The Competition & Commercial Law Review (TCCLR)

𝐊𝐚𝐫𝐧𝐚𝐭𝐚𝐤𝐚 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 𝐑𝐮𝐥𝐞𝐬 - 𝐋𝐢𝐬 𝐏𝐞𝐧𝐝𝐞𝐧𝐬 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 𝐭𝐨 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐀𝐜𝐪𝐮𝐢𝐫𝐞𝐝 𝐃𝐮𝐫𝐢𝐧𝐠 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 9 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐜𝐞𝐞𝐝𝐢𝐧𝐠𝐬   The Karnataka High Court, in the case of M/s Devtree Corp. Llp. Vs M/s Bhumika North Gardenia, ruled that property acquired during Section 9 arbitration proceedings is subject to the principle of lis pendens. The court considered whether such transactions are affected by Section 52 of the Transfer of Property Act, 1882, which prevents the transfer of property during the pendency of a suit or proceeding involving immovable property rights.    Justice Anu Sivaraman and Justice Anant Ramanath Hegde highlighted that the doctrine of lis pendens ensures the integrity of litigation outcomes by preventing property transfers that could undermine court decisions. The court rejected the appellant's argument that Section 9 proceedings under the Arbitration Act do not constitute a suit, asserting that such proceedings involve significant property questions and fall under Section 52's scope.   The court advised the appellant to seek remedies from the Arbitral Tribunal and modified an interim order to remain effective for 45 days or until superseded by the Tribunal's measures. Thus, the appeal was partially allowed, affirming that lis pendens applies to Section 9 arbitration proceedings. By Ishita Chandra #karnatkahc #arbitration #ACActs #tcclr #realestate

𝐃𝐞𝐥𝐡𝐢 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 𝐂𝐥𝐚𝐫𝐢𝐟𝐢𝐞𝐬 𝐂𝐫𝐢𝐭𝐞𝐫𝐢𝐚 𝐟𝐨𝐫 𝐈𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐍𝐨𝐧-𝐒𝐢𝐠𝐧𝐚𝐭𝐨𝐫𝐢𝐞𝐬 𝐢𝐧 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐜𝐞𝐞𝐝𝐢𝐧𝐠𝐬 The Delhi High Court ruled that a non-signatory can be included in arbitration if there is a contractual relationship making them responsible for obligations towards the claimant, beyond being part of the same group of companies. This case involved disputes between RBCL Piletech Infra (Petitioner) and Bholasingh Jaiprakash Construction Ltd. (BJCL), arising from a Work Order, with NTPC and BHEL also implicated. Despite NTPC's non-response and BHEL's opposition, the Petitioner sought an arbitrator under Section 11(6) of the Arbitration Act. The court noted that while Clause 33 of the BJCL-BHEL contract didn't justify including BHEL in arbitration, Clauses 21 and 28, tying the Petitioner's payment to BJCL's receipt from BHEL, did. NTPC had no direct contractual responsibility to the Petitioner, but its inclusion could be argued before the arbitral tribunal. The court appointed Anant V. Palli as the arbitrator, referencing Supreme Court rulings that support including non-signatories involved in interconnected agreements aimed at a common goal. By Akshith Sainarayan #delhihc #arbitration #arbitrationlaw #commerciallaw #tcclr #ACAct

𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐚𝐧𝐝 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞 𝐁𝐨𝐚𝐫𝐝 𝐨𝐟 𝐈𝐧𝐝𝐢𝐚 (“𝐒𝐄𝐁𝐈”) 𝐦𝐮𝐥𝐥𝐬 𝐮𝐩𝐨𝐧 𝐬𝐮𝐦𝐦𝐚𝐫𝐲 𝐩𝐫𝐨𝐜𝐞𝐞𝐝𝐢𝐧𝐠𝐬 𝐟𝐨𝐫 𝐯𝐢𝐨𝐥𝐚𝐭𝐢𝐨𝐧𝐬 𝐛𝐲 𝐚𝐧 𝐢𝐧𝐭𝐞𝐫𝐦𝐞𝐝𝐢𝐚𝐫𝐲. SEBI has observed that after the advent of the SEBI (Intermediaries) Regulations, 2008, which replaced the SEBI (Procedure of Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, the procedure for minute violations has become more lengthy and cumbersome. SEBI is looking forward to closing the gap by introducing summary proceedings for violations including expulsion of members, termination of depository agreements, non-payment of specific fees, etc. by B R Garima Rao #sebi #securitieslaw #capitalmarkets #tcclr

𝐓𝐞𝐥𝐚𝐧𝐠𝐚𝐧𝐚 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 𝐨𝐧 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐥 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥𝐬' 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲 𝐭𝐨 𝐀𝐰𝐚𝐫𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 The Telangana High Court recently ruled that arbitral tribunals can award interest from the date of the award until payment, even if the parties disagree. If the award is silent on interest rates, the award holder gets 2% above the market rate. Pre-reference and pendente lite interest are subject to the parties' agreement, per Section 31(7) of the Arbitration Act. The court clarified the three interest periods: pre-reference, pendente lite, and post-award, noting the tribunal's discretion in awarding interest if not explicitly barred by the agreement. The court upheld the tribunal's award of 12% interest for the pendente lite period in the Union of India vs. Suntechno Constructions case and allowed post-award interest at 2% above the prevailing rate. by Akshith Sainarayan #arbitrationlaw #adr #telanganahc #hc #supremecourt #interest #payments #disputeresolution #tcclr

𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐚𝐧𝐝 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞 𝐁𝐨𝐚𝐫𝐝 𝐨𝐟 𝐈𝐧𝐝𝐢𝐚 (“𝐒𝐄𝐁𝐈”) 𝐦𝐨𝐨𝐭𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐚 𝐧𝐞𝐰 𝐚𝐬𝐬𝐞𝐭 𝐜𝐥𝐚𝐬𝐬 The goal of the consultation paper released by SEBI is to bridge the gap between Mutual Funds and Portfolio Management Services. It seeks to provide investors with investment products featuring higher risk-taking capabilities and higher ticket size, aimed at curbing the proliferation of unregistered and unauthorized investment products. The minimum investment amount for investment under the New Asset Class shall be INR 10 lakh per investor. by B.R. Garima Rao #sebi #securitieslaw #capitalmarkets #MFs #mutualfunds #tcclr #investments

In our latest post, Isha Katiyar writes on "Revolutionizing Digital Competition: Unpacking the 2024 Draft Bill's Ex-Ante & Principles-Based Approach." "The recent Draft Digital Competition Bill, 2024 aims to create a new ex-ante regulatory framework to complement the Competition Act's ex-post model to better regulate the Indian digital market. Given the dynamic nature of such markets, timely interventions are essential to prevent anti-competitive behaviour. The rise of digitalization in India with one of the world's largest and fastest-growing digital markets has fuelled sectors like e-commerce and advanced technologies such as Artificial Intelligence, bringing a surge of new digital users.   Large digital enterprises, often regulated inconsistently, have sparked anti-competitive concerns addressed also by the Competition Commission of India (‘CCI’) from time to time. The Draft Digital Competition Bill sets principle-based obligations for large digital enterprises known as Systematically Significant Digital Enterprises (‘SSDEs’) corresponding to GDPR’s gatekeepers and allows the CCI to adapt regulations as well. In this article, the author aims to explore how the Draft Digital Competition Bill represents a significant step towards an ex-ante and principles-based approach, shaping India's digital market regulation for the future, fostering innovation, and safeguarding competition in the digital era." Read more at: https://lnkd.in/gcZVatrw Regards, Team TCCLR #competitionlaw #digitalcompetitionact #digital #media #digitalmarket #antitrust #tcclr

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𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐋𝐚𝐰 𝐀𝐩𝐩𝐞𝐥𝐥𝐚𝐭𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥 ("𝐍𝐂𝐋𝐀𝐓") 𝐃𝐞𝐥𝐡𝐢: 𝐇𝐨𝐦𝐞𝐛𝐮𝐲𝐞𝐫𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐦𝐢𝐧𝐨𝐫𝐢𝐭𝐲 𝐜𝐚𝐧𝐧𝐨𝐭 𝐨𝐯𝐞𝐫𝐫𝐢𝐝𝐞 𝐚 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐛𝐲 𝐭𝐡𝐞 𝐦𝐚𝐣𝐨𝐫𝐢𝐭𝐲 𝐨𝐟 𝐭𝐡𝐞 𝐂𝐨𝐦𝐦𝐢𝐭𝐭𝐞𝐞 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭𝐨𝐫𝐬 ("𝐂𝐨𝐂"). In the CoC, the homebuyers constituted 11.05% (vote share) and the creditors constituted 88.9% (vote share). The resolution plan was approved by the creditors while the home buyers opposed the same. NCLAT further held that in cases where the Committee of Creditors has duly sanctioned a resolution plan in accordance with the requisite legal procedures, and there is no evidence of any substantial irregularities committed by the Resolution Professional during the CIRP, such decisions are not subject to judicial review or alteration. by B.R. Garima Rao #nclat #nclat #coc #creditors #cirp #insolvencylaw #ibc2016 #tcclr

𝐁𝐨𝐦𝐛𝐚𝐲 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 𝐒𝐭𝐚𝐲𝐬 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐥 𝐀𝐰𝐚𝐫𝐝 𝐃𝐮𝐞 𝐭𝐨 𝐋𝐚𝐜𝐤 𝐨𝐟 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐀𝐜𝐭𝐮𝐚𝐥 𝐋𝐨𝐬𝐬 The Bombay High Court granted an unconditional stay on an arbitral award, emphasizing that the arbitrator violated established law requiring proof of actual loss for a claim for damages. Alkem Laboratories Limited, the petitioner, challenged the award, arguing that the arbitrator failed to consider evidence of loss while awarding damages for failing to meet Minimum Purchase Volume (MPV) requirements under a Marketing and Distribution Agreement (MDA). Despite acknowledging the claim as one of damages, the arbitrator calculated damages based solely on the product's price, neglecting manufacturing costs and manpower expenses, resulting in perversity and patent illegalities in the award. The High Court held that the arbitrator's oversight in assessing evidence of actual loss and flawed computation of damages warranted an unconditional stay of the award. #arbitrationlaw #arbitration #adr #disputeresolution #tcclr #hc #bombayhc

𝐌𝐢𝐧𝐢𝐬𝐭𝐫𝐲 𝐨𝐟 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐀𝐟𝐟𝐚𝐢𝐫𝐬 ("𝐌𝐂𝐀") 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐞𝐱𝐞𝐦𝐩𝐭𝐢𝐧𝐠 𝐜𝐞𝐫𝐭𝐚𝐢𝐧 𝐌𝐞𝐫𝐠𝐞𝐫𝐬 𝐚𝐧𝐝 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐨𝐧 ("𝐌&𝐀") 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 𝐟𝐫𝐨𝐦 𝐛𝐞𝐢𝐧𝐠 𝐧𝐨𝐭𝐢𝐟𝐢𝐞𝐝. This new change has been brought about by the Draft Competition Commission of India (De-Minimis) Rules 2024. The De Minimis exemption includes exemption of any acquisition/merger/amalgamation that does not have (i) assets not more than INR 450 crore in India, or (ii) turnover of not more than INR 1250 crore in India, from the provisions of section 5 of the Competition Act 2002 for a period of 2 years from the date of publication of its notification in the official gazette. by B.R. Garima Rao #tcclr #competitionlaw #cci #competitionact #ammendment #Mergers #manda