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CAM Disputes Team

The CAM Disputes team can be reached at cam.mumbai@cyrilshroff.com

An Analysis of Limitation for Appointment of Arbitrator Under Section 11 of the Arbitration & Conciliation Act, 1996

Introduction

In order to foster quick resolution, efficiency and flexibility are the cornerstones of arbitration. The Arbitration and Conciliation Act, 1996 (“the Act”) [1], provides for strict limitations at most stages of the arbitral process. Naturally, Section 11 with its glaring lack of prescribed limitation at the stage of appointment appears conspicuous and almost at odds with the scheme of the Act.Continue Reading An Analysis of Limitation for Appointment of Arbitrator Under Section 11 of the Arbitration & Conciliation Act, 1996

Section 8 of the Arbitration & Conciliation Act, 1996, Does Not Envisage Making of a Separate Application If Due Objection is Made Before the Court to its Jurisdiction

The Hon’ble Delhi High Court in Madhu Sudan Sharma & Ors. v. Omaxe Ltd.[1]recently held that once a party has taken objection in its written statement to the jurisdiction of the Court to entertain the suit due to the presence of the arbitration clause between the parties, it would amount to sufficient compliance of Section 8 of the Arbitration & Conciliation Act, 1996 (“the Act”). The Court also held that once a party extracts an arbitration clause in its written submission to object to the jurisdiction of the Court, a separate application under Section 8 of the Act would not be necessary.Continue Reading Section 8 of the Arbitration & Conciliation Act, 1996, Does Not Envisage Making of a Separate Application If Due Objection is Made Before the Court to its Jurisdiction

EU’s Anti-Corruption Package: Insights and Recommendations for Indian Businesses

Corruption and bribery[1] are often a cross-border phenomena. Accordingly, since the early 1990s, various countries around the world have joined global efforts to combat corruption collectively. Recently, European Union (“EU”) policymakers have decided to take that combat to the next level, increasing the collaboration between European Member States, and by harmonizing the European anti-bribery regime.Continue Reading EU’s Anti-Corruption Package: Insights and Recommendations for Indian Businesses

Section 120B of IPC cannot be treated as a standalone offence to attract prosecution under PMLA: Supreme Court

INTRODUCTION

In a recent judgement of Pavana Dibbur v. The Directorate of Enforcement[1], the Hon’ble Supreme Court has held that the offence of criminal conspiracy punishable under Section 120B of the Indian Penal Code, 1860 (“IPC”), will be attributed as a scheduled offence under the Prevention of Money Laundering Act, 2002 (“PMLA / Act”), only if the alleged criminal conspiracy is associated with committing of a scheduled offence, i.e. an offence specifically included in the Schedule to the PMLA. The Hon’ble Court held that if the offence of alleged criminal conspiracy is related to any other offence, which does not form a part of the Schedule to the PMLA, then the alleged criminal conspiracy by itself shall not be considered as a “scheduled offence” under the regime of the PMLA and hence, no person can be held liable and be prosecuted for it.[2]Continue Reading Section 120B of IPC cannot be treated as a standalone offence to attract prosecution under PMLA: Supreme Court

‘Quasi-judicial’ role of liquidators in treating disputed claims under the IBC

The Insolvency and Bankruptcy Code, 2016 (“IBC”) is silent on the treatment of a disputed or contingent claim, which is pending adjudication before a judicial or quasi-judicial body, giving rise to a contentious issue. The decision of the Hon’ble Supreme Court in Committee of Creditors of Essar Steel Limited v. Satish Kumar Gupta[1] brought some clarity vis-à-vis the status of the contingent/ disputed claims for the corporate insolvency resolution process (“CIRP”). The Hon’ble Supreme Court in Essar Steel (supra) upheld a resolution plan, wherein a contingent claim pending adjudication was accorded a notional value of INR 1/-. Subsequently, it became an accepted norm for Resolution Professionals (“RP”) to admit claims that are sub-judice, at a notional value of INR 1/. Though this answers the question of how undisputed claims must be treated by the RP, the Essar judgment also leaves a few issues open to interpretation. Continue Reading ‘Quasi-judicial’ role of liquidators in treating disputed claims under the IBC

No room for change- How Final is the Final Resolution Plan, Exploring the Practical Repercussions

Introduction

The modification or withdrawal of Resolution Plans under the Insolvency and Bankruptcy Code, 2016 (“Code / IBC”) had always been a contentious subject, with the National Company Law Tribunal (“Adjudicating Authority / NCLT”) and National Company Law Appellate Tribunal (“NCLAT”) taking conflicting views in the past.Continue Reading No room for change- How Final is the Final Resolution Plan, Exploring the Practical Repercussions

The Turning Tides of US Sanctions: India Caught in the Middle

Secondary Sanctions & Countermeasures

The recent escalation of United States (“US”) sanctions against Russia seems to have significant consequences for the Indian market. India has strong economic relationships with both the countries. At the moment, however, India seems to be caught between a ‘rock and a hard place’.[1] The country finds itself in a tricky minefield and it has to now balance its financial interests, along with its obligations to the international community.Continue Reading The Turning Tides of US Sanctions: India Caught in the Middle

Introduction

Dissolution of a Partnership under The Indian Partnership Act, 1932, “Partnership Act” can have far-reaching consequences, affecting not only the erstwhile partners but also related third parties. The process of dissolution involves activities such as settling of accounts, concluding of on-going business matters, discharging the Partnership firm’s liabilities and finally, distributing any remaining assets among the partners basis their respective shares. The Limitation Act, 1963 provides a period of three years from the date of dissolution within which  the parties can agitate their claims arising from the dissolution and winding up of the firm[1]. The period of limitation rests on the notion that the date of dissolution marks the conclusion of the firm’s winding-up process and settling of the rights and liabilities of the affected parties. However, is dissolution synonymous with winding up of the firm? Can erstwhile partners not have a right to agitate their claims post the period of three years if the process of winding-up could not be completed within the timeframe? Pertinently, through this blog, we aim to analyse whether any claims surviving the period of three years, which have been left unadjudicated are deadwood or can be brought under the period of limitation and give rise to a continuing cause of action.Continue Reading Stopping the clock on claims arising from dissolution of partnership firms

ASSAILING COMPOSITE DIRECTIONS ISSUED BY POLLUTION CONTROL BOARD UNDER AIR ACT AND WATER ACT

NGT’s jurisdictional powers

The National Green Tribunal Act, 2010 (“NGT Act”), established the National Green Tribunal (“NGT”) to inter alia adjudicate cases related to environment protection and enforcement of legal rights relating to the environment.

Section 14 of the NGT Act provides the NGT with original and subject matter jurisdiction to deal with all civil cases involving substantial question relating to protection of environment and enforcement of associated legal rights under the statutes enlisted in Schedule 1 of the NGT Act.Continue Reading Assailing composite directions issued by pollution control board under Air Act and Water Act

PMLA SECOND AMENDMENT RULES, 2023: PLUGGING THE LOOPHOLE

The Ministry of Finance issued a notification on September 04, 2023, to amend the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (“Rules”), to enhance clarity and stringency of money laundering prevention efforts. The amendment seeks to ensure stricter compliance by reporting authorities to keep a check on money laundering and terror financing.Continue Reading PMLA Second Amendment Rules, 2023: Plugging The Loophole