Legal & Industry Updates - July 2018
The Micro, Small & Medium Enterprises Development (Amendment) Bill, 2018
The Bill was introduced in Lok Sabha on July 23rd, 2018.The Micro, Small and Medium Enterprises Development (Amendment) Bill provides for change in the criterion of classification of MSMEs from the existing based on 'investment in plant and machinery or equipment' to 'annual turnover' of the enterprise.
The Insolvency & Bankruptcy Code (Second Amendment) Bill, 2018 was Introduced on July 23, 2018 in Lok Sabha
The Bill amends the Insolvency and Bankruptcy Code, 2016, and replaces the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 that was promulgated on June 6, 2018. Home buyers will be recognized as financial creditors now and will be a part of the decision-making process. Their voting share will increase as per their exposure and bargaining power will increase. It will also enable home buyers to invoke Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 against errant developers.
The Commercial Courts, Commercial Division & Commercial Appellate Division of High Courts (Amendment) Bill, 2018
The Bill was introduced in Lok Sabha on July 23rd, 2018 to amend a law for speedy disposal of commercial disputes. Also, it allows state governments to establish commercial courts at the district level. The proposed law would bring down the time taken from the present 1,445 days in resolution of commercial disputes of lesser value.
Specific Relief (Amendment) Bill, 2017
The Bill was passed by the Rajya Sabha on July 23rd, 2018. The Bill had earlier been passed by the Lok Sabha on March 15th, 2018 and is set to become a law after the President's assent. One of the major features of the amendment is that it takes away the discretionary power of courts in ordering specific performance of contract, by stating that specific performance of contract should be compulsorily enforced by the Court. Section 20 has been totally done away with by the amendment, by substituting it with another provision.
Negotiable Instruments (Amendment) Bill, 2017
The Lok Sabha today passed the Negotiable Instruments (Amendment) Bill, 2017 on July 23rd, 2018 which has the provision of allowing a court trying an offence related to cheque bouncing, to direct the drawer to pay interim compensation to the complainant.
The Personal Data Protection Bill, 2018
The Committee of Experts on a Data Protection Framework for India (Chair: Justice B. N. Srikrishna) submitted its report and draft Bill to the Ministry of Electronics and Information Technology on July 27, 2018. The Committee was constituted in August, 2017 to examine issues related to data protection, recommend methods to address them, and draft a data protection Bill.
Companies (Amendment) Act, 2017
On July 5, 2018, the Ministry of Corporate Affairs, issued the Companies (Amendment) Act, 2017. This notification provides August 15, 2018 as the date on which the following provisions of the Companies Amendment Act, 2017, shall come into force: a) section 15 – relating to prohibition on acceptance of deposits from public, b) section 16 - relating to repayment of deposits, etc., accepted before commencement of the Companies Act, 2013, c) section 75 – relating to companies capable of being registered, d) section 76 – relating to the obligations of companies capable of being registered under part II of the Companies Act, 2013 and e) Section 20 (relating to reporting of payment or satisfaction in full of any charge registered in the name of a company) a new section come into force.
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)(Third Amendment) Regulations, 2018
IBBI amends the various regulations/sections of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. All the amended regulations/sections are perused in the link mentioned herewith.
Companies Act, 2013
MCA has constituted a 10-Member Committee to review the offences under the Companies Act, 2013. The MCA seeks to review offences under the Companies Act, 2013 as some of the offences may be required to be decriminalised and handled in an in-house mechanism, where a penalty could be levied in instances of default. This would also allow the trial courts to pay more attention on offences of serious nature. Also, The Committee shall submit its report within thirty days to the Central Government for consideration of its recommendations.
The Arbitration and Conciliation (Amendment) Bill, 2018
The Bill was introduced in Lok Sabha on July 18th, 2018. It seeks to amend the Arbitration and Conciliation Act, 1996. The Act contains provisions to deal with domestic and international arbitration, and defines the law for conducting conciliation proceedings.
Disclaimer: The updates provided in this document is not a legal opinion and does not claim to capture all legal developments related to the subject matter stated herein. It is advisable to seek legal advice for accurate applicability, prior to relying on the updates for any legal matter.