Quick Update: Form AGILE to be revised with effect from May 05, 2019: MCA
The Ministry of Corporate Affairs has put up an alert on their website that Form AGILE is likely to be revised on the MCA21 Company Forms Download Page with effect from May 05, 2019. Therefore, all relevant persons and stakeholders should check ensure that they are filing the latest version of the form.
Violation of TikTok’s undertaking to remove inappropriate materials would amount to contempt of Court: Madras HC
The High Court of Madras in the case of S. Muthukumar v. The Telecom Regulatory Authority of India & others, passed an order, whereby it has warned the management of M/s Bytedance (India) Technology Private Limited, owners of the TikTok mobile application, that the affidavits of the company stating that any negative and inappropriate or obscene materials on its mobile application would be filtered by the company, are to be treated as an undertaking by the company. The Court further stated that any violation of such undertaking would be deemed to be a serious contempt of the Court.
The Court highlighted that it endeavoured to safeguard people (especially women and children) who used cyber space from becoming victims, and opined that any technological innovation should be utilised for constructive activities and not for commission of offences violating rights of the people.
Quick View:
- This order is a recent addition to the ongoing saga of judicial interest in the operation of the TikTok mobile application. The Madras High Court throughout has taken a strong stance against any ‘danger’ to the well-being of the application’s users and this recent order places the onus of giving effect to usual ‘safeguard’ measures as a duty on the Company.
- This order is likely to act as precedent for the conduct expected from other web applications and intermediaries, whereby it would not be enough for them to merely state that they have a safeguard mechanism in place, but they would also be expected to ensure that such mechanisms (including the use of automated bots and algorithms) operate in an appropriate and effective manner.
Bombay HC grants ex-parte interim injunction for copyright infringement of a sound recording
The Bombay High Court (“Bombay HC”), in the case of Novex Communication Private Limited (“Plaintiff”) v. Great Indian Nautanki Company Private Limited (“Respondents”) passed an interim injunction against the Respondents, preventing them from using the sound recordings that had been licensed by the Plaintiff from third parties.
The Plaintiff provided proof to the Bombay HC showing that they were the only party licensed to use certain sound recordings that the Respondents used without the permission of the Plaintiff. The Bombay HC, despite the fact that the Respondent was not present physically, held that if the interim injunction is not passed, irreparable damage would be caused to the Plaintiff. The Bombay HC accordingly passed an interim injunction in favour of the Plaintiff.
Quick View:
- The order of the Bombay HC is a welcome move. By issuing an interim injunction even though the respondents were not present will ensure that parties that have had their copyrights infringed will have their dispute resolved at the earliest, even if the respondent is not present.
New income-tax relaxations proposed to help start-ups raise funds: DPIIT
The Department for Promotion of Industry and Internal Trade (“DPIIT”) as a part of “Startup India Vision 2024”, has proposed new relaxations in the income tax laws governing the sale of residential properties and carrying forward of losses.
Forming a part of its ongoing endeavours to ease regulatory requirements for start-ups, the DPIIT has recommended amendments to Section 54GB and Section 79 of the Income Tax Act, 1961, (“Act”), wherein Section 54GB of the Act provides that capital gain is not be charged in certain cases on the transfer of residential property; while Section 79 of the Act allows for the carrying forward and setting off of losses in case of certain companies.
Section 54GB has been proposed to be amended to exempt the proceeds from sale of residential properties from capital gains tax, if such proceeds are used to fund a start-up. Further, the proposals also recommend the reduction of founders’ shareholding requirements from 50% to 20% and their holding period from 5 years to 3 years to allow more flexibility to raise funds by sale of properties.
Further, Section 79 has been proposed to be amended to allow more relaxation in shareholding requirements with respect to the carrying forward of losses.
Quick View:
- The proposed amendments form a part of the suggestions issued by DPIIT for the new government with a view to promote growth of budding entrepreneurs who face difficulties in raising finances.
- India’s booming start-up environment has played a pivotal role in fostering the nation’s economic growth. Therefore, it is essential that the government and other relevant entities take special note of the needs of the sector and take proactive measures to ensure that Indian start-ups continue to thrive and have enough support to sustain against the growing global competition.
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.