Forensic Audit- Trap For Corporate Debtors

IBC was framed with the motive to restructure or revive a Corporate Debtor. The code lays down procedure to conduct resolution, insolvency and liquidation proceeding in time bound manner. One of those includes Preferential Transactions covered under section 43 of the IBC and other related like undervalued transactions and extortionate credit transactions covered under section 45 & 50 of the IBC. Every year billions are lost due to fraud and corruption which results into...

NCLAT Endorses CCI's Penalty Order Against Amazon: A Setback For Amazon And A Leap In Jurisprudence

The National Company Law Appellate Tribunal (NCLAT) vide its order dated June 13, 2022, has upheld the order of the Competition Commission of India (CCI) against Amazon, where the CCI penalized the latter for giving false and misleading information in the notice and suppressing material facts relating to the actual scope and purpose of the acquisition of Future group companies. In 2019, the CCI had granted approval to Amazon in respect of its investment of Rs. 1,500 crores in Future ...

Way To Ensure Safety Of The Child- In The Light Of School Admissions

"The aim of education in ancient India was not just the acquisition of knowledge as preparation for life in this world, or life beyond schooling, but for the complete realization and liberation of the self"- The National Education Policy, 2020.[1] With 36.7% India has one of the largest populations of children in the world.[2] Children spend a substantial part of their day at school, therefore it is imperative that the atmosphere of schools remain positive and nurturing, and student...

Security Provided To The Judges In India With A Comparison To The UK And USA Model Of Security

"Judiciary must be encouraged to find ways and means to regulate its own affairs - consistent with the spirit of the Constitution." – Shri Manmohan Singh The independence of Judiciary is one pivotal concept for delivering fair and neutral judgements. Considering the legal system of India and court as the spine of the democratic framework, judicial independence and the security of the judicial officers should become a topic of utmost importance. In several instances the judicial officers...

Cross Charging Under Goods And Services Tax Act

Goods and Services Tax Act ("GST") does not define Cross Charge. As per Section 25(4) of Central Goods and Services Tax Act, 2017 ("CGST"), where a person has obtained or is required to obtain registration in a state or union territory in respect of an establishment, has an establishment in another state or union territory, then such establishments shall be treated as establishments of distinct persons for the purpose of this Act. Accordingly, cross charging refers to invoicing supply of...

Recent Pronouncements Related To Dishonour Of Cheques Under Section 138 Of The Negotiable Instruments Act, 1881

The wide use of cheques as a mercantile instrument requires clarity in the law relating to dishonour of cheques. The nodal statute on the law related to negotiable instruments is the Negotiable Instruments Act, 1881 ("the Act"). The Supreme Court had famously observed that the law relating to negotiable instruments is the law of the commercial world, which was enacted to facilitate the activities in trade and commerce, made provisions to render sanctity to credit instruments which could be...

Rights Of Homebuyers Under The IBC

The Insolvency and Bankruptcy Code, 2016 ("IBC"), as originally enacted, did not provide adequate protection and recognition of the interests of Homebuyers in real estate projects. While the Homebuyers are vital stake holders in real estate projects, yet the IBC, as initially crafted, did not protect them.[1] This is because they were treated only as 'other creditors', not at par with financial and operational creditors[2], thus they were not only unable to initiate proceedings under the...

No Service Tax Payable On Compensation Received On Cancellation Of Coal Blocks

TLC Legal is pleased to share with you a recent decision of the Customs, Excise and Service Tax Appellate Tribunal ("CESTAT"), Kolkata, holding that "compensation" paid to a prior allottee on cancellation of Coal block is not a consideration for tolerating the act of such cancellation and therefore, no Service tax is payable on the same. The facts relevant to the said case are that the coal block allocated to the Appellant company, Jindal Steel & Power Limited, (the "Company") were...

Every Transfer Or Sale Is Not 'Actual Sale': Clarifies Supreme Court

Recently, the Hon'ble Supreme Court in the case of PTC India Financial Services Limited (hereinafter referred as PIFSL) v. Venkateswarlu Karu & Ors. (Civil Appeal No.5443 of 2019 has held that Contract Act does not conceive of sale of the pawn to self and consequently, the pawnor's right to redemption in terms of Section 177[1] of the Contract Act survives till 'actual sale'. Facts: PTC India Financial Services Limited (PIFSL) by way of a Bridge Loan Agreement dated 10th March...

The Unending Saga Of The Seat Of The Arbitration: Delhi High Court Disregards The Seat Of Arbitration And Favours The Exclusive Jurisdiction Clause In A Domestic Arbitration

The Delhi High Court recently in Hunch Circle Private Limited ("HCPL") v. Future Times Technology India Private Limited[1] ("FTTIPL") ("Hunch Circle") rejected an application for appointment of an arbitrator citing lack of jurisdiction, despite the agreement categorically specifying the seat of arbitration as Delhi. CONTRACTUAL PROVISIONS: In the present case, Clause 8.1 of the contract conferred exclusive jurisdiction for matters arising out of the agreement (subject to the ...

Operationalizing FDI Reforms And Easing Market Entry Conditions In The Telecom Sector

The Indian telecom sector has seen significant reform in recent times to improve sectoral health and increase ease of doing business. To attract investment, foreign investors can now invest up to 100% in any local Indian company without government approval. This marks a significant shift from the era of government approval for any investments above the 49% threshold. Licensing conditions have also recently been amended to enable use of private satellite systems (including foreign...

Maintainability Of Writ Petition Against A Party That Ceases To Be "State"

It is a well- known fact that the Government of India is the biggest litigant in the country. Whether through its ministries, departments or state-owned undertakings, the government accounts for nearly 50% of all pending cases in India according to a recent speech made by the Chief Justice of India. While arbitration or commercial civil litigation is the available remedy in case of contractual disputes with the government bodies, the individuals or the corporations take the route of...