• Arbitration Law

    Arbitration and Conciliation (Amendment) Bill, 2018: Yet Another Paradigm Shift

    The Arbitration and Conciliation Act, 1996 (“ACA”) has played a monumental role in raising the standard and accessibility of dispute resolution in India to the point where it forms part of wide ranging agreements, commercial or not, as the first means of resolving dispute between parties. What may go unnoticed is the relative frequency with which the ACA has seen amendments to its core stipulations, in the pursuit of establishing a holistic arbitration regime in India. One such substantial development comes in the form of the Arbitration and Conciliation (Amendment) Bill, 2018 (“Bill”) which seeks to usher the ACA in to the age of institutional arbitration, in a development that will…

  • Securities Law

    SEBI’s Test of Fit and Proper Person: Dynamic Market, Dynamic Law

    The Securities and Exchange Board of India (“SEBI”), as the primary regulator of the securities market in India strives to create order and fairness in one of the fastest moving, complex, and ever fluctuating markets that is filled with the one of the most conniving bad elements. Yet, more or less, SEBI has performed its function to the letter of its preamble, that is, protecting the investor’s interests and promoting the healthy development of the securities market. This has, partly been achieved by enforcing an effective regime of stringent and dynamic provisions. The point of analysis in this Article is one such dynamic power in the hands of SEBI, that…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part V: The Impact and Criticism of RBI’s New NPA Regime]

    The Impact The Notification has not done away with the conciliatory means to be employed by the lenders to course correct the stressed account upon default, it has only been rebranded in the wide ambit of a ‘Resolution Plan’ which encompasses, in essence, all of the tools under the previous regime[1]. The major change in the regime however is the stipulation of pursuing the debt in default under the Insolvency and Bankruptcy Code, 2016, where there is failure in the implementation of the Resolution Plan. The notification is only an exercise in the implementation of the statutory power that has been bestowed upon the RBI[2]. The Notification makes the RBI’s…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part IV: Understanding RBI’s New NPA Regime]

    In the past, banks have played both victim and perpetrator under the scheme of the Joint Lenders Forum while they plead for more power to be vested them the in the forum, at the same time, the bank executives are the ones that have led the mismanagement of the accounts and have also engaged in underhanded deals that empower the creation and sustenance of the substantial NPAs as was revealed in the midst of various scandals like the Videocon[1], Nirav Modi[2], Mehul Choksi[3]and Vijay Mallaya[4]scandals, that have been the cause of great national embarrassment and financial loss. RBI vide its Notification dated 12thFebruary 2018 had set a deadline of 27thAugust,…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part III: RBI’s First Attempt at an IBC backed NPA Resolution Framework and the 12 Mega-Defaulters]

    With the enactment of the Banking Regulation (Amendment) Act, 2017, RBI has been vested with the power to direct banks to initiate Corporate Insolvency Resolution Process against any borrower who has defaulted on any payment under §§ 35AA and 35AB of the BR Act. The Provisions are reproduced here-under: [Part II of this series can be found here] “35AA. The Central Government may, by order, authorise the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016. 35AB. (1) Without prejudice to the provisions of section 35A, the Reserve…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part II: RBI’s Outgoing NPA Regime]

    RBI has played an active role in combatting the growing NPAs that have plagued the nation. Before assessing the contours of the new regime, it is necessary to understand the former. Some of the tools employed under RBI’s erstwhile regime are as follows: [Part I of this series can be found here] Joint Lender’s Forum: The Joint Lender’s Forum is a dedicated grouping of lender banks that is formed to speed up decisions when an asset (loan) of Rs 100 crore or more turns out to be a stressed asset. RBI has issued guidelines for the formation of JLF in 2014 for the effective management of stressed assets[1]. The JLF has…

  • Financial & Insolvency Law

    RBI Overhauls its NPA Regime: IBC to Hold the Fort? [Part I: Introduction]

    Non-Performing Assets represent a default on the loan amount whether principal, interest or both remaining overdue for more than 90 days. The overwhelming burden of NPAs that plague India has had a devastating effect on the growth of the economy, investor confidence and the due process of credit in the industry. This series of articles analyses the new overhauled framework of the Reserve Bank of India aimed at combatting NPAs, its implications on the economy along with the merits and demerits of its stipulations. The Reserve Bank of India (here-in-after referred to as “RBI) has in the past, undertaken various ambitious endeavours in order to combat the overwhelming and devastating…

  • Financial & Insolvency Law

    Corporate Insolvency and the Admission of a Debt under the Negotiable Instruments Act

    The National Company Law Appellate Tribunal (“NCLAT”) has in the case of Sudhi Sachdev Vs. M/s APPL  Industries Ltd. held that the pendency of a case under Section 138/141 of the Negotiable Instruments Act, 1881 (“NI Act”)  amounts to an admission of debt by the Corporate Debtor as against an Operational Creditor despite the criminal nature of the proceedings under Section 138/141 of the NI Act forming outside the scope of Section 8(2)(a) R/w Section 5(6) of the Insolvency and Bankruptcy Code, 2016 (“Code”). This article seeks to critically examine the rationale behind this decision.   Background Under the Code, Section 8 stipulates that before an application for the initiation of Corporate Insolvency resolution…

  • Others

    The Position Of And Limitation Upon The Rights Of A Nominee Of Bank Deposits, Securities, Insurance Policies, Etc.

    The Hon’ble Bombay High Court in the case of Jayanand Jayant Salgaonkar and Ors. Vs. Jayashree Jayant Salgaonkar and Ors.[1]authoritatively clarified the position of law in relation the position and rights of a nominee of holdings under various statutes and their bearing on the normal process of succession upon the death of the nominator in holding that owing to the fact that these statutes, namely, the Companies Act, 1956; Banking Regulations Act, 1946; Depositories Act, 1996; etc. are purposed to deal with commercial and regulatory aspects of their respective fields and cannot hamper the laws and rules of succession forming the part of personal laws of an individual as the…

  • Corporate & Commercial Law

    The Fugitive Economic Offenders Act, 2018: Assessing its Constitutional Vires

    The Parliament of India has passed the Fugitive Economic Offenders Act, 2018 (herein after referred to as the “Act”) in its Monsoon Session in 2018. The Act represents the Government’s ambitious endeavour to buttress the multitudinous peril of economic offenders who cheat and defraud the country and its constituents only to seek haven outside of India, in an attempt to evade prosecution. The past is replete with instances of such offenders who have more or less successfully fled from justice under Indian laws subsequent to benefiting off of scams that have cost the country billions of dollars and have led to a sharp downfall in investor confidence in the country.…

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