08 May 2020

The novel coronavirus (“COVID-19”) was declared as a pandemic by the World Health Organization on March 11th and subsequently, the Government of India decided to treat it as a notified disaster.  Accordingly, the Government took various steps to curb the spread of the disease as well as minimize the impact on the economy. While businesses were grappling with the new reality of this global uncertainty, their support and participation was considered imperative to manage the current situation. To encourage entities and garner their cooperation, the Government decided to treat funds spent on activities relating to COVID-19 as part of CSR performance. Additionally, the Ministry of Home Affairs of India issued directions to lockdown all the states in India till 20.05.2020 (“Lockdown Period”) and has come up with various notifications with respect to payment of salaries/ wages to employees.>>

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07 May 2020

To mitigate the economic hardship caused due to COVID-19 pandemic and to facilitate ease of doing business, various efforts are being made by the Government of India. In furtherance of these initiatives, the Ministry of Corporate Affairs (“MCA”) has brought about certain relaxations for companies vide its general circular no. 13/2020 dated 30th March 2020 (“Circular”). The relaxation enables companies to regularize compliance related filing with the Registrar of Companies ( “Registrar”).>>

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26 Nov 2019

A clause for Alternate dispute resolution (ADR) is incorporated in a contract to ensure avoidance of lengthy and costly legal procedures. Undue delay in arbitration procedure tends to vitiate this essential objective that ADR seeks to achieve.  Further, the ADR process is designed to minimize the interference of courts, however, it is more of fiction as parties unhappy with the outcome of the process take the legal recourse as a dilatory tactic. Therefore, it is essential that arbitral awards are set aside only when there is a grave injustice or is unreasonable on the face of it[i].>>

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03 Sep 2019

With a view to attract further foreign investments into India, especially considering the slow-down in the Indian economy, the Reserve Bank of India (RBI) brought out certain relaxations on the end-use restrictions placed on External Commercial Borrowings[1] vide Circular RBI/2019-20/20 A.P. (DIR Series) Circular No. 04 dated 30th July, 2019[2] (hereinafter ‘the Circular’). Transactions on account of External Commercial Borrowings (ECB) and Trade Credit (TC) are governed by Section 6(3)(d) of the Foreign Exchange Management Act, 1999 (FEMA). In furtherance thereto, the RBI had brought out the ‘Master Direction - External Commercial Borrowings, Trade Credits and Structured Obligations’[3] which encapsulates the detailed provisions and stipulations in relation to ECB.>>

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10 Jul 2019

The Specific Relief Act, 1963 (SRA) was amended last year with the objective of changing the approach from ‘damages being the rule and specific performance being the exception, to specific performance being the rule, and damages being the alternate remedy’. These amendments were made to encourage foreign investment in India and make laws more business friendly. The expert committee set up for the purpose, in its report dated 26.05.2016[i], recognized the increasing complexity of large projects, and particularly the public interest involved in contracts with the Government and Government agencies for infrastructure development, public-private partnerships and other public projects involving huge investments. Consequently, the Legislature introduced changes to specifically address the infrastructural need of the country. The Amending Act received presidential assent on August 1, 2018 and came into force on October 1, 2018.>>

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03 Jan 2019

The Department of Industrial Policy & Promotion (DIPP) released a Press Note on 26th December, 2018 (“Press Note”), which brought out major changes to foreign investment in E-Commerce Sector. The changes made, which have been slated to be brought into effect from 1st February, 2019, will trigger a significant shake-up for the major e-com players like Amazon and Flipkart.>>

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09 Oct 2018

The Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 (hereinafter “Rule(s)”) was published in the official gazette on 10th September, 2018 which is effective from 02nd October 2018. According to the Rules, the Ministry of Corporate Affairs, Govt. of India (hereinafter “MCA”) has mandated that every unlisted public company shall issue its securities only in dematerialised form and shall dematerialise all its existing securities as well.>>

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03 Oct 2018

Issuance of non-convertible debentures (NCDs) is one of most widely used methods through which companies have been raising money in the form of secured debt under private placement route. The issuance of NCDs are governed primarily through Sections 42 and 71 of the Companies Act, 2013 (‘Act’) read with the Companies (Prospectus and Allotment of Securities) Rules, 2014 (“Securities Rules”) and the Companies (Share Capital and Debentures) Rules, 2014 (“Debenture Rules”). The Ministry of Corporate Affairs recently issued the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2018 (“Amendment Rule”) on 7th August, 2018, which brought out various changes to the rules in relation to issuance of securities under private placement method.>>

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17 Sep 2018

The status of the Home buyers under Insolvency and Bankruptcy Code (IBC) has been puzzling adjudicating authorities. The question was brought to forefront in public interest writ petition filed before Supreme Court[1] seeking relief for home buyers in Jaypee insolvency matter[2].  Apex Court initially granted stay and later directed that resolution plan should protect the interest of home buyers.>>

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18 Jan 2017

The Insolvency and Bankruptcy Code notified on 28th May, 2016 (“Code”), lays down the structure for a unified insolvency and bankruptcy resolution mechanism in India. This is an important legislation for corporate India because the term "insolvency" has not previously been defined under India’s corporate law framework, although Section 433 of the erstwhile Companies Act 1956 provided for grounds of winding up a company that is "unable to pay its debts". [Black’s Law Dictionary defines the term “insolvency” as “the condition of being unable to pay debts as they fall due or in the usual course of business”][1].>>

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