PF Contribution Of Employers & Employees Reduced From 12% To 10%; MSME Definition Changed : Finance Ministry Announcements

The Union Finance Ministry on Wednesday made several announcements with the aim of giving a boost to the Micro, Medium and Small Enterprises in the country which are reeling under the impact of COVID-19 lockdown.Among others, Nirmala Sitharaman, the Finance Minister, announced a change in the definition of MSMEs.Investment limit which defined MSME has been revised upwards, said the Minister.Additional criteria based on turnover to define MSMEs is brought in. Differentiation between...

Role of Facilitation Council Under MSMED Act – A 'Conciliator' Or An 'Arbitrator'?

Introduction: Since the implementation of The Micro, Small and Medium Enterprises Development Act, 2006 ["MSMED Act"], which is a special Act[i], there has always been a controversy as to whether the 'Facilitation Council' can act as both - a 'conciliator' as well as an 'arbitrator', when disputes are referred to it under Section 18(1) thereof. There are divergent views of the High Courts on this very issue and till date, there is no definite answer. The...

Exclusion Of CM And State COVID Relief Funds From CSR Is Patently Unconstitutional

Among all the departments of the government of India, one might consider the ministry of corporate affairs the least political of the lot. Despite a benign sounding name and a mostly technical mandate to regulate the corporate sector, it's recent decision to funnel all CSR donations away from State and CM funds, solely to the PM Cares Fund, has given it a disturbingly political tinge. But even keeping the 'political' aspect of their decision aside, the consequences that will follow...

Future Of Mediation In Insolvency Proceedings

Alternate Dispute Resolution method for resolving the disputes is relatively new trend in India. Mediation being one of the alternate dispute resolution methods in India is a voluntary process where the disputing people decide to mutually find a solution to their legal problem by appointing a mediator and entering a mutual understanding. The decision making power lies with the parties in dispute, with the mediator acting as an intermediary to bring them to an understanding. India started...

The Micro, Small And Medium Enterprises Development Act, 2006 - A Subject Of Increasing Misuse

The small scale sector plays an important role in the development of the Indian economy, by providing employment and facilitating growth of the industrial sector, while requiring a relatively small amount of initial capital investment. A substantial contribution is made by this sector to industrial output and exports. By some estimates there were in excess of 19.40 lakh such in the year 1990-1991. In the early 1990's, Parliament recognising the importance of this sector and in order to ...

Breaking: Bombay HC Stays Bail Granted To Former IL&FS CEO & Vice Chairman As Offences Are Punishable With More Than 7 yrs

A special bench of the Bombay High Court on Saturday stayed the bail granted to former MD and CEO of Infrastructure Leasing and Financial Services (IL&FS) Financial Services Ltd (IFIN) Ramesh Bawa and former Vice Chairman Hari Sankaran, observing that they have been accused of offences punishable with more than 7 years, making them ineligible to be released on parole. Justice AK Menon noted that the said case does not fall under the category of "extremely urgent matter" which...

Cabinet Approves 72 Changes To Decriminalize Companies Act, 2013 [Read Bill]

The Union Cabinet on Wednesday approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013, with an aim to increase the ease of doing business in India. As per the press release issued by the Finance Ministry, the Amendment Bill will, inter alia, enable the listing of Indian companies on stock exchanges in foreign jurisdictions. This is expected to increase the competitiveness of Indian companies in terms of access to capital, broader investor base and better...

Cochin International Airport Ltd Not A State Instrumentality Under Art 12 Of Constitution : Kerala HC [Read Judgement]

The High Court of Kerala has held that Cochin International Airport Ltd (CIAL) cannot be said to be an instrumentality of State within the meaning of Article 12 of the Constitution of India. The Court added that the employment of the persons by CIAL or the termination of their services do not involve any public element. The Court was considering petitions regarding the termination of the petitioners service by the Cochin International AIrport Limited (CIAL). The CIAL (respondent),...

Delhi HC Reserves Order In Malvinder Singh's Plea Challenging Parallel Investigation By Economic Offences Wing

Delhi High Court has reserved order on issuance of notice to Economic Offences Wing (EOW) and Serious Fraud Investigation Office (SFIO) in an application filed by former Fortis promoter Malvinder Mohan Singh seeking quashing of the FIR lodged by EOW. Malvinder Singh had filed a criminal writ petition on the ground that when an investigation on offences under the Companies Act is already being conducted by SFIO, there cannot be a parallel investigation carried out by EOW on the same transactions...

MCA Issues Circular Clarifying The Issue Of 'Appointed Date' In Amalgamation Or Merger Schemes

The Ministry of Corporate Affairs (MCA) has issued a clarification with regard to the interpretation of the provision of section 232(6) of the Companies Act, 2013. The MCA said that it had received several queries on whether it is mandatory to indicate a specific calendar date as 'appointed date' in the schemes referred to in the section. After examining the matter in detail in light of the provisions of the act, applicable rules, prevalent practices and orders passed by...

'No Public Interest'-SC Sets Aside The First Forced Merger Of Two Companies Ordered By Central Govt [Read Judgment]

The expression "public interest" would mean the welfare of the public or the interest of society as a whole, as contrasted with the "selfish" interest of a group of private individuals.

'No Public Interest'-SC Sets Aside The First Forced Merger Of Two Companies Ordered By Central Govt [Read Judgment]

The expression "public interest" would mean the welfare of the public or the interest of society as a whole, as contrasted with the "selfish" interest of a group of private individuals.