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In a Minute

Successful Bidder Cannot Wriggle out of a Bid in Liquidation | #InAMinute 

Watch Now LawWiser’s latest In a Minute video on ‘Successful Bidder cannot wriggle out of a bid in liquidation’ featuring Neha Naik, Associate Partner, Phoenix Legal.

There is a growing trend of successful bidders in insolvency as well as liquidation proceedings wanting to retract their offers citing various reasons.

In this video, Neha explains that the Bidder cannot wriggle out of the contractual obligations arising out of acceptance of his Bid for sale as a going concern in liquidation. She quickly takes us through 2 important decisions one by the Supreme Court of India and the other by the National Company Appellate Tribunal (NCLAT).

The decisions are related to the fact that after accepting the bid, the bidder will not be entitled to the withdrawal if they fail to comply with the terms of the contract and consequently the bidder cannot wriggle out of the contractual obligations.

#inaminute #ibc #insolvency #bidding #contract #liquidation #supermecourtofindia #nclat #contractualobligation #corporatedebtor

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Key Changes in PPI Master Directions

Watch now LawWiser’s In a Minute video where Sriram Ramachandran, Partner, Phoenix Legal, takes us through Key Changes in PPI Master Directions.

The RBI in August 2021 issued master directions on Prepaid Instruments superseding the existing regulations issued in 2017.

Sriram takes us through the key changes that the RBI has introduced in the PPI master directions in respect of categorization and authentication. He further helps us understand the number of safety and security measures that have been incorporated and how these changes will transact more seamlessly for the end-users.

Watch this video and learn more about it #InAMinute

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Increase in GST Rate for Ice Cream Parlours | #InAminute

Watch now LawWiser’s In a Minute video where Jatin Arora, Partner, Phoenix Legal, takes us through the “Increase in GST rate for ice cream parlours”.

The decision was made in the 45th meeting that the ice cream parlours serving ice cream are not on the same footing as that of a restaurant. Hence, they are subjected to a GST rate of 18% on supply of ice cream as against the GST rate of 5% applicable to the restaurants.

Till now, the ice cream parlours were charging 5% GST on their supplies like the restaurants, without availing the input tax credit. Jatin discusses the impact of clarification provided by the Government vide circular No. 164/20/2021 dated 6th October 2021, regarding the applicable GST rate on the supply of ice cream by ice cream parlours.

To understand this clarification and whether it will put a huge financial burden on small businesses or not and much more, watch the full video here!

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Criminal Liability of Directors and Senior Management of a Company – In A Minute

In the past few years, we have witnessed many cases, where the directors and senior management have been involved in criminal matters relating to the companies.

Do not miss this #InaMinute video on LawWiser, where Rajat Pradhan, Principal Associate at Phoenix Legal, throws light upon the heated topic – Criminal liability of directors and senior management of the company.

In this one-minute video Rajat shares a quick overview of the recent judgments passed by the Supreme Court of India on this issue. Stay tuned for more such videos from LawWiser.

With the increasing number of cases on the criminal liability of directors and the company’s senior management, it has become an interesting topic of discussion.
The fact that the liability of the directors in some cases can be civil as well makes it more critical for the authorities to deal with it. As stated earlier, recently there have been many cases where directors and senior management of the company have been alleged to be involved in acts attracting criminal liability.


Any such offence committed by a company in which the director was alleged to be involved will make the director liable for such criminal offences under the Companies Act. Often, these allegations are general and not about specific acts. This leads to the summoning of directors and senior management by the investigating authorities.


In Sunil Bharti Mittal v. CBI, the Supreme Court held that the officers of a company can be made accused, along with the company, if there is sufficient evidence of their role coupled with criminal intent. Alternatively, they can be made liable when the statute provides for vicarious liability. Statues such as the Environmental Protection Act and the Information Technology Act provide for vicarious liability which is rebuttable in nature.


On 27 September, the Supreme Court in Ravindranatha Bajpecase held that merely because a person is a Chairman or a Managing Director, they cannot be held vicariously liable unless there are specific allegations against them.


It can be concluded that the directors and senior management of the company have been under the court’s purview, and in coming times we will see many more landmark judgments on criminal liability.

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GST Updates 2021 – Ecommerce Operators | In A Minute

#Watchnow #Inaminute video where Jatin Arora, Partner, Phoenix Legal takes us through this GST Council update in relation to e-commerce operators.

GST Updates 2021 – In the 45th GST Council meeting, it was decided to shift the burden of tax on the restaurant services to e-commerce operators like #Swiggy#Zomato through whom these services are delivered. In the video, Jatin quickly explains what this update is about and the impact that it is likely to have on e-commerce operators.

He takes us through the details that this is not a new tax introduced on e-commerce operators. The restaurant charges 5% GST on their supplies. Also, the e-commerce operators pay 18% GST on the commission earned by them.

This will be in effect from 1st January 2022 and instead of the restaurants, the e-commerce operators will charge the tax on the food supplies. The e-commerce operators will charge GST on every supply that they will make, irrespective of whether the restaurant supplying the food is exempt from GST or not. This means there will be additional burden on compliance side for restaurants. The e-commerce operators will also have to do changes in their software to accommodate this change and do additional compliance.

An important issue to be considered is that the restaurants are not eligible to avail input tax credit (ITC) for their supplies. Whereas the e-commerce operators do avail ITC. For more clarity on these points, we need to watch out for the notifications issued by the government.

Stay tuned for more GST updates happening in 2021

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Crypto Frauds (Cryptocurrency Frauds)

Cryptocurrency is a digital currency that is capable of performing the functions of a real currency. It works using blockchain technology. Payments by cryptocurrencies take place without any interference from an authorized agency. This kind of decentralized structure enables them to exist outside the government’s and authorities’ control.

Cryptocurrency frauds have taken a quantum leap in India due to-

-The increase of investments by Indians in cryptocurrency and the lack of regulations.

Crypto frauds have become a popular way to trick people into sending money by using different ways.

Watch this LawWiser #InAMinute video where Rajat Pradhan, Principal Associate at Phoenix Legal explains and helps us understand the rise of crypto frauds in India.

In this video powered by Phoenix Legal, he explains cryptocurrency and the lack of legal framework regarding the disputes involved in its transactions.

He also shares insights on the current situation of crypto frauds in the country with reference to a recent case before a Delhi Court.

Introduction to Crypto

There has been a sudden rise that has been highlighting in the case of Cryptocurrencies in India.

People across the globe have heavily become dependent upon –

Making digital payments and investing with the use of cryptocurrencies in India.

 For this reason, the popularity of Cryptocurrencies in India is on the rise.

As the use increases, crypto fraud cases are also at a peak as-

Various hackers and scammers have been active since the evolution took place in India.

Let us go in-depth about crypto fraud in India by first highlighting its crucial uses in today’s era.

Use of Crypto Currency in India

The use of Cryptocurrencies in India is not a new concept anymore because-

-People have started using them as a new mode of making payments for several purposes.

The fact that bitcoin is usable for trading can be one crucial reason for witnessing bitcoin fraud in India.

It is a part of traditional Indian economics that was very strong before the appearance of the internet.

The central bank of India has the strength of the Reserve Bank of India.

It is a significant thing to maintain the value of the Rupee.

To control the currency value, the central bank of India holds the flow of the currency of the nation.

In this way, it is essential for the people of India to know about-

– The role of the Reserve Bank of India.

Evolution of Crypto Fraud in India

The evolution of crypto fraud in India took place back in 2009, when cryptocurrency was introduced.

Creating a cryptocurrency in India was to create a platform where the ease of making payments through the internet could be normalized.

But with the introduction of bitcoin, the term “bitcoin fraud” also came forward as a shocking wave which further created a lot of buzzes around.

One reason for the hike in the cases of bitcoin fraud or crypto fraud is the rising popularity of trading in digital money, which offers the allure of multiplying your money.

For this reason, Crypto frauds have become a popular way to trick people into sending money by using different methods.

In the status of bitcoin fraud, we are witnessing a stressful concern.

As an answer, the UP Finance Minister quoted that the “quality of cryptocurrency may be uncertain in India, but the Indian Penal Code (IPC) and other laws are equipped to handle scams and frauds.

According to the latest stats, there have been cases where the Indian investors lost $500 million straightway as the scammers are increasingly controlling the market, resulting in crypto fraud.

Conclusion

There is no doubt how crucial digital payments have become in India as-

-The use of the internet in net transactions is relatively conventional and seamless.

However, as a matter of shock, there have been only some judgments that form the thread of crypto fraud cases that have taken place in India in a while.

Still, there has been no such ban or system that regulates it entirely or can protect the rights of Indian investors in that sense.

It is another asset class such as gold or real estate.

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SPAC Proposal of SEBI (Special Purpose Acquisition Companies)

Watch InAMinute video of Lawwiser powered by Phoenix Legal, featuring Sriram Ramachandran focusing on the proposed framework by SEBI for Special Purpose Acquisition Companies/SPACs.

SPACs are essentially shell companies with no commercial operations and listed on stock exchange for the acquisition of private companies.

In this video, he takes us through regulations surrounding SPACs in India, their purpose, and the recent surge in their popularity around the world.

There has been a lot of conversation around the proposed SEBI framework for Special Purpose Acquisition Companies (SPACs). Also, an unprecedented surge in the popularity of SPACs is seen in the last 12 months.

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Powers of the Court Under Section 11(6A) of Arbitration Act – Judicial or Administrative? – In A Minute, Zoeb Cutlerywala

Watch this In a minute video where Zoeb Cutlerywala, Counsel, Phoenix Legal, explains the Powers of the Court under Section 11(6A) of the Arbitration and Conciliation Act- Judicial or Administrative.

In this video he highlights how there have been divergent views on Section 11 and takes us through the observations of the courts on this issue in some key cases.

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Change in Venue is a Change in Seat of Arbitration – In A Minute

A well-drafted and structured arbitration clause are important to avoid any confusion especially with aspects relating to venue and seat of the arbitration under the Arbitration Act.

Recently the Supreme Court has clarified that where parties change the venue of arbitration by mutual agreement it will also become the seat of arbitration

Watch #InAMinute video, where Vasanth Rajasekaran, Partner, Phoenix Legal, shares highlights on the issue “change in venue is a change in the seat of arbitration” as held in the case of Inox Renewables Ltd vs Jayesh Electricals Ltd. And how parties must assess the effect of any change in the venue of the arbitration.

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Registration of Medical Devices (DCGI) – In A Minute | Ritika Ganju

Recently the Registration of Medical Devices is introduced with licensing through simple e-based process. It will also increase the ambit of medical devices which come under regulatory control.

This will further affect the implications and procedure related to licensing and Registration of Medical Devices. The Registration is optional till October this year and after that it will become mandatory. The regulation will be under control of – Central Drug Standards Control Organization (CDSCO), The Drug Controller General of India (DCGI), India’s Drugs & Cosmetic Act and Rules (DCA)

Watch this LawWiser In A Minute Video powered by Phoenix Legal, where Ritika Ganju, Partner, Phoenix Legal, takes us through key highlights of this requirements. She also shares objectives and implications of new medical devices regulations.

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