Timelines for Disclosures by Social Enterprises on Social Stock Exchange ("SSE") for FY 2023-24 SEBI/HO/CFD/PoD-1/P/CIR/2024/134, dated 7th October 2024, issued by SEBI 1. SEBI vide Circular SEBI/HO/CFD/PoD-1/P/CIR/2024/0059 dated May 27, 2024 had prescribed outer timelines for annual disclosures and annual impact report under Regulation 91C(1) and Regulation 91E(1) respectively of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations") by Social Enterprises on Social Stock Exchange for FY

Smt. Deepti Gaur Mukerjee appointed as Chairperson to the Investor Education and Protection Fund Authority S.O. 4333(E), dated 3rd October 2024, issued by MCA In exercise of the powers conferred by sub-sections (5) and (6) of section 125 of the Companies Act, 2013 (18 of 2013) read with rules 5 and 7 of the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016, the Central

Relaxation from Compliance with Certain Provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/133, dated 3rd October 2024, issued by SEBI 1. SEBI, vide circular dated October 7, 2023, had relaxed the applicability of regulation 36(1)(b) of the of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”) for Annual General Meetings (AGMs) and regulation 44(4) of the LODR Regulations for general meetings (in electronic

Facilitation to SEBI registered Stock Brokers to access Negotiated Dealing System-Order Matching (NDS-OM) for Trading in Government Securities – Separate Business Units (SBU) Dated 4th October 2024, issued by SEBI Background Government of India wishes to facilitate retail participation in purchase and trading of Government Securities (G-Secs). Accordingly, it is proposed that stock brokers may deal in G-Secs in the Negotiated Dealing System-Order Matching (NDS-OM1) of the competent regulatory authority. 1. In order to ensure ease of

Due Diligence in relation to Non-resident Guarantees availed by Persons Resident in India A.P. (DIR Series) Circular No. 18, dated 4th October 2024, issued by RBI The Reserve Bank of India (RBI) has come across instances of guarantees (including Standby Letters of Credit [SBLCs] and / or performance guarantees) issued by persons resident outside India, favouring persons resident in India, which are not permitted under the extant FEMA regulations. 2. AD Category-I banks may ensure that guarantee contracts advised by them to, or

Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) (Amendment) Rules, 2024 G.S.R. 607(E), dated 3rd October 2024, issued by MCA In exercise of the powers conferred by sub-section (11) of section 125 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Rules, 2018, namely:- 1. (1) These rules may be

Measures to Strengthen Equity Index Derivatives Framework for Increased Investor Protection and Market Stability SEBI/HO/MRD/TPD-1/P/CIR/2024/132, dated 1st October 2024, issued by SEBI 1. Derivatives market assist in better price discovery, help improve market liquidity and allow investors to manage their risks better. Stock Exchanges and Clearing Corporations together provide the platform and products for trading in derivatives market, while ensuring online real time risk management, adequate surveillance, as well as smooth settlement of trades. 2. The

Review of Stress Testing Framework for Equity Derivatives Segment for Determining the Corpus of Core Settlement Guarantee Fund (Core SGF) SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/131, dated 1st October 2024, issued by SEBI Background 1. SEBI vide Chapter 3 Master Circular No. SEBI/HO/MRD2/PoD-2/CIR/P/2023/171 dated October 16, 2023, has, inter-alia, laid down guidelines for determining the credit exposure of Clearing Corporations (CCs) towards its participants. 2. In this regard, SEBI has specified the stress testing methodologies to

SEBI Board Decisions PR No. 25 /2024, dated 30th September 2024, issued by SEBI The 207th meeting of the SEBI Board was held in Mumbai today. The SEBI Board, inter-alia, approved the following: Sl. No. Particulars Page No. Secondary Market related 1 Option to investors to trade in the secondary market (cash segment) either using UPI block mechanism (ASBA-like for secondary markets), or 3-in-1 trading facility in addition to the current mode of trading: One of the two facilities to be mandatorily offered by Qualified Stock Brokers (QSBs)

Companies (Indian Accounting Standards) (Third Amendment) Rules, 2024 G.S.R. 602(E), dated 28th September 2024, issued by MCA In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government, hereby makes the following rules further to amend the Companies (Indian Accounting Standards) Rules, 2015, namely: — 1. (1) These rules may be called the Companies (Indian Accounting Standards) (Third Amendment) Rules, 2024. (2) They shall come into force on the date of their publication in

Securities and Exchange Board of India (Real Estate Investment Trusts) (Third Amendment) Regulations, 2024 No. SEBI/LAD-NRO/GN/2024/208, dated 26th September2024, issued by SEBI In exercise of the powers conferred under section 30 read with sections 11 and 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, namely: - 1. These regulations may be called the Securities and Exchange

Consultation Paper on Draft Circular for “Disclosure of Expenses, Half Yearly Returns, Yield and Risk-o-meter of Schemes of Dated 27th September 2024, issued by SEBI 1. Under the current regulatory framework for Mutual Funds, various disclosure requirements have been mandated, which include disclosures by Mutual Funds with respect to scheme expenses and risks pertaining to a particular scheme. In order to facilitate enhanced transparency, ease of comprehension and a

  Securities and Exchange Board of India (Infrastructure Investment Trusts) (Third Amendment) Regulations, 2024 No. SEBI/LAD-NRO/GN/2024/207, dated 26th September 2024, issued by SEBI In exercise of the powers conferred under section 30 read with sections 11 and 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, namely: - 1. These regulations may be called the Securities and Exchange

Consultation Paper on the Proposal to Exempt Certain Transactions from Trading Window Restrictions Dated 26th September 2024, issued by SEBI 1. Objective: The objective of this consultation paper is to seek comments from the members of public on the proposal for exempting certain transactions including subscription to non-convertible securities from trading window restriction norms for enhancing the ease of doing business. 2. Background: 2.1. Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”) prohibits insider trading i.e. trading when

Reduction in the Timeline for Listing of Debt Securities and Non-convertible Redeemable Preference Shares to T+3 Working Days from Existing T + 6 Working Days (as an Option to Issuers for a Period of One Year and on a Permanent Basis thereafter such that All Listings occur on a T+3 Basis) SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/129, dated 26th September 2024, issued by SEBI 1. Para 12 of Chapter I (Application process in case of public issues of securities and timelines for listing) of the

Operational Guidelines for Foreign Venture Capital Investors (FVCIs) and Designated Depository Participants (DDPs) SEBI/HO/AFD/AFD-PoD-3/P/CIR/2024/130, dated 26th September 2024, issued by SEBI 1. SEBI (Foreign Venture Capital Investors) Regulations, 2000 (“FVCI Regulations”) were amended vide notification dated September 05, 2024. The said amendments shall come into force with effect from January 01, 2025. The amendment notification, inter alia, specified provisions related to registration of FVCI through Designated Depository Participants,

Parameters for Performance Evaluation of Market Infrastructure Institutions SEBI/HO/MRD/POD-III/CIR/P/2024/127, dated 24th September 2024, issued by SEBI 1. Regulation 33(6) of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (hereafter referred to as “SECC Regulations, 2018”) and Regulation 31(6) of the SEBI (Depositories and Participant Regulations, 2018 (hereafter referred to as “D&P Regulations, 2018”) states that every recognised stock

Appointment of Judicial Members and Technical Members in the National Company Law Appellate Tribunal S.O. 4196(E), dated 25th September 2024, issued by MCA In exercise of the powers conferred by section 410 of the Companies Act, 2013 (18 of 2013) read with sub-section (2) of section 3 of the Tribunals Reforms Act, 2021 (33 of 2021), the Central Government hereby appoints following persons as Judicial Members and Technical Members in the National Company Law Appellate Tribunal for a period of four years

Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) Press Release No. IBBI/PR/2024/21, dated 25th September 2024, issued by IBBI The Insolvency and Bankruptcy Board of India (IBBI/Board) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2024 (Amendment Regulations) on 24th September, 2024. 2. The Amendment Regulations provides for the appointment of an interim representative who will act as

Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2024 No. SEBI/LAD-NRO/GN/2024/206, dated 25th September 2024, issued by SEBI In exercise of the powers conferred by section 31 read with section 21A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and section 30, sub-section (1) of section 11 and sub-section (2) of section 11A of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend

Board can appoint a person above the age of seventy-five years without prior approval. Such appointment can be approved subsequently In Nectar Life Sciences Ltd. v. SEBI [2024] 178 CLA 33 (SAT), the Appellate Tribunal held that the word ‘unless’ as depicted in sub-regulation (1A) of regulation 17 does not mean ‘prior approval’ nor the requirement of passing a special resolution was a qualificatory condition for appointment as a

Section 27 prior to the amendment, (i.e., prior to 8th March, 2019) had no application to civil liability and only after the amendment section 27 provided for vicarious liability on both criminal and civil liability for contravention of the Act, Rules and Regulations made thereafter Amended section 27 makes it clear that the section 27 did not include within its scope the levy of civil penalties for the alleged

The power under section 11 is much wider and expansive than the powers given under section 11B and normally section 11B is only an enabling provision to section 11 From a conjoint reading of the provision of sections 11 and 11B, it is clear that the power of the Board is very wide and it could take every measure that a situation would demand and issue such direction that

Where neither section 7 petition nor any pleadings or documents submitted by the appellant show that there was a share purchase agreement nor any documents showed/evidenced the fact of borrowing, it is difficult to accept the contention of the appellant that the transaction in question was in fact repugnant of a financial debt The definition of 'financial debt', as enumerated in clause (8) of section 5, is quite exhaustive

Where there is no finding of the auditor's direct involvement in the cleaning up of the books of account or in the fudging of the books of account of the company and his collusion or connivance with any director, promoter or employee of the company, auditor cannot be charged under section 12A read with regulations 3 and 4 of the PFUTP Regulations The scope of inquiry by SEBI is

Sub-section (2) of section 60 contemplates filing of application for personal guarantor before the NCLT or its Benches and not to a particular courtroom of the NCLT or its Benches Sub-section (2) of section 60 provides that where the corporate insolvency resolution process of the corporate debtor is pending before the NCLT, an application relating to the insolvency resolution of a personal guarantor, as the case may be, of

The finding of Adjudicating Authority that as the application for MSME certificate was made after the commencement of CIRP, such unauthorised application cannot be considered and cannot tide over ineligibility under section 29A being contrary to settled law laid down by the Supreme Court in Hari Babu Thota, In re. [2024] 178 CLA 270, suffers from legal infirmity Not having MSME status at the time of commencement of the

The finding of the SEBI and NSE that no person can be appointed or continued to be appointed as a non-executive director unless prior approval of the shareholders is made is erroneous. Hence, no penalty could have been imposed for violation of regulation 17 Sub-regulation (1A) of regulation 17 is not applicable for purpose of filling up a casual vacancy under sub-section (4) of section 161 of the Companies Act, 2013 (‘the Act’). Sub-regulation (1A) of regulation 17 cannot be read

If the resolution professional proceeds in terms of section 25 and secures the assets from the creditors, the creditors would not be entitled to claim set-off during the course of the corporate insolvency resolution process, which is earlier in the point of time In view of opening part of the Code and sections 238 and 243, it cannot be argued that the appellants are entitled to statutory set-off or insolvency set-off, in the corporate insolvency resolution proceedings under Chapter II Part

National Company Law Tribunal cannot assume the jurisdiction of the constitutional court to declare the assessment order as void ab initio True, after declaring moratorium, there is an embargo on enforcing the demand, but there is no embargo under section 14, read with sub-section (5) of section 33, for determining the quantum of tax and other levies, if any, against the corporate debtor. The National Company Law Tribunal (‘NCLT‘) has no power and authority under the Code to declare an assessment

Where no issue was raised by the corporate debtor regarding quality or quantity of services resulting into pre-existing disputes, it cannot be argued that the termination of work indicates pre-existing disputes. In fact, the termination letter was withdrawn by the corporate debtor and original contract was restored Mere allegations regarding less mobilisation of manpower or regarding delay during the contract which was ultimately completed to the satisfaction of the corporate debtor for which the completion certificate was issued to the financial

As per the law as exist today, the operational creditors are only entitled for minimum of the liquidation value. There being no breach of any of the provisions of the Code, no interference with the impugned order is called for The question with respect to payments to operational creditors under resolution plan as per the scheme of the Code is no longer res integra. Operational creditors are entitled to the minimum entitlement as per clause (b) of sub-section (2) of section

Both appellant and respondent being partners in developing the subject-property together, any sum provided by the appellant tantamount to financing the operations of the joint venture and not a disbursal of loan for the purposes of exclusive utilisation by the respondent for his own requirement Where shared liability for profit is so clearly manifested in the agreement and both appellant and respondent are development partners and co-sharers in the development of the subject-property and the terms of the agreement laid the

Suspension is automatic, once the disciplinary proceedings are initiated. Therefore, it can neither be termed as manifestly arbitrary nor can be challenged on the ground of any confirmation of unguided/unbridled power. Accordingly, regulation 23A of the Insolvency and Bankruptcy Board of India (Model Bye-laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 is constitutionally valid The power of suspension is not a punishment and is an ad interim measure and if one has to be issued with show cause notice,

The power of the Supreme Court to enter the regulatory domain of SEBI in framing delegated legislation is limited. The court must refrain from substituting its own wisdom over the regulatory policies of SEBI. The scope of judicial review when examining a policy framed by a specialised regulator is to scrutinise whether it violates fundamental rights, any provision of the Constitution, any statutory provision or is manifestly arbitrary In a consistent line of precedent, the Supreme Court has held that when

Insolvency (Amendment) Act, 2019 is certainly applicable when the appeals were heard and decided by the Appellate Tribunal Explanation 2(ii) clearly states that an appeal preferred under sections 61 or 62, when it is not barred by time under any provision of law, shall be heard and decided after considering the amended clause (b) of sub-section (2) of section 30 under the Amendment Act. Clauses (i), (ii) and (iii) of Explanation 2 reflect the wide expanse and width of the legislative

The jurisdiction of the Adjudicating Authority and the Appellate Authority cannot extend into entering upon merits of a business decision made by a requisite majority of the committee of creditors in its commercial wisdom. Nor is there a residual equity based jurisdiction in the Adjudicating Authority or the Appellate Authority to interfere in the decision, so long as it is otherwise in conformity with the provisions of the Code and the Regulations made thereunder The decision of the committee of creditors

Resolution professional appointed under section 97 serves a facilitative role of collating all the facts relevant to the examination of the application for the commencement of the insolvency resolution process which has been preferred under section 94 or section 95. The report to be submitted to the Adjudicating Authority is recommendatory in nature on whether to accept or reject the application. The submission that a hearing should be conducted by the Adjudicating Authority for the purpose of determining ‘jurisdictional facts’

Where in court proceedings the judgment stands reserved, subsequent proceedings by way of interim application is normally not entertained for reasons of procedural propriety It is a well settled proposition of law that the two stages of reserving of judgment and pronouncement of judgment are in a continuum with no hiatus or gap as such in the two stages. That being the well accepted and time-tested practice in court proceedings, subsequent pleadings filed by way of an interim application after the

Section 238 contains a non obstante clause which gives overriding effect to its provisions. Consequently, its provisions acquire primacy, and cannot be read as subordinate to the RERA. It is not equitable to treat a particular segment of the class of home buyers differently in the resolution plan It is not equitable to hold the view taken by the resolution professional that once an allottee seeks remedies under the RERA and opts for return of money in terms of the order

This article provides an overview of adjudication of cases pertaining to violation of section 62 of the Companies Act, 2013 which deals with the further issue of shares by a company.

In this article the author raises a question as to whether holding annual general meetings through video-conferencing in pursuance of circulars issued by the Ministry of Corporate Affairs in the wake of COVID-19, is legal.

The Competition (Amendment) Act, 2023 has introduced sections 48A and 48B in the Competition Act, 2002 which empower the Commission to pass settlement/commitment orders. This article explains the newly introduced sections.

Litigation funding, also known as third-party litigation funding, refers to the practice where an outside party provides financial resources to a plaintiff involved in litigation, in exchange for a portion of the monetary judgment or settlement. This financial support covers legal fees, court costs, and other expenses associated with pursuing a legal claim. The concept has grown in prominence over the past few decades and has sparked both support and controversy within the legal community. This article is intended to

The SEBI (LODR) Regulations, 2015 have undergone as many as 45 amendments reflecting a substantial evolution driven by Ease of Doing Business. In this article, the author has made an attempt to navigate the paradigm shift and transformation in the Regulations and its effect on the legal compliances.

This article has shed light on the nature of algorithmic trading and the regulations surrounding it.

In this brief note the author discusses two important questions that every one of us has come across in our life.

This article is intended to explain “Group of Companies” doctrine - a modern theory that challenges the conventional notions of arbitration law. It is celebrated by some, reviled by many others. Yet, its legacy continues.

The subject-matter of independent directors has been gaining a lot of importance over the years and, therefore, aspiration too from a host of professionals including company secretaries. This article attempts to deal with the evolution of independent directors as a role, touching upon the need, the context, regulatory framework, proficiency topics and tests, desired attributes, experience, thus, far and the need for Introspection.

In this article the author tells the story of India's startup, a flagship initiative launched by the Government to build a strong eco-system for nurturing innovation.

This article explains methodology to calculate net profits, in terms of section 198 of the Companies Act, 2013, of a company in any financial year for the purpose of section 197 in an easy to understand format.

The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2015 lays down eligibility requirements in regard to initial public offer by small and medium enterprises and also provide for issue and listing of equity on SME exchange. This article explains practical aspects of compliance with the listing of equity shares or SME exchange.

As a statutory duty, a director is required to make a disclosure of his interest or concern in any company or firm or body corporate or any association of individuals under section 184 of the Companies Act, 2013 (‘the Act’) and if there are changes in the disclosure hitherto made, such changes should also be disclosed. This article delves into provisions of section 184 which deals with disclosure of interest by directors.

This article summarises the voluntary liquidation procedure under section 59 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’) and IBBI (Voluntary Liquidation Process) Regulations, 2017.

In this article the authors delve into the provisions of the Prevention of Money-laundering Act, 2002 and recent developments/changes made thereunder.

In this article the author unveils the dynamics of externalisation and reverse flips exploring the role of Gift city.

This research article aims to analyse how the decriminalisation of technical and procedural lapses impacts corporate compliance and governance, exploring both the benefits and challenges associated with this legislative change.

This article describes various legal aspects of enforceability of shareholders agreement.

This article briefs about the extent to which the privileges may be withdrawn and the supporting provisions to private companies that enable them to regain those privileges.

Loans against gold ornaments or jewellery are as old as the barter system. This form of lending was prevalent even before the introduction of the banking system in India. In this process, borrowers pledge their gold ornaments and jewellery with banks or non-banking financial companies ('NBFCs') to avail of loans. This article explores the evolution, compliance, and market dynamics of gold loans in India, with a specific focus on NBFCs.

Contribution by joint venture partner – Is it loan for purpose of the Insolvency and Bankruptcy Code, 2016 – Where project is set up by more than one entrepreneur for sharing profits of joint venture and there is any dispute, aggrieved partner cannot take recourse to the Code.

Complaint against offence under the Code - Can a Sessions Judge entertain - In view of Supreme Court ruling that section 236 is legislation by incorporation and not legislation by reference, special courts can entertain any complaint.

Drawer of cheque – Interim compensation – Can person signing cheque be treated as drawer and be ordered to pay – Liability to pay interim compensation would be only on the company and not also on the person signing the cheque. The person signing the cheque cannot be treated as the drawer of the cheque and be ordered to pay the interim compensation under section 143A.

Nomination - Is it mandatorily required for shares/units of mutual funds - No one could or would be compelled to provide nomination in respect of property held by him.

Related party transaction – Transaction between a holding company and its subsidiary – Is it a related party transaction – After the amendment a transaction between a holding company and its subsidiary is excluded by a legal fiction from the definition of ‘related party transaction’ as defined in the Listing Regulations. When the transaction is excluded, the question of compliance with the requirements of regulation 23 would not arise.

Transfer of shares – Refusal to register for sufficient cause – Company can refuse to register transfer of shares if party is undesirable person, if transfer would contravene MoA/AoA, if registration will lead to contravention of public policy or any provision in State or Central Legislation.

Resolution professional – Adjudicatory power to decide on contents of report – The purpose of the examination is fact finding and nothing more. No adjudicatory function is involved in the process. He has also not been conferred adjudicatory powers as is the case under section 18 of the Code.

Compulsorily convertible debentures – Are they equity – Till the subscription agreement is entered into and the agreement is appropriately worded, the amount subscribed to cannot be treated as equity.

Corporate insolvency resolution process – Extension of limitation period for filing appeal for – When corporate financial creditor got certificate of recovery – If for any reason the corporate debtor is already under the clutches of corporate insolvency resolution plan, and the resultant moratorium is in force, he can take recourse to the provisions of the Code to get redressed his grievance. The issue of recovery certificate would give rise to a new cause of action. By implication the recovery

High Courts – Writ jurisdiction – Can they interfere in the arbitral awards – The High Courts will find it uncomfortable to exercise their jurisdiction, more particularly as the Act itself provides for remedies, and taking into account the policy of minimum judicial intervention, obtaining universally, in regard to arbitral matters.

Commencement of a new business activity – Not mentioned in the objects clause of memorandum of association – Can a company commence such business with the approval of its members in a general meeting - A company which existed as on 1st April, 2014 could set up new businesses covered by the other objects mentioned in the objects clause of its memorandum of association and a company incorporated under the Act could also embark on new businesses not covered by

Stamp duty on contract – Payment thereof – Powers of court to determine under section 11 of the Arbitration and Conciliation Act, 1996 – At the time the court appoints an arbitrator under section 11 of the Act, it is not required and in fact is not empowered to look into and decide the question as to whether the underlying contract is stamped or adequately stamped.

Dishonour of cheque – Can a manager managing affairs of company be prosecuted for an offence of dishonour of cheque – Merely because he is managing affairs of company, per se, he cannot be roped in for an offence under section 141.

Capital redemption reserve – Is it free – Amount lying to the credit of capital redemption reserve cannot be transferred to the general reserve, as the pre-requisite of ‘general reserve’, as defined in clause (43) of section 2 of the Companies Act, 2013, is that the amounts lying to the credit of general or free reserve should be available for payment of dividend to the holders of shares in a company. Therefore, capital redemption reserve is not general reserve.

Authorised Capital – Increase in, and allotment of shares in anticipation thereof – The authorised capital of a company can be increased only after passing of a resolution at a general meeting. The Board is not competent to make any allotment of shares subject to the company in general meeting decides to increase the authorised capital.

Resolution – Passed under section 61 to increase authorised capital – When does it take effect – Resolution can be acted upon only after stamp duty on the increase in the authorised capital is paid.

Auditor – Proceedings initiated for removal under sub-section (5) of section 140 – Do they abate on his registration – The resignation cannot put an end to the proceedings as the fraudulent conduct or abetting in the conduct of commission of fraud would not get erased and as such NCLT has to pass an order initiated before it..

Net worth – Computation – Has paid-up preference share capital to be taken into account – The fact that the general term share capital has been used in the definition clause and that the general term share capital includes preference share capital, the preference share capital should be taken into account for computation of net worth of a company.

Consumer Protection Act – Should its provisions be interpreted strictly and technically or liberally – Provisions of the Act have to be interpreted neither strictly nor technically. They should be interpreted liberally and generally to favour the unwary consumer. Any technical interpretation against the consumer would go to knock out the objective behind this laudable enactment.

Statutory requirements – Are they to be complied with guarantees by a subsidiary to loan granted to its holding company at the time resolution is passed or when the guarantee is invoked – The guarantee given is in the nature of agreement to discharge the loan, if the holding company does not discharge it. In this view, if at all any requirements have to be complied with or any approval has to be taken then they should be complied with