Category Archives: regulatory updates

CCI amends provisions relating to informants requesting inquiry in to certain agreements or dominant position of enterprise

Competition Commission of India (“CCI”) vide Gazette Notification dated 20 November 2019, amended the Competition Commission of India (General) Regulations, 2009 relating to informants, as follows:

  • A new clause 10(2)(da) is inserted to provide details of any dispute between the informant and the parties before any court, tribunal or arbitrator in respect of the subject matter of the information
  • Informant’s request for confidentiality is diluted by the addition of a proviso to Rule 35(1)
  • Fees payable for providing any information on certain agreements and dominant position of an enterprise is increased per below table:
Type of informer Present Fees in INR Previous Fees in INR
  • Individual or Hindu Undivided Family
5,000 5,000
  • Non-Government Organization or Consumer Association or Co-operative Society or Trust
10,000
  • Firm or company with turnover up to INR 2 (two) Crore
40,000 20,000

[up to INR 1 (one) Crore Turnover]

  • Firm or company with turnover above INR 2 (two) Crore but below INR 50 (Fifty) Crore
1,00,000 50,000

[other than above cases]

  • Cases other than above
5,00,000

Source: http://egazette.nic.in/WriteReadData/2019/214225.pdf

Notification of IBC sections for insolvency resolution and bankruptcy of individuals and partnership firms effective from December 1, 2019

Insolvency and Bankruptcy Board of India (“IBBI”) vide Gazette Notification No. S.O. 4126 (E) dated 15 November 2019, notified the effective date as 1st December 2019, for the following sections of the Insolvency and Bankruptcy Code, 2016 (“IBC”):

Section Details of the Section
2(e) Applicability of the IBC to personal guarantors to corporate debtors
78 Part-III applicable to insolvency resolution and bankruptcy for individuals and partnership firms (except fresh start)
79 Definitions with regard to Part-III i.e., process for  insolvency resolution and bankruptcy for individuals and partnership firms
94 to 187
  • Chapter-III of Part-II i.e., insolvency resolution for individuals and partnership firms (Sections 94 to 121)
  • Chapter-IV of Part-III i.e., bankruptcy order for individuals and partnership firms (sections 122 to 148)
  • Chapter-V of Part-III i.e., administration of estate of bankrupt (sections 149 to 178)
  • Chapter-VI of Part-III i.e., adjudicating authority for individuals and partnership firms (sections 179 to 183)
  • Chapter-VII of Part-III, i.e., offences and penalties (Section 184)
239(2)(g) to 239(2)(i) Power of Government to frame rules under section 79
239(2)(m) to 239(2)(zc) Framing of rules for the process of insolvency resolution and bankruptcy
249 Amendment of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 per the manner specified in Fifth Schedule.

Source: http://egazette.nic.in/WriteReadData/2019/213952.pdf

Further the IBBI vide Gazette Notification No. G.S.R. 855(E) dated 15 November 2019, notified the Insolvency and Bankruptcy Board of India (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, effective from 1 December 2019, wherein, inter-alia, below compliance are provided:

  1. Application to initiate bankruptcy of an individual or partnership firm to be submitted in Form-A by debtor/guarantor and in Form-B by creditor
  2. Formats of public notice to be in Form-C and notice to creditors in Form-D
  • Intimation of bankruptcy process to any commercial or financial transaction of value of INR 1 (one) Lakh and above by the individual/partnership-firm undergoing bankruptcy

Source: http://egazette.nic.in/WriteReadData/2019/213963.pdf

Please refer to our earlier regulatory updates on the process of insolvency here and the process of bankruptcy here.

MCA amends the limits for board approval of related party transactions

Ministry of Corporate Affairs (“MCA”) vide Gazette Notification No. G.S.R. 857 (E) dated 18 November 2019, amended Rule 15(3)(a) of the Companies (Meetings of Board and its Powers) Rules, 2014 per below table:

Previous Position Present Position
Board approval for purchase of goods/disposing of property through related party was mandatory for an amount

  • up to 10% or more of the turnover of the company or
  • INR 100 Crore or whichever is lower
The part of INR 100 crore is omitted.  Hence, Board approval will now be required for an amount up to 10% or more of the turnover alone.
Board approval was mandatory for leasing of any property amounting to lower of the below:

  • 10% or more of net worth of the company
  • 10% or more of turnover of the company
  • INR 100 Crore
The part of INR 100 Crore and the part of of networth is omitted. Board approval will now be required for an amount up to 10% or more of the turnover alone.
Board approval was mandatory for availing or rendering of any services amounting to lower of the below:

  • 10% or more of turnover of the company or
  • INR 50 Crore
The part of INR 50 crore is omitted.  Hence, Board approval will now be required for an amount up to 10% or more of the turnover alone.

Source: http://egazette.nic.in/WriteReadData/2019/214065.pdf

 

Notification of Regulations for Insolvency process for Personal Guarantors to Corporate Debtors, effective from December 1, 2019

Insolvency and Bankruptcy Board of India (“IBBI”) vide Gazette Notification dated November 20, 2019, notified the Insolvency and Bankruptcy Board of India (Insolvency Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, inter-alia, providing below compliance:

  1. Appointment of resolution profession
  2. Procedure for a creditor to submit claim for registration
  3. Procedure for meeting of creditors
  4. Contents of repayment plan and filing this plan before Adjudicating Authority

Source: http://egazette.nic.in/WriteReadData/2019/214255.pdf

Notification of Regulations for Bankruptcy Trustee for Personal Guarantors to Corporate Debtors, effective from December 1, 2019  

Insolvency and Bankruptcy Board of India (“IBBI”) vide Gazette Notification dated November 20, 2019, notified the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, inter-alia, providing below compliance:

  1. Appointment of insolvency professional as bankruptcy trustee
  2. Appointment of professionals by bankruptcy trustee
  3. Submission of reports and maintenance of registers by bankruptcy trustee
  4. Submission of quarterly progress report to Adjudicating Authority
  5. Process for future claims by creditors
  6. Process for bankruptcy trustee to convene meeting for voting
  7. Process for asset realization & proceeds distribution

Source: http://egazette.nic.in/WriteReadData/2019/214254.pdf

 

Maharashtra Factories Rules Amendment on Sanitary Napkins

Maharashtra Labour Department vide Notification dated October 1, 2019 has notified the Maharashtra Factories (Amendment) Rules, 2019 by addition of two clauses in Rule 45 of the Maharashtra Factories Rules, 1963, mandating employers to maintain adequate quantity of sanitary napkins in the women’s toilets for their use.  The used napkins should be collected in disposable bins with lids and their disposal should be per the procedure approved by the Inspector of Factories.

Source: https://app.box.com/s/rvtui6s0hd53l66lvditz44f4e2cbpve

Notification of Karnataka State on Rights of Persons with Disabilities Rules, 2019

The Karnataka Government vide Gazette Notification dated September 5, 2019, notified the Karnataka State Rights of Persons with Disabilities Rules, 2019 framed under the Rights of Persons with Disabilities Act, 2016, by repealing the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) (Karnataka) Rules, 2003. Inter-alia, every establishment like a company or a firm is mandated to publish equal opportunity policy for persons with disabilities and to display the equal opportunity policy on their website or at a conspicuous place in their premises.  Further, any private establishment employing twenty or more persons should act upon a complaint of discrimination on the ground of disability received from an aggrieved person and should inform the person in writing as to how the act/omission is a proportionate means of achieving a legitimate claim.

Source: http://gazette.kar.nic.in/5-9-2019/Part-4A-(Page-2503-2554).pdf (Page 31-52)