NCLAT rules that legality of foreign decrees cannot be decided by NCLT
The National Company Law Appellate Tribunal (“NCLAT”) in the case of Usha Holdings LL.C. v. Francorp Advisors Pvt. Ltd. has held that the National Company Law Tribunal (“NCLT“) cannot decide the legality of foreign decrees as it is not a court.
The NCLAT stated that objectives of the Insolvency and Bankruptcy Code (“IBC”) provided for resolution of corporate debt which is not a litigation process. The NCLAT held that since insolvency resolution process is not a litigation and NCLT is not a court, the NCLT has no jurisdiction to decide the legality of foreign decrees.
Quick Views:
- We believe that this judgment provides a better interpretation of IBC by focusing on its objectives. The judgment clarifies the nature and jurisdiction of NCLT which would prove to be helpful in adjudication of jurisdiction related issues in future.
CCI cannot investigate Airtel, Idea, Vodafone: SC
The Supreme Court of India (“SC”), on December 05, 2018, decided that the Competition Commission of India (“CCI”) cannot investigate Airtel, Idea, Vodafone on the allegations of cartelisation made by Reliance Jio.
SC upheld the Bombay High Court judgment passed on September 21, 2017 which stated that the CCI had no jurisdiction to decide on the issues relating to telecommunication market which is governed by the Telecom Regulatory Authority of India Act (“TRAI Act“). The issues related to TRAI Act will be settled by the Adjudicating Authority set up under the TRAI Act.
CCI appealed against the Bombay High Court judgment in the SC which was rejected by the three-judge bench headed by Justice A.K. Sikri.
Quick Views:
- We believe that this case settles the position, at least for now, on jurisdiction of CCI in telecommunication market. This decision means that the CCI will not be able to decide sector specific matters if there is already an adjudicating authority set up through a legislation for settlement of disputes in that particular sector.
DIPP holds discussions on draft e-commerce policy
The Department of Industrial Policy and Promotion (“DIPP”) has held discussions with top courier and logistics companies engaged in providing warehousing, inventory, packing, shipping and tracking of deliveries services.
The discussions revolved around the issues pertaining to the foreign gifts and exports. DIPP has also sought opinion on payment mechanism and control over sale of counterfeit products through the online platform. Additionally, DIPP will also come up with a definition of e-commerce.
Quick Views:
- We believe that these discussions will help the DIPP draft a policy in a better manner to make it a level playing field between domestic and foreign exporters.
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.