“Accustomed To Act” Test Under Indian Corporate Law – An Objective Critique Of The Inherent Subjectivity

Objectivity is a key attribute of any legislation. The element of objectivity is critical to ensure clarity in a way that there is little or no room for more than one interpretation. That said, history is witness to a plethora of cases of ambiguities in interpretation or legal “grey areas” which have been time and again evaluated and somewhat settled by judicial intervention. The interplay of subjectivity and objectivity in any statute lies at the core of such statute. While objectivity...

Cognitive Enhancement Drugs In Academic And Professional Settings: Legal And Ethical Considerations

In a world where the boundaries between human and machine blur with each passing day, a new frontier of human enhancement has emerged, not in the realm of cybernetics or genetic engineering, but in the form of tiny pills promising to unlock the full potential of our minds. Welcome to the era of cognitive enhancement drugs, where the pursuit of mental superiority has become the latest battleground in academic halls and corporate boardrooms alike.The Allure and Efficacy of Smart DrugsImagine a...

Companies Act | NCLT Mumbai Dismisses Oppression-Mismanagement Petition For Being In The Nature Of Family Property Dispute

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Justice Shri V.G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member), has dismissed a petition filed under Section 241-242 of the Companies Act, 2013, citing that the petition is in the nature of a family dispute for share in the properties owned by the Company. Section 241 of the Companies Act, 2013 empowers any member of a company to file an application before NCLT seeking its intervention, when...

Mergers & Acquisitions In India

In the competitive business world today, companies are always looking for ways to minimize costs and increase revenue. In this process, many times companies are amalgamated, merged, demerged, or converted into LLP or partnership firms for economies of scale, to increase in market share and to improve their business, and generally to plan their affairs. On the other hand, acquisitions provide a means of market expansion, diversification, synergy, and technology enhancement among other...

Reversal Of Input Tax Credit In Schedule-I Transactions (Without Consideration): Interplay Between Section 16(2) And Rule 37

Often transactions such as stock transfers, supply of corporate guarantee services, supply of technical and administrative services etc., between related parties (under GST) are carried out without any consideration. Since such supplies fall under the purview of Schedule-I of the CGST Act, the supplier is responsible to pay the applicable taxes to the Government. On the recipients' end, in terms of Section 16 of the CGST Act, the eligibility to avail the Input Tax Credit (“ITC”) would be subject...

Reversal Of Input Tax Credit In Schedule-I Transactions (Without Consideration): Interplay Between Section 16(2) And Rule 37

Often transactions such as stock transfers, supply of corporate guarantee services, supply of technical and administrative services etc., between related parties (under GST) are carried out without any consideration. Since such supplies fall under the purview of Schedule-I of the CGST Act, the supplier is responsible to pay the applicable taxes to the Government. On the recipients' end, in terms of Section 16 of the CGST Act, the eligibility to avail the Input Tax Credit (“ITC”) would be subject...

No Restriction On 'Serious Fraud Investigation' Against Company Owned By CM Pinarayi Vijayan's Daughter: Centre To Kerala High Court

The Central government has informed the Kerala High Court that there is no restriction on investigation by the Serious Fraud Investigation Office into Exalogic Solutions, an IT company owned by CM Pinarayi Vijayan's daughter, which is allegedly involved in CMRL bribery case.The company is alleged to have received kickbacks from Cochin Minerals and Rutile Ltd., without having rendered any service. A probe against it is already initiated under Section 210(1)(c) of the Companies Act,...

Companies Act | Under Sec. 59, Registered Society Can't Seek Rectification Of Share Register Of Company's Members: NCLT Hyderabad

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath (Judicial Member) and Shri Charan Singh (Technical Member), has held that a company petition filed by a Society registered under Andhra Pradesh Societies Registration Act, 2001, for rectification of share register of the members of a Company under Section 59 of the Companies Act, 2013, is not maintainable. The Bench held that the Society is not a 'person' for the purpose of...

Companies Act | Under Sec. 59, Registered Society Can't Seek Rectification Of Share Register Of Company's Members: NCLT Hyderabad

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath (Judicial Member) and Shri Charan Singh (Technical Member), has held that a company petition filed by a Society registered under Andhra Pradesh Societies Registration Act, 2001, for rectification of share register of the members of a Company under Section 59 of the Companies Act, 2013, is not maintainable. The Bench held that the Society is not a 'person' for the purpose of...

Banks/NBFCs Not Obliged To Initiate Restructuring Process Before Classifying MSME Account As NPA Sans Application From MSME: Bombay High Court

The Bombay High Court recently held that banks and non-banking financial companies (NBFCs) are not obligated to initiate restructuring process before classifying accounts of Micro, Small, and Medium Enterprises as Non-Performing Assets (NPA) in the absence of any application from the MSMEs seeking restructuring.A division bench of Justice BP Collabawalla and Justice MM Sathaye held that notification dated May 29, 2015, under Section 9 of the Micro, Small and Medium Enterprises Development Act,...

SFIO Not Barred From Investigating IPC Offences, Conducting 'Further Probe': Delhi High Court

The Delhi High Court has observed that the Serious Fraud Investigation Office (SFIO) is not barred from investigating offences under the Indian Penal Code, 1860, or conducting further investigation in accordance with law after the Investigation Report has been submitted.“From a conjoint and harmonious reading of the relevant provisions of the CrPC and the present Act, as quoted hereinabove, it cannot be said that the SFIO is barred from investigating an offence under the IPC. SFIO is not barred...

SFIO Not Barred From Investigating IPC Offences, Conducting 'Further Probe': Delhi High Court

The Delhi High Court has observed that the Serious Fraud Investigation Office (SFIO) is not barred from investigating offences under the Indian Penal Code, 1860, or conducting further investigation in accordance with law after the Investigation Report has been submitted.“From a conjoint and harmonious reading of the relevant provisions of the CrPC and the present Act, as quoted hereinabove, it cannot be said that the SFIO is barred from investigating an offence under the IPC. SFIO is not barred...