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Relief to Affected Home Buyers For Delay In Possession

Delays in handing over the possession of flats has become a rampant practice in the Indian real estate industry, due to which numerous innocent home buyers are being penalised. With developers indulging in the delay tactics in handing over possession of flats, home buyers are not only left in the lurch, but are also being forced to pay ‘equated monthly instalments’ (“EMIs”) on home loans.  However, over the years various forums have come to the rescue of the flat buyers.

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Of Gambling and Gaming

India’s Ministry of Information and Broadcasting (“MIB”), on June 13, 2022, issued an advisory (“Gambling Advisory”)1 to the media, including newspapers, private satellite television channels and publishers of news and current affairs on digital media, which has been the subject of much discussion and reporting.

Continue Reading Of Gambling and Gaming: A Tale of two Advisories

Consent in Healthcare

In Part 1 of this series (Consent in Healthcare: Outline, Gaps and Conundrum), we presented a brief regulatory background on informed consent in healthcare in India, as well as judicial pronouncements on the topic. We also focussed on specific methods of obtaining consent as prescribed by such regulations.

In this section, we’ll look at the practical implications of such legislations and rulings, particularly in the context of telemedicine and digital health, as well as instances in which the patient is unable to provide consent.

Continue Reading Consent in Healthcare: Outline, Gaps and Conundrum (Part 2)

security clearance

Background:

The Ministry of Corporate Affairs (“MCA”), vide notification dated June 1, 2022, notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 (“2022 Amendment Rules”), which amended the Companies (Appointment and Qualification of Directors) Rules, 2014 (“Appointment and Qualification Rules”).[1] This amendment states the security clearance requirements needed to hold directorship position in an Indian company, if an individual is a national of a country which shares land border with India.

Continue Reading Raising the wall higher: This time no directorship without security clearance

NOIDA stands in the shoes of an operational creditor

Introduction

The resolution process for real estate companies is anything but simple, given the complexities involved and the plethora of parties with varied and conflicting interests. One such issue was whether local industrial development authorities, in particular the New Okhla Industrial Development Authority (“NOIDA”), should be classified as financial creditors or operational creditors, by virtue of the lease deeds they enter into with various corporate debtors.

The question has now finally been answered. The Hon’ble Supreme Court of India vide its judgment dated May 17, 2022, in the case of New Okhla Industrial Development Authority v. Anand Sonbhadra[1], has now declared that NOIDA is not a financial creditor and would be classified as an operational creditor under the Insolvency and Bankruptcy Code, 2016 (the “Code”). The issue involved in the Anand Sonbhadra (supra.) judgment was whether 90 year leases entered into between NOIDA and real estate companies give rise to a financial or operational debt in the event that corporate insolvency resolution proceedings are initiated against such real estate companies.

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ESOP Has SEBI Put an End to ‘Sell All’ Method of Cashless Exercise

Employee stock options are frequently used as an employee incentivisation and retention tool, given the benefit accrued over time. An ESOP-wrapped compensation is attractive because the gains from the shares acquired on exercise of employee stock options are much higher than the exercise price paid for the options. While the maximum or minimum price payable on exercise of the options is not prescribed by the law – which only lays down the requirement for the price to be accounting-standard compliant –  the price typically ranges from the face value of the share to the fair market value of the share.

Continue Reading ESOP: Has SEBI Put an End to ‘Sell All’ Method of Cashless Exercise?

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Regulatory overload on Audit Committees

Background

The regulatory architecture under the Companies Act, 2013 (“Act”), and the SEBI (LODR) Regulations, 2015 (“LODR”) places significant emphasis on the functioning of various committees of the Board of Directors (“Board”) of a listed company. While all Board committees have been entrusted with important responsibilities, a disproportionate amount of the regulatory burden has been placed on the Audit Committee. The Audit Committee has multifarious responsibilities under Section 177 and various other provisions of the Act, the LODR, and the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”).

Continue Reading Gatekeepers of Governance – Audit Committee

Interpreting Limitation Provisions

Introduction

The Supreme Court of India, in a recent judgment, reiterated that the limitation period for filing of an appeal against the order of the National Company Law Tribunal (“NCLT”) as laid down under Section 61 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) has to be interpreted strictly.

Continue Reading Interpreting Limitation Provisions – Supreme Court Rejects the ‘Date of Knowledge’ Argument

power of attorney

The concept of granting authority or delegating is not new to India, in fact, it can be traced back several hundred years. This concept of bestowing power on a person, by another person, to do things in a formal manner is called a ‘power of attorney’. Power of Attorney is widely used in personal and business transactions, as well as in conducting litigations before courts. The person granting the power is called the ‘principal’ and the one who acts on behalf of the principal is an ‘agent’ or ‘attorney’ of the principal. An act done by the agent, pursuant to the powers granted, binds the principal as if the principal himself has done it.

Continue Reading Have You Got the Power?

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Dissolution of a partnership firm

Introduction:

Dissolution of a partnership firm entails closure of the business of the partnership, settlement of books and accounts of the partnership and distribution of the surplus property (i.e. remaining property of the partnership after settlement of debts and liabilities of the firm) among partners as per their respective shares in the partnership firm.

Continue Reading Distribution of Assets of a Partnership Firm upon Dissolution – Is Registration of Deed of Dissolution or an Arbitration Award mandatory when Immovable Property is involved?