Law Firm Articles
Recent Changes In FDI Policy And Its Impact
The Department of Industrial Policy and Promotion on 18 September 2019 issued a press note, Press Note 4 of 2019 (Press Note) amending the consolidated foreign direct investment (FDI) circular of 2017 (FDI Policy). The Press Note was issued further to a press release dated 28 August 2019 (Press Release) issued by the Government of India approving the proposals to amend the FDI Policy in four sectors, namely, coal mining, digital media, single-brand retail trading (SBRT) and contract...
Anti - Arbitration Injunction
An "anti-arbitration injunction" is an injunction whereby one party seeks restraining orders against the other party to proceed or commence with an arbitration proceeding in pursuance of the arbitration agreement between the parties. Though the concept of "anti-arbitration injunction" is not defined in the Arbitration and Conciliation Act, 1996 ("the Act"), it has been duly recognized and adopted by the Indian Courts. Usually, the Courts in India whilst considering section 8 of the Act...
Key Highlights Of The Companies (Amendment) Act, 2019
The Companies (Amendment) Act, 2019 ("Amendment Act"), received the assent of the President on July, 31, 2019. With the Amendment Act, Central Government seeks to ensure more accountability and better enforcement to strengthen the corporate governance norms and compliance management in corporate sector. The key amendments of Amendment Act are as follows: Crackdown on shell companies: In pursuit of the drive to curb the menace of shell companies, the Amendment Act provides ...
Regulatory Sandbox – An Emerging Tool For Fintechs
The technological innovation has led to revolutionary changes in business operations across industry verticals. The financial sector has also been a part of this technological revolution. In fact, technological innovation is considered to be one of the most influential developments affecting the global financial sector in the near future[1]. The changes in financial services industry due to technological innovation has led to evolution of fintechs. Fintechs, being considered as a...
No Country For Poor Men – Why The Vengayyana Lake Incident Should Be A Wake-Up Call For India
In a shocking story, first reported by the Bangalore Mirror on the 9th of July, an official of the Karnataka Forest Department, unhappy with the sanitation conditions surrounding Vengayyana Lake, has come up with a cruel and inhumane proposition. Harshvardhan PN, an Assistant Conservator of Forests within the Karnataka Forest Department, announced that the Department had made arrangements to ensure that the 20 pourakarmikas, tasked with manually separating wet and dry garbage, dumped daily at...
NCLAT Approves Resolution Plan Of ArcelorMittal With Certain Modifications
The National Company Law Appellate Tribunal has modified and approved the Resolution Plan of ArcelorMittal India Private Limited in the Corporate Insolvency Resolution Process of Essar Steel India Limited. Previously, the NCLT, Ahmedabad had approved the Resolution Plan of ArcelorMittal as approved by the Committee of Creditors of Essar Steel India Limited. Standard Chartered Bank, Prashant Ruia and certain banks among various other appellants had approached the NCLAT seeking various...
Debarment of The Defaulting Resolution Applicants: A Need of The Hour
The Insolvency and Bankruptcy Code, 2016 ("Code") and the regulations made thereunder have witnessed several amendments and litigations since the date of notification of the Code. It is an admitted fact that many corporate debtors have seen resolution under the Code, yet there are number of cases which have gone into liquidation due to varied reasons. The courts and tribunals in India have been working tirelessly to implement the spirit of the Code, that is, to promote resolution of...
Steps To Avoid Legal Hurdles In Start-Ups
It is of paramount importance that the new start-ups, as well as the entrepreneurs, take into consideration the legal complicacies that may occur after having set-up their businesses. Herein below, to facilitate a better decision-making process of startups and entrepreneurs, we shall endeavor to discuss how these legal hurdles could be avoided by simply ensuring compliance of certain procedural or otherwise necessary requirements. START-UP: LEGAL DEFINITION The Department of...
Use Of Experts In Arbitrations – The Time Has Come
The Arbitration and Conciliation Act, 1996 (Arbitration Act) was significantly amended in 2015 to usher in a new and dynamic dispute resolution mechanism and improving some of the major bottlenecks that were making arbitrations less efficacious for resolution of disputes. The government's intent was to ensure that it became a more preferred and efficient mechanism for resolving disputes at par with global standards. The changes made intended to boost the ease of business rankings and...
The Legality And Admissibility Of Electronic Signatures In The Modern World– A Look At The Laws In India
The Government's increased efforts on ease of doing business, streamlining the storage of records, and improving the safety, security and cost-effectiveness of records, has resulted in promotion of the use of digital technologies by individuals and companies. One of such technology relates to the electronic signing of agreements, documents and contracts. Given that Indian law recognizes electronic signatures or e-signatures, there has been an increase in the usage of e-signatures...
Active Company Tagging Identities and Verification
Ministry of Corporate Affairs ("MCA") vide its notification dated February 21, 2019 issued the Companies (Incorporation) Amendment Rules, 2019 ("Rules") further amending the Companies (Incorporation) Rules, 2014 ("Principal Rules"). A new rule 25A has been inserted in the Principal Rules pertaining to Active Company Tagging Identities and Verification (ACTIVE). Additionally, e-form ACTIVE (INC-22A) has been inserted in the Principal Rules after e-form INC -22. The Rules came into effect...