March 13, 2018
Cabinet Approves Arbitration Amendment Bill
The Arbitration and Conciliation (Amendment) Bill, 2018 has been approved by the Cabinet headed by Prime Minister Narendra Modi. This amendment has been introduced for the purpose of boosting institutional arbitration and rectifying certain practical difficulties in the applicability of the Arbitration and Conciliation (Amendment) Act, 2015. The main highlights of the amendment bill are:
- Institution of an autonomous body named the Arbitration Council of India (ACI) which shall grade arbitral institutions and accredit arbitrators by laying down norms.
- To facilitate speedy appointment of arbitrators through designated arbitral institutions by the Supreme Court or the High Court, without having any requirement to approach the court in this regard.
- Section 29A(1) of the Act shall be amended to exclude international arbitrations from the bounds of timeline and further to provide that the time limit for arbitral award in other arbitrations shall be within 12 months from the completion of the pleadings of the parties.
- Incorporation of a new section 42A to provide that the arbitrator and the arbitral institutions shall keep confidentiality of all arbitral proceedings except award. Further, a new section 42B shall be incorporated that will protect an Arbitrator from suit or other legal proceedings for any action or omission done in good faith in the course of arbitration proceedings.
- Incorporation of a new section 87 that clarifies that unless parties agree otherwise, the Amendment Act 2015 shall not apply to court and/or arbitral proceedings .which have commenced before the commencement of the Amendment Act of 2015.
Cabinet Approves Bill on Pecuniary Jurisdiction of Courts
The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018 has been approved by the Cabinet headed by Prime Minister Narendra Modi. The main highlights of the amendment bill are:
- Bringing down the specified value of a commercial dispute to INR 3 Lakhs from the currently prescribed INR 1 Crore.
- Establishment of commercial courts at district Judge level for the benefit of territories over which High Courts enjoy ordinary original civil jurisdiction. The State Governments, in such territories may by notification specify such pecuniary value of commercial disputes to be adjudicated at the district level, which shall a minimum INR 3 Lakhs and no more than the pecuniary jurisdiction of the district court.
- Incorporation of a pre-suit mediation process in cases where no urgent, interim relief is contemplated.
Supreme Court Legitimizes Passive Euthanasia
A 5 judge bench of the Supreme Court in Common Cause v Union of India & Ors. has in an unprecedented move, included the right of passive euthanasia i.e. as the withdrawal of medical treatment with the deliberate intention to hasten a terminally ill-patient’s death, as a fundamental right under Article 21 of the Constitution. The bench held that the right to life and liberty as envisaged under Article 21 of the Constitution is meaningless unless it encompasses within its sphere individual dignity. The Bench held that in context of terminally ill patients or persons in persistent and speculatively perpetual vegetative state with no hope of recovery, the right to live with dignity shall also include the smoothening of the process of dying, which can be affected by inducing passive euthanasia.
MCA Notifies XBRL Amendment Rules
The Ministry of Corporate Affairs has amended the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015 via a notification dated March 08, 2018, through Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Amendment Rules, 2018. A couple of sub-rules have been added to Rule 3 for the purpose of maintaining consistency in the manner of filing of documents.
IBBI Signs MOU with RBI
The Insolvency and Bankruptcy Board of India signed a Memorandum of Understanding (MoU) with the Reserve Bank of India on March 12, 2018. They entered into the MoU for effective implementation of the Insolvency and Bankruptcy Code, 2016. The MoU will facilitate between the two parties – sharing of information, sharing of resources, periodic meetings to discuss matters of mutual interest including regulatory requirements that impact each party’s responsibilities, cross-training of staff and capacity building of insolvency professionals and financial creditors.
Supreme Court on Foreign Law Firms Practising in India
The Supreme Court in Bar Council of India v A.K. Balaji & Ors. has held that foreign law firms are prohibited from setting up permanent offices in India and practising in Indian Courts. However, the Supreme Court extended an olive branch to foreign law firms by allowing them to provide advisory services to Indian clients in India on a temporary stay or ‘fly in fly out’ basis. Although the Supreme Court upheld the 2012 Madras High Court judgment in the same case, it however directed the Centre and Bar Council of India to draft rules for the regulation of foreign law firms.