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The Law Tree

Edition 55

We love 'The Law Tree'. Covid or no Covid, work from office or work from home, our enthusiasm to bring our reader the next edition knows no bound. It is with this enthusiasm to learn and share latest legal happenings, we have put together this edition working from home and maintaining social distance. Dive in to Law Tree #55!

Insights

Revision of FDI Policy: Background and Ramification

Press Note No. 3 (2020 Series) dated 17.4.2020

‘The Foreign Exchange Management Act, 1999’ (‘FEMA’), the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 coupled with the Consolidated Foreign Direct Investment Policy are sacrosanct to Foreign Direct Investment [‘FDI’] into India and these govern all conditions of FDI such as, Eligible Investors, Entry Routes for Investments (Automatic route/Govt approval route), Caps on Investments -Sector wise, Prohibited Sectors/Permitted Sectors for FDI, Foreign Investments into downstream investments by eligible Indian entities etc.

Insights

Resolution Plans = Right To K(No)w?!

The Insolvency and Bankruptcy Code, 2016 (“Code”) was enacted to address, increasing, inter- alia, cases of corporate defaults in a regulated, time bound manner. It was also intended to streamline liquidation of NPAs, expedite debt recovery and insolvency resolution mechanism. Since its enactment in 2016, the Act has undergone periodic amendments.

What's Brewing

The Banking Regulation (Amendment) Bill, 2020

In the first week of March 2020 (few weeks before the country came to a standstill due to the covid-19 epidemic), Hon’ble Finance minister introduced in Lok Sabha “The Banking Regulation (Amendment) Bill, 2020” to amend the Banking Regulation Act, 1949. The amendments primarily focused on co-operative banks. A look at the salient features of the proposed amendments.

What's Brewing

Insolvency: Effect of Increase in Default Threshold

The ‘Default Amount’ to trigger insolvency proceedings has been increased to ₹1.00 crore in the amendment to protect small companies from defaults due to coronavirus related lockdown.

Circulars & Notifications

Learn about this month’s circulars and notifications brought out by the MCA, FEMA, SEBI & RBI.
The Verdict

Preferential transactions
under the IBC

On 26th February 2020, a division bench comprising Justice A.M Khanwilkar and Justice Dinesh Maheshwari passed a judgment providing several clarifications relating to preferential transactions under the Insolvency and Bankruptcy Code. A look at the highlights of the case.

Go Figure

Health Expenditures -
Global & India

The Covid -19 pandemic has brought back into sharp focus the expenditure incurred by nations globally and the proportionate expenditure by India.
Lawtitude

The WTO Appellate Body Crisis-
Problem, Relief and Solution

In the year 1994, the trading world as we know it was awarded with an International Body known as the World Trade Organisation or as popularly referred as the ‘WTO’. This supreme International organization deals with the ‘Rule of Trade’ between Nations and governs trade matters including Goods and Services. When moving into a more globalized world, a fluid yet stringent mechanism was required to synchronise all of the transactions that took place between Nations and countries as a whole involving global markets and to manage this setting, the WTO played an important role.

Abate

To throw down, to beat down, destroy, quash. To do away with or nullify or lessen or diminish.

Bailee

In the law of contracts, one to whom goods are bailed; one to whom goods are entrusted by a bailor; the party to whom personal property is delivered under a contract of bailment.

Cambist

In mercantile law, person skilled in exchanges; one who trades in promissory notes or bills of exchange; a broker.

Damages

A pecuniary compensation or indemnity, which may be recovered in the courts by any person who has suffered loss, detriment, or injury, whether to his person, property, or rights, through the unlawful act or omission or negligence of another.

Infographic

Fastrack Act to Settle Tax Disputes The Direct Tax Vivad se Vishwas Act, 2020

With nearly 5 lakhs income tax cases pending before appellate authorities by end of 2019, the government enacted the “Vivas se Vishwas 2020” scheme with a view to recover much of the 1 lakh crore rupees through taxes by reducing litigation and encouraging compliance. 

Lawlipop

Important legal and other news having a bearing on society depicted in a fun quirky way!

Directors’ Remuneration to attract GST: AAR, Rajasthan Bench

WFH: For the People, Of the People, By the People.

(P)Review
Your regular dose of a movie, TV show and a book all based on law to keep you entertained and thinking at the same time!
Movie

Just Mercy (2019)

A 2019 American legal drama that is based on true events and memoir of Bryan Stevenson, A Harvard educated lawyer, social justice activist, founder/executive director of the “Equal Justice Initiative” an organization that fights against racial discrimination, poor and minorities in the criminal
justice system, especially children. The movie deals with the story of Walter McMillian (Jamie Foxx). An African American, Walter is convicted to death sentence for the murder of a white woman. When Bryan (Michael B Jordan) meets Walter in prison as part of the “Equal Justice Initiative”, he discovers that Walter was found guilty based entirely on the testimony of a convicted felon who traded his prison sentence for testifying against Walter. A few instances later, Bryan is convinced that Walter was innocent and wrongfully convicted in the case. Bryan then embarks on journey to prove the innocence of Walter. Several trials and tribulations later, Walter McMillian’s case is opened for re-trial. The real testimony unfolds, and Walter eventually walks free. In real life Bryan Stevenson and his partner in this initiative continue to fight for equal rights of justice for the poor and the coloured sections of the society. The movie received critical acclaim and was nominated for several awards in various categories. A must watch for the silent real-life hero Bryan Stevenson.

Book/Novel

Killer's Wife
by Victor Methos (2020)

Acclaimed Lawyer cum author Victor Methos is back with another legal thriller. Published on 1st March 2020, the book is a thrilling and suspense filled take on the life of Jessica Yardley an honest and brilliant US attorney. She has a haunting past. Married to a brutal serial killer who is eventually imprisoned, Jessica valiantly puts behind her troubled past to become a respectable attorney while raising her teenage daughter single handed. Unfortunately, her past comes back to her in a flood when she is approached by the FBI to assist them in a series of murders which are chillingly identical to the ones her ex husband committed. As Jessica becomes the prosecutor in this case, she slowly realises that she knows the real murderer is. How she unravels the rest of the truth forms the remaining part of the story. A fast-paced legal thriller. An ideal read to ward off lockdown blues.

TV Series

Bluff City Law (2019)

A recent American drama series to hit the television in September 2019, Bluff City Law centres around a law firm in Memphis, Tennessee run by a father daughter duo – Elijah Strait and Sydney. Having gone their ways due to differences of opinion, they return to work together post Sydney’s mothers death. From class action and civil suits to arbitration, Medicare fraud and terrorism cases, the series a vast variety of cases they handle. The first season of 10 episodes aired from September to November 2019.

Deceive not thy physician, confessor, nor lawyer - George Herbert

Readers' Corner

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