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SUPREME COURT FIXES SIX MONTHS AS LIMITATION PERIOD ON STAY OF TRIAL PROCEEDINGS

The Hon’ble Supreme Court of India in a very significant judgment has ruled that stay of proceedings in a pending trial, whether civil or criminal, will automatically lapse after six months from the date of grant of stay order unless extended, in an exceptional circumstance, by a speaking order. The Hon’ble Supreme Court comes up with this significant direction in a judgment, dated March 28, 2018, arising out of Prevention of Corruption Act, in Asian Resurfacing of Road Agency Pvt. Ltd. & Anr. Versus Central Bureau of Investigation, by a bench comprising of Hon’ble Mr. Justice Adarsh Kumar Goel and Hon’ble Mr. Justice Navin Sinha. The said judgment was concurred by Hon’ble Mr. Justice Rohinton Fali Nariman in a separate but concurring judgment. The Hon’ble Supreme Court with an objective of remedying the situation of proceedings remaining pending for long on account of stay considered it appropriate to direct that: “in all pending cases where stay against proceedings of a civil or…
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Regulate the Unregulated Deposit Schemes

With its ongoing mission to curb the unregulated deposit & Ponzi scheme and to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to introduce the“Banning the Unregulated Deposit Scheme Bill 2018” (“Bill”). The Bill is aimed at tackling the menace of illicit deposit taking activities in the country. Companies/ institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings. The Bill may cover: complete prohibition of unregulated deposit taking activity;deterrent punishment for promoting or operating an unregulated deposit taking scheme;stringent punishment for fraudulent default in repayment to depositors;designation of a Competent Authority by the State Government to ensure repayment of deposits in the event of default by a deposit taking establishment;powers and f…

A Structured Overview of Corporate Insolvency Regime in India

What is the purpose of Insolvency and Bankruptcy Code 2016? 1. Th consolidate & amend the laws relating to insolvency & bankruptcy; 2. To fix the time periods for execution of the law in a time bound manner; 3. To increase the availability of credit; 4. To balance the interests of all stakeholders including alteration in the order of priority of payment; 5. To establish an Insolvency & Bankruptcy Board of India as a regulatory body for insolvency & bankruptcy law. With the recent changes in the legal landscape of India, the Insolvency & Bankruptcy Code, 2016 (“Code”) is the biggest and major legal reforms in the recent times, which has curtailed the earlier extensive process of debt recovery and insolvency. The Code has repealed around eleven laws and provides a comprehensive and time bound mechanism to either put a distressed entity on a firm revival path or timely liquidation of assets. The Adjudication Authority for companies shall be National Company Law Tribunal (NCL…

Insolvency Proceedings and Time Barred Debt

InNeelkanth Township & Construction Private Limited v. Urban Infrastructure Trustees Limited [2017] 140 CLA, an appeal was filed by a corporate debtor (Neelkanth Township & Construction Pvt. Ltd.) against the order of the National Company Law Tribunal (“NCLT”) allowing commencement of insolvency proceedings on the action of the financial creditor (Urban Infrastructure Trustees Ltd.). in National Company Law Appellate Tribunal (“NCLAT”). The financial creditor had subscribed to optionally convertible debentures (“OCDs”) issued by the corporate debtor. OCDs carried nil or 1% p.a. interest rate and matured in years 2011, 2012 and 2013. Ă˜One of the issues for consideration before the NCLAT was whether the application under Section 7 of the Insolvency & Bankruptcy Code (“Code”) is time barred, as the debt claim related to the years 2011, 2012 and 2013. Section 3 of the Limitation Act, 1963 governs the time period within which unless a ‘civil suit’ must be filed in respect of reco…

Doing Business of Cyrptocurrency w.r.t. Indian Legal Perspective

Cryptocurrency has been called as the greatest technological breakthroughs since the Internet.  However, a parallel warning from the Reserve Bank of India as a caution against bitcoin and other cryptocurrency, with no guidelines or order to prohibit cryptocurrency may puzzled you to ponder over –Is it legal to do business of cryptocurrency in India?  There may be several questions which you may encounter w.r.t. applicable laws of India, as there are no specific guidelines issued by any Government Authority including Reserve Bank of India or Ministry of Finance. The main stream adoption of cryptocurrency is becoming a reality despite sceptics who compare the boom to the 1636 tulip mania. The issue is not whether cryptocurrency will survive, but rather how it will evolve. The article aims to clarify certain major aspects which may be encountered for- “Doing Business of Cryptocurrency w.r.t. Indian Legal Perspective” under the evolving legal structure. There are growing number of business …