Rights of Suspended Board - Vijay Kumar Jain v. Standard Chartered Bank

 

Upon commencement of the resolution process under the Insolvency and Bankruptcy Code, 2016 (Code), powers of the Board of Directors of the company stand suspended and are vested in and exercised by the resolution professional. While the directors are entitled to attend the meetings of the committee of creditors (COC) formed for the company, such directors have no voting rights.

A question arose over whether the directors should be given copies of the resolution plans and other confidential documents that the COC considers during the meetings. Sharing of such documents could be seen as in direct conflict with the obligations of the resolution professional to maintain confidentiality under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) and other related regulations. More importantly, it could create positions of conflict between the suspended Board, who often submit resolution plans or are applicants under Section 12A, and the other participants. The Hon’ble Supreme Court in its recent judgment in Vijay Kumar Jain v. Standard Chartered Bank and Others[1] has, with great respect, left some questions unanswered. Continue Reading Supreme Court on the Rights of Suspended Board in Vijay Kumar Jain v. Standard Chartered Bank: Some Implications

 

what are Press Notes and legal status of press notes

Vital economic policy issues, such as Foreign Direct Investment (FDI) Policy have been announced through various Press Notes issued by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry. These Press Notes are not a product of legislative process, nor are they debated before Parliament, and yet they have far reaching consequences on economic policy. Continue Reading Legal Status of Press Notes

Contract Enforcement Laws

The Ease of Doing Business rankings released annually by the World Bank currently ranks India at 163 in Enforcing Contracts.[1] The importance placed by the Modi Government on these, and India’s overall dismal performance has forced the government to take several measures, especially in the field of enforcement of contracts.

The Indian Contract Act, 1872 (Contract Act) and the Specific Relief Act, 1963 (Act) are the two primary legislations governing the enforcement of contracts between parties. While the Contract Act lays down the general principles governing contracts and levy of damages for breach thereof, it also provides for an exception of awarding specific relief in the form of specific performance of contracts. Continue Reading Contract Enforcement – Ushering In an Era of Performance

Impact of the Companies (Amendment) Ordinance, 2018 on Registration of Charges

 

On November 2, 2018, the Ministry of Corporate affairs promulgated an ordinance[1] (the Ordinance) inter alia amending certain provisions of the Companies Act, 2013 (the Act). One of the amendments is for the purpose of reducing the extended timelines for filing a charge created by a company as per Section 77(1) of the Act upon payment of additional fees prescribed by the Registrar. Continue Reading Impact of the Companies (Amendment) Ordinance, 2018 on Registration of Charges

LNG as transport fuel in heavy vehicles India

According to World Health Organization (WHO), seven cities in India are positioned among the most polluted cities in the world. In these circumstances, the need of the hour, among other solutions, is to switch to a cleaner and more sustainable fossil fuel, for instance, liquefied natural gas (LNG). The combustion of natural gas does not emit soot, dust or fumes, and thus it makes it one of the cleanest fossil fuels with high energy to carbon ratio. Continue Reading LNG as Transport Fuel in India

Amendments to the SEBI Delisting Regulations – A Welcome Move

 

Pursuant to the discussion paper on delisting of equity shares floated by the Securities and Exchange Board of India (SEBI) on July 26, 2018, SEBI has recently amended the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Delisting Regulations) and has accordingly notified the Securities and Exchange Board of India (Delisting of Equity Shares) (Second Amendment) Regulations, 2018 (Amended Delisting Regulations) on November 14, 2018. The aim of the amendment is to plug loopholes in the delisting process considering the interests of the promoters/acquirers and public shareholders. Continue Reading Amendments to the Delisting Regulations – A Welcome Move

The Maternity Leave Incentive Scheme, 2018 for working women in India

The Maternity Benefit Act, 1961 (MB Act) was amended in 2017 (Amendment), to enhance/ increase the maternity leave period to 26 weeks from the previous 12, for a woman employee, for the first two children. This blog follows on from our previous posts wherein we discussed the obligations under the Amendment that were solely applicable to an employer. Read our previous post here.

Since the Amendment was aimed to ensure the health of women employees pursuant to giving birth, and to also ensure safety of the new born child, it appeared to be a positive development for women employees in the private sector. However, the implementation of the Amendment has been inadequate and ineffective. Continue Reading The Maternity Leave Incentive Scheme, 2018: Blessing in the Pipeline for Working Women in India

Changes in the Indian Companies Act

Recently, based on the recommendations of the Committee to Review Offences under the Companies Act, 2013 (Committee), the Companies (Amendment) Ordinance, 2018 (Ordinance) was passed on November 2, 2018, to effect certain changes in the Companies Act, 2018 (CA 2013). Around the same time the Ministry of Corporate Affairs (MCA) also issued a notice, seeking comments/suggestions from stakeholders on additional amendments of an “urgent nature” that are required to strengthen the corporate governance and enforcement framework (Notice). This article discusses some of the key amendments proposed in the Notice, which would have far reaching impact if approved in their current form. Continue Reading Companies Act, 2013: More Changes in the Offing

Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Protection and Control) Act, 2017

The Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Protection and Control) Act, 2017 (the Act) was enacted on September 10, 2018.

The Act was introduced since India is a signatory to the United Nations’ Declaration of Commitment on Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome, 2001.

The Act provides for the prevention, control and protection of human rights of persons affected by the human immunodeficiency virus (HIV) and acquired immune deficiency syndrome (AIDS). Continue Reading Introduction to the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Protection and Control) Act, 2017

Transgenders employment in private companies in India

Discrimination is not unknown in India when it comes to inclusion of transgender people in society, especially in terms of employment opportunities. Consistent efforts by activists over the past several years, has resulted in the passing of the landmark order by the Hon’ble Supreme Court, in 2014 in case of National Legal Services Authority vs. Union of India. The Court emphasised that discrimination and ill-treatment of the transgender community is common in India, particularly in sectors such as education and employment. Consequently, the Court recognised the rights of the third gender to life with dignity, which is enshrined under Article 21[1] of the Constitution. In an attempt to provide legislative backing to the recommendations enunciated by the National Legal Services Authority of India , the Transgender Persons (Protection of Rights) Bill, 2016 (the Bill) has been drafted, and currently awaits Parliamentary approval to become law.

This article seeks to highlight the key provisions of the Bill and its legal impact with respect to a transgender person’s right to life with dignity including employment opportunities. Continue Reading Will Indian Workplace Ever Be ‘Inclusive’ Towards ‘Transgenders’?