Summary: The Companies Act, 2013, imposes absolute structural restrictions on most classes of companies (barring a few) from having more than two layers of subsidiaries. This blog analyses whether such absolute restrictions will meet the test of proportionality laid down by the SC, considering that prima facie such restrictions violate the fundamental right to carry on any occupation, trade or business.Continue Reading Are Layering Restrictions under the Companies Act Constitutionally Valid?
The Central Government recognised the importance of setting up tribunals outside the judicial system that would help alleviate the overburdened judicial machinery. In 1976, the Constitution of India (“Constitution”) was amended through the 42nd Amendment to add two new provisions to the Constitution, viz., Articles 323A and 323B. This change laid the foundation for tribunal system and for the evolution of the system of administrative adjudication in India.Continue Reading Administrative Adjudication under the Companies Act – Need for a relook at appeal provisions