Ergo Update

A Division Bench of the Hon’ble Supreme Court of India, comprising Justice Uday Umesh Lalit and Justice Indu Malhotra has, vide judgment dated 26 November 2019 passed in the matter of Perkins Eastman Architects DPC & Another v HSCC (India) Limited, while dealing with Section 11 (6) read with Section 11 (12)(a) of the Arbitration and Conciliation Act, 1996 (Act) has held that a person who has an interest in the outcome or decision of the disputes must not have the power to appoint a sole arbitrator.

Various Indian judicial fora, including the Supreme Court, have affirmed that a creditor may proceed against a guarantor on failure of the principal debtor to repay a loan without first exhausting his remedies against the principal debtor.

The National Company Appellate Tribunal, New Delhi (NCLAT) in the recent case of Oswal Greentech v Mr Pankaj Oswal and Ors (Company Appeal (AT) No 410 of 2018) while deciding on the issue of maintainability of a petition alleging oppression and mismanagement of a company, held that upon the death of a shareholder, the shares vest with his/her legal heirs and not with the appointed nominee of such shares. The nominee of shares merely holds the shares till the matter of vesting is decided in favour of the legal heirs.

“Excepting the solitary reason namely difference in sex among the workers, there is no reason or rhyme to treat the women differently, nor it could be held that it is a protective legislation to save the women from exploitation. On the other hand, the very provision results in denial of livelihood, improvement in status to women as well as economic freedom and the impugned provision in any view of the matter offends Article 15(1) of the Constitution.”

The Cabinet Committee on Economic Affairs (CCEA), on 20 November 2019 gave its approval to the proposed amendment to the to the Toll Operate Transfer (TOT) model of the National Highways Authority of India (NHAI). After the successful roll out of the TOT model in 2016, CCEA’s recent decision appears to be with a view to increase more participation of institutional investors in national highways sector for raising funds for NHAI.

The Ministry of Finance on 17 October 2019, released the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) in supersession of the Foreign Exchange Management (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2017 (TISPRO Regulations) and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018.

In a recent judgment Sowparnika Projects and Infrastructure Pvt. Ltd. and Ors. v/s ACIT TDS Circle-3(1), Criminal Review Petition No.

A constitution Bench of the Supreme Court has dealt with questions pertaining to the constitutionality of Part XIV of the Finance Act, 2017 and the Rules framed thereunder.

A recent landmark decision of the Supreme Court reinforces the duty of care and liability of a Hotel for property entrusted to it by guests, customers and visitors. 

On 1 November 2019, the Insurance Regulatory and Development Authority of India (IRDAI) notified the IRDAI (Insurance Intermediaries) (Amendment) Regulations 2019 (Intermediaries Regulations).