Article

Status of registration for arbitration under MSME Act, 2006

By Rashi Srivastava and Aditya Thyagarajan

The first article in this 10th Anniversary issue of Corporate Amicus discusses a recent Supreme Court decision in the case of Silpi Industries v. Kerala State Road Transport Corporation. The Apex Court has categorically stated that, in order to seek the benefit under the Micro Small and Medium Enterprises Development Act, 2006, the seller should have been registered under the said Act on the date of entering into the concerned contract. The article while tracing the history of the dispute also covers various conflicting decisions of the High Courts pronounced before the Apex Court decision. The authors also note that even though the Supreme Court judgment clears the confusion, it may have far reaching unintended consequences. They also highlight that the interpretation by the Apex Court if treated as clarificatory, it could affect several cases already pending before Facilitation Councils, and considering the financial distress being faced by micro and small enterprises due to the Covid-19 pandemic, may amount to throwing the baby out with the bathwater...

Plastic Waste Management (Amendment) Rules, 2021: Wading through the Uncharted Territory of Plastic Waste Management

By Vidhi Madan and Sudish Sharma

mThe second article elaborately covers recently introduced Plastic Waste Management (Amendment) Rules, 2021. Discussing the few amendments which can effectively reduce plastic waste generation and its effects on the environment, the authors note that now brand-owners, plastic waste processor (recycler, co-processor, etc.) and entities dealing with non-woven plastic are also under the ambit of these provisions. The article also deliberates on the amendment relating to phasing out of single-use plastic and that relating to extension of the requirement of marking or labelling to ‘plastic packaging’ in addition to ‘plastic carry bags’ and ‘multi-layered packaging’. According to the authors, the additional marking and labelling requirements are part of the plan to increase obligations and awareness on the multiple stakeholders to the plastic industry, and a significant change in business model of the existing businesses will be required so as to be compliant...

Notifications and Circulars

• Covid-19 vaccination of persons other than employees and their families an eligible CSR activity
• IRDAI introduces mandatory compliances for registration of Indian insurance company having foreign investment
• IFSC Authority (Issuance and Listing of Securities) Regulations, 2021 introduced
• Companies (Incorporation) Fifth Amendment Rules, 2021 introduces new rule for giving a new name to existing company, in case of non-compliance
• Pre-Packaged Insolvency Resolution Process for MSMEs – MCA releases report of the Insolvency Law Committee

Ratio decidendi

• Arbitral award based on no evidence or ignoring important evidence suffers from patent illegality – Supreme Court
• Personal Guarantor cannot be prosecuted under IBC Section 95 where concerned corporate debtor is not under CIRP – NCLT Mumbai
• SEBI’s consent not mandatory for compounding of offence under SEBI Act – SAT however must keep SEBI’s view in mind when deciding a compounding application – Supreme Court
• Consent of majority unit holders mandatory for trustees to wind up Mutual Fund scheme – Supreme Court

News Nuggets

• ‘Financial Debt’ includes interest free loans advanced to finance business operations of a corporate body
• Online gaming – Madras HC quashes law prohibiting games played for stake even if involving skill
• Courts have no power to modify or vary an award under Section 34 of the Arbitration Act
• Emergency arbitrator’s award is enforceable in India
• No bar to amendment of pleadings or filing of additional documents in CIRP application under IBC Section 7