Legal Updates Every Fortnight
Litigation & Arbitration
(i) The High Court of Delhi ruled that failure to disclose a petition under Section 9 of the Arbitration and Conciliation Act, 1996 in a separate matter does not constitute egregious fraud. This ruling clarified that such non-disclosure does not prevent a party from pursuing its petition under Section 9, which allows parties to arbitration proceedings to seek interim relief from a judicial authority before, during, or after arbitration proceedings.
Court: Delhi High Court
Case Name: Tata Projects Limited v. Power Grid Corporation of India Limited
Case No.: FAO (COMM) 93/2024 CM APPL. 29905/2024
Date of Decision: May 27, 2024
(ii) The Income Tax Appellate Tribunal (ITAT), Mumbai ruled in favour of allowing tax deductions under Section 80G of the Income Tax Act for corporate donations made as part of companies’ corporate social responsibility (CSR) expenses.?
Tribunal: Income Tax Appellate Tribunal, Mumbai
Case Name: M/s Alubound Docs India Private Limited v. Dy. CIT, Circle-6(1)(1)
Case No.: 3663/Mum/2023
Date of Decision: May 27, 2024
(iii) The High Court of Delhi ruled that Section 29A of the Arbitration and Conciliation Act, 1996 does not prevent the consideration of applications for extending an arbitrator's mandate even if the application is filed after the mandate has expired.
Court: Delhi High Court
Case Name: Glowsun Powergen Private Limited v. Hammond Power Solutions Private Limited
Case No.: O.M.P. (MISC.)(COMM.) 120/2024
Date of Decision: May 28, 2024
(iv) The India International Arbitration Centre (Conduct of Micro and Small Enterprises Arbitration) Regulations, 2024 have been introduced by the India International Arbitration Centre. The Regulations provide a comprehensive framework for arbitration involving micro and small enterprises. These regulations define key terms and establish procedures for various aspects of arbitration.
Corporate & Commercial
(i) On June 5, 2024, the Insolvency and Bankruptcy Board of India (IBBI) issued the Insolvency Professionals (Recommendation) Guidelines, 2024, outlining procedures for creating a panel of Insolvency Professionals (IPs) to act as Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), Liquidators, and Bankruptcy Trustees (BTs). The guidelines aim to streamline the appointment of IPs by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT) to avoid delays. Key points include eligibility criteria for IPs (e.g., no ongoing disciplinary actions and valid Authorization for Assignment), and a structured process for submitting expressions of interest and preparing a zone-wise panel based on experience and registration date.
(ii) The Competition Commission of India (General) Regulations, 2009, were issued on June 5, 2024, with the aim of providing guidelines for the functioning of the Competition Commission of India (CCI). These regulations come into force upon their publication in the Official Gazette. They define various terms relevant to the functioning of the CCI, such as "Act," "Chairperson," "Commission," "Counsel," and others. Additionally, the regulations outline procedures for determining the procedure in certain circumstances, the use of the official seal and emblem, and the language of the commission. They also specify the filing of documents in Hindi, translation requirements, observed holidays, and computation of time. Furthermore, they detail the contents and signing requirements for information or references submitted to the commission.
(iii) Amendments have been introduced to the Foreign Exchange Management (Overseas Investment) Directions, 2022, expanding the scope of eligible investments in overseas funds. It broadens the definition of eligible instruments to include any instrument issued by regulated investment funds in host jurisdictions, allowing listed Indian companies, resident individuals, and unlisted Indian entities in International Financial Services Centres (IFSCs) to invest.
(iii) The Insolvency and Bankruptcy Board of India (IBBI) has proposed to simplify the forms submitted for the corporate insolvency resolution process (CIRP) by resolution professionals (RPs).
(iv) The National Company Law Tribunal, Mumbai ruled that an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is not maintainable without strict proof of debt and default.?
Tribunal: National Company Law Tribunal, Mumbai
Case Name: Mittal Polymers V. Suvarna Additives Private Limited
Case No.:? CP (IB) No. 95/MB/2022
Date of Decision: June 12, 2024
Energy & Sustainability
(i) The Central Electricity Authority (CEA) has circulated draft generic technical specifications for the Nitrogen Injection Fire Prevention and Extinguishing System (NIFPES) for comments. This system is mandated for transformers/reactors of 10 MVA and above. The draft aims to provide interim measures until Indian Standards are finalized. Stakeholders are invited to submit their comments by 04.07.2024. The draft outlines the scope and specifications for the NIFPES, emphasizing its importance in preventing and extinguishing fires in transformers/reactors to maintain power system reliability and safety.
(ii) The Meghalaya High Court ruled that a State authority cannot force a successful resolution applicant under the Insolvency and Bankruptcy Code, 2016 (I&B Code) to pay past electricity dues if no claim for these dues was made in the approved resolution plan. This case involved Reliance Infratel, which underwent insolvency proceedings, and its resolution plan was approved by the National Company Law Tribunal. Subsequently, Reliance Projects and Property Management Solutions Ltd. (RPPMSL) took over Reliance Infratel on December 22, 2022.
Court: High Court of Meghalaya
Case Name: M/S Reliance Infratel Limited v. State of Meghalaya & Ors.
Case No.: WP(C) No. 238 of 2023
Date of Decision: June 05, 2024
(iii) The Himachal Pradesh Electricity Regulatory Commission (HPERC) has introduced the "Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations, 2024." These regulations, effective upon publication in the Official Gazette, apply to all hydro power generation companies in the state, both existing and future, from April 1, 2024, to March 31, 2029, unless otherwise reviewed or extended.
(iv) CERC has issued guidelines for Submission of Arguments and Issues in CERC Petitions, wherein, Petitioners must submit a "Summary of Issues" with their petitions upon filing, while respondents must provide brief "Notes of Arguments" opposing admission three days before the hearing.
(v) The Central Electricity Regulatory Commission (CERC) has issued the "Indian Electricity Grid Code" (First Amendment) Regulations, 2024, effective upon notification, with one specific amendment coming into force from April 1, 2024.
(vi) The Delhi State government has launched a dedicated portal to guide people on installing rooftop solar units. The portal will soon have a list of authorized vendors as well. The portal will also feature a shadow area assessment process to optimize panel placement and a solar capacity calculator for households.
(vii) The Central Electricity Regulatory Commission (CERC) has introduced the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2024, which are slated to take effect from July 1, 2024, and remain in force until March 31, 2027, unless reviewed earlier or extended by the Commission.
Information Technology and Artificial Intelligence
(i) The Ministry of Electronics & Information Technology has uploaded on its website the draft amendments proposed to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 for public feedback and inputs. These are being offered for public consultation and comments from all stakeholders for the next 30 days.
If you have any questions regarding any of these developments or would like to reach out to our team for tailored solutions aligned with your vision and growth objectives , contact us today by filling our form: https://alayalegal.com/contact-us/ .
Disclaimer: The content provided in this newsletter is intended only for the purposes of general awareness and should not be considered as legal advice. Readers are advised to consult with a qualified legal professional in relation to any specific issues that are mentioned herein.