The Singapore Convention on Mediation 2019

The United Nations Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention) was adopted by the United Nations on June 26, 2018 and opened for signature on August 7, 2019, with 46 countries affixing their signatures to what is intended be a game changer in the alternate dispute resolution space.

The use of mediation has grown, particularly because it is cheaper than international arbitration (which is now being criticised for the very evils it was created to avoid, i.e. costs and complexity), and also because it is more likely to preserve commercial relationships.  These benefits are recognised in the Preamble to the Convention, reflecting the hope that the enforceability of international commercial settlement agreements  would facilitate efficient administration of justice by States, and also contribute to the development of harmonious international economic relations. Continue Reading The Singapore Convention on Mediation – India’s Pro-enforcement Run Continues

To Bet or Not to Bet - Sports Betting Laws in India

As the society changes, the law cannot remain immutable”

– Justice D P Madon

They say cricket is not a game, it is a religion. In 2019, the India – Pakistan ICC World Cup match saw a viewership of 229 million within India itself[1]. The importance of cricket as a unifying force cannot be debated and needn’t be proved; what is rather interesting is the ancillary impact a simple match of cricket can have on an economy, such as India.

Economic exploitation of cricket is widespread globally: it includes broadcasting rights, sponsorship and merchandising, to name a few. However, another prevalent and illegal exploitation in the form of betting takes precedence over all of the above, for the simple reason that due to the nature of the transaction, the said consideration paid, is officially taken out of India’s financial system and put into a parallel industry, which remains untaxed and unregulated. Continue Reading To Bet or Not to Bet

Home Buyers are equivalent toFinancial Creditors Supreme Court Reigns

The Supreme Court in Pioneer Urban Land and Infrastructure Limited vs. Union of India (Pioneer Judgment)[1], has upheld the constitutionality of the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 (Amendment Act)[2]. Through the Amendment Act[3], the ‘real estate allottees’ (home buyers), as defined under Section 2(d) of the Real Estate (Regulation and Development) Act, 2016 (RERA), were brought within the ambit of ‘financial creditor’ under the Insolvency and Bankruptcy Code, 2016 (IBC).

A three judges’ bench headed by Hon’ble Mr. Justice Rohinton Nariman disposed off a batch of over 150 petitions filed by the real estate developers challenging the constitutional validity of the Amendment Act. The Supreme Court also held that the RERA has to be read harmoniously with the IBC and, in the event of a conflict, the IBC will prevail over the RERA.

Continue Reading Home Buyers = Financial Creditors: Supreme Court Reigns

Extradition Law - Fundamentals and Processes

Part I of the article elaborates on legal basis and purpose extradition, the procedure and the statutory provisions of Indian Extradition Act, 1962 as well as the key aspects of the extradition treaty between India and the UK. Here we will discuss the extradition treaties between India and the US, India and UAE. This post further elaborates on the practice of non-extradition of own nationals and various issues that may be faced by States whilst processing a request for extradition.

Extradition Treaty Between India & the United States (US)

The offence is extraditable if punishable under the laws in both contracting parties by imprisonments for more than one year or by a more severe penalty. This applies: Continue Reading Extradition Law: Fundamentals and Processes – Part II

Indian Extradition Law - Fundamentals and Processes - Part 1

 

Under International law, extradition[i] is a formal, diplomatic process by which one state requests another to effect the return of custody of a fugitive criminal[ii] for crimes punishable by the laws of the requesting State and committed outside the jurisdiction of the country where such person has taken refuge. International extradition[iii] is an obligation undertaken by States in good faith to promote and execute justice[iv].

The first formal act providing for extradition was adopted in 1833 by Belgium, which also passed the first law on the right to asylum. Extradition Acts not only specify extraditable crimes, but also detail procedures and safeguards whilst defining the relationship between the Act and the treaty. Continue Reading Extradition Law: Fundamentals and Processes – Part I

 

Companies (Amendment) Act, 2019

Commitment to social causes is best done voluntarily. Accordingly, corporate social responsibility (CSR) was originally introduced in Section 135 of the Companies Act, 2013 (Companies Act), in keeping with global best practices, to provide a framework to encourage companies to meaningfully contribute to communities.

The framework was premised on the principle that companies would contribute the prescribed amount in good faith and the requirement ‘to explain’ any failure to contribute, in their board report, was considered a sufficient disincentive to ensure compliance.[1]  Continue Reading Corporate Social Responsibility – Less Carrot More Stick

Amendments to the ECB Policy - A Big Boost for Cross-Border Financings

Given prevailing market conditions, Indian corporates have increasingly been facing issues in accessing credit from onshore loan and debt capital markets. Recent Securities and Exchange Board of India (SEBI) regulations aimed at growing the debt capital market in India and reducing dependence of corporate India on loans from the Indian banking sector require that certain Indian companies must necessarily fund a specified percentage of their debt requirements by issuing bonds.

The forthcoming implementation of new norms on single and group exposures for the Indian banking system is also resulting in some of the larger corporates having to look at other options beyond their preferred relationship banks onshore for meeting their debt funding requirements. Both the non-banking sector and the mutual fund industry in India – significant sources for onshore debt markets – are also currently grappling with their own set of challenges. In this environment, these amendments to the External Commercial Borrowing (ECB) framework are most welcome as they will allow Indian companies to look at tapping the offshore loan and bond markets for raising debt capital. Continue Reading Amendments to the ECB Policy – A Big Boost for Cross-Border Financings?

US Sanctions on Iran and their Impact on India

The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against foreign countries, regimes, terrorists, and similar forces that are engaged in activities related to the proliferation of weapons of mass destruction and other acts that may be considered as threats to the national security, foreign policy or economy of the United States of America (US).

The nature of sanctions imposed by the US is two pronged, i.e. Primary and Secondary.  Primary sanctions are in the nature of asset freezing, trade embargos, and a prohibition on US citizens and companies from engaging with Iran. Secondary sanctions place an embargo on third-party countries, its citizens and companies with no nexus to the US, for dealing with sanctioned countries. Secondary sanctions are invariably extra-territorial in nature and raise important questions about legitimacy, international law principles, and the concept of sovereignty. Continue Reading US Sanctions on Iran and their Impact on India

InsurTech Sandbox - IRDAI Releases an Important Update

 

So far this year,  Indian financial sector regulators have taken steps towards adapting financial sector regulations to encourage the use of new technology. On April 18, 2019, the Reserve Bank of India (RBI) released its Draft Enabling Framework for Regulatory Sandbox for public comments. Following the RBI, the Securities and Exchange Board of India (SEBI) on May 20, 2019, released its Framework for Innovation Sandbox to the public[1].

The Insurance Regulatory & Development Authority of India (IRDAI) has not lagged behind in proposing regulatory changes for encouraging the use of new technology as a part of the insurance sector, especially in the life and health insurance sector. In 2017, the IRDAI initiated discussions intending to refine existing law for allowing the use of telematics in the motor insurance space whilst protecting data and privacy of customers from organisations using telematics. In late 2018, the IRDAI constituted a Working Group (Wearable Technology WG) for considering regulatory reforms for examining innovation in the use of wearable / portable devices in the insurance sector. Continue Reading InsurTech Sandbox – IRDAI Releases an Important Update (But Some Debugging Still Required)

Model Tenancy Law - Model Tenancy Act Overview - Landlord Rights in India

 

The announcement of the Union Budget 2019-2020 (Budget) by the Finance Minister, Ms. Nirmala Sitharaman, introduced a few changes in the periphery of the real estate sector. On July 10, 2019, the housing ministry put a policy in the public domain for suggestions, which could act as the model act for States and Union Territories to regulate this segment. The Model Tenancy Act, 2019 (Model Act), takes forward what was proposed in the Draft Model Tenancy Act, 2015.

With property prices far beyond the reach of many millennials, renting has the opportunity to become a far more common housing option. The Model Act brings in transparency enabling a two-fold mechanism wherein the landowners will be less vary of a possible threat of repossession and will let-out their homes to yield rent, which will in turn increase the footing for the real estate market. The concept of sharing spaces both living and working viz. a viz. ownership, presently being the market preference, have been covered under the Model Act.   Continue Reading An Overview of Model Tenancy Law