This monthly legal roundup is a compilation of our thought leadership articles published in the month of January 2024 on key legal and regulatory topics. Please click on the access links to read more.
A. CORPORATE
1. Regulatory Update: Indian Companies allowed to directly list equity shares on International Exchanges
The Ministry for Corporate Affairs and Ministry of Finance published notifications providing a framework for public Indian companies to directly list their equity shares on permitted international exchanges.
B. DISPUTES
1. The Triumph of Arbitration Clauses in Insufficiently / Unstamped Agreements!
In the backdrop of uncertainty stirred by the decision of the Supreme Court's 5-Judge Bench in NN Global Mercantile Pvt. Ltd. v. Indo Unique Flames Pvt. Ltd., the issue of insufficiency / unstamped arbitration agreements knocked the doors of Supreme Court again in Seka Dobric v. SA Eonsoftech Pvt. Ltd. and M/s. Bhaskar Raju & Brothers & Anr. v. M/s. Dharmaratnakara Rai Bahadur Arcot Narainswamy Mudaliar Chattram Other Charities. This time, the matter came to be referred to a 7-Judge Bench of the Supreme Court. On 13 December 2023, the 7-Judge Bench overruled the decision of 5-Judge Bench and parts of the decisions in Garware Wall Ropes Ltd. v. Coastal Marine Constructions & Engg. Ltd. and Vidya Drolia & Ors. v. Durga Trading Corporation.
2. Delhi High Court: Directors cannot be made parties to the Arbitration Proceedings against the Company through the Group of Companies doctrine
The Delhi High Court in a recent decision distinguished the application of the group of companies doctrine as laid down in Cox & Kings v. SAP India to hold that the directors of a company cannot be made parties to the arbitration proceedings against the company.
3. Group of Companies doctrine in Indian Arbitration Landscape: The Dust Settles
The Five Judge Bench of the Indian Supreme Court recently settled the long-standing debate concerning the application of the group of companies doctrine to arbitration proceedings in India by affirming the validity of the "group of companies doctrine" in the Indian arbitration jurisprudence.
C. INSOLVENCY
Streamlining Liquidation: Key Changes to the Liquidation Regulations
The Insolvency and Bankruptcy Board of India announced the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024, introducing significant amendments to the 2016 Regulations to enhance the liquidation process. These modifications aim to streamline procedures, ensure accountability, and increase stakeholder confidence.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
