Article

Proposed E-commerce Amendment Rules – Whether reasonable to comply with?

By Sudish Sharma and Apeksha Bansal

The article in this issue of Corporate Amicus analyses few recently proposed amendments in the Consumer Protection (E-Commerce) Rules, 2020. The changes, once notified, will not only impact the e-commerce operators (both marketplace as well as inventory-based model entities) but also entities which are engaged by such operators for fulfilment of orders placed by buyers on an electronic portal or mobile based application. The authors elaborately discuss the widening of the definition of ‘e-commerce entity’, registration with the Department for Promotion of Industry and Internal Trade and display of such registration on the portal/mobile application, definitions of cross-selling and fall-back liability, and appointment of specified officers by the e-commerce entities. The article further touches upon the concept of related person and discusses the change according to which the related parties and associated enterprises should not be enlisted as sellers by a marketplace e-commerce entity, for sale to consumers directly. Highlighting the proposed change restricting the marketplace e-commerce entity to sell goods or services to any person who is registered as a seller on its platform, the authors state that appropriate steps may be taken by the companies by re-visiting their present business models and amending the existing agreements...

Notifications and Circulars

• Small and Medium Sized Company – Definition revised in Accounting Standards
• Indian Accounting Standards revised
• Board meetings via Video Conferencing – MCA omits exclusions
• Renewal of name in databank of Independent Directors – Fees to be charged
• EGMs through VC/OAVM/postal ballot allowed till 31 December 2021
• Forms under Companies Act, 2013 and LLP Act, 2008 – Waiver of additional fees for non-charge forms and relaxations for specified charge forms
• SEBI relaxes timelines for compliance with regulatory requirements
• SEBI relaxes minimum vesting period under SEBI (Share Based Employee Benefit) Regulations, in case of death of employee(s)
• SEBI (Delisting of Equity Shares) Regulations, 2021 notified
• Securities Contracts (Regulation) Rules revised

Ratio decidendi

• Secured Creditor cannot challenge approved resolution plan on ground that higher amount should be paid based on security interest – Supreme Court
• NCLT can refuse insolvency application if there are signs of collusion and mala fide intent – NCLAT
• Foreign State cannot claim sovereign immunity against enforcement of arbitral award arising from a commercial transaction – Delhi High Court
• Limitation Act applicable to arbitration proceedings under Section 18 of MSMED Act – Supreme Court

News Nuggets

• Consumer protection – Article in newspaper, providing inaccurate health advice, is not ‘defective product’
• Reflective loss of shareholder – Australian Supreme Court summarises principles
• Prior consent of Central Government not required for enforcement of arbitral award against foreign State
• Interim compensation under Section 143A of Negotiable Instruments Act is not discretionary
• Corporate criminal liability – UK’s Law Commission publishes discussion paper
• New claims at belated stage when Resolution Applicants are already before CoC jeopardizes CIRP