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Bombay High Court rules on meeting requirements

23 May, 2014 Even as the new Companies Act continues to unfold slowly, issues of interpretation and conflicts have started to appear. Deciding on an application by Godrej Industries in CSD/256/2014 dated 8-5-2014, the Bombay High Court held that the new companies Act does not totally do away with the requirement of meetings. Electronic voting is sufficient as a meeting, an opportunity to pa...

Public offer as per Takeover Regulations includes voluntary open offer - Economic viability not ground for withdrawal

16 May, 2014 The fundamental issue which arose in this appeal before Supreme Court was whether an open offer voluntarily made through a public announcement for purchase of shares of the target company can be permitted to be withdrawn under Regulation 23(1)(d) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘New Takeover Regulations’) on the ground that the volunta...

Non-competitor cannot be held liable for denial of market access

16 May, 2014 The Competition Appellate Tribunal (COMPAT) has overruled the ruling given by Competition Commission of India in 2012 [Please refer Corporate Amicus-July 2012 issue for CCI Order] imposing penalty on cable operators for denial of market access to the broadcasters and other stakeholders, by certain cable operators who worked as a group, and hence acting in contravention to Section...

Target discounts when not make prices discriminatory

21 April, 2014 Competition Appellate Tribunal (COMPAT) has on 2nd of April 2014 held that price and conditions can be said to be discriminatory, if and only if, they are different for the same quantities of the same product. Overruling the majority order of the Competition Commission of India (CCI), the Tribunal noted the contentions of the appellant (Schott Glass India Pvt. Ltd.) that higher...

Arbitration – Absence of express intention

21 April, 2014 Supreme Court of India has on 7-4-2014 held that in the absence of an arbitration clause (or intention for same) in an agreement, as defined in sub-section (4) of Section 7 of the Arbitration and Conciliation Act, 1996, the dispute between Power Transmission Corporation Limited v. Deepak Cables (India) Ltd. cannot be referred to the arbitral tribunal for adjudication. The court...

Combination regulations under Competition Act, amended

18 April, 2014 Competition Commission of India (CCI) has amended the Competition Commission of India (Procedure in regard to the Transaction of Business relating to Combinations) Regulations, 2011. According to the amendments effective from 28th March, 2014, while fees in respect of both Forms (Form I and II) has been revised from INR 10 lakhs and INR 40 lakhs to INR 15 lakhs and INR 50 lakhs...

CSR provisions to come into force from 1st April 2014

18 March, 2014 Section 135 of Companies Act, 2013 (Act) and Schedule VII demarcating Corporate Social Responsibilities (CSR) of companies in India shall come into force from 1-4-2014. Along with notification relating to effective date for Section 135, Ministry of Corporate Affairs (MCA) has also issued, on 27-2-2014, notification relating to amendment to Schedule VII of the Act. Further, Co...

Arbitration – Separate application under Section 8 not required

18 March, 2014 The Delhi High Court has held that separate application under Section 8 of the Arbitration and Conciliation Act, 1996 is not necessary. Rejecting the contention that a matter is not required to be referred to arbitration in case neither party files an application for reference of dispute to an arbitrator under said Section 8, the court held that there is no requirement of a req...

No cartelization by asbestos cement sheet manufacturers

18 March, 2014 Competition Commission of India has on 11-2-2014 in Suo-Motu Case No. 1 of 2012, held that there is no evidence to suggest cartelization by asbestos cement sheet (ACS) manufacturers and the provisions of Section 3(3) read with Section 3(1) of the Competition Act, 2003 have not been contravened. Discussing the findings of the Director General (DG), the Commission held that there...

Employees seconded to liaison office in India - FEMA not applicable

19 February, 2014 Delhi High Court has held that expatriate employees of the Head Office (HO) of foreign company, posted in India with the Liaison Office (LO) in India, continue to be employees of the HO. The court negated the findings of the Appellate Tribunal that employees of the HO, seconded to the LO, are its "borrowed employees". In the present case, these deputed employees continued to...

Competition law – Penalty on employee

19 February, 2014 The Competition Appellate Tribunal (COMPAT) has upheld personal penalty on employees of the company after noting that the persons were involved in the process of taking coordinated action together with other producers/directors in boycotting multiplexes for release of films. Employees’ contention that they did not do anything in their.  personal capacity and that CCI shoul...

Third party payments for export/import transactions – Conditions relaxed

19 Februray, 2014 The Reserve Bank of India has liberalized norms for third party payments in foreign trade transactions. AD Category banks may now not insist that a ‘firm irrevocable order backed by a tripartite agreement should be in place’ for undertaking remittance in cases where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned...

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