[Post by Diksha Jain, who is a 5th year student at the National Law University, Jodhpur] The National Company Law Appellate Tribunal (NCLAT) in its order dated 15 May 2017 in Innoventive Industries Ltd. v. ICICI Bank has ruled on certain important requirements to be complied with while admitting an application filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (the Code). Section...
Buddh Circuit a Permanent Establishment of Formula One: Supreme Court
[In the following post, Akash Santosh Loya, who is a IIIrd Year Student, 5-year B.A. LL.B. (Hons.) Course, National University of Advanced Legal Studies, Kochi, provides a summary of a recent Supreme Court decision that has implications for international taxation.] In Formula One World Championship Ltd v. Commissioner of Income Tax, International Taxation – 3, Delhi,[1] the Supreme Court of India...
Supreme Court Order on “Relevant Turnover”
[The following post is contributed by Akshay Bhatia, who is a 4th year student at the National Law University Odisha] The Supreme Court (SC) in its order on 8 May, 2017 in Excel Crop Care Limited v. the Competition Commission of India has adopted for the first time the concept of relevant turnover while computing the penalty to be imposed in contravention of section 3 of the Competition Act, 2002...
SAT Order in the Satyam Case
In July 2014, we had discussed the order of the Securities and Exchange Board of India (SEBI) then passed against several members of Satyam’s senior management for their role in perpetrating the colossal financial fraud involving the company. In its order, SEBI found several individuals guilty of violating various regulations issued by SEBI, and restrained them from accessing the capital markets...
BALCO’s ‘Error’ Amplified: The Supreme Court in Indus Mobile – Part II
[The following post is contributed by Puneet Dinesh, who is a III year student at the National Law University, Delhi. He can be reached at [email protected]. The first part in the series can be accessed here.] In the earlier post, I had covered the First Idea that gets picked up in Indus Mobile and had argued that the Court gets the position of law correct. In this post, I will analyze the...
BALCO’s ‘Error’ Amplified: The Supreme Court in Indus Mobile – Part I
[The following post is contributed by Puneet Dinesh, who is a III year student at the National Law University, Delhi. He can be reached at [email protected].] The Supreme Court’s and the High Court’s approach to ‘arbitral seat’ vis-à-vis exclusive jurisdiction to courts has generated both controversies and analyses. The Delhi High Court (in NHPC Limited, Rohit Basin and Ion Exchange) and...
Bankruptcy Code: Exclusion of Civil Courts in Monetary Matters?
[The following post is contributed by Bhavin Gada, Partner at Economic Laws Practice, Advocates and Solicitors, and Manendra Singh, Associate Manager at Economic Laws Practice, Advocates and Solicitors. The views of authors are personal.] Preface It is well known that in India a civil court of relevant jurisdiction is the usual forum for resolving not just disputes related to debt recovery, but...
Reforms to Restructuring Plans Under the Joint Lenders’ Forum
[The following post is contributed by Nitu Poddar, Practicing Company Secretary, and Vallari Dubey, Executive, at Vinod Kothari & Co. They can be reached at [email protected] and [email protected] respectively.] The Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP) work on the principle of identifying the stress in a borrower entity and curing it at its nascent stage. The...
DoCoMo v. TATA: Unanswered Questions Regarding Powers of the RBI
[The following post is contributed by Ambarish, who is a corporate lawyer. Views are personal. A related post on the topic can be found here.] The decision of the Delhi High Court in NTT Docomo Inc v. Tata Sons Limited has received a lot of media attention, specifically the part where the Court rejected an intervention application by the Reserve Bank of India (RBI).[1] In arriving at its...
SEBI Informal Guidance: Trading Disclosures – What’s the “Value”?
[The following post is contributed by Yogesh Chande, Partner, Shardul Amarchand Mangaldas & Co. Advocates and Solicitors. Views are personal.] The SEBI (Prohibition of Insider Trading) Regulations, 2015 (the “PIT Regulations”) prescribe certain disclosure norms relating to acquisitions and disposals of securities by insiders in companies. Specifically, regulation 7(2)(a) states that where...
Applicability of the Arbitration and Conciliation (Amendment) Act, 2015 – An Unsettling Position?
[The following post is contributed by Nirmit Agrawal, who is a III Year, B.A., LL.B (Hons.) student at the West Bengal National University of Juridical Sciences, Kolkata] In the case of Wind World Ltd v. Enercon Gmbh decided in March, a single judge of the Bombay High Court was faced with the much contentious issue of the applicability of the Arbitration and Conciliation Amendment Act, 2015 (the...
Co-existence of Winding-up Petition and Application under Insolvency Code
[The following post is contributed by Nitu Poddar, who is an Associate at Vinod Kothari & Co, and can be reached at [email protected]] This post seeks to address the question whether an application for resolution process of a company can be filed under the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in case a winding up petition is pending before a High Court? MCA...
Transfer of Shares to the Investor Education and Protection Fund (IEPF)
[The following post is contributed by Pammy Jaiswal, who is an Associate at Vinod Kothari & Co, and can be reached at [email protected]] Introduction By way of its notification dated 28 February 2017, the Ministry of Corporate Affairs (MCA) had tried to simplify the procedure for transferring shares to the Investor Education and Protection Fund (IEPF) Authority. In doing so, it had left...
Clarifications to the Cruz City 1 Holdings Case: What really happened in Renusagar v. General Electric?
[The following guest post is contributed by Suprotik Das, a 5th year law student at the Jindal Global Law School, Sonepat, Haryana.] On April 11, 2017, the Delhi High Court rendered a judgement in the case of Cruz City 1 Mauritius Holdings v. Unitech Limited. As mentioned in this blog earlier, this case dealt with enforcement proceedings of a foreign arbitral award. Unitech Ltd. (the...
Antecedent Transactions: An Anomaly in the Insolvency and Bankruptcy Code, 2016
[The following post is contributed by Rahul Sibal, 3rd Year, and Deep Shah, 2nd Year, students of NALSAR, Hyderabad. They can be contacted at [email protected] and [email protected]. In this post, they analyze certain anomalies with respect to provisions concerning antecedent transactions under the recently enacted Insolvency and Bankruptcy Code, 2016.] The Insolvency and...
Legal Claims: The Convergence of Law and Accounting
[Guest post by Pramod Rao, General Counsel at Citibank India] Many aspects of law and the accounting world coincide and converge especially in commercial enterprises. These are of immense relevance to the enterprise, the general counsel, the chief financial officer, the external/statutory auditors and business units or to control or support functions of the enterprise. Among the aspects...
The Contents and Discontents of the National Civil Aviation Policy
[Guest post by Pratiek Sparsh Samantara, who is a 5th year BA, LLB (Hons) student at NALSAR Hyderabad] The National Civil Aviation Policy (NCAP) was released on 15 of June 2016 with a view to making travel by air more accessible, and the related infrastructure more efficient. This is the first time an integrated aviation policy has ever been released, and it was long overdue. It has been forecast...
Companies Act, 2013: Cross-Border Merger Provisions Notified
Under the previous Companies, Act, 1956 (sections 391-394) it was possible for a foreign company to merge with an Indian company, but an Indian company could not be merged with a foreign company. This was intended to ensure that the company that continues after the merger is an Indian company over which the Indian regulatory authorities continue to exercise control. This position was also...
The MCA’s Drive Against Non-Operative Companies
[Guest post by Dheeraj Kumar Sharma, who is an Associate at Vinod Kothari & Co.] Introduction The discussion on the existence of non-operative companies is garnering the attention of the corporate sector with special emphasis from various regulatory arms in addressing issues pertaining to such companies. The Government had clearly indicated that actions will be initiated against companies...
Ascertaining Legal Ramifications of Compensation Agreements- Part II (Statutory Approach)
[The following post, the second in a series, is contributed by Rahul Sibal, a third year student of NALSAR Hyderabad. In the series, he analyzes possible liabilities that may arise with respect to compensation agreements from different perspectives. He can be contacted at [email protected]. In this second post, he attempts to ascertain the liability of directors that have entered into...
Ascertaining Legal Ramifications of Compensation Agreements – Part I (Common Law Approach)
[The following post, the first in a series, is contributed by Rahul Sibal, a third year student of NALSAR Hyderabad. He analyzes possible liabilities that may arise with respect to compensation agreements from different perspectives. He can be contacted at [email protected]. In the following post, he attempts to ascertain the liability of directors, who have entered into compensation...
Calls for Socially Responsible Investing
The concept of socially responsible investing (SRI) suggests that investors would invest in companies that are acting in socially and environmentally responsible ways, and that such investors would exit from investments in businesses that do not comport with environmental, social and governance (ESG) criteria. Such investors maintain a balance between financial sustainability and social impact...
NCLT Ruling under Section 8 of the Insolvency and Bankruptcy Code, 2016
[Guest post by Shayonee Dasgupta, who is a project finance lawyer with a leading law firm in India] As the Insolvency and Bankruptcy Code, 2016 (IBC) is in the process of being implemented, the provisions relating to the initiation of insolvency resolution process by an operational creditor were recently examined by the Mumbai bench of the National Company Law Tribunal (NCLT) by way of an order...
Stewardship Code for Insurance Companies
Historically, the passivity of institutional investors in India has led to less than significant monitoring of managements and controlling shareholders of companies. However, as I had noted in an earlier paper, the Indian markets began witnessing greater levels of shareholder activism in more recent years. Among the regulatory efforts that have engendered activism, one relates to a 2010 circular...
Delhi High Court on Put Options and Guarantees under FEMA
The issue of whether put options, exits at assured returns and guarantee arrangements between Indian and foreign parties are enforceable under the provisions of the Foreign Exchange Management Act, 1999 (FEMA) has received much regulatory and judicial attention lately. The dispute between Tata Sons and NTT Docomo heard by the Delhi High Court was being watched very closely until the case was...
Recent Comments