EquiCorp Associates

With the submission of SriKrishna Committee report on data protection, the final countdown for India’s own Data Protection Regime has finally begun.   A detailed legal framework on data protection is to be implemented in the coming days. Purpose of Data Protection Bill 2018- To protect the autonomy of individuals in relation with their personal data, to specify where the flow and usage of personal data is appropriate, to create a relationship of trust between persons and entities processing their personal data, to specify the rights of individuals whose personal data are processed, to create a framework for implementing organizational and technical measures in processing personal data, to lay down norms for cross-border transfer of personal data, to ensure the accountability of entities processing personal data, to provide remedies for unauthorized and harmful processing, and to establish a Data Protection Authority for overseeing processing activities. The key Highlights ar...

The legislations governing several aspects of the employer-employee relationship are so complicated and ambiguous, that they yield in litigation rather than to provide clear way out. Moreover, the most important bone of contention w.r.t. protection of confidential information, non-disclosure and non-solicitation have not yet been addressed through legislation in India, thus warranting recourse to judicial interpretation and common law. In an attempt to protect their interests, trade secrets, confidential information, every employer execute employment agreement and impose post employment restrictive covenants pertaining to manner in which the employees are required to serve the notice period, comply with the exit formality, non-solicitation, non-compete and others before finally exit from the employer. However, to enforce post employment restrictive covenants had become a challenging task for the employers. In our this article- “ Post Employment Restrictive Covenants- How Much En...

US retailer Wallmart Inc. acquired a 77% stake in India’s largest online retailer for almost US$ 16 billions in its biggest acquisition to date. With this acquisition, brings an end to journey of Poster Boy- Sachin Bansal &   Flipkart. Though it s a moment of ecstasy and celebrations for startups especially Flipkart, there are few questions which must have to looked seriously by the Founders/Startups. Sachin Bansal- Exit from Flipkart- Sachin was involved in talks with Wallmart from the beginning and it was expected that he could get a bigger role at Flipkart after the sale then the Executive Chairman. However, a last minute disagreement with Lee Fixel and Krishnamurthy over hos role and rights after the sale led to a bitter ouster. It’s the final affirmation of who controls the Company. Sachin being a Founder of Flipkart wanted stronger rights such as preferential ‘founder rights’ & guarantees that he would have   a lot more say in Flipkart’s operatio...

Performance is the essence of a contract and hence parties to contract generally incorporate their expectation in terms of damage caused by failure of either party to perform its obligations completely or as per the agreed terms. The contract may prescribe damages for deficiency in the performance of contract known as ‘liquidated damages’. It is to dissuade unsatisfactory performance or non-performance. For instance, contracts state that time is the essence of contract, and any delay invites say, 1% of the value of the contract for every week of delay and the like. Similarly, it is common to forfeit earnest money deposit (EMD) from a bidder in case he wins the bid but fails to act thereafter. This forfeiture clause is a deterrent for non-serious bidders entering the fray. Other examples may be rent for delay in lifting goods; agreeing to shoulder testing charges for samples to meet standards; cost of removing rejected goods, etc. Payment of damages or the forfeiture of deposit d...

The Hon’ble Supreme Court of India in a very significant judgment has ruled that stay of proceedings in a pending trial, whether civil or criminal, will automatically lapse after six months from the date of grant of stay order unless extended, in an exceptional circumstance, by a speaking order. The Hon’ble Supreme Court comes up with this significant direction in a judgment, dated March 28, 2018, arising out of Prevention of Corruption Act, in Asian Resurfacing of Road Agency Pvt. Ltd. & Anr. Versus Central Bureau of Investigation , by a bench comprising of Hon’ble Mr. Justice Adarsh Kumar Goel and Hon’ble Mr. Justice Navin Sinha. The said judgment was concurred by Hon’ble Mr. Justice Rohinton Fali Nariman in a separate but concurring judgment. The Hon’ble Supreme Court with an objective of remedying the situation of proceedings remaining pending for long on account of stay considered it appropriate to direct that: “ in all pending cases where stay against proceedings of ...

With its ongoing mission to curb the unregulated deposit & Ponzi scheme and to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to introduce the “Banning the Unregulated Deposit Scheme Bill 2018” (“ Bill ”). The Bill is aimed at tackling the menace of illicit deposit taking activities in the country. Companies/ institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings. The Bill may cover: complete prohibition of unregulated deposit taking activity; deterrent punishment for promoting or operating an unregulated deposit taking scheme; stringent punishment for fraudulent default in repayment to depositors; designation of a Competent Authority by the State Government to ensure repayment of deposits in the event of default by a deposit taking establishment; ...