[Raghav Bhatia is an advocate, practising at the Supreme Court and Delhi High Court, and Mahima Tahiliani is a third-year law student at UPES Dehradun] Recently, in Food Corporation of India v. Abhijit Paul, the Supreme Court of India [‘SC’] has observed that the expression “charges” does not include demurrage ipso facto and the same has to be determined in light of the terms of contract between...
Government AI Procurement in India: Can WEF Guidelines Solve the Latency?
[Jishnu M Nair is a Senior Attorney at IBM] With a score of 63.67, India is at the 32nd position in the Government AI readiness Index 2022, issued by Oxford Insights. The index symbolizes that India is more policy-ready than Brazil and Greece, and less policy-ready than China and Malaysia. Although 32 might not be a desirable rank, for a developing nation to be in the first 25% of the countries...
‘Beneficial Owner’ is not a ‘Related Party’ under the IBC
[Tejas A. Jha is an Advocate, practicing in New Delhi] Recently, a major cause of concern has been highlighted by legal experts in regard to financial creditors seeking to invoke pledged shares in the corporate debtor. The concern is that when the said pledged shares are invoked, the financial creditor’s seat in the committee of creditors of the corporate debtor (“CoC”) may be put to challenge on...
Supreme Court on Pledge of Shares: Insider Trading Regulations May Require Review
[Vinita Nair is a Senior Partner at Vinod Kothari & Co.] Recently, in PTC India Financial Services Limited v. Venkateshwar Kari, the Supreme Court held that ‘beneficial ownership’ in the context of the Depositories Act should not be confused with beneficial ownership under general law as it is merely a procedural precondition to sale by the pledgee. Further, the Court found that there is no...
Supreme Court on Pledge of Shares: Takeover Regulations May Require Review
[Vinita Nair is a Senior Partner at Vinod Kothari & Co.] In PTC India Financial Services Limited v. Venkateshwar Kari, the Supreme Court of India brought out a very important distinction between the meaning of ‘beneficial owner’ under the depository legislation, and the right of the pledgee or security interest holder to cause the sale of goods pledged by pledgor in terms of the rights...
Supreme Court Reiterates its Limited Jurisdiction to Interfere with Contractual Terms
[Raghav Bhatia is an Advocate practising at the Supreme Court of India] Recently, in Indian Oil Corporation Ltd. v. Shree Ganesh Petroleum Rajgurunagar, the Supreme Court of India (“Supreme Court”) has reiterated that courts and arbitral tribunals have limited jurisdiction when it comes to interfering with the terms of a contract. Background The Indian Oil Corporation Ltd. (“lessee”) and M/s...
SBI v. Mahendra Kumar Jajodia: Resolving Ambiguity in the Personal Guarantor Jurisprudence?
[Dhaval Hemesh Sheth is a second-year student at National Law University, Delhi.] On 27 January 2022, the National Company Law Appellate Tribunal (‘NCLAT’) in the matter of State Bank of India v. Mahendra Kumar Jajodia (‘Mahendra Kumar case’) ruled that an application filed under section 95(1) of the Insolvency and Bankruptcy Code, 2016 (‘Code’) before the National Company Law Tribunal (‘NCLT’)...
‘Group of Companies’ Doctrine in the Amazon-Future Dispute: Analysis under Indian Law
[Chinmayanand Chivukula is an Advocate based in Hyderabad] The ‘group of companies’ doctrine originated in France in the ICC case of Dow Chemical France v. Isover Saint Gobain. In essence, it requires non-signatories to be bound by an arbitration agreement if such mutual intention can be made out amongst the entities within a group of companies. The purpose of the doctrine is to deconstruct...
SAFE Notes: A Novel Funding and ‘Safe’ Method?
[Devansh Parekh and Tanishq Mohta are BLS. LL.B. students at the Government Law College, Mumbai] When early-stage companies set out to raise capital, they are often presented with multiple fundraising vehicles to accomplish their goal. Over the years, hybrid instruments for investments such as Convertible Compulsory Debentures (“CCD”) and Compulsory Convertible Preference Shares (“CCPS”) have...
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...
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