Ergo Update

In its recent judgment in the matter of DBS Bank Limited Singapore v. Ruchi Soya Industries Limited and Another 2024 SCC OnLine SC 3 (Ruchi Soya), the Hon’ble Supreme Court reignited an important discussion under the framework of the Insolvency and Bankruptcy Code, 2016 (IBC) with regards to the manner of calculation of the minimum liquidation value payable to a secured dissenting financial creditors (Secured DFC) in terms of Section 30(2)(b)(ii) of the IBC (Minimum Liquidation Value or MLV).

As part of our ongoing commitment to keeping you informed about crucial developments in the media and entertainment landscape, we are pleased to share the latest Ergo, focusing on a regulatory update in the print sector: the enactment of the Press and Registration of Periodicals Act 2023, which would govern the print media sector once notified by the Government. We believe that the enclosed Ergo will serve as a valuable resource in understanding and adapting to the regulatory changes impacting the print media sector.

In a move aimed at contemporising the justice delivery system in India, the Bharatiya Sakshya Adhiniyam, 2023 (BSA) has been introduced to replace the Indian Evidence Act, 1872 (IEA).

In a significant move aimed at overhauling the criminal justice delivery system in India, the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) has been recently introduced to replace the long-standing Code of Criminal Procedure, 1973 (CrPC). Although published in the Official Gazette on 25 December 2023, due to administrative and logistical reasons, the said enactment is expected to come into force only later in 2024.

The Government of Karnataka published the Karnataka Compulsory Gratuity Insurance Rules, 2024 (Karnataka Gratuity Rules) in the Official Gazette on 10 January 2024, bringing the same into effect on the same day. With the introduction of such a significant move, Karnataka joins Andhra Pradesh, Telangana, and Kerala, in incorporating a mandatory requirement for employers to obtain an insurance policy to meet with their liabilities under the Payment of Gratuity Act, 1972 (Gratuity Act).

On The Central Board of Direct Taxes (CBDT), the apex body for direct tax administration in India has issued guidelines vide Circular No.  20 of 2023 dated 28 December 2023 (CBDT Guidelines) to provide clarity in relation to certain nuances pertaining to the 1% TDS applicable on e-commerce operators facilitating online sale of goods or provision of services.

In a far-reaching development for individuals and businesses with an India connection, three seminal legislations, namely, Bharatiya Nyaya Sanhita, 2023 (BNS), Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) and Bharatiya Sakshya Adhiniyam, 2023 (BSA) were published in the Official Gazette on 25 December 2023. The said legislations will replace the long standing Indian Penal Code, 1860 (IPC), the Code of Criminal Procedure, 1973 (CrPC) and the Indian Evidence Act, 1872 (IEA) respectively.

The Department of Commerce, Ministry of Commerce and Industry (MCI), by a recent notification dated 6 December 2023 (Amendment), has amended Special Economic Zone Rules, 2006 to insert rule 11B, which allows demarcation of a portion of built-up area in an Information Technology (IT) or an Information Technology Enabled Services (ITES) Special Economic Zones as a non-processing area subject to permission of Board of Approval (Board) post underlying compliances and at request of the developer.