Dispute resolution

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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Deciphering Court Fee Refunds: A Comparative Analysis of Settlement via ADR v. Private Settlement

Introduction

In the Indian jurisprudence, the levy of court fee is inter alia sanctioned by the Court Fees Act, 1870 (“Court Fee Act”) for the purpose of instituting a suit or claim by a party to the matter or litigation. The payment of court fee is a condition precedent for seeking the aid of the court. The amount to be paid as court fee is prescribed by law and until the pre-determined amount is paid, the litigant cannot be heard, save with the leave of the court. However, if the parties to a suit come to a mutual understanding to resolve the dispute amicably, the law also prescribes for a procedure for providing a refund of the previously paid court fee by the litigant. The only remaining question that begs determination is when and how much of the court fee will be refunded to the litigant.

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Demystifying Deadline Dilemmas: Analysing the limitation period of Section 11(6) Petitions in Arbitral proceedings in India

INTRODUCTION

Superior courts in India have ratified the stringent deadlines for the various stages in arbitration proceedings, aiming to position India as an arbitration hub. However, it is crucial to establish safeguards to prevent delays in the adjudication process from discouraging the parties’ decision to engage in arbitration. The absence of a prescribed limitation period in certain key provisions of the Arbitration and Conciliation Act, 1996 (“A&C Act”), could be a contributing factor to some of these delays.

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Arrests under PMLA: Arrest first, reasons to follow?

INTRODUCTION

Vide order dated March 20, 2024, the Hon’ble Supreme Court of India rejected a petition[1] preferred by the Union of India, seeking a review of the judgement passed in Pankaj Bansal v Union of India[2](“Pankaj Bansal”), wherein it was held that it was mandatory for the Directorate of Enforcement (“ED”) to provide written ‘reasons for arrest’ to a person arrested under the provisions of the Prevention of Money Laundering Act, 2002 (“PMLA”).

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Writ Jurisdiction over Arbitral Proceedings an ‘Exceptional Rarity’: Delhi High Court Reiterates

The Indian Constitution bestows upon the High Courts “extraordinary writ jurisdiction”. While Article 226 empowers Courts to protect and enforce fundamental as well legal rights, Article 227 confers on them the power of superintendence over all courts and tribunals within their jurisdiction.

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Courting Controversies: Dispute Resolution finds a sweet spot in Indian Media Industry

India’s media and entertainment industry has always been close-knit. It has thrived on inter-personal relationships and handshake deals rather than extensive legal contracts, which worked well for decades. The far and few litigations over the years was telling of this fact.

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Decoding Section 17A of the PC Act: A Substantive Safeguard or a Tool for Procedural Hindrance?

Introduction

On January 16, 2024, the Division Bench of the Supreme Court delivered a split verdict in the case of Nara Chandrababu Naidu vs. State of Andhra Pradesh and Anr.,[1] (“Chandrababu Naidu Case”) wherein the pertinent question of law was relating to the interpretation of the scope of Section 17A of the Prevention of Corruption Act, 1988 (“PC Act”). The provision provides for a requirement of taking a prior approval of an appropriate authority before initiating any enquiry or inquiry or investigation into any offence alleged to have been committed by a public servant under the PC Act. Since the alleged offences in the instant case were committed prior to July 26, 2018 – the date on which Section 17A was incorporated vide the Prevention of Corruption (Amendment) Act, 26 of 2018, the issues identified by the Supreme Court relate to the interpretation and ambit of the following legal questions:

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Interplay between Foreign Extortion Prevention Act (“FEPA”) & Prevention of Corruption Act, 1988 (“PC Act”)

US President Joe Biden signed the Foreign Extortion Prevention Act in December 2023 (“FEPA”), a federal criminal offense creating criminal liability on foreign officials who demand or accept bribes thus acting as a concomitant legislation to the Foreign Corrupt Practices Act of 1977 (“FCPA”)[1]. While FCPA only criminalized/ prohibited US companies from offering or bribing foreign officials, the introduction of FEPA provides a level playing field for US companies and reverses criminal liability on foreign officials, mirroring FCPA.

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Obviating Hurdles for Swifter Execution of Arbitral Awards

Context

In India, execution of decrees is governed by the Code of Civil Procedure, 1908 (‘CPC’), and execution of arbitration awards is governed by the Arbitration and Conciliation Act, 1996 (‘1996 Act’), and the CPC. For the purposes of enforcement, both domestic and foreign awards (recognition and enforcement thereof) are treated as decree of Court. This legal fiction also applies to consent awards, which are obtained after settlement is entered between parties. Domestic awards, which are basically India-seated arbitral awards, are governed by Part I of the 1996 Act, while foreign awards, which are foreign seated arbitral awards, are governed by Part II of the 1996 Act.

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