Articles and Updates

• Gautam Bhatikar, Madhavi Doshi and Sanjeev Sambasivan - 30-06-2021

In a recent judgment1, the National Company Law Tribunal, Chennai ("NCLT") dismissed an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 ("IBC") as the applicant company M/s. Prithivraj Spinning Mill Private Limited ("Corporate Debtor") was no longer in existence due to the change in name granted by the Ministry of Corporate Affairs ("MCA"). The NCLT opined that the stakeholders of the Corporate Debtor will not be in a position to file their claims with the Interim Resolution Professional ("IRP")/ Resolution Professional ("RP") since they will not be in a position to identify the Corporate Debtor in its new name, leading to a failure of the process under the IBC.

• Sawant Singh and Aditya Bhargava - 30-06-2021

In November 2016, the Securities and Exchange Board of India (SEBI) issued a circular, requiring credit rating agencies to put in place policies on assigning provisional ratings. To “standardise and strengthen the policies on provisional ratings”, after consultation with stakeholders SEBI issued directions in its circular of 27 April 2021 to further regulate the assigning of provisional ratings by rating agencies to debt instruments. The 2021 circular also prescribes specific provisions on ratings for Real Estate Investment Trusts and Infrastructure Investment Trusts.

• Vasanth Rajasekaran (New Delhi) - 28-06-2021

In a recent decision in India Resurgence ARC Pvt. Ltd. v. M/s Amit Metalinks Ltd. & Anr.1, the Hon'ble Supreme Court held that a security interest available to a dissenting financial creditor over the assets of the corporate debtor does not give it a right over and above other financial creditors. Thus, the dissenting financial creditor cannot enforce the entire security interest and bring about an inequitable scenario by receiving amounts beyond the receivable liquidation value proposed for the same class of creditors. The present article briefly summarises the findings of the Hon'ble Supreme Court in the decision mentioned above.

• Vasanth Rajasekaran - 28-06-2021

Emergency arbitrations are conducted in pursuance of an agreement between the disputants, often on short notice due to the scarcity of time and urgency of the relief sought. Parties prefer invoking provisions for emergency arbitration for seeking interim reliefs, which would prevent the frustration of the subject matter of the dispute. Emergency arbitration has gained prominence in the context of the Indian arbitral regime as the Amazon-Future group dispute made it to the headlines. The present article briefly discusses the important aspects of emergency arbitrations and their current status in India.

• Vasanth Rajasekaran and Nayantara Narayan - 21-06-2021

The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 ("New Rules") were notified by the Ministry of Electronics and Information Technology on 25th February 2021. Part III of the New Rules introduce provisions for the regulation of digital media along with a code of ethics. This article analyses the impact of Part III of the New Rules. In the first article of a two-part series, we analysed Part II of the New Rules.1