In a significant order passed on June 28, 2023, in the case of Ronak Industries vs. Assistant Commissioner Central Excise & Customs & Ors. (“Ronak Industries Case”), the Bombay High Court has upheld the priority of dues of secured creditors as laid down under Section 26-E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”). To pass the order, the Bombay High Court has relied on its previous decision in Jalgaon Janta Sahakari Bank Ltd. and Anr. Vs Joint Commissioner of Sales Tax Nodal 9, Mumbai and Anr. and the decision of the Supreme Court in ICICI Bank Ltd. vs. SIDCO Leathers Ltd.and held that the dues of a secured creditor, upon registration of the charge with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (“CERSAI”), would rank in priority to the dues of the department of the Government.Continue Reading Priority Of Dues Under SARFAESI: Bombay High Court Reiterates
Partner and Head in the Dispute Resolution Practice Area at the Mumbai office of Cyril Amarchand Mangaldas. Indranil has extensive experience in a wide range of disputes, both of a general commercial litigation nature as well as public and regulatory disputes. His experience is diversified across numerous sectors including financial regulation, health, sports, local government, planning and environment and public sector projects. Indranil also routinely advises the Board of Control for Cricket in India (BCCI) in relation to their contracts and tenders. He can be reached at firstname.lastname@example.org
The Ministry of New & Renewable Energy (“MNRE”) has issued an order dated June 07, 2023 (“Order”), to bring about important changes to the dispute resolution mechanism for disputes between Renewable Energy Power Developers/ Engineering, procurement, and construction (EPC) Contractors and designated Renewable Energy Implementing Agencies (“REIA”). The Order aims to provide a time-bound, transparent and unbiased platform for resolving disputes in the renewable energy sector.Continue Reading Ministry of New & Renewable Energy (MNRE) revises Dispute Resolution Mechanism for Renewable Energy Projects
On 18th May 2023, a two-judge bench of the Supreme Court in B&T AG v. Ministry of Defence(“B&T”) ruled that mere negotiations, as in the case of a civil suit, will not postpone the cause of action for the purpose of computing limitation for initiation of arbitration.
This decision, although consistent with a long line of judgments in the context of computation of period of limitation for arbitral claims, waters down the progressive view taken by the Supreme Court in the case of Geo Miller & Co. Pvt. Ltd. v. Rajasthan Vidyut Utpadan Nigam Ltd. (“Geo Miller”).Continue Reading Time spent in contractually mandated pre-arbitral negotiations not excluded – SC in B&T AG v Ministry of Defence
The Government of India (“Government”) had announced a one-time voluntary settlement scheme through the Union Budget 2023-24 to settle contractual disputes involving the Government of India or its undertakings. This voluntary settlement process would also be applicable to disputes that have resulted in arbitral awards or court decrees or court orders upholding arbitral awards (hereinafter collectively referred to as “Award”) under challenge. The scheme is called Vivad se Vishwas II (Contractual Disputes). A draft scheme was published for circulation and was open for public comments till March 8, 2023.Continue Reading Execution meeting spirit of the text will determine success of Vivad se Vishwas II