Corporate Law Daily – Editorial Team
Dear Reader,
Today’s newsletter analytically summarizes the top Corporate Law stories reported at taxmann.com.
In the Instant case, the appellant-corporate debtor had availed credit facilities from the respondent-financial creditor. The corporate debtor had defaulted to repay the loan amount. Consequently, the financial creditor classified the account of the corporate debtor as Non-Performing Asset (NPA) on 1-7-2015 and applied section 7 on 22-10-2018. Adjudicating Authority by impugned order admitted application filed under section 7. ?
The corporate debtor filed the appeal contending that the application filed by the financial creditor was time-barred as the date of default was 1-7-2015 but the application for initiating CIRP against the corporate debtor was filed on 22-7-2018 and, thus, the application was filed after the prescribed limitation period of three years was barred by limitation. He had also opposed that the application filed by financial creditor under section 7 was not maintainable as same was not filed by a duly authorized person of the financial creditor. ?
Appellant contended that the Adjudicating Authority had wrongly considered the credit entry of 30-12-2015 from the corporate debtor. The appellant submitted that the said payment was made by a completely unrelated party. The said payment is neither made by the appellant nor its agent. Therefore, based on the credit entry dated 30-12-2015 limitation period cannot be extended under section 19 of the Limitation Act, 1963. ?
Appellant submitted that to get the benefit of section 19 of the Limitation Act, two conditions were essential; first, payment must be made within the prescribed period of limitation, and secondly, it must be acknowledged by some form of writing either in the handwriting of payer himself or signed by him. It is the payment that extends the period of limitation. Still, payment has to be proved in a particular way, and a written or signed acknowledgement is the only proof of payment. ?
NCLAT observed that, since an amount was credited to corporate debtor's account on 31-12-2015 and balance sheet proved that on 31-3-2016 there was a term loan of financial creditor, there was a clear acknowledgement that an amount was due and payable to financial creditor and, therefore, Adjudicating Authority rightly admitted application filed under section 7.
IFSCA has authorized Practising Cost Accountants (CMAs) to issue a paid-up capital and net-worth compliance certificate to insurance intermediaries. Earlier only CA/CS were allowed to issue certificates under Regulation 13(6) and Regulation 22(3) of IFSCA (Insurance Intermediary) Regulations, 2021. As per Regulation 13, an applicant seeking registration as an insurance intermediary is required to maintain minimum paid-up capital and net-worth as specified in PART-A of SCHEDULE-I. ?
The RBI has issued eligibility criteria for entities to be categorized as Specified User under Credit Information Companies (Amendment) Regulations, 2021. Among other requirements amendment states that an entity shall be a company or Statutory Corporation incorporated in India. It should have a net worth of not less than Rs. 2 crores and shall meet the requirement on a continuing basis. ?
RBI has clarified that NRIs and Overseas Citizens of India (OCIs) do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land, farmhouse or plantation property. RBI received a large number of queries based on newspaper reports on a Supreme Court Judgement, on whether prior approval of RBI is required for acquisition/transfer of immovable property in India by OCIs. RBI clarified that the concerned Supreme Court Judgement dated February 26, 2021, in Civil Appeal 9546 of 2010 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999. ?
To increase the awareness regarding online grievance redressal mechanisms, SEBI has advised all recognized stock exchanges including Commodity Derivatives Exchanges/ Depositories / Clearing Corporations to display links to lodge complaints with them directly & link to SCORES website/ link to download SCORES mobile app on the home page of their websites and mobile apps. ?
Additionally, SEBI has advised all recognized stock exchanges including commodity derivatives exchanges/depositories/clearing corporations to make necessary amendments to the relevant bye-laws, rules, and regulations; communicate to SEBI, the status of the implementation of the provisions of this circular through the Monthly Development Report.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
Un-complicate SEBI & Securities Law
How, you ask?
The Circulars amending/clarifying the primary Circular, are given together to get a complete picture of the law, which is the USP of Taxmann's SEBI Manual
Look inside the book here:?https://taxmann.one/3HCusJO
Like It? Buy Now with Free Expedited Shipping & Get a Limited Period Discount!?https://taxmann.one/3EW0oad
#TaxmannBooks?#TaxmannUpdates?#SEBI #Securities #CorporateLaws