EquiCorp Associates

What is the purpose of Insolvency and Bankruptcy Code 2016? 1. Th consolidate & amend the laws relating to insolvency & bankruptcy; 2. To fix the time periods for execution of the law in a time bound manner; 3. To increase the availability of credit; 4. To balance the interests of all stakeholders including alteration in the order of priority of payment; 5. To establish an Insolvency & Bankruptcy Board of India as a regulatory body for insolvency & bankruptcy law. With the recent changes in the legal landscape of India, the Insolvency & Bankruptcy Code, 2016 (“Code”) is the biggest and major legal reforms in the recent times, which has curtailed the earlier extensive process of debt recovery and insolvency. The Code has repealed around eleven laws and provides a comprehensive and time bound mechanism to either put a distressed entity on a firm revival path or timely liquidation of assets. The Adjudication Authority for companies shall be National ...

In Neelkanth Township & Construction Private Limited v. Urban Infrastructure Trustees Limited [2017] 140 CLA , a n appeal was filed by a corporate debtor (Neelkanth Township & Construction Pvt. Ltd.) against the order of the National Company Law Tribunal (“ NCLT ”) allowing commencement of insolvency proceedings on the action of the financial creditor (Urban Infrastructure Trustees Ltd.). in National Company Law Appellate Tribunal (“ NCLAT ”). The financial creditor had subscribed to optionally convertible debentures (“ OCDs ”) issued by the corporate debtor. OCDs carried nil or 1% p.a. interest rate and matured in years 2011, 2012 and 2013. Ø   One of the issues for consideration before the NCLAT was whether the application under Section 7 of the Insolvency & Bankruptcy Code (“ Code ”) is time barred, as the debt claim related to the years 2011, 2012 and 2013. Section 3 of the Limitation Act, 1963 governs the time period within which unless a ‘civil suit’ must ...

Cryptocurrency has been called as the greatest technological breakthroughs since the Internet.  However, a parallel warning from the Reserve Bank of India as a caution against bitcoin and other cryptocurrency, with no guidelines or order to prohibit cryptocurrency may puzzled you to ponder over –Is it legal to do business of cryptocurrency in India?  There may be several questions which you may encounter w.r.t. applicable laws of India, as there are no specific guidelines issued by any Government Authority including Reserve Bank of India or Ministry of Finance. The main stream adoption of cryptocurrency is becoming a reality despite sceptics who compare the boom to the 1636 tulip mania. The issue is not whether cryptocurrency will survive, but rather how it will evolve. The article aims to clarify certain major aspects which may be encountered for- “ Doing Business of Cryptocurrency w.r.t. Indian Legal Perspective ” under the evolving legal structure. There are growing...

With the rapid growth of e-commerce business & ever evolving regulatory landscape in India had posed a very significant question on the twilight prior to the enforceability of Goods & Service Tax (“GST”) which is to be effective from July 01, 2017- What will be the impact of GST on e-commerce? Unlike, brick & mortar business models, where e-commerce business are working on various different business models, will the impact be same or differ for e-commerce business- a question which is yet struggling to find answer and keep many of the players hinged on the pivot. Growth of any business is good news for the economy and it’s been expected that to keep the same path of growth, there has to be clarity on taxation matters and ease of doing business. Of lately, there are several apprehensions in business world- Whether GST be a more hurdle rather than a catalyst for growth? Present issues under VAT & Service Tax faced by Ecommerce business: 1.     ...

Today, we are in the golden age of startups, where people are ready to take risks for their dreams and passion. It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their dreams. New business ventures often have difficulty obtaining capital (whether for starting up, or for expanding operations). Today during economic downturns where standards for commercial investment are becoming water tight, a number of investors often seek non-traditional investment opportunities to enhance their portfolios. A convertible note (“ Note ”) provides such an opportunity to serve the needs of both the startup business needing capital and the investor seeking an opportunity. With the latest RBI Notification dated Nov.07, 2017, FDI is also permissible by means of Convertible Note ‘Convertible Note’ is an instrument issued by a startup company evidencing receipt of money initially as debt, which is repayable at the optio...