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Company Law Tribunal constitutionally valid – SC

22 May, 2015

Five Judge Bench of the Supreme Court of India has rejected the challenge to the constitutional validity of setting up of the National Company Law Appellate Tribunal (NCLAT). The Court in this regard rejected the contention of the petitioner that the earlier 2010 judgment of the Court dealing with the issue of constitutional validity of the National ...

Relief against third party in Arbitration

22 May, 2015

Relying on earlier judgments, the Delhi High Court has on 5-5-2015 held that while considering a petition under Section 9 of the Arbitration and Conciliation Act, the Court is within its right to pass order against third party. It was also held that when jurisdiction of the Court is invoked post-award by way of petition under Section 9, interim prote...

Exclusive agreements by e-commerce sites with sellers of goods/services, not anti-competitive

22 May, 2015

Considering various factors listed in Section 19(3) of the Competition Act, the Competition Commission of India (CCI) has held that ‘exclusive agreements’ by e-commerce portals with sellers of goods/services, to sell specified goods exclusively on those portals, does not lead to ‘Appreciable Adverse Effect on Competition’ (AAE...

Sale of shares of Indian company by foreign company, outside India – Jurisdiction of CLB

22 May, 2015

Madras High Court has set aside the Company Law Board’s order which had held that in a case involving sale of shares of the Indian company by the foreign company, on action by one of the secured creditors of the latter, the question as to whether the Receiver outside India made best efforts to get maximum relief to the creditors of the foreign ...

SSI – List of items reserved for exclusive manufacture by small enterprises, omitted

22 April, 2015

Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry has omitted 20 of the last remaining serial numbers in the list of items reserved for exclusive manufacture by micro and small enterprise sector. By Notification S.O. 998(E), dated 10-4-2015, Notification No. S.O. 477(E), dated 25-7-1991 has been amended in th...

International Financial Services Centre – RBI, SEBI & IRDA issue guidelines

22 April,2015

In a major move to bring more meaning to SEZs in India, the Reserve Bank of India has notified Foreign Exchange Management (International Financial Services Centre) Regulations 2015, according to which a financial institution or a branch thereof set up in the International Financial Services Centre (IFSC) and permitted or recognised as such by the g...

Implied exclusion of Indian laws under an arbitration agreement

19 March, 2015 The agreement stipulated that the contract is to be governed and construed according to the English law in the arbitration clause. No other clause stating the applicable law was included in the agreement. Although there was no express exclusion of Indian laws or the Arbitration and Conciliation Act, 1996, there was ample indication of this through various phrases like ‘arbitrat...

Loans and advances by company to employees clarified

19 March, 2015 The Ministry of Corporate Affairs has clarified that loans or advances made by the companies to their employees, other than to the managing or whole time directors (which is governed by Section 185) are not governed by the requirements of Section 186 of the Companies Act, 2013. Earlier, the provisions of Section 186 were applicable to loans to ‘any person’ or other body corpora...

CCI order on abuse of dominance quashed

19 March, 2015 The Competition Appellate Tribunal (COMPAT) has set aside the order of the Competition Commission of India which had found abuse of dominance reasoning that information downloaded from the net and similar other material as relied upon by the Commission do not have any evidentiary value. The Tribunal in this regard noted that information available in the public domain could not ...

SEZ – Dual use of infrastructure permitted in non-processing area

20 January, 2015 Ministry of Commerce and Industry has allowed dual use of non-processing area in the Special Economic Zones with effect from 2-1-2015. According to the newly inserted Rule 11A in the Special Economic Zones Rules, 2006, the non-processing area can be divided into two parts, wherein social or commercial infrastructure and facilities in one part can be used both by SEZ entities ...

Status of secured creditor not alters unless charge explicitly extinguished

20 January, 2015 The Supreme Court of India has, on 9-1-2015, held that a charge created under Section 125 of Companies Act, 1956 shall not be extinguished unless the arbitration award does not explicitly say so. It was held that the consent award in an arbitral proceeding would not bar a suit for enforcement of the charge and it would not be hit by Order II, Rule 2 Code of Civil Procedure, a...

Director’s liability – ‘Alter ego’ and attribution of acts of companies

20 January, 2015 The Supreme Court of India has, on 9-1-2015, held that when the company is the offender, vicarious liability of the Directors cannot be imputed automatically, in the absence of any statutory provision to this effect. The Court in this regard set aside the Order of the special magistrate which had treated Managing Directors of specified companies as “alter ego” of their respec...

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