Corporate
Order 23 Rule 1 CPC Applies To S.11 Arbitration Act; Fresh Arbitration Barred After Abandoning Earlier Claim : Supreme Court
The Supreme Court has observed that a party who abandons an earlier arbitration proceeding would be barred from initiating a subsequent arbitration proceeding on the same cause of action. The Court underscored that such conduct amounts to an abuse of the judicial process and is barred on grounds of public policy. “A litigant cannot be permitted to abuse the process of Court to file a...
When Data Is The Market: India's Competition Law Blind Spots
Artificial Intelligence tools such as ChatGPT and Gemini are now part of everyday life. A student may use ChatGPT to draft notes, while business owners may rely on Gemini to create marketing content or respond to customers. These tools appear as simple applications but behind them lies a complex ecosystem involving cloud computing, datasets and AI models controlled by a handful of large technology companies. This raises a question that is if a few firms control both the infrastructure and the...
From Pandemic Protectionism To Strategic Liberalisation: Rethinking India's FDI Security Regime After 2026 Amendment To Press Note 3
Among the most important and impactful regulatory decisions in the recent times in terms of the impact on the Indian foreign investment regime is the Press Note 3 (2020 Series) FDI Policy issued by the Government of India in 2020. The policy was issued during the COVID-19 pandemic with the objective of protecting Indian companies from opportunistic acquisitions by investors from countries that share a land border with India.The policy significantly modified the Indian regulatory framework of...
IBC | After Moratorium, Creditor Cannot Appropriate Pre-CIRP Dues From Earlier Security Deposit Made By Corporate Debtor : Supreme Court
The Supreme Court has observed that once a moratorium is imposed, a corporate debtor's pre-CIRP dues cannot be set off against a deposit held by the creditor. The Court held that until such deposit is lawfully adjusted, it continues to remain the property of the corporate debtor, and any appropriation after the moratorium would be impermissible in law. “The deposit made even if treated as...
IBC | Primacy Of Commercial Wisdom Doesn't Mean Every Decision Of CoC Will Be Immune From Judicial Scrutiny : Supreme Court
The Supreme Court has underscored that while the commercial wisdom of the Committee of Creditors remains paramount, it is not immune from judicial scrutiny where issues of statutory illegality or jurisdictional error arise. “…it is necessary to state that primacy of commercial wisdom does not mean that every action taken in the insolvency process is altogether immune from scrutiny in...
Fraudulent Diversion Of Company's Funds Can't Be Cured By Subsequent Shareholder Ratification : Supreme Court
The Supreme Court on Tuesday held that diversion of funds raised through preferential allotment for purposes other than those disclosed to investors amounts to fraud under securities law, and cannot be cured by subsequent shareholder ratification.Allowing appeals filed by the Securities and Exchange Board of India (SEBI), a Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan set aside...
Arbitration | Belated Jurisdictional Challenge Impermissible After Active Participation In Arbitration Proceedings: Supreme Court
The Supreme Court has observed that a party which participates in arbitration proceedings without raising a jurisdictional objection at the appropriate stage cannot subsequently raise a technical plea of jurisdiction of the arbitral tribunal upon passing of an adverse award. “A party cannot keep a 'jurisdictional ace' up their sleeve and then claim that filing of the jurisdictional...