ALAYA LEGAL BULLETIN
A. Arbitration and Litigation
The impugned award was against the fundamental policy of Indian law and basic notions of justice in awarding reimbursement of service tax along with interest.
The arbitral award directing the petitioner to reimburse service tax to the respondent along with interest paid by the respondent to the tax authorities, was challenged by the petitioner under Section 34 of the Arbitration and Conciliation Act, 1996 (1996 Act).
The Calcutta High Court set aside the award and observed that, 1996 Act provides that while deciding and making an award, the arbitral tribunal shall, in all cases, take into account the terms of the contract and trade usages applicable to the transaction. The Court held that since the terms of the contract between the parties in the present case were unambiguous, the contravention of the same by the arbitral tribunal tantamounts to a patent illegality within the contemplation of Section 34(2-A) of the 1996 Act.
The court ruled that it is an entrenched principle of Indian law that the courts cannot rewrite a contract between the parties. The said concept is an integral part of the fundamental policy of Indian law. Violating the same tantamount to contravention with the fundamental policy of Indian law and being in conflict with the most basic notions of justice. Thus, the arbitral tribunal acted with patent illegality and against the fundamental policy of Indian law and basic notions of justice in awarding reimbursement of service tax along with interest to the respondent by the petitioner.
Court Name: Calcutta High Court Case Name: Ab Enterprises v. Union Of India
Case No.: E.C. No.52 of 2024
Date of Decision: October 07, 2024
S.37 Arbitration Act 1996 (1996 Act) | An award cannot be set aside merely because appellate court's view is a better view.
The Hon’ble Supreme Court ruled that the appellate court, as such, could not have set aside the award without recording any finding that the award suffers from any illegality as contained in Section 34 of the 1996 Act or that the court had committed error in upholding the same. Merely for the reason that the view of the appellate court is a better view than the one taken by the arbitral tribunal, is no ground to set aside the award.
Court Name: Supreme Court of India Case Name: Punjab State Civil Supplies Corporation Limited & Anr. v. M/S. Sanman Rice Mills & Ors. Case No.: SLP (C) NO. 27699 OF 2018 Date of Decision: September 27, 2024
B. Corporate & Commercial
National Financial Reporting Authority (NFRA) Circular on Responsibilities of Principal Auditor and Other Auditors in Group Audits.
The NFRA circular dated 03.10.2024 has been issued under NFRA Rules, 2018 framed under the Companies Act, 2013, in relation to the responsibilities of Principal Auditors and Other Auditors in Group Audits. The auditors are required to ensure adherence to the following sets of Standards and Codes to remain compliant with the extant laws in India:
a) Standard on Quality Control (SQC);
b) 35 SAs addressing various aspects during the entire life cycle of an audit; and
c) Code of Ethics including Independence standards.
The Companies (Indian Accounting Standards) Third Amendment Rules, 2024.
In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013, the Central Government, introduced the Companies (Indian Accounting Standards) Third Amendment Rules, 2024 to amend the Companies (Indian Accounting Standards) Rules, 2015.
Key amendments include the insertion of a proviso in Rule 5 of the 2015 Rules, allowing insurer or insurance company to present financial statements as per Ind AS 104 till the Insurance Regulatory and Development Authority notifies the Ind AS 117.
Government considering foreign investment regulatory mechanism for Foreign Direct Investment supervision.
The Central Government is considering setting up a foreign investment regulatory mechanism for post-investment review and monitoring in the country. At present, the consideration is only at the discussion level.
领英推荐
C. Energy and Sustainability
Central Electricity Regulatory Commission (CERC) approves adoption of Tariffs for 1,175 MW Wind Projects.
The Petitioner, Solar Energy Corporation of India Limited filed a petition for adoption of tariff under Section 63 of the Electricity Act. The Central Electricity Regulatory Commission has approved the adoption of the tariff for 1,175 MW wind projects (Tranche-XVI) connected to the Inter-State Transmission System, selected through a competitive bidding process as per the ‘Guidelines for Tariff Based Competitive Bidding Process for Procurement Power from Grid Connected Wind Power Projects’ dated 26.7.2023 issued by the Ministry of Power.
Central Electricity Regulatory Commission (CERC) issues suo-moto orders for enhancing Grid stability and demand management.
The CERC has issued orders to National? Load Despatch Centre (NLDC), Regional Load Despatch Centres (RLDC), State? Load Despatch Centres (SLDC) and other stakeholders in respect of planning for safe, secure, and reliable integrated operation of the power system during critical periods arising on account of seasonal variations wherein the electricity demand increases rapidly by undertaking specific measures to mitigate the risks on the power system, under clause (h) of sub-section (1) of Section 79 of the Electricity Act, 2003 and the Regulation 31 of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023. NLDC, RLDCs, and SLDCs are directed to submit their responses in respect of the above measures by 16.10.2024.?
Guidelines for Installation and Operation of Battery Swapping and Charging Stations.
The Ministry of Power has released the "Guidelines for Installation and Operation of Battery Swapping and Charging Stations". These guidelines are aimed at meeting the requirements of Electric vehicles (EV) with integrated batteries. The alternative method of powering electric vehicles is through swappable batteries which can be charged separately at dedicated battery charging stations.
These guidelines apply to swappable battery providers, and owners and operators of battery charging stations and battery swapping stations located anywhere.??
Modification of the scheme of Budgetary Support for the cost of enabling Infrastructure for Hydro Electric Projects.
The Ministry of Power, through its Office Memorandum dated 30th September 2024, modified the scheme of Budgetary Support for Enabling Infrastructure in Hydro Electric Projects. The updated scheme widens the ambit of budgetary support for the cost of enabling to include transmission lines, ropeways, railway sidings, communication infrastructure.
D. Information Technology and Artificial Intelligence
India to host ITU-WTSA24 during October 14th- 24th in New Delhi : The first ever in Asia Pacific region.
The World Telecommunication Standardization Assembly (WTSA) of International Telecommunication Union (ITU) will be held in New Delhi from October 14 to 24, 2024.
Union Minister for Education, Shri Dharmendra Pradhan to announce 3 AI - Centres of Excellence on Healthcare, Agriculture and Sustainable Cities on 15th October, 2024.
Union Minister for Education will be announcing three AI Centres of Excellence (CoE) focused on Healthcare, Agriculture, and Sustainable Cities on 15th October 2024 in New Delhi. As part of the vision to "Make AI in India and Make AI work for India," the establishment of these centres was announced under Para 60 of the Budget Announcement for 2023-24. In alignment with this, the Government has approved the creation of the three AI Centres of Excellence, with a total financial outlay of Rs. 990.00 Cr over the period of FY 2023-24 to FY 2027-28.
E. Featured Posts
India’s ambitious goal of achieving net zero carbon emissions by 2070 necessitates a diversified clean energy portfolio. Nuclear power promises a viable solution for diversification of the clean energy portfolio.
Apart from being one of the lowest greenhouse gas emitters in life-cycle analysis, nuclear power also has the ability to provide baseload power and contribute to a stable and resilient electrical grid by providing a constant energy source.
This article discusses the regulatory landscape for Small Modular Reactors (SMRs) in India.