In a recent decision the Supreme Court held that when a party raises issues pertaining to misappropriation of funds, manipulation and forging of accounts which require the production of detailed material evidence, the proper forum for the adjudication of the disputes between the parties would be a civil court and not an arbitration tribunal.
In a recent judgment the Delhi High Court affirmed the view that when an arbitration clause provides for a particular procedure for appointing an arbitrator, and also provides that on failure to follow this appointment procedure the dispute shall not be referred to arbitration at all, the dispute can be adjudicated only by a civil court.
The Supreme Court of India recently had to decide whether it has jurisdiction to appoint an arbitrator in an international arbitration governed by a foreign law. It held that unless Part I of the Arbitration and Conciliation Act 1996 is expressly or implicitly excluded by the agreement between the parties, Part I of the act, including Section 11, will apply.
An interesting question recently came up for adjudication before the Supreme Court regarding whether an arbitration agreement can survive for the purpose of resolving disputes that arise under or in connection with the contract even if the contract's performance has come to an end on account of termination due to breach.
While deciding on an application under Section 11 of the Arbitration and Conciliation Act 1996, the Supreme Court recently held that in default of determination of the number of arbitrators, Section 10(2) of the Arbitration and Conciliation Act provides that the tribunal is to consist of a sole arbitrator.
Recent developments include plans by ICICI, a leading private sector bank in India, to securitize its loan portfolio which is worth Rs500 billion.
Jet Airways' Rs16 billion deal is the first rupee transaction to be supported by the US Exim Bank, which took on the credit risk upon the purchase of aircraft by an Indian operator.
Recent developments concern Air India's impending privatization and the completion of a syndicated foreign currency term by Reliance Petroleum Limited.
Including: External Commercial Borrowing; Security Agreements
Essar Shipping Limited has obtained a $121 million loan – a new record for the longest maturity ever achieved in the Indian shipping finance industry.
A recent deal between Jet Airways and Etihad Airways, valued at $379 million, forms part of the government's new policy to encourage foreign direct investment in India. It is hoped that the infusion of foreign direct investment into civil aviation will result in improvements to the economy, a growth in traffic at Indian airports and the creation of job opportunities.
In a recent judgment, the Supreme Court held that a state-owned foreign airline is not entitled to sovereign immunity in a consumer action for service deficiency. Relating to an alleged delay in the delivery of a consignment (which led to deterioration of the goods), the appeal was brought by Ethiopian Airlines, which contested an order handed down by the National Consumer Disputes Redressal Commission.
The Directorate General of Civil Aviation (DGCA) established an environment unit on June 5 2009, primarily aimed at reducing aircraft fuel emissions, reducing noise pollution due to aircraft movement, and developing other green initiatives for various stakeholders, such as airlines, air navigation service providers and airport operators. The unit also aims to provide technical guidance.
A policy circular issued by the Directorate General of Civil Aviation in 2007 laid down restrictions on the provision of ground handling services. Following stiff opposition, the directorate issued a revised policy in 2009, but airlines still felt that it did not go far enough. The Federation of Indian Airlines has filed an appeal in the Supreme Court of India against the policy, the outcome of which is awaited.
The Ministry of Civil Aviation recently constituted the Civil Aviation Economic Advisory Council to meet the increasing need for sustainable growth and passenger facilitation in the aviation sector. The council will advise on and assess policy frameworks for ensuring affordable, sustainable and viable air transport services and protect consumer interest through measures such as public disclosure of tariffs and service conditions.
The Reserve Bank of India and the Ministry of Electronics and Information Technology recently established a new regulatory framework for setting limits on and payments of merchant discount rates and encouraging digital payments. Rates will now be determined based not only on the basis of transaction value, but also on turnover. However, in its effort to curb transaction costs for merchants, the government risks imposing significant charges on other system participants.
The Supreme Court recently held that a dishonoured post-dated cheque for repayment of a loan instalment that was described as 'security' in the loan agreement was covered by the criminal liability set out in Section 138 of the Negotiable Instruments Act. While deciding whether dishonoured cheques issued to discharge existing liability fall under Section 138, the court explained that the question of whether a post-dated cheque is for "discharge of debt or liability" depends on the nature of the transaction.
The Reserve Bank of India (RBI) recently issued a press release stating that given the rapid changes to the payments solutions space, it was in the process of reviewing the regulatory framework governing pre-paid payment instruments. The RBI also stated that it will grant no new licences for the issue of pre-paid payment instruments until the end of February 2017. This temporary suspension will not apply to applications made by new small finance banks and payment banks.
The Reserve Bank of India recently issued guidelines for the at-will licensing of universal banks in the private sector which, for the first time, will allow applicants to apply for a banking licence at will. The at-will regime will lead to increased transparency, better innovation and more realistic valuations, and is a significant step towards a healthier licensing regime for new private banks.
The Supreme Court recently clarified that all bank employees (including those employed by private sector banks) will be treated as public servants for the purposes of anti-corruption law. This ruling has significant implications, as all employees, officers and key managerial personnel of banking companies (ie, private and public sector banks and branches of foreign banks) will now come under the purview of the Prevention of Corruption Act.
The Competition Commission of India (CCI) recently directed the director general to investigate Honda Motorcycle and Scooter Private Ltd for allegations regarding the imposition of vertical restraints and abuse of its dominant position in the market for the manufacture and sale of scooters in India. The director general was directed to conduct a detailed investigation after the CCI arrived at a prima facie finding that some of Honda's activities had violated the Competition Act.
Continuing its slew of exemptions, the Ministry of Corporate Affairs has exempted all public sector oil and gas companies (created under the Petroleum Act 1934) from pre-merger scrutiny by the Competition Commission of India under Sections 5 and 6 of the Competition Act 2002. The exemption – which will be valid for five years from the date of the official Gazette notification – also extends to all wholly or partly owned subsidiaries of such companies.
In 2017 the Competition Commission of India (CCI) found a prima facie case of abuse of a dominant position by the Haryana Urban Development Authority and sent the case to the director general for further investigation. Despite the Haryana Urban Development Authority Act and Regulations being the governing law in the case, the CCI opined that it would have jurisdiction to examine the matter in order to establish any anti-competitive conduct or practice under the Competition Act.
The Competition Commission of India (CCI) has re-imposed a penalty of Rs522.4 million on the Board of Control for Cricket in India (BCCI) for abuse of its dominant position in the market. The BCCI argued that it is a not-for-profit organisation established to promote cricket in India and does not engage in any kind of commercial activity with the aim of profiting. However, the CCI held that despite there being no profit motive, the BCCI should be considered an enterprise under the Competition Act.
The Competition Commission of India recently initiated an investigation into Star India Pvt Ltd for an alleged violation of the Competition Act 2002 following claims filed by a private multi-system operator (MSO) engaged in cable TV distribution in the state of Kerala. The claimant alleged that Star India had engaged in anti-competitive behaviour and abused its dominant position by charging excessive licence fees compared with the fees that it had charged the claimant's competitors and other Kerala MSOs.