IBC and Limitation - The Dust Settles Blog

The Supreme Court in the case of Laxmi Pat Surana vs Union Bank of India & Anr. [Civil Appeal No. 2734 of 2020] (“Laxmi Pat”) has settled the issue of the applicability of Section 18 of the Limitation Act, 1963 (“Limitation Act”) to applications for initiation of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”). The Apex Court has held that Section 18 of the Limitation Act (“Section 18”) applies to extend the period of limitation for filing an application under Section 7 of the IBC. Continue Reading IBC and Limitation: The Dust Settles

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Indian Aerospace & Defence Sector Recent Changes and their Impact - Part 1

Part 1 of our blog post in this series discussed the evolution of the Aerospace and Defence (A&D) sector in India over the years and certain recent policy changes introduced by the Government during the Covid era, focused on making the A&D sector one of the major pillars of the Atmanirbhar Bharat Abhiyan.  In this second part, we analyse how these policy changes will impact various players in the A&D sector in India going forward.   Continue Reading Indian Aerospace & Defence Sector : Recent Changes and their Impact: Part 2

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Indian Aerospace & Defence Sector Recent Changes and their Impact - Part 1

The Indian military aerospace and defence (A&D) industry has seen a slew of policy decisions being taken and implemented during the Covid era. From increasing the automatic route limit for foreign investment in the sector, to imposing a ban on import of various defence items, it is clear that the Government is focused on the growth and development of the sector. This two-part post analyses the various policy decisions taken recently and their impact on the various players in the A&D ecosystem. In the first part, we analyse the existing A&D sector landscape and its evolution so far. In part two, we analyse the impact of the various recent policy changes and the changing role of the players in the sector. Continue Reading Indian Aerospace & Defence Sector : Recent Changes and their Impact: Part 1

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Does NCLT has power to refer parties to Arbitration in an in rem insolvency proceeding

 

The conflict between Insolvency and Arbitration is almost of near polar extremes. The difference in focus of the two was well illustrated in Re United States Lines Inc[1] as a:

“… conflict of near polar extremes: bankruptcy policy exerts an inexorable pull towards centralization while arbitration policy advocates a decentralized approach towards dispute resolution”.

Thus, while insolvency/ bankruptcy aims to centralise all the proceedings against a debtor to one jurisdiction and give rise to a proceeding in rem (against the world at large) thereby creating third party rights for all creditors of the debtor, arbitration on the other hand advocates a decentralised approach and promotes party autonomy in dispute resolution resulting in a proceeding in personam (against a particular person). Continue Reading Does NCLT has power to refer parties to Arbitration in an in rem insolvency proceeding?

New Remuneration Regime for Independent Directors - Will It help in attracting better talent on the boards of India Inc

Recently, the Ministry of Corporate Affairs (‘MCA’) has notified the amendments made to Sections 149(9) and 197(3) of the Companies Act, 2013 (‘2013 Act’) by the Companies (Amendment) Act, 2020 (‘2020 Amendment’) -to enable companies faced with absence or inadequacy of profits to pay certain minimum guaranteed remuneration to Non-Executive Directors (‘NEDs’) and Independent Directors (‘IDs’), as may be prescribed. On the same day, the MCA also issued a Notification to amend Schedule V of the 2013 Act to prescribe the scale of remuneration which can be paid to NEDs and IDs, depending on the effective capital of the company. Continue Reading New Remuneration Regime for Independent Directors- Will It help in attracting better talent on the boards of India Inc?

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Dispute mechanism available under a lease

How it started:

It started with the case of Booz-Allen & Hamilton Inc v. SBI Home Finance Ltd & Others (“Booz-Allen”), wherein the Supreme Court, after hearing the matter, held that the disputes relating to eviction and tenancy were not arbitrable. Leases are governed under the Transfer of Property Act, 1882 (“TOPA”). The court discussed the nature and scope of issues arising for consideration in an application under Section 8 of the Arbitration and Conciliation Act (“Act”) wherein “even if there is an arbitration agreement between the parties, and even if the dispute is covered by the arbitration agreement, the court where the civil suit is pending, will refuse an application under Section 8 of the Act, to refer the parties to arbitration, if the subject matter of the suit is capable of adjudication only by a public forum or the relief claimed can only be granted by a special court or Tribunal”. Continue Reading Dispute mechanism available under a lease

Liberalisation of FDI In Insurance Companies – A look at the step(s) taken since the Big Budget Announcement

The industry is now well versed with the move to liberalise foreign direct investment (“FDI”) in Indian insurance companies to 74%, from the existing cap of 49%. The announcement was first made by the Finance Minister Ms. Nirmala Sitharaman on February 1, 2021, as part of her Budget presentation. The move followed the raise in FDI limits to 100% in insurance intermediaries, which was announced by Ms. Sitharaman in July 2019 and effected in September 2019. Continue Reading Liberalisation of FDI In Insurance Companies – A Look at the Step(s) Taken Since the Big Budget Announcement

Pledge of Shares of an Insurance Company - A discussion on IRDAI clarifications

Introduction

We have in our recent post discussed the clarifications issued by the Insurance Regulatory and Development Authority of India (“IRDAI”)  in relation to Transfer of Shares of an insurance company. These clarifications were notified pursuant to the circular issued to all CMDs and CEOs of insurance and re-insurance companies on July 22, 2020 (“Circular”). However, the Circular also discussed certain critical issues relating to creation of pledge over shares of an insurance company. Continue Reading Pledge of Shares of an Insurance Company: A discussion on IRDAI clarifications

RBI Payment Regulations - 2009 to 2021 - Bank nodals to PA PG licenses

Introduction:

In early March 2020, a regulatory moratorium imposed on a private bank in India froze the country’s digital payments ecosystem. Many payment aggregators (“PA”) and payment gateways (“PG”) had set up nodal accounts with this bank, including others, and it raised a question on whether the customer funds pooled in those accounts were bankruptcy ‘remote’. Within 10 days, the Reserve Bank of India (“RBI”) issued the payment aggregator and gateway guidelines (“PA/PG Guidelines”) on March 17, 2020, under the Payment and Settlement Systems Act, 2007 (“PSSA”), to regulate PAs and prescribe baseline technology standards for PAs and PGs. Continue Reading FIG Papers (No. 5 : Series -1) : RBI Payment Regulations – 2009 to 2021: Bank ‘nodals’ to PA/PG licenses! 

LIMITATION PERIOD FOR FILING A SECTION 34 PETITION BEGINS FROM THE DATE OF RECEIPT OF THE SIGNED COPY OF THE ARBITRAL AWARD

Introduction:

Recently, a division bench of the Supreme Court in Dakshin Haryana Bijli Vitran Nigam Ltd. V. M/s Navigant Technologies Pvt. Ltd.[1] has inter alia (i) clarified when the limitation period for challenging an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) commences; (ii) discussed the legal requirement and significance of an award being signed; and (iii) highlighted the relevance of dissenting opinions in arbitration proceedings. The Court has also made observations on what happens to the underlying disputes between the parties after an award is set aside. Continue Reading Limitation period for filing a Section 34 Petition begins from the Date of Receipt of the Signed Copy of the Arbitral Award