garg is an Assistant Lecturer, OP Jindal Global University, Guest Faculty at NALSAR and Founding Trustee at The Corporate House and Saloni Kumari is a student research fellow at The Corporate House and law student at National Law University, Delhi] Recent corporate governance episodes have resulted in a greater invocation of the provisions under the Companies Act, 2013 (‘2013 Act’)...
CCI Probe: Will Amazon & Flipkart Pass Legal Scrutiny?
[Akshay Shrivastava is a 5th Year B.Com., LL.B. (Hons.) student at Gujarat National Law University, Gujarat] Recently, the Supreme Court refused to stay the ongoing probe on e-commerce giants Amazon and Flipkart by the Competition Commission of India (CCI) for promoting specific sellers owing to exclusive arrangements and rendering them special treatment by offering heavy discounts, thereby...
Call for Papers: National Law School Business Law Review
[Announcement on behalf of the National Law School Business Law Review] The Board of Editors of the National Law School Business Law Review is pleased to invite original and unpublished manuscripts for publication in Volume 8 of the Review. About the Journal The NLS Business Law Review is an initiative by the National Law School of India University to recognise and foster academic research and...
Compounding of Offences under the SEBI Act: Limiting the Role of SEBI
[Abhiraam Shukla is a III year student at the National Law Institute University, Bhopal] Section 24A of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) provides for the compounding/composition of certain offences which are punishable under the SEBI Act. It stipulates that any offence under the SEBI Act which is not punishable exclusively by imprisonment or by imprisonment and a...
Competition Concerns in the Cab Aggregators’ Market
[Lavanya Gupta and Shreya Mukherjee are final year students at Symbiosis Law School, Pune] Five years after the initiation of the case, the Competition Commission of India (“CCI”) recently rendered its decision on Uber’s alleged dominance in Meru Travel Solutions Pvt. Ltd. v. Uber India Systems Pvt. Ltd. In its case against Uber, Meru alleged that Uber was misusing its dominant market position to...
Stalemate on the SAT in the PNB Housing Preferential Allotment Case
A two-member bench of the Securities Appellate Tribunal (SAT) yesterday returned a split verdict on the legal issues surrounding the preferential allotment of shares by PNB Housing Finance Limited. The facts are relatively straightforward. Since PNB Housing’s controlling shareholder, Punjab National Bank, was unable to infuse funds due to the lack of regulatory approval from the Reserve Bank of...
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