Supreme Court – NCLT Vested With Discretionary Powers While Adjudicating An Application Under S. 7 Of The IBC

In a recent ruling in Vidarbha Industries Power Limited v. Axis Bank Limited[1], the Supreme Court has held that the Adjudicating Authority while examining the existence of debt and default by a corporate debtor in an application for initiation of corporate insolvency resolution process ("CIRP") filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Code"), has the discretion to admit or not admit such application. The Court held that Section 7(5)(a) of the Code confers a...

Master Directions On Credit Card And Debit Card – Issuance And Conduct Directions, 2022

Reserve Bank of India ("RBI") issued Master Directions on Credit Card and Debit Card – Issuance and Conduct Directions, 2022 ("Master Directions")[1] dated April 21, 2022, effective from July 01, 2022 (except a few provisions which will be effective from October 01, 2022). These Master Directions were brought in to regulate the conduct of credit/debit payments in Banks and Non-Banking Financial Companies (NBFCs). These Master Directions provide a thorough set of instructions majorly...

In Re Hiveloop Technology Pvt. Ltd. vs Britannia Industries Ltd.: CCI Acknowledges Manufacturer's Right to Select Distributors

The Competition Commission of India (CCI/ Commission), vide its order dated 16th June 2022, dismissed the allegations of 'refusal to deal' filed by Hiveloop Technologies Pvt. Ltd., Bengaluru (Informant) against Britannia Industries Ltd.(Britannia) because the Commission did not find any merit in the submissions on the aspect of 'discrimination'. The Competition Act, 2002 (Act) guarantees freedom of trade by all market participants. This also includes the manufacturer's freedom to choose,...

Investors In Real Estate Projects To Have Equivalent Liability As Promoters

In a recent order pronounced on June 30, 2022, by the Maharashtra Real Estate Regulatory Authority ("MahaRERA/Authority") in the matter of 'Rare Township Private Limited vs IIRF India Realty VIII Ltd', the investor IIRF India Realty VIII ("IIRF"), which had made investments in Rare Township Private Ltd. ("RTPL") has been put in the same bracket as the management of the company because MahaRERA held that IIRF shall be covered in the definition of "promoter" as defined under the Real Estate...

The Data Protection Bill 2021: Key Takeaways For Stakeholders

In our vastly interconnected and globalized world, information technology is flourishing at an unprecedented rate. The world we live in today is immensely digitalized and data-driven. The spread of data driven technologies around the world has led to several citizen and consumer centric innovations including means of communication, access to goods and services through e-governance and online commerce and transactions. This has made data a vital resource for the internet economy,...

Forensic Audit- Trap For Corporate Debtors

IBC was framed with the motive to restructure or revive a Corporate Debtor. The code lays down procedure to conduct resolution, insolvency and liquidation proceeding in time bound manner. One of those includes Preferential Transactions covered under section 43 of the IBC and other related like undervalued transactions and extortionate credit transactions covered under section 45 & 50 of the IBC. Every year billions are lost due to fraud and corruption which results into...

NCLAT Endorses CCI's Penalty Order Against Amazon: A Setback For Amazon And A Leap In Jurisprudence

The National Company Law Appellate Tribunal (NCLAT) vide its order dated June 13, 2022, has upheld the order of the Competition Commission of India (CCI) against Amazon, where the CCI penalized the latter for giving false and misleading information in the notice and suppressing material facts relating to the actual scope and purpose of the acquisition of Future group companies. In 2019, the CCI had granted approval to Amazon in respect of its investment of Rs. 1,500 crores in Future ...

Way To Ensure Safety Of The Child- In The Light Of School Admissions

"The aim of education in ancient India was not just the acquisition of knowledge as preparation for life in this world, or life beyond schooling, but for the complete realization and liberation of the self"- The National Education Policy, 2020.[1] With 36.7% India has one of the largest populations of children in the world.[2] Children spend a substantial part of their day at school, therefore it is imperative that the atmosphere of schools remain positive and nurturing, and student...

Security Provided To The Judges In India With A Comparison To The UK And USA Model Of Security

"Judiciary must be encouraged to find ways and means to regulate its own affairs - consistent with the spirit of the Constitution." – Shri Manmohan Singh The independence of Judiciary is one pivotal concept for delivering fair and neutral judgements. Considering the legal system of India and court as the spine of the democratic framework, judicial independence and the security of the judicial officers should become a topic of utmost importance. In several instances the judicial officers...

Cross Charging Under Goods And Services Tax Act

Goods and Services Tax Act ("GST") does not define Cross Charge. As per Section 25(4) of Central Goods and Services Tax Act, 2017 ("CGST"), where a person has obtained or is required to obtain registration in a state or union territory in respect of an establishment, has an establishment in another state or union territory, then such establishments shall be treated as establishments of distinct persons for the purpose of this Act. Accordingly, cross charging refers to invoicing supply of...

Recent Pronouncements Related To Dishonour Of Cheques Under Section 138 Of The Negotiable Instruments Act, 1881

The wide use of cheques as a mercantile instrument requires clarity in the law relating to dishonour of cheques. The nodal statute on the law related to negotiable instruments is the Negotiable Instruments Act, 1881 ("the Act"). The Supreme Court had famously observed that the law relating to negotiable instruments is the law of the commercial world, which was enacted to facilitate the activities in trade and commerce, made provisions to render sanctity to credit instruments which could be...

Rights Of Homebuyers Under The IBC

The Insolvency and Bankruptcy Code, 2016 ("IBC"), as originally enacted, did not provide adequate protection and recognition of the interests of Homebuyers in real estate projects. While the Homebuyers are vital stake holders in real estate projects, yet the IBC, as initially crafted, did not protect them.[1] This is because they were treated only as 'other creditors', not at par with financial and operational creditors[2], thus they were not only unable to initiate proceedings under the...