Legal & Industry Updates - October 2024
SPECIAL EVENTS
POSH Regulations - Strategies for Ensuring the Safety and Empowerment of Women in the Workplace, October 11, 2024
The team at Ivy Law participated in a webinar on the “POSH Regulations: Strategies for Ensuring the Safety and Empowerment of Women in the Workplace” organized by the National Judicial Reforms Council. The webinar was dedicated to workplace safety and gender equity, highlighting the pressing issues women face in workplaces and further explored effective strategies for implementing and enforcing the Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 regulations. The speakers brought their expertise in gender justice and workplace equity to the discussion and offered insights into creating a culture of zero tolerance for harassment, with the aim to address these challenges and accordingly strategize on how to deal with them constructively.
LEGAL & INDUSTRY UPDATES
Supreme Court (“SC”): New Act to Not Take Away Rights Accrued Under Repealed Law Unless Such Intention is Expressed in New Statute (source)
The SC has in a recent court ruling observed that the rights accrued under an old act cannot be extinguished with the enforcement of the new act unless a retrospective effect was given to the new act. The bench asserted that the enforcement of a new statute ipso facto will not take away the rights already accrued under a repealed statute unless this intention is reflected in the new statute. In the hindsight, the rules and regulations of the repealed act shall still persist and it cannot be taken away from the appellant by any means.
SC: Arbitral Award Must Carry Post-Award Interest as per the Arbitration and Conciliation Act, 1996 (“A&C Act”) (source)
The SC has ruled that the rate of interest applicable for the post-award period in arbitration cases shall be determined following section 31(7)(b) (Form and contents of arbitral award) of the A&C Act. The court emphasised that the sum directed to be paid post-award shall accrue interest as per the rate specified under the above stated provision. This ruling reaffirms that the A&C Act will govern the applicable interest rate for the post-award period unless the award itself stipulates otherwise. The decision clarifies the computation of interest in arbitration matters, ensuring that the statutory provisions under section 31(7)(b) are adhered to in the absence of specific directions in the award.
SC: Supervisory Role Excludes Employee from ‘Workman’ Definition (source)
The SC, in a recent ruling, held that an employee, having supervisory duties and drawing a salary exceeding the statutory limit (INR 1,600 per month pre amendment and INR 10,000 per month post 2010 amendment), does not qualify as a ‘workman’ under the Industrial Disputes Act, 1947. The SC observed that while applying the pre-amended provision of section 2(s) (Definitions), since the employee was terminated from service on 8th October, 2003 and was drawing a salary of more than INR 1,600, he does not come within the definition of a ‘workman’ and therefore not covered under the provisions of the Act. Thus, SC set aside the order of HC upholding the finding of the Labour Court that employee was a ‘workman’ within the definition of post amended section 2(s).
Delhi High Court (“HC”): Appointment of Arbitrator Not Unilateral if Consent of Non-Signatory Not Taken (source)
The Delhi HC recently held that the principle of consensus ad idem, in reference to the dispute to arbitration and in the appointment of the arbitrator, applies to the parties to the arbitration agreement and does not apply to a non-signatory, who is sought to be made a party in the arbitration proceedings, and therefore the consent of a non-signatory to arbitral proceedings is not necessary for the appointment of an arbitrator. The court stated that the term "party" as defined in the A&C Act indicated that the consensus requirement applied only to parties involved in the arbitration agreement, excluding non-signatories. This decision further emphasizes that arbitration agreements can bind parties even if they have not explicitly signed the arbitration clause, depending on the facts and circumstances of the case.
Bombay HC Grants Relief to Law Student Accused in Multiple Sexual Harassment Cases (source)
The Bombay HC has granted relief to a law student accused in various sexual harassment cases, stating that the expulsion order for an indefinite period would result in ‘academic death’. The petitioner was accused to have indulged in objectionable behaviour with a woman, who made a complaint of the incident to the Internal Complaint Committee (“ICC”) of the University. The complaint was considered by the ICC, based on which a report was submitted wherein the ICC recommended action against the petitioner on the ground that he was found guilty of sexual harassment for the second time and therefore should be expelled. However, the HC observed that while maintaining the punishment of expulsion, the duration for which it ought to operate requires consideration since the expulsion of the petitioner for an undefined period would be too harsh.
Renowned Electronic-Commerce (“E-Comm”) Companies Obtain Interim Stay on Competition Commission of India (“CCI”) Proceedings (source)
The Karnataka HC has imposed an interim stay on proceedings initiated by the CCI against various renowned e-comm companies due to a procedural error by the Director General (“DG”) during an investigation into alleged violations of Foreign Direct Investment rules by the e-comm giants. The DG's initial report accused the companies of engaging in anti-competitive practices including exclusive launches, deep discounting, and preferential listings, which further violated the Competition Act, 2002. However, the HC observed that the DG did not follow proper procedures in handling the case, specifically where certain entities initially classified as "third parties" were later reclassified as "opposite parties" without obtaining prior approval from the CCI, as required by the CCI's regulations.
The United States of America (“US”)-India Commercial Dialogue Marks Progress in Semiconductor, Clean Energy, and Innovation Partnerships (source)
The Minister of Commerce and Industry of India, and US Commerce Secretary, on 4th October, 2024 engaged in a commercial dialogue, reviewing progress in key areas including semiconductors, innovation, energy networks, and the Indo-Pacific Economic Framework for Prosperity. Furthermore, on 3rd October, 2024, both countries signed a Memorandum of Understanding (“MoU”) to expand critical minerals supply chains, with the aim to strengthen cooperation in exploration, extraction, processing, recycling, and recovery of these minerals. The partnership focuses on leveraging complementary strengths for mutual benefit. Both leaders pledged to continue fostering business opportunities, joint ventures, and technology partnerships under the semiconductor MoU.
French Envoy to the Organisation of Economic Cooperation and Development (“OECD”): The Carbon Border Adjustment Mechanism (“C-BAM”) Aims to Reward India’s Investment in Green Energy (source)
The European Union’s (“EU”) C-BAM, set to be implemented in January 2026, will impose carbon tariffs on products such as steel, cement, and electricity imported into the EU. France's permanent representative to the OECD, emphasized that also C-BAM aims to recognize and reward India's substantial investment in green energy, rather than acting as a protectionist measure. They further stressed that the fight against climate change is about protecting the living, not just the planet. Both India and France have mutually agreed that the countries should have the autonomy to plan their green transitions and engage with financial institutions to support sustainable development.
The Ministry of Electronics and Information Technology (“MeitY”): India Should Shift its Focus to Empowering Technology (“Tech”) Startups (source)
MeitY has emphasised the need for India to shift its focus from merely generating grants to empowering tech start-ups to succeed independently. The remarks were put forth during the launch of the Software Technology Parks of India’s Leap Ahead program, which aims to assist startups with scaling, product diversification, and regional expansion. The Central Government (“CG”), through this program, has offered funding support of up to INR 10,000 to various startups, including a three-month mentorship program combining virtual and in-person sessions. Over the past five years, the CG has further supported more than 10,000 tech startups, providing nearly INR 580 crores in funding through incubators. MeitY alone has backed over 3,600 start-ups, disbursing INR 212 crores in total funding.
CG Collaborates with Fintech Firms for Indigenous Fraud Detection System (source)
The CG has embarked on a strategic partnership with top fintech companies to create an indigenous fraud detection system aimed at strengthening India’s digital financial landscape. With rapid digitalization transforming financial services, the incidence of cyber fraud has increased, underscoring the need for advanced, localized solutions to protect consumers. This collaboration focuses on developing a fraud prevention framework uniquely suited to India's specific digital ecosystem, leveraging insights from both the public and private sectors to tackle region-specific challenges. By securing India’s digital financial services, the system will promote consumer confidence and support the growth of fintech by mitigating fraud risks effectively.
Indian Venture Capital (“VC”) Firms Increasingly Hiring More Women (source)
Several VC firms are taking deliberate steps to address the persistent gender gap in the global VC industry, particularly at senior levels and are increasing women’s representation in investment, functional, and leadership roles, driven by the belief that diverse perspectives would lead to more successful investments, better consumer service, and the creation of sustainable businesses. According to the firms, having more women in the investment team and as founders of investee companies is critical to bringing their valuable perspective to build for this extremely important demographic.
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.