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Simultaneous IBC Proceedings against Corporate Debtor and Corporate Guarantor: Critical Takeaways from BRS Ventures Case

The legal landscape governing insolvency resolution in India has undergone significant transformation since the advent of the Insolvency and Bankruptcy Code, 2016 (“IBC”). One of the contentious issues in this evolving framework is whether simultaneous insolvency proceedings can be initiated against both the corporate debtor and its corporate guarantor for the same debt. The recent Supreme Court judgment in BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. (2024 INSC 548) offers clarity on the treatment of such proceedings and reinforces key principles governing the relationship between creditors, debtors, and guarantors.Continue Reading Simultaneous IBC Proceedings against Corporate Debtor and Corporate Guarantor: Critical Takeaways from BRS Ventures Case

Proving default: IU reports not the be-all and end-all

As per the scheme of the Insolvency and Bankruptcy Code, 2016 (“Code”), an application for initiation of corporate initiation resolution process (“CIRP”) can be filed by the debtor itself or by a financial or operational creditor. The Code provides for filing of record of default recorded with the Information Utility (“IU”) as evidence of default, along with other specified documents.Continue Reading Proving default: IU reports not the be-all and end-all  

When Further Investigation Under Section 173(8) CRPC is Impermissible

OVERVIEW

A criminal trial is nearing its conclusion. The evidence has been led, and witnesses examined and cross examined. Only the final arguments remain. Yet, for “the pursuit of truth”, would a “further investigation” be permissible at such a belated stage? In several judgments, the Hon’ble Supreme Court has answered this question in the affirmative, subject to there being compelling facts justifying such an extraordinary measure.Continue Reading When Further Investigation Under Section 173(8) CRPC is Impermissible

Unlocking Arbitration Clauses: Incorporation by reference in digital contracts

Introduction

The question of incorporation of arbitration clauses referred to in another document has been a bone of contention between parties, in view of the absence of statutory guidance under Section 7 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”). Although the principle of incorporating an arbitration clause, referred to in another document is a well-established principle in arbitral jurisprudence,[1] Section 7(5) only provides that the reference should be “such as to make that arbitration clause part of the contract”. Hence, it has been left to the courts to determine the conditions that need to be satisfied for the same.Continue Reading Unlocking Arbitration Clauses: Incorporation by reference in digital contracts

Rohan Builders Judgment: A Watershed Moment in Indian Arbitration Law

The Supreme Court’s (“SC”) recent[1]interpretation of the intent and scope of Section 29A of the Arbitration and Conciliation Act, 1996 (“Act” or “Arbitration Act”) has sent ripples through the Indian arbitration landscape. In this landmark verdict, Justices Sanjiv Khanna and R. Mahadevan have provided much-needed clarity and guidance on the extension of time limits for arbitral awards beyond the stipulated timeframe under Section 29A of the Act.Continue Reading Rohan Builders Judgment: A Watershed Moment in Indian Arbitration Law

Novation of Contract and Section 11 Of the Arbitration and Conciliation Act, 1996

The doctrine of severability dictates that the arbitration clause (arbitration agreement) is deemed to be separate or independent from the overarching contract. Therefore, even when a contract’s legality is challenged, the arbitration agreement remains unaffected. However, the novation of a contract, by way of a supplemental/amended agreement, raises an interesting question regarding the validity of the arbitration clause in the original agreement entered into between the parties, which resultantly stands amended or superseded.  The issue about the extent to which the courts can intervene to determine this also requires judicial consideration.Continue Reading Novation of Contract and Section 11 Of the Arbitration and Conciliation Act, 1996

The Evolving Landscape of Pre-Reference Interest in Indian Arbitration Regime

The recent ruling by the Supreme Court of India in Pam Developments Private Limited v. The State of West Bengal & Anr.[1] has reignited discussions on awarding pre-reference interest in arbitration proceedings. The case had arisen from a dispute over delays in a road construction project. Marking a significant development in the evolution of the Indian arbitration law, particularly on granting interest, the Court upheld the arbitrator’s authority to award interest on the awarded sum from the date of the cause of action until the date of the award, even when the contract was silent on the matter. While analysing the Pam Developments case, this blog delves into the nuances of pre-reference interest in light of the existing legal framework and relevant jurisprudence.Continue Reading The Evolving Landscape of Pre-Reference Interest in Indian Arbitration Regime

Can an Arbitral Tribunal’s Mandate be Extended Post Award?

Introduction of Section 29A to the Arbitration and Conciliation Act, 1996 (the “Act”), by way of an amendment in 2015, marked a significant event in the arbitration regime in India. It recognised the sluggishness that had crept into arbitration proceedings and provided for strict timelines for making of an award. The section was further amended in 2019, pursuant to recommendations of Justice B N Srikrishna committee.Continue Reading Can an Arbitral Tribunal’s Mandate be Extended Post Award?

Criminal Breach of Trust vs. Cheating: Decoding the Confusion

Introduction

Offences such as cheating and criminal breach of trust are often invoked in Indian criminal law system. It is common practice that when a First Information Report (“FIR”) is registered under Section 406 of the Indian Penal Code, 1860 (“IPC”) (Section 316 of the Bhartiya Nyaya Sanhita, 2023 (“BNS”)) for criminal breach of trust, the same is also registered under Section 420 of IPC (Section 318 of BNS) for cheating. This practice is on account of a long-drawn confusion between the two offences, wherein the two are often equated and thus understood as offences with similar ingredients.Continue Reading Criminal Breach of Trust vs. Cheating: Decoding the Confusion

The Companies Act, 2013 (“Act”) stands as a cornerstone of corporate regulation in India. It lays down a comprehensive compliance framework for body corporates as well as their officers to protect the rights and interests of shareholders and investors. In the first part of this two-part blog series, we seek to address the ambiguities pertaining to proactive rectifications of the non-compliances and contraventions under the Act. In the second blog, we will discuss the threshold for liability of “officers in default” under the Act.Continue Reading Ambiguities in Regulatory Thresholds for Rectifying Breaches under the Companies Act, 2013