MCA extends time to file E-Form ACTIVE till June 15, 2019
The Ministry of Corporate Affairs (“MCA”) issued a notification (“Notification”) whereby it has extended the time limit by which every company will need to file E-Form Active with the MCA. Earlier, the MCA required all companies to file E-Form ACTIVE by April 25, 2019. The MCA took this decision upon various reports suggesting that a number of companies are yet to file their E-Form ACTIVE.
You can read more about E-Form ACTIVE through our statutory Gyan which you may find here.
Quick View:
- This move taken by the MCA will be welcome by a number of companies. This move will ensure that those companies who are yet to file their E-Form ACTIVE still have an option to file the same without either (a) paying any penalties or (b) being prevented from filing certain forms with the Registrar of Companies such as forms relating to increase in the share capital of the company or forms relating to the appointment and removal of directors from the company (The MCA’s notification on February 22, 2019 prohibits companies from filing certain forms until it has filed E-Form ACTIVE).
Trade Unions can also act as operational creditors: SC
The Supreme Court (“SC”), in the case of JK Jute Mill Mazdoor Morcha (“Appellant”) vs. Juggilal Kamlapat Jute Mills (“Respondent”), ruled that trade unions come under the definition of operational creditors and can therefore, initiate an insolvency proceeding under the Insolvency and Bankruptcy Code, 2016 (“IBC”).
This case before the SC was an appeal filed by the Appellant against a NCLAT judgement which ruled that as a trade union renders no service to the corporate debtor (the corporate debtor is the entity against which an insolvency proceeding is filed) to raise any claim of unpaid dues, it will not be considered as an operational creditor under the IBC and therefore, cannot initiate insolvency proceedings. The NCLAT held that each claim of each workmen is a separate cause of action, and thus, each workmen will have to make separate claims for a default.
The SC, rejected the ruling of the NCLAT and ruled that any body authorized to make a claim on behalf of workmen of the corporate debtor can be considered as an operation creditor and can, therefore file an insolvency petition on behalf of all workmen of the corporate debtor.
Quick View:
- The judgement of the SC will go a long way in helping workmen of corporate debtors. By allowing for trade unions to represent all workmen and initiate insolvency proceedings on their behalf, it will be easier for each workmen to recover their dues as the trade union will have better bargaining power as compared to the scenario where each workmen would have to individually bargain with the corporate debtor.
Certain categories of Medical Devices to be filed with the State Licensing Authority and not the Central Licensing Authority
The Ministry of Health and Family Welfare recently issued a notification amending the Medical Device Rules, 2017 whereby medical devices falling in the Class A and Class B categories of medical devices will need to get an export license certificate from the State Licensing Authorities whereas medical devices falling in the Class C and Class D categories of medical devices will need to get an export license certificate from the Central Licensing Authority (which is the Ministry of Health and Family Welfare).
Prior to the notification, all export license certificate was to be granted by the Central Licensing Authority. Class A and Class B of medical devices are medical devices that are either low risk or low moderate risk where as Class C and Class D medical devices are those devises which are either moderate high risk or high risk medical devices. You may find an indicative list of the classes of various medical devices here.
Quick View:
- This is a welcome move taken by the Ministry of Health and Family Welfare as it will expedite the process of entities getting export license registrations for all classes of medical devices. Exporters of Class A and Class B medical devices will not need to approach Central Licensing Authority for this. They can, rather, approach the State Licensing Authority which will be geographically closer. As the Central Licensing Authority’s workload reduces, the time they take to approve Class C and Class D export license certificate will reduce.
Disclaimer: This post has been prepared for informational purposes only. The information/or observations contained in this post does not constitute legal advice and should not be acted upon in any specific situation without seeking proper legal advice from a practicing attorney.