The recent decision of Delaware’s Chancery court invalidating the grant of performance stock options to Elon Musk awarded by the board of directors of Tesla has reemphasized the nature of duties entrusted with directors. The directors of a company are its trustees and agents as they are responsible for ensuring the viable, successful, and sustainable […]

The Central Government has issued a notification on 27 October 2023 amending the Companies (Prospectus and Allotment of Securities) Rules, 2014 called the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 (Rules). Currently, public companies are required to maintain their securities in dematerialized form. The Rules now mandate dematerialization of securities of private […]

The Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirement) Regulations, 2015 (LODR Regulations) have been recently amended by way of the LODR (Second Amendment) Regulations, 2023 (Amendment Regulations). The changes were initially proposed in a SEBI consultation paper on “Strengthening Corporate Governance at Listed Entities by Empowering Shareholders”. Some of the […]

The Securities and Exchange Board of India (SEBI), vide circular dated 27 July 2023 (available here) has made it mandatory for non-individual foreign portfolio investors (FPI) to provide details of their Legal Entity Identifier (LEI) code in the ‘Common Application Form’ (CAF), which is an application form used for registration of FPIs with SEBI, allotment of […]

Review and recall are two crucial legal mechanisms that safeguard the principles of fairness and justice within a judicial system. Review entails examination of the judgment to rectify any evident errors or inaccuracies which might be the result of an oversight. Conversely, recall empowers the court to rectify its previous orders if any procedural errors […]

The Insolvency and Bankruptcy Code (Code) provides the right to a financial creditor to make an application to the National Company Law Tribunal (NCLT) for initiation of corporate insolvency resolution process (CIRP) against a corporate debtor in the event the debtor fails to repay its debt owed to the creditor. The Code as well as […]

One of the fundamental principles of company law is the principle of separate legal personality of a corporation. A company is regarded as a distinct person with its own rights and liabilities that are independent of its shareholders or management. The doctrine of piercing or lifting the corporate veil stands as an exception to the […]

Globally, there is a rise in the regulation of corporate behaviour based on non-financial factors such as sustainability and environmental, social and governance (ESG) impact. In 2022, about 65 countries have enacted 100 new policies and regulatory measures related to sustainable finance and ESG norms (Green Finance Platform, December 2022). This includes countries across the […]

Introduction The Insolvency and Bankruptcy Code, 2016 (Code) provides for initiation of corporate insolvency resolution process (CIRP) against a corporate debtor in case of debt and default of such debt. However, there may be a situation, especially in companies engaged in development and construction of real estate projects when the resolution of debt or development […]

Introduction The objective of the Insolvency and Bankruptcy Code, 2016 (Code) is to maximize the value of the assets of the corporate debtors and to ensure their revival. One vital aspect for reviving a debt-ridden company is reversal of avoidance transactions i.e., preferential, undervalued, defrauding creditors and extortionate transactions. The Code empowers the resolution professional […]

An arbitration agreement is an agreement between the contracting parties through which disputes that might crop up between the parties are to be resolved by arbitration. It is not only a common but also a very crucial feature of commercial contracts of our times. Under the Arbitration and Conciliation Act, 1996 (Act), certain attributes[i] must […]

The adjudication of claims arising out of private civil or commercial arrangements between parties is ordinarily capable of being referred to arbitration. The underlying principle of arbitration remains that private arrangements between parties give rise to a right in personam (against a particular person), which is exercisable only between the parties to such an arrangement and […]

Under the Insolvency and Bankruptcy Code, 2016 (Code), the resolution professional or the interim resolution professional (collectively referred as RP) is vested with the responsibility of running the business of the corporate debtor as a going concern and conducting the corporate insolvency resolution process (CIRP). The RP must also ensure that CIRP is conducted in […]

Under the Insolvency and Bankruptcy Code, 2016 (Code) and under the Companies Act, 2013 (Act), an order of the National Company Law Tribunal (NCLT) can be appealed before the National Company Law Appellate Tribunal (NCLAT). The time-period for filing such an appeal is maximum of 45 days under the Code and 90 days under the Act. Further, the NCLAT […]

Under the Insolvency and Bankruptcy Code, 2016 (Code), if a corporate debtor is unable to pay its debts, then insolvency resolution proceedings (CIRP) may be initiated against the corporate debtor and attempts are made to revive the corporate debtor by inviting resolution plans. If the revival process fails, the corporate debtor must be liquidated. The […]

On 22 August 2022, the Ministry of Finance has notified a new framework for overseas investments by Indian investors. The new framework is aimed at liberalizing compliance and approval requirements in order to provide greater access to Indian investors to markets outside India. In this update, we have covered in brief, key concepts and changes […]

The Insolvency and Bankruptcy Code (Code) provides the right to a financial creditor to make an application to the National Company Law Tribunal (NCLT) for initiation of corporate insolvency resolution process (CIRP) against a corporate debtor in the event the debtor fails to repay its debt owed to the creditor. The Code as well as […]

Under the Insolvency and Bankruptcy Code, 2016 (Code), a trade creditor may initiate corporate insolvency resolution process if there is an unpaid operational debt above INR 10 million. An ‘operational debt’ under the Code means a claim in relation to goods and services. The insolvency courts have provided divergent views on the issue of whether […]

We are pleased to announce that Acuity Law acted as the legal advisor to NABVENTURES Limited and NABVENTURES FUND I (together referred to as NABVENTURES) in its investment in Homeville Consulting Private Limited (owner of Bharat Housing Network) (Company). NABVENTURES was the lead investor in this funding round of INR 1.25 billion (~USD 14.9 million). […]

We are pleased to announce that Acuity Law acted as the legal advisor to NABVENTURES Limited and NABVENTURES FUND I (together referred to as “NABVENTURES”) in its investment in Dr Jackfruit India Private Limited (operating under the brand name of “Beyond Snack”). NABVENTURES invested approximately USD 3.5 million in this funding round. To read more […]

We are pleased to announce that Acuity Law acted as the sole legal advisor to Sreyas Holistic Remedies Private Limited operating under the brand name of ‘Oliva Skin and Hair Clinic’ (“Oliva”), and Dr. Prashant Soma, promoter and shareholder of Oliva, in an investment of approximately USD 65 million by Kedaara Capital Growth Fund III […]