Corporate Law

Corporate Law

PRE-PACKAGED INSOLVENCY FOR MSMES

On April 4th, 2021, the Insolvency and Bankruptcy Board of India (“IBBI”) notified the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 (“Ordinance”) that introduces the Pre-packaged Insolvency Resolution Process (“PPIRP”) for micro, small and medium entities (“MSMEs”). The Ordinance comes into effect from April 4th, 2021. ......
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Supreme Court on Maintainability of Action under Sectio...

In a recent judgment delivered by the Supreme Court of India ("Court") in Laxmi Pat Surana vs. Union Bank of India & Anr. , the Court has held that the principal borrower need not be a ‘corporate person’ for insolvency process to be initiated against a company which stood as its guarantor, under the Insolvency and Bankruptcy Code, 2016 ("IBC"). ......
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The Apex Court Restricts Car Manufacturer’s Liabi...

The Supreme Court of India, recently, in the case of Tata Motors Limited vs. Antonio Paulo Vaz & Anr . held that when the relationship between a car manufacturer and a dealer is on a principal-to-principal basis, the former cannot be saddled with liability arising from the actions of the latter that led to sale of a defective car, unless the car manufacturer’s knowledge about such defects can be proved. ......
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INTERPLAY BETWEEN LIQUIDATION PROCEEDINGS UNDER IBC AND...

Recently, the Supreme Court in the decision of Arun Kumar Jagatramka v. Jindal Steel and Power Ltd. & Anr (“Arun Kumar Decision”) examined the interplay between liquidation proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”) and Section 230 of the Companies Act, 2013 (“Act”). The issue before the Supreme Court was to decide whether a person ineligible to submit resolution plan under Section 29A of the IBC is barred from proposing a scheme under Section 230 of the Act. ......
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The Arbitration and Conciliation (Amendment) Act, 2021

On March 10, 2021, the Arbitration and Conciliation (Amendment) Act, 2021 ("Amendment Act") gained Parliamentary assent and is deemed to have come into force on November 04, 2020, thereby replacing the Arbitration and Conciliation (Amendment) Ordinance, 2020 promulgated by the President of India on November 04, 2020, which we wrote on here. As elucidated upon in the statement of objects and reasons, the Amendment Act has sought to address the issue of corrupt practices in securing contracts or arbitral awards. ......
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Moratorium under the Insolvency and Bankruptcy Code to ...

In a recent judgment delivered by the Supreme Court of India ("Supreme Court") in the case of P. Mohanraj & Ors. Vs. M/S Shah Brothers Ispat Pvt. Ltd , it has been held that the declaration of a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 ("IBC") covers criminal proceedings for dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881 ("NI Act"). In doing so, the Supreme Court has widened and settled the scope of the applicability of Section 14 of the IBC. ......
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INDIA TIGHTENS THE NOOSE ON INTERMEDIARIES AND SOCIAL M...

The Government of India, in supersession of the Information Technology (Intermediary Guidelines) Rules, 2011, has notified the Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 (hereinafter referred to as the "Rules") under the Information Technology Act, 2000 ("IT Act") on February 25, 2021. ......
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INDIA TIGHTENS THE NOOSE ON INTERMEDIARIES AND SOCIAL M...

The Government of India in supersession of the Information Technology (Intermediary Guidelines) Rules, 2011, has notified the Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 (hereinafter referred to as the “Rules”) under the Information Technology Act, 2000 (“IT Act”) on February 25, 2021. ......

INDIA TIGHTENS THE NOOSE ON INTERMEDIARIES AND SOCIAL M...

On February 25th, 2021, Union Law & IT Minister of India said “There should not be double standards. If an attack is there at Capitol Hill (US Congress), then social media supports police action. But if there is an aggressive attack at Red Fort, the symbol of India’s freedom where the Prime Minister hoists the national flag, you have double standards. ......