The “Ordinary Course of Business” exception in preferential transactions – Deciphering the interpretation methodology
Cyril Amarchand Blogs | India Corporate Law
by Abhishek Mukherjee and Monil Chheda
1d ago
Blog Post: The concept of avoidance of preferential transactions under Section 43 of the Insolvency & Bankruptcy Code, 2016 (“Code”), is based on the principle that insolvency is a collective scheme process and that the assets of a corporate debtor (“CD”) are distributed equitably in a liquidation scenario. During the twilight period of insolvency, paying off one creditor selectively can be disadvantageous to the interests of other stakeholders/creditors as transferring certain assets/monies diminishes the CD’s value. To reverse/avoid such preferential transactions, Section 43(1) of the Co ..read more
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SFB to Universal Bank – New Glide Path
Cyril Amarchand Blogs | India Corporate Law
by Lily Vadera, Anu Tiwari, Vishrut Jain, Shobhit Dave and Yusuf Kathawala
1w ago
INTRODUCTION The Reserve Bank of India (“RBI”) has published the “Guidelines on Voluntary transition of Small Finance Banks to Universal Banks” dated April 26, 2024 (“SFB Guidelines 2024”), setting out the glide path for voluntary transition of Small Finance Banks (“SFBs”) to universal banks (“Universal Banks”) in terms of: Guidelines for “on-tap” Licensing of Small Finance Banks in Private Sector dated December 5, 2019 (“SFB Guidelines 2019”); Guidelines for “on tap” Licensing of Universal Banks in the Private Sector dated August 1, 2016 (“Universal Bank Guidelines”); Reserve Bank of India ..read more
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Maternity Benefits Granted Beyond the Contractual Term in Fixed Term Contracts
Cyril Amarchand Blogs | India Corporate Law
by Bishen Jeswant, Krithika Radhakrishnan and Himaa Sudhir
1w ago
In August 2023, in Dr. Kavita Yadav v. The Secretary, Ministry of Health and Family Welfare Department and Ors. (“Kavita Yadav Case”),[1] the Supreme Court of India (“Supreme Court”) overruled the High Court of Delhi’s (“Delhi HC”) decision from 2019 in the same case (“Kavita Yadav Delhi HC Decision”) to hold that fixed-term employees would be entitled to full maternity benefits under Section 5 of the Maternity Benefit Act, 1961 (“Maternity Benefit Act”), even after the expiry of their contractual term.    The Petitioner, was appointed as a senior resident at a hospital on June 12 ..read more
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Court settles patentability of man-made and novel non-living substance
Cyril Amarchand Blogs | India Corporate Law
by Swati Sharma and Gitika Suri
1w ago
An appeal was filed by Genmab A/S (hereinafter “Applicant” or “Appellant”) against an order dated May 30, 2016, which had rejected its’s Indian Patent Application No.4718/CHENP/2007. The application claimed priority from US Application No.60/667,579 dated April 1, 2005. A first examination report was received on February 27, 2013, and various objections were raised in view of certain prior arts and the patent application was considered not patentable under Section 3(j), 3(e), 3(i) and 3(c). The appellant revised its claims while responding to the examination report, leading to a hearing. Howe ..read more
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Administrative Adjudication under the Companies Act – Need for a relook at appeal provisions
Cyril Amarchand Blogs | India Corporate Law
by Bharat Vasani
1w ago
Constitutional Perspective 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. Article 323A provides that Parliament, through legislation, may establish tribunals to settl ..read more
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The 22nd Law Commission Report on Trade Secrets: Call for a balancing Act?
Cyril Amarchand Blogs | India Corporate Law
by Swati Sharma, Rohin Koolwal and Rohit Raj
1w ago
The 22nd Law Commission of India issued a report titled “Trade Secrets and Economic Espionage” (“LCR”), on March 5, 2024, to recommend a new legal framework to adjudicate claims related to disclosure of trade secrets, and the key provisions that it should encompass. Through this article, we intend to briefly summarise the legal framework applicable to trade secrets in India, highlight significant perspectives considered by the Law Commission and the recommendations thereof. Extant legal framework for Trade Secrets in India Trade secrets are valuable confidential business information. Each for ..read more
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Board Effectiveness – Challenges and Opportunities
Cyril Amarchand Blogs | India Corporate Law
by Bharat Vasani
2w ago
CONTEXT: It is the Board’s responsibility to successfully run a company, as per Section 179 of the Companies Act, 2013 (“Act”). Hence, it is imperative that the Boards function effectively to ensure that the company’s interests are always kept at the forefront while protecting interests of all stakeholders. BOARDS UNDER INTENSE PUBLIC SCRUTINY: Currently, Boards of public companies are functioning under intense public scrutiny, with an activist judiciary, media and shareholders’ groups being aided by equally activist proxy advisory firms. The legal and regulatory changes affecting the corporat ..read more
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Using Comity in Insolvency – Indian Courts pivot
Cyril Amarchand Blogs | India Corporate Law
by Dhananjay Kumar and Samarjit Singh
2w ago
In a previous blog post, we had stated that there exists no statutory regime for recognition of foreign insolvency judgments or proceedings in India. Hence, it remained unclear whether Indian courts would recognise and give effect to foreign insolvency interim orders or judgments. In 2018, the Ministry of Corporate Affairs[1] recognised the need for a comprehensive legislation for cross-border insolvency and published a draft bill for public consultation. The Bill closely followed the UNCITRAL Model Law on Cross-Border Insolvency (but for some notable deviations including on reciprocity). Fur ..read more
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Promoter’s Liability for Joint Development Projects: Consideration Received by one cannot absolve the other from joint liability to refund
Cyril Amarchand Blogs | India Corporate Law
by Rishiraj Bhatt and Shreya Pandit
2w ago
In a recent landmark ruling of the Hon’ble Bombay High Court (“BHC”) in the matter of Wadhwa Group Housing Private Limited (“Appellant”) vs. Vijay Choksi and Ors., it has been inter-alia held that a promoter of a joint development project, who has not received any consideration from the allottee of an apartment coming to the share of another promoter, is jointly obligated to refund that consideration with interest under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (“RERA Act”). The Hon’ble Supreme Court has vide its order dated April 8, 2024 declined to entertain a spe ..read more
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FAQs on Regulatory Amendments to AIF Regulations (Ambiguous GAAR Style Obligations Prescribed for Managers and KMPs)
Cyril Amarchand Blogs | India Corporate Law
by Vivaik Sharma and Arinjoy Chaudhury
3w ago
The Securities Exchange Board of India (“SEBI”) has notified amendments to the SEBI Alternative Investment Funds Regulations, 2012 (“SEBI AIF Regulations”) on April 25, 2024, to: permit a “dissolution period” to liquidate assets after the expiry of the liquidation period (being one year from end of tenure) by filing an “information memorandum” with SEBI through a merchant banker. The dissolution period cannot be longer than the scheme’s original tenure or be extended. enable Category I and Category II AIFs to create encumbrance on equity of investee companies that develops, operates or man ..read more
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