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Understanding the Mystification of Appointed Date versus Effective Date in a Scheme: Decoding the Impact of MCA’s Clarificatory Circular

August 25, 2022

[By Aastha Bhandari] The author is a student at the OP Jindal Global University. Introduction The conundrum between the two significant concepts of Appointed Date (“AD”) vis-a-vis the Effective Date (“ED”) within a scheme of amalgamation/merger or demerger filed before the National Company Law Tribunal (“NCLT”) has been a contested subject-matter. It was left obscure, with contrasting judgments from the NCLT, up until the Ministry of Corporate Affairs (“MCA”) released…

Vidarbha v. Axis Bank: A Case of Reinventing the Wheel?

August 25, 2022

[ By Paridhi Gaur] The author is a student at the University School of Law and Legal Studies, Guru Gobind Singh Indraprastha University. Introduction The enactment of the Insolvency and Bankruptcy Code (hereinafter, “IBC”) was a paradigm shift in resolving debt-ridden companies expediently and without compromising on the value maximization of assets. Remarkably, it put the creditors on a pedestal by giving them decision-making powers in the Corporate Insolvency Resolution…

Law and Economics Analysis of the Combination regime under the Competition Act, 2002

August 20, 2022

[By Manas Agrawal and Ritu Bhatia] The authors are students at the National Law School of India University, Bengaluru. Introductory Remarks The Competition Commission of India (‘CCI’) has time and again failed to harness the economic benefits of the regulatory landscape of mergers and acquisitions embodied in the Competition Act, 2002(‘the Act’). To prove this, we have used a test suite of Facebook-Jio. Through Facebook-Jio, the thesis of this paper…

Decoding Uncertainties in Treatment of Foreign Taxes Ineligible for Relief

August 20, 2022

[By Anshika Agarwal] The author is a student at the Vivekananda Institute of Professional Studies, GGSIPU, New Delhi. Introduction In keeping up with the global trends, India has always been consolidating its financial position in international markets. With a stable tax framework and an attractive Foreign Direct Investment regime, India has enhanced its ease of doing business, thereby, attracting cross-border transactions and investors. Today, India stands as a potential hub…

Debunking the applicability of NCLT Rules on pronouncement of orders

August 20, 2022

[By Utkarsh Pandit and Samridhi Shrimali] The authors are students at the Institute of Law Nirma University, Ahmedabad. Introduction The key intent of the existence of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as ‘IBC’) is the resolution of companies in distress. The Code prescribes specific timelines for an efficient and swift resolution. However, these timelines are not always met due to delays from both, the bar…

Confused Jurisprudence on Derivative Actions in India

August 13, 2022

[By Harsh Tomar] The author is a student at the National Law School of India University (NLSIU), Bengaluru. In this piece, through the analysis of the case of ICP Investments (Mauritius) Ltd v Uppal Housing Pvt Ltd. (hereinafter “ICP Investments”), the author will highlight the common misconceptions around the jurisprudence on ‘derivative action’ in India. It will be argued that the reasoning in ICP Investments is one such manifestation of…

SBI Cartel Case: Assessing the Liability of the Company for Independent Actions of the Director

August 13, 2022

[By Harshit Upadhyay and Sangita Sharma] The authors are students at the Gujarat National Law University, Gandhinagar. A cartel facilitator is an undertaking that ensures the proper functioning and operation of the cartel by providing logistical support to the cartel. The facilitator does not need to have any commercial interest in the relevant market in which the cartel operates. Recently, in the Re: Alleged anti-competitive conduct by various bidders in supply…

The Conundrum of ‘Interest’ as a part of Debt under IBC: The Dust Settles

August 13, 2022

[By Neelabh Niket and Sanchita Makhija] The authors are students at the Hidayatullah National Law University. Introduction Recently, the National Company Law Appellate Tribunal (‘NCLAT’) in the case of Mr. Prashat Agarwal, Member of Suspended Board of Bombay Rayon Fashions Ltd. Vs. Vikash Parasrampuria (hereinafter referred to as the ‘Bombay Rayon case’) held that under Section 4 of the Insolvency & Bankruptcy Code (‘IBC’), an operational creditor can club…

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