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Decided on 26 July 2021| Supreme Court of India Whether an interest free term loan can be constituted as “Financial Debt” under Insolvency & Bankruptcy Code, 2016      The division bench of the Hon’ble Supreme Court (“the Court”) comprising of Justice  Indira Banerjee and V. Ramasubramanian in Orator Marketing Pvt. Ltd. v. Samtex Desinz Pvt.…

A Memorandum of Understanding (MoU) was entered into between the Parties in January, 2020 to promote business interests and profitability. The MoU provided, inter alia, that the Parties shall not attempt to solicit or contact employees of the other. Disputes arose between the Parties as MSD Telematics Pvt. Ltd. (“MSD”) allegedly breached the non-solicitation clause.…

The Hon’ble Supreme Court in a landmark judgment dated May 21, 2021 in Lalit Kumar Jain vs. Union of India & Ors. 1 has decided on the constitutionality of the provisions of the Insolvency and Bankruptcy Code, 2016 (‘the Code’) that allow insolvency process to be initiated against personal guarantors, including promoters, of a corporate debtor…

Factual Background SAIL executed a Charter Party (“CP”) with JOPL (an international entity) for delivery of coking coal. Separately, it had also entered into a Contract of Affreightment (COA) with JOPL for a period of 12 months, to deliver limestone. SAIL claimed that because JOPL failed to provide a vessel under the COA (a claim…

PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS The Central government on 04th April 2021, notified the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021. The said ordinance was introduced to amend the Insolvency and Bankruptcy Code, 2016 (“Code”) by inserting chapter III-A (Section 54A to 54P) which will deal with the procedure for pre-packaged insolvency resolution. Pre-Package Insolvency is…

COMPARATIVE ANALYSIS OF THE CONFLICT BETWEEN INSOLVENCY AND BANKRUPTCY LAWS & MONEY-LAUNDERING LAWS FOR ATTACHMENT OF PROPERTIES The Hon’ble National Company Law Appellate Tribunal (‘NCLAT’) has passed a landmark judgment dated April 9, 2021 in the case of ‘Directorate of Enforcement v. Manoj Kumar Agarwal & ors.’i holding that the provisions of the Insolvency and…

Interdigital Technology Corporation v. Xiaomi Corporation: Can a Foreign Court Injunct a Party from Pursuing its Cause before Indian Courts? The Delhi High Court, in its recent ruling has ruled India’s first case on anti-enforcement order for an anti-injunction order passed by a foreign court. Xiomi Corporation (“Xiomi”) had filed a suit for Standard Essential…

Aarna Law ADR Update/I/08 SIMC and ICSID Cooperation Agreement On 26 March, 2021, the Singapore International Mediation Centre (SIMC) and the International Centre for Settlement of Investment Disputes (ICSID) signed an Agreement on General Arrangements.i The Agreement was entered into by George Lim, Chairman, on behalf of SIMC, and Gonzalo Flores, Deputy Secretary-General of ICSID,…