NEWS

20 March 2023

Money laundering provisions to apply to Cryptocurrency sector

Based on the recommendations of the Financial Action Task Force (‘FATF’), the Finance Ministry, vide Notification dated 7 March 2023 has brought cryptocurrency exchanges within the ambit of the Prevention of Money Laundering Act, 2002 (‘PMLA’ or ‘Act’) by including them within the definition of ‘reporting entity’.

Person authorized by the company to sign a cheque is not the ‘drawer’

The Bombay High Court has on 8 March 2023 held that the signatory of the cheque, authorized by the ‘Company’, is not the ‘drawer’ and that such signatory cannot be directed to pay interim compensation in terms of Section 143A of the Negotiable Instruments Act, 1881 (‘NI Act’), leaving aside the company.

Arbitration provision in SEZ Act will prevail over agreement between parties providing for remedy under Arbitration and Conciliation Act

In a dispute where the question involved was whether the arbitrability should be under the Arbitration and Conciliation Act, 1996 Act or under the SEZ Act, 2005, the Telangana High Court has held that since Section 42 of the SEZ Act is a statutory provision with a non-obstante clause, it would have an overriding effect over clause 23 of the development agreement.