Benami Transactions And Arbitrary Confiscation - First Chink In The Armour Of Supreme Court's Landmark PMLA Judgment?

A 3 judge bench of the Hon'ble Supreme Court comprising of the Hon'ble Chief Justice N.V. Ramana, Hon'ble Justice Krishna Murari and Hon'ble Justice Hima Kohli in Union of India vs M/s Ganpati Dealcom Pvt. Ltd, Civil Appeal No. 5783 of 2022 while dealing with a legal question whether the Prohibition of Benami Property Transactions Act, 1988 as amended by the Benami Transactions (Prohibition) Amendment Act, 2016 has a prospective effect or not, has also touched upon the judgement...

NCLT's Discretion To Not Admit Financial Creditor's CIRP Application

The Supreme Court in a recent Judgement of Vidarbha Industries Power Ltd. vs Axis Bank Limited (2022 SCC Online SC 841), observed that the Adjudicating Authority while exercising power under Section 7 of the Insolvency and Bankruptcy Code 2016 inter alia admitting the application to initiate Corporate Insolvency Resolution Process ("CIRP"), such power should be on a discretionary basis and cannot be exercised in an arbitrary manner. FACTS Axis Bank Limited, the Financial Creditor...

Special Purpose Acquisition Companies (SPACs) - Indian Context

Concept relating to Special Purpose Acquisition Companies (SPACs) have been in news lately in India. Popularly referred to as "Blank Cheque Companies", these piqued the interest of markets around the globe especially in view of the performance of the US markets during the COVID-19 pandemic. Also, the recent listing of Renew Power Private Limited, an Indian renewable energy company, on NASDAQ (an American stock exchange) through an internationally incorporated SPAC in August 2021, speaks...

Recommendations Of The Working Group On Digital Lending – Implementation: FLDG

The regulatory framework issued by the Reserve Bank of India ("RBI") on implementation of the Recommendations of the Working Group on Digital Lending on 10.08.2022 ("Implementation Framework")[1] has resulted in much discussion on permissibility of first loss default guarantee ("FLDG"). While interpreting the regulatory framework feels like looking at an Escher painting, in our view, the Master Direction – Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021 dated...

Legally Privileged Information: What can and cannot be disclosed

Legal privilege refers to the legal protection given to communications, documents and advice exchanged between a party and his / her legal professional adviser from being disclosed to the court or other persons. This article seeks to shed some more light on the concept of legally privileged information, the compulsion to disclose such information and the admissibility of such information in courts. Law governing privilege: Privilege of communication, documents and advice is covered...

Declaring NPA And Wilful Defaulter: A Banker's Obligation

Banks are evaluated on their standard of assets as well as their number of branches and deposit volume. Today, one of the major concerns for Indian banks are Non-Performing Assets ('NPAs'), as NPAs have detrimental impact on the bank's earnings, liquidity, and solvency. Failure in the banking industry could have a negative effect on several other industries. Certainly, NPAs have sickened the Indian economy for many years now, however, as a remedy, economic policies in India from time to...

NCLT Cannot Coerce Allottees Into Settlements

The jurisdiction of the National Company Law Tribunal ("NCLT") and the National Company Law Appellate Tribunal ("NCLAT") and the courses of action available to these authorities under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") has been defined and limited by the Hon'ble Supreme Court ("the Court") through its recent judgment in E. S. Krishnamurthy & Others ["Appellants"] v. Bharath Hi Tech Builders Pvt. Ltd...

Limitation For Filing An Appeal Under IBC

The Supreme Court ("the Court") on 23rd March, 2020 while taking suo motu cognizance of the COVID-19 pandemic extended the period of limitation under the Limitation Act, 1963 ("Limitation Act") for filing of petitions/applications/suits/ appeals/all other proceedings until further notice. This has led to confusion in computation of the period of limitation and has provided an opportunity to unscrupulous litigants to take undue advantage of this extension. One such issue regarding...

Finding Regarding 'Default' Ought Not To Be Recorded Before Submission Of RP's Report

The National Company Law Appellate Tribunal ("NCLAT / Tribunal") in its recent judgment in Kanchan Nanubhai Desai Personal Guarantor (Anoushka Medicare & Diagnostics Pvt. Ltd.) v. Finequest Financial Solutions Pvt. Ltd[1] has reaffirmed that in an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 ("Code") the National Company Law Tribunal ("NCLT") ought not to record findings regarding 'default' before the report by the Resolution Professional, as required...

Evolution Of IP Laws In OTT Platforms In India

The Indian Entertainment Industry "The Indian media and entertainment industry is one of the fastest growing media industries in the world and is projected to reach USD 100 billion by 2030." - Mr. Apurva Chandra, Secretary, Ministry of Information and Broadcasting (MIB)The entertainment industry in India is one of the largest in the world producing approximately 1,500 to 2,000 films each year in over 20 different languages. As of March 2022, the Indian media and entertainment...

Reverse Corporate Insolvency Resolution Process In Case Of Real Estate Companies

Taking a cue from the Supreme Court in the matter of Swiss Ribbons Private Limited and Anr. vs. Union of India and Ors.[1], a new concept by the name of 'Reverse Corporate Insolvency Resolution Process' was propounded by the National Company Law Appellate Tribunal ("NCLAT") for insolvency resolution of real estate companies in Flat Buyers Association Winter Hills – 77, Gurgaon Vs. Umang Realtech Pvt. Ltd through IRP & Ors.[2]The Supreme Court had remarked that hindering innovative...

Non-Payment Of License Fee Is An Operational Debt

In a recent pronouncement in Jaipur Trade Expocentre Private Limited v. M/s Metro Jet Airways Training Private Limited[1] ("Jaipur Trade Case"), a five-member bench of the Hon'ble National Company Law Appellate Tribunal ("NCLAT") has set aside the decision laid down in Mr. M. Ravindranath Reddy v. Mr. G. Kishan & Ors.[2] and held that the claim of a licensor for payment of license fee for use of demised premises for business purposes is an operational debt within the meaning of ...