August 2015 issue of Corporate Amicus carries an article titled ‘ Letter and Spirit of the law’ in which the author discusses how certain sections of the Companies Act, 2013 are delightfully vague and at times even with contra-indications, with unintended consequences as companies are adopting different practices and interpretations on the same subject matter.
Notifications & Circular portion in this Amicus covers circular issued by Reserve Bank of India in which it clarifies that the restriction on investments with less than three years residual maturity shall not be applicable to investments by FPI’s in security receipts issued by the Asset Reconstruction Companies. Further Securities and Exchange Board of India has issued Circular modifying the format for disclosures required to be made under Regulation 31(1) and 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011this is also summarized in this issue.
Ratio Decidendi part of this issue of Corporate Amicus covers Supreme Court judgment holding that simply because some payments were made by the contractee so as to facilitate the contractor, no privity of contract is established between the contractee and the sub-contractor. Further Supreme Court in another case held that contractor cannot claim interest either before a Civil Court or before an Arbitral Tribunal when the agreement between the parties barred such payment. Bombay High Court judgment holding that tenure of Managing Director of a public company does not cease automatically by operation of law the moment he turns 70 years of age is also covered under this section.
August, 2015/Issue-48