Laws Enacted in 2015: A Snapshot

1. The Negotiable Instruments (Amendment) Act, 2015The Act amends the Negotiable Instruments Act, 1881 and replaces the Negotiable Instruments (Amendment) Ordinance, 2015 which was promulgated on June 15, 2015. It stipulates that in case of a cheque being dishonored:If the cheque is delivered for collection to the account of the payee (person who receives the cheque), the jurisdiction lies in the area of the bank branch where the payee maintains an account, orIf the payee presents a cheque to a bank in any other way, the jurisdiction lies in the area of the bank branch where the drawer (person who writes the cheque) maintains an account. (Section 142(2))It further provides that if the payee has filed a complaint against the drawer in a court with appropriate jurisdiction, all subsequent complaints against that person regarding cheque bouncing will be filed in the same court, irrespective of whether the cheque was delivered for collection or presented at a bank within the territorial jurisdiction of that court. (Section 142A)The Act also amends the definition of ‘cheque in the electronic form’. It is defined to mean a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be. (Section 6) Further, the definitions of ‘computer resource’, ‘digital signature’, ‘electronic system’ and ‘asymmetric crypto system’ are amended to be the same as those assigned to them in the Information Technology Act, 2000.2. Arbitration and Conciliation (Amendment) Act, 2015The Act replaces the ordinance which was promulgated in December 2014. It makes Part I of the Act, which applies to matters where the place of arbitration was India, to international commercial arbitrations as well, even if the place of arbitration is outside India. (Section 2(2)) It changes the relevant Court for all arbitration matters to the relevant High Court in case of International Commercial Arbitrations. (Section 2(1))Besides pegging the time period for disposal of cases by a Court at one year, it also makes provision for fast track procedure for arbitration, which would necessitate rendering of an award within 6 months. (Section 29A)Another significant feature of the Act is that it provides additional grounds of contravention of the fundamental policy of Indian Law and conflict with the notions of morality or justice, in addition to the grounds already specified in the Act for setting aside an arbitral award. (Section 34 (2))You may read: Amendment of Indian Arbitration Act: A Sigh of Relief for the Indian Arbitration Professionals and Clients! By Anil Xavier3. The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015The Act replaces the ordinance which was promulgated in October 2015. It provides for creation of Commercial Courts, equivalent to district courts, which may be set up in all States and Union Territories, by the State Governments after consulting with their respective high courts. Setting up of Commercial Divisions has been made possible in those High Courts which exercise ordinary original civil jurisdiction, that is, the High Courts of Delhi, Bombay, Calcutta and Madras.The Commercial Appellate Division is empowered to hear appeals relating to a commercial dispute, filed in a High Court against the orders of Tribunals like the Competition Appellate Tribunal, Debt Recovery Tribunal, Intellectual Property Appellate Tribunal, Company Law Board or the National Company Law Tribunal, Securities Appellate Tribunal, and Telecom Dispute Settlement and Appellate tribunal. The minimum pecuniary jurisdiction of the Commercial Courts and Commercial Division is stipulated as one crore rupees.4. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015The Act make provisions to deal with the problem of the Black money that is undisclosed foreign income and assets, the procedure for dealing with such income and assets and to provide for imposition of tax on any undisclosed foreign income and asset held outside India. It functions as an addition to the Prevention of Money Laundering Act, 2002.It applies a flat rate of 30 per cent to undisclosed foreign income or assets of the previous assessment year. (Section 3(1)) No exemption, deduction or set off of any carried forward losses (as provided under the IT Act) would apply. This would apply from April 1, 2016 onwards.It provided for a one-time compliance opportunity to persons who have any undisclosed foreign assets (for all previous assessment years) will be provided for a limited period. Such persons were permitted to file a declaration before a tax authority, and pay a penalty at the rate of 100%. The compliance window was opened from July 1, 2015 to September 30, 2015. Tax at the rate of 30 percent and penalty at the rate of 30 percent is to be paid by...

Laws Enacted in 2015: A Snapshot

Apoorva Mandhani

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Laws Enacted in 2015: A Snapshot

Apoorva Mandhani

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