India’s arbitration jurisprudence continues to evolve, striking a balance between contractual consent and commercial reality. Two recent decisions illustrate how Indian courts interpret arbitration clauses and extend their scope beyond signatories when justified by commercial conduct. This article examines two key questions: What constitutes a valid arbitration agreement? Can a non-signatory be bound by an […]
The Securities and Exchange Board of India (SEBI), in its board meeting on December 18, 2024, strengthened the regulatory framework for Small and Medium Enterprises (SME) Initial Public Offerings (IPOs). This step has been taken to safeguard investors’ interests, addressing concerns over companies misusing IPO proceeds by diverting funds to shell entities and manipulating financials […]
In a noteworthy ruling, the Bombay High Court addressed an important issue concerning tax liabilities arising after a Corporate Insolvency Resolution Process (CIRP) in Uttam Value Steel Ltd. & Anr. Vs ACIT & Ors[1]. This case illuminates the tension between an approved Resolution Plan under the Insolvency and Bankruptcy Code, 2016 (IBC) and the actions […]
The Amendment Through a circular dated January 23, 2024, the Finance Ministry of India has amended Section 43B of the Income Tax Act, 1961 (“IT Act”). Section 43B of IT Act lists certain deductions which can be claimed only upon payment. The amendment has inserted a new sub-clause (h) which states that payments owed […]
The EU AI Act, a groundbreaking development in the regulation of artificial intelligence, recently achieved provisional agreement, marking a pivotal moment in the governance of this transformative technology. Going beyond mere regulation, this comprehensive legal framework is poised to set international standards for AI development and deployment. This article explores the key aspects of the […]
The Digital Personal Data Protection Act, 2023 (“DPDP Act”) is a new law in India that regulates the processing of personal data. This FAQ provides a brief overview of the DPDP Act, including its key definitions, the rights and duties of data principals and data fiduciaries, and the penalties for violating the Act. What […]
The shareholding percentage of a shareholder reflects the investment value of a shareholder. Commonly, a shareholder’s rights are tied to his shareholding percentage, special rights may be provided to a shareholder due to his higher shareholding percentage, and such rights fall away if such shareholder’s shareholding drops below a certain threshold. In an […]
One of the main aspects of a shareholders agreement for an investor is the mechanism through which the investor will be able to sell his shares and see the colour of money. Part 2 of this knowledge series covers the mechanism of Drag Along Right and Tag Along Right which are important mechanism pertaining to […]
A Shareholders Agreement or SHA as commonly known, is a critical transaction document in an investment transaction, it governs the rights of the shareholders of a company, provides the manner in which shareholders can deal with their shares and other important matters concerning the management and operations of the company. This knowledge series seeks […]
Knowledge Series Part 3 of 3 Part 3 – Contracts with Service Providers – Key points to consider Scope of Work and Fees: In most cases, disputes arise as expectations were not correctly set in the beginning, and both parties have a different expectation from the arrangement. It is important that both parties are aligned […]