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Preliminary Chargesheet And Grant Of Default Bail: Untangling The Web

OVERVIEW

The proviso to sub-section (2) of Section 167 Code of Criminal Procedure, 1973 (“CrPC “),titled “Procedure when investigation cannot be completed in twenty-four hours”, provides that an accused shall be entitled to “default bail” if the investigation is not complete within 60 (sixty) or 90 (ninety) days – depending on the prescribed punishment for the offence. However, if a chargesheet is filed in this duration, then default bail cannot be granted.

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Untangling legal knot: SC’s ruling on “security deposits” as financial or operational debt under IBC

Introduction

For initiating proceedings under the Insolvency and Bankruptcy Code 2016 (“IBC”), categorisation of a creditor as either a “financial creditor” or an “operational creditor” is a rather significant first step. Such categorisation is not merely organisational, but essential since the rights, obligations and procedural requirements for realisation of debt by financial and operational creditors also differ under the IBC.

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The “modification” conundrum: Sticking to the path of least interference – Part I

Introduction

In matters of arbitration, courts are ordinarily required to adopt a hands-off approach while scrutinizing arbitral awards. This jurisprudence has evolved to a point where minimal interference with awards is seemingly the principle guiding courts in India. Against this backdrop, the Supreme Court (“SC”) is going to consider the question whether the powers under Section 34 of the Arbitration and Conciliation Act, 1996 (the “Act”), extend to the modification of arbitral awards or are limited only to the setting aside of arbitral awards. Central to this question is the role of the courts as envisaged under the Act.

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Fraud-Related Disputes Arbitrable: Bombay High Court

Arbitrability of a dispute is a key factor in any arbitration, as it establishes the jurisdictional reach of an arbitral tribunal. In Booze Allen and Hamilton Inc. v. SBI Home Finance Ltd.,[1] the Supreme Court stated that the disputes dealing with rights in personam are arbitrable, but those pertaining to rights in rem are not as they can affect the public.

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Sita Soren vs. Union of India: The Interplay between Anti-Corruption Laws and Legislative Immunity

In the recent landmark ruling of Sita Soren vs. Union of India,[1] a constitution bench of the Supreme Court unanimously ruled on, inter alia, the liability of a Member of Parliament with respect to bribery under the Prevention of Corruption Act, 1988 (“PCA”), and the legislative immunity granted by the Constitution under Articles 105 and 194. This judgement overruled a long-standing position of law, laid down in PV Narasimha Rao vs. State (CBI/SPE ), which dealt with a Member of Parliament’s immunity from prosecution on charges of bribery in a criminal court.[2] This article analyses the position of anti-corruption provisions and its impact in view of the observations in Sita Soren.

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Unravelling the Distinction between ‘Reference to’ and ‘Incorporation of’ Arbitration Clauses

Introduction

While entering into a transaction, companies often invoke multiple standard terms from other agreements, instead of reproducing all applicable terms in a single contract. Such clauses are not set out in the main contract signed by the parties, but are instead found in separate, pre-existing documents that have been referred to in the main contract, by which the parties agree that the standard terms that have been mentioned, should be considered a part of the main contract. This practice enables faster and smoother implementation of contracts and allows some standard clauses to remain unchanged, thus providing greater certainty to business. However, if the arbitration clause itself is located in a secondary document, it might lead to a dispute (between the parties) regarding the appropriate dispute resolution procedure.

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Putting the Brakes on Highway Tolls: Extending the Model Code of Conduct to Existing Contracts?

It is election season and the Model Code of Conduct for the Guidance of Political Parties and Candidates (MCC)[1] has been in operation since elections were announced on March 16, 2024. The MCC provides that from the time elections are announced by the Election Commission (EC), ministers and other authorities shall not announce or promise any financial grants in any form.[2] The stated purpose of this prohibition is to ensure that the party in power is not accused of using its official position for the purposes of the election campaign.[3]

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Commercial Purchases: Conundrum under Consumer Protection Laws

Introduction: Commercial Enterprise and Its Commercial Purpose

The Consumer Protection Act, 1986 (“Act”), and the amended Consumer Protection Act, 2019 (“New Act”), are the go-to sources of reference for consumer disputes and conflicts. The Section 2(1)(d) of the Act and Section 2(7) of the New Act both define who “is” and “is not” a “consumer”. Both Acts state that a customer is any person who purchases goods or avails services for any consideration; however, any person purchasing goods or availing services for resale or any commercial purpose[1] to make profit/gain is not a consumer. An explanation to the provisions clarifies that despite buying goods or availing services a person would still be classified as a consumer (under both the Acts) if these goods or services constitute a source of livelihood by means of self-employment.

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Relevant or Relied Upon? Bombay High Court Clears Air on Disclosure of Information by Banks in Wilful Defaulter Proceedings

In Mr. Milind Patel v. Union Bank of India & Ors.[1] (“Judgment”), the Division Bench of the Bombay High Court (“Court”) has inter alia held that lenders/ banks seeking to invoke the Reserve Bank of India, Master Circular on Wilful Defaulters (“Master Circular”) for declaring entities and/ or persons as wilful defaulters, must supply all relevant materials to the noticee, which includes not only incriminating material but also exculpatory material. The Court therefore clarified that a bank is obligated to provide all relevant materials and not just information ‘referred to’ and ‘relied upon’ in the show-cause notice when conducting proceedings under the Master Circular.

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