Declaring NPA And Wilful Defaulter: A Banker's Obligation

Banks are evaluated on their standard of assets as well as their number of branches and deposit volume. Today, one of the major concerns for Indian banks are Non-Performing Assets ('NPAs'), as NPAs have detrimental impact on the bank's earnings, liquidity, and solvency. Failure in the banking industry could have a negative effect on several other industries. Certainly, NPAs have sickened the Indian economy for many years now, however, as a remedy, economic policies in India from time to...

NCLT Cannot Coerce Allottees Into Settlements

The jurisdiction of the National Company Law Tribunal ("NCLT") and the National Company Law Appellate Tribunal ("NCLAT") and the courses of action available to these authorities under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") has been defined and limited by the Hon'ble Supreme Court ("the Court") through its recent judgment in E. S. Krishnamurthy & Others ["Appellants"] v. Bharath Hi Tech Builders Pvt. Ltd...

Limitation For Filing An Appeal Under IBC

The Supreme Court ("the Court") on 23rd March, 2020 while taking suo motu cognizance of the COVID-19 pandemic extended the period of limitation under the Limitation Act, 1963 ("Limitation Act") for filing of petitions/applications/suits/ appeals/all other proceedings until further notice. This has led to confusion in computation of the period of limitation and has provided an opportunity to unscrupulous litigants to take undue advantage of this extension. One such issue regarding...

Finding Regarding 'Default' Ought Not To Be Recorded Before Submission Of RP's Report

The National Company Law Appellate Tribunal ("NCLAT / Tribunal") in its recent judgment in Kanchan Nanubhai Desai Personal Guarantor (Anoushka Medicare & Diagnostics Pvt. Ltd.) v. Finequest Financial Solutions Pvt. Ltd[1] has reaffirmed that in an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 ("Code") the National Company Law Tribunal ("NCLT") ought not to record findings regarding 'default' before the report by the Resolution Professional, as required...

Evolution Of IP Laws In OTT Platforms In India

The Indian Entertainment Industry "The Indian media and entertainment industry is one of the fastest growing media industries in the world and is projected to reach USD 100 billion by 2030." - Mr. Apurva Chandra, Secretary, Ministry of Information and Broadcasting (MIB)The entertainment industry in India is one of the largest in the world producing approximately 1,500 to 2,000 films each year in over 20 different languages. As of March 2022, the Indian media and entertainment...

Reverse Corporate Insolvency Resolution Process In Case Of Real Estate Companies

Taking a cue from the Supreme Court in the matter of Swiss Ribbons Private Limited and Anr. vs. Union of India and Ors.[1], a new concept by the name of 'Reverse Corporate Insolvency Resolution Process' was propounded by the National Company Law Appellate Tribunal ("NCLAT") for insolvency resolution of real estate companies in Flat Buyers Association Winter Hills – 77, Gurgaon Vs. Umang Realtech Pvt. Ltd through IRP & Ors.[2]The Supreme Court had remarked that hindering innovative...

Non-Payment Of License Fee Is An Operational Debt

In a recent pronouncement in Jaipur Trade Expocentre Private Limited v. M/s Metro Jet Airways Training Private Limited[1] ("Jaipur Trade Case"), a five-member bench of the Hon'ble National Company Law Appellate Tribunal ("NCLAT") has set aside the decision laid down in Mr. M. Ravindranath Reddy v. Mr. G. Kishan & Ors.[2] and held that the claim of a licensor for payment of license fee for use of demised premises for business purposes is an operational debt within the meaning of ...

Supreme Court – NCLT Vested With Discretionary Powers While Adjudicating An Application Under S. 7 Of The IBC

In a recent ruling in Vidarbha Industries Power Limited v. Axis Bank Limited[1], the Supreme Court has held that the Adjudicating Authority while examining the existence of debt and default by a corporate debtor in an application for initiation of corporate insolvency resolution process ("CIRP") filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Code"), has the discretion to admit or not admit such application. The Court held that Section 7(5)(a) of the Code confers a...

Master Directions On Credit Card And Debit Card – Issuance And Conduct Directions, 2022

Reserve Bank of India ("RBI") issued Master Directions on Credit Card and Debit Card – Issuance and Conduct Directions, 2022 ("Master Directions")[1] dated April 21, 2022, effective from July 01, 2022 (except a few provisions which will be effective from October 01, 2022). These Master Directions were brought in to regulate the conduct of credit/debit payments in Banks and Non-Banking Financial Companies (NBFCs). These Master Directions provide a thorough set of instructions majorly...

In Re Hiveloop Technology Pvt. Ltd. vs Britannia Industries Ltd.: CCI Acknowledges Manufacturer's Right to Select Distributors

The Competition Commission of India (CCI/ Commission), vide its order dated 16th June 2022, dismissed the allegations of 'refusal to deal' filed by Hiveloop Technologies Pvt. Ltd., Bengaluru (Informant) against Britannia Industries Ltd.(Britannia) because the Commission did not find any merit in the submissions on the aspect of 'discrimination'. The Competition Act, 2002 (Act) guarantees freedom of trade by all market participants. This also includes the manufacturer's freedom to choose,...

Investors In Real Estate Projects To Have Equivalent Liability As Promoters

In a recent order pronounced on June 30, 2022, by the Maharashtra Real Estate Regulatory Authority ("MahaRERA/Authority") in the matter of 'Rare Township Private Limited vs IIRF India Realty VIII Ltd', the investor IIRF India Realty VIII ("IIRF"), which had made investments in Rare Township Private Ltd. ("RTPL") has been put in the same bracket as the management of the company because MahaRERA held that IIRF shall be covered in the definition of "promoter" as defined under the Real Estate...

The Data Protection Bill 2021: Key Takeaways For Stakeholders

In our vastly interconnected and globalized world, information technology is flourishing at an unprecedented rate. The world we live in today is immensely digitalized and data-driven. The spread of data driven technologies around the world has led to several citizen and consumer centric innovations including means of communication, access to goods and services through e-governance and online commerce and transactions. This has made data a vital resource for the internet economy,...