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Edition 72 • September 2021

I'm Possible

Like in Olympics 2020, the Paralympics saw Indians creating history yet again with a 19-medal haul – 5 gold, 8 silver and 6 bronze. From table tennis and badminton to high jump, javelin, discuss throw and shooting, our athletes have proved that disability is only a state of mind! The Covid 19 pandemic crippled the world. Yet a few industry sectors prospered. Let's see what The Law Tree Edition 72 has to offer.

Covid Combat

Sunny Side Up!

2020 was a year like no other. It brought the world to a standstill. Almost every business, trade, logistics and supply chain management came to a grinding halt. Not only lives, but livelihoods were eroded. Strangely, all was not gloom. While economies around the world were crippling, a few sectors outdid themselves despite the pandemic. In fact, some sectors flourished due to the pandemic! A look at some such sectors. 

Technology

The Covid19 pandemic and the resultant lockdowns / quarantine made everything and everyone and go online. Work from home, study from home and just staying home ensured that everything became accessible online.

Food Tech

Though the initial lockdown adversely impacted the food delivery industry due to apprehensions of safety and health, this sector turned around quickly as the lockdown eased. Delivery services such as Zomato and Swiggy saw their revenue grow 5 times during the pandemic. Innumerable cloud kitchens sprang up across the country. The two waves of the pandemic have made consumers apprehensive of eating out. Instead, they continue to order in from the comfort of their homes.  Food tech has seen big gains.

Ed-Tech 

The lockdown has effectively kept students home bound since 2020. Education systems moved online seamlessly. Education at every stage from play groups up to research and beyond became online through various learning portals. While education through technology was already present in India for a decade prior, the pandemic accelerated the ed tech industry like never before. Online learning caters to a larger number of students at comparatively lower costs making it a convenient and economically viable option. Byjus, the first and most valuable ed tech in India is a unicorn in educational sector. Great learning, Vedantu, Toppr and other educational platforms earned phenomenal revenues during lockdown despite offering some of their services free to the students.

Online audio video conferencing 

Online audio – video conferencing is the new normal of communication. Be it a business meeting, or a family gathering, or an interview or schooling, virtual is the new real. Though service providers like Zoom were in existence nearing a decade before the Covid19 outbreak, the pandemic resulted in travel ban across the world. the only way people could connect was through audio visual services such as Zoom. Probably the biggest success story in the pandemic, Zoom’s revenue zoomed from $ 22 million to almost $ 80 million in the pandemic year alone. Despite concerns of personal data and online security, the hybrid work option that Zoom, Webex, Blue Jeans and the like offer are here to stay. The home grown Jiomeet was launched by Reliance in July 2020. The second wave of the pandemic helped it accelerate growth as it saw 25% additional volume of users added to its kitty despite the presence of players like Zoom.

Entertainment

OTT platforms

OTT really went over the top cashing in on the Covid19 induced lockdown. With nowhere to go, entertainment on OTT platforms seemed the only source of entertainment. With minimal subscription fee and unlimited viewing options, Netflix, Amazon, Hotstar, Disney, Zee, Sun and other streaming services. This form of entertainment is here to stay with analysts predicting a $ 15 billion market share for OTT by 2030. It is safe to say that Covid acted as a catalyst for the rise of OTT platforms. A hybrid form of entertainment. 

Online gaming

This sector enjoyed a staggering 50% growth in its business during the lockdown. Estimated to touch almost $ 3 billion by 2022, online gaming industry played big and won bigger during the Covid pandemic. Average gaming time of young and old increased due to stay at home restrictions. Experts are of the view that games involving real money has increased manifold. This feature is here to stay as the world slowly moves towards normal.

Healthcare

The fragile healthcare infrastructure was further stretched with the onset of Covid19 pandemic. Initially caught unawares on how to handle this unprecedented crisis, hospitals – both public and private were battered. Medical supplies, doctors and other healthcare professionals, medical devices and equipment became scarce. Yet the healthcare sector took on the invisible enemy single handed. There seemed to be a good side and a flip side to it. There were countless covid cases, but the other cases requiring medical attention dropped drastically with people staying away from hospitals for the fear of contracting the virus. PPEs suits, gloves, sanitizers, oxygens cylinders and concentrators became an essential commodity. Imports were hit as India depended on other countries such as China for its supplies and raw materials. Though medical companies have experienced dip in revenues, Indian research companies were at work 24/7 ensuring production of effective vaccines within record timelines. Be it the economics or sheer humanity, healthcare sector is a winner.   

The above sectors were but a handful that kept nations and its people going in the hope of things beginning to better. Human resilience is the clear winner.

Insights

Moratorium Under IBC: Not For Directors / Management

On 16th September 2021, the Supreme Court ruled that moratorium u/s 14 of the IBC applies only to the corporate debtor. It does NOT apply to the directors / management of the corporate debtor. This implies proceedings against directors/management could continue despite moratorium u/s 14 of IBC being in place for the corporate debtor. The Hon’ble Supreme Court passed this ruling while hearing the case of Anjali Rathi and Others Vs Today Homes & Infrastructure Pvt. Ltd. and Others SLP (C) No. 12150 of 2019.

What's Brewing

Company- In Liquidation As Going Concern

On 11th September 2021, the Ahmedabad bench of the NCLT passed an order approving the liquidation of an insolvent company even when it was a “going concern”. Nitin Jain (for PSL Ltd Vs Ashok Punj & Ors) IA No. 132 of 2020 in CP (IB) No. 37/10/NCLT/AHM /2017.

On 24th August 2021, the Principal NCLT Bench in Delhi passed a similar order in Mohan Gems & Jewels Pvt. Ltd. Vs Vijay Verma & IBBI Company Appeal AT (Insolvency) No. 84 of 2020.

The concept of liquidation of insolvent companies as a going concern is gaining popularity. 

Circulars & Notifications

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

Notifications

August 02, 2021
Maintenance of State Government Accounts – Recovery of Interest on Excess put through/ Double claim (State Government Transactions)

August 03, 2021
Framework for Outsourcing of Payment and Settlement-related Activities by Payment System Operators

August 04, 2021
Guidelines for Implementation of the circular on Opening of Current Accounts by Banks

August 05, 2021
Exim Bank's Government of India supported Line of Credit (LoC) of USD 30.00 million to the Government of the Republic of Sierra Leone

August 06, 2021
Export Credit in Foreign Currency – Benchmark Rate

August 06, 2021
Resolution Framework for COVID-19-related Stress – Financial Parameters – Revised timelines for compliance

August 06, 2021
Prudential Norms for Off-Balance Sheet Exposures of Banks – Restructuring of derivative contracts

August 09, 2021
Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) – Marginal Standing Facility (MSF) - Extension of Relaxation

August 09, 2021
Enhancement of collateral free loans to Self Help Groups (SHGs) under DAY-NRLM from ₹10 lakh to ₹20 Lakh

August 10, 2021
Monitoring of Availability of Cash in ATMs

August 12, 2021
Exim Bank's Government of India supported Line of Credit (LoC) of USD 100 million to the Government of the Republic of Mauritius

August 18, 2021
Safe Deposit Locker/Safe Custody Article Facility provided by the banks - Revised Instructions

August 19, 2021
Exim Bank's Government of India supported Line of Credit (LoC) of USD 20.22 million to the Government of the Republic of Guinea

August 19, 2021
Exim Bank's Government of India supported Line of Credit (LoC) of USD 170 million to the Government of the Republic of Guinea

August 19, 2021
Exim Bank's Government of India supported Line of Credit (LoC) of USD 20.51 million to the Government of the Republic of Guinea

August 24, 2021
Formation of new district in the State of Punjab – Assignment of Lead Bank Responsibility

August 25, 2021
Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

August 25, 2021
Tokenisation – Card Transactions : Extending the Scope of Permitted Devices

August 25, 2021
Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021

August 27, 2021
Review of incentive and other measures to enhance distribution of coins

August 27, 2021
Enhancements to Indo-Nepal Remittance Facility Scheme

August 27, 2021
Master Directions on Prepaid Payment Instruments (PPIs)

August 30, 2021
Guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff – Clarification

August 30, 2021
Master Direction on Financial Statements - Presentation and Disclosures

Circulars

Nil

Circulars

August 03, 2021
Permitting non-scheduled Payments Banks to register as Bankers to an Issue

August 04, 2021
Modification in Operational Guidelines for FPIs and DDPs pursuant to amendment in SEBI (Foreign Portfolio Investors) Regulations, 2019

August 04, 2021
Requirement of minimum number and holding of unit holders for unlisted Infrastructure Investment Trusts (InvITs)

August 09, 2021
Calendar Spread margin benefit in commodity futures contracts

August 10, 2021
Operational Circular for issue and listing of Non – Convertible Securities (NCS), Securitised Debt Instruments (SDI), Security Receipts (SR), Municipal Debt Securities and Commercial Paper (CP)

August 13, 2021
Guidelines on issuance of non–convertible debt instruments along with warrants (‘NCDs with Warrants’) in terms of Chapter VI – Qualified Institutions Placement of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

August 13, 2021
Disclosure of shareholding pattern of promoter(s) and promoter group entities

August 13, 2021
Automation of Continual Disclosures under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015 – System driven disclosures – Ease of doing business

August 13, 2021
Tendering of shares in open offers, buybacks and delisting offers by marking lien in the demat account of the shareholders

August 13, 2021
‘Security and Covenant Monitoring’ using Distributed Ledger Technology

August 17, 2021
Penalty for Repeated Delivery Default

August 26, 2021
Circular on Modalities for implementation of the framework for Accredited Investors

August 31, 2021
Extension of time for seeking membership of BSE Administration & Supervision Limited

August 31, 2021
Disclosure of risk-o-meter of scheme, benchmark and portfolio details to the investors

Notifications

Nil

Circulars

Nil

Notifications

Nil

Income Tax Notifications

August 03, 2021
The Central Government specifies the Pension Fund namely the 2726247 Ontario Inc., as specified person for the purposes of Explanation clause (c)(iv) of Section 10(23FE) (c)(iv).

August 04, 2021
The Central Government Notifies National Council of Science Museums, Kolkata under Section 10 (46) of the Income Tax Act, 1961.

August 04, 2021
The Central Government Notifies ‘Real Estate Regulatory Authority under Section 10 (46) of the Income Tax Act, 1961.

August 04, 2021
Designation of Special Courts by the High Court of Gujarat in consultation with the Chief Justice for the purposes of Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

August 04, 2021
Designation of court of Senior most Judicial Magistrate First Class of East Khasi Hill district, shilling as the special court for the state of Meghalaya by the High Court of Gujarat in consultation with the Chief Justice for the purposes of Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

August 04, 2021
Designation of court of the special Judge for Economic offences – cum-VIII Additional Metropolitan Sessions Judge – Cum- XXII additional Chief Judge, City civil Court, Hyderabad, as the special court for the state of Telengana by the High Court of Telengana in consultation with the Chief Justice for the purposes of Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

August 09, 2021
Income tax Amendment (22nd Amendment), Rules, 2021.

August 10, 2021
the Central Government hereby establishes the Interim Boards for Settlement.

August 10, 2021
Income tax (23rd Amendment), Rules, 2021.

August 18, 2021
Income tax (24th Amendment), Rules, 2021.

August 31, 2021
Income tax (24th Amendment), Rules, 2021.

August 31, 2021
Income-tax (25th Amendment) Rules, 202

Income Tax Circulars

August 03, 2021
Extension of Time lines for Electroniv filing for various forms under the Income Tax Act, 1961.

August 29, 2021
Extension of Time lines for Electroniv filing for various forms under the Income Tax Act, 1961.

Tariff Notifications

August 19, 2021
Seeks to amend notification No. 57/2000-Customs dated 08.05.2000 providing for extension of last date of export by six months, for those cases where the last date of export falls between 01.02.2021 and 30.06.2021

August 19, 2021
Seeks to amend Notification number 34/2021- Customs dated 29.06.2021, for reduction in the BCD on Crude Soya Oil [1507 10 00] from 15% to 7.5%; Crude Sunflower Oil [1512 11 10] from 15% to 7.5%; Refined Soya Oil [1507 90 10] from 45% to 37.5%; Refined Sunflower Oil [1512 19 10] from 45% to 37.5%, from 20th August 2021 till 30th September 2021

August 30, 2021
Seeks to amend notification No. 28/2021-Customs to extend the exemptions under the said notification up to 30th September, 2021.

Non – Tariff Notifications

August 05, 2021
Exchange rates Notification No.65/2021-Cus (NT) dated 5.8.2021

August 11, 2021
Tariff Notification No. 66/2021-Cus (N.T.) dated 11.08.2021 in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver – Reg

August 13, 2021
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver – Reg

August 17, 2021
Corrigendum

August 12, 2021
Appointment of CAA by Pr. DGRI

August 12, 2021
Appointment of CAA by Pr. DGRI

August 19, 2021
Exchange rates Notification No.68/2021-Cus (NT) dated 19.8.2021.

August 31, 2021
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg

August 31, 2021
Seeks to amend Sea Cargo Manifest and Transhipment Regulations 2018

Anti Dumping Duty

August 01, 2021
Seeks to amend notification No. 48/2017-Customs (ADD), dated the 9th October, 2017 to extend the levy of Anti-Dumping duty on ' Wire Rod of Alloy or Non-Alloy Steel ' originating in or exported from China PR up to and inclusive of 31st January, 2022 .

August 09, 2021
Seeks to levy anti dumping duty on imports of Phthalic Anhydride (PAN) originating in or exported from China PR, Indonesia, Korea RP and Thailand for a period of five years.

August 12, 2021
Seeks to rescind notification No. 43/2016-Cus(ADD) dated 8th August, 2016 to remove levy of ADD on Viscose Staple Fibre (VSF) originating in or imported from China PR and Indonesia.

August 24, 2021
Seeks to rescind notification No. 14/2016-Cus(ADD) dated 21st april, 2016 to remove levy of ADD on Barium Carbonate originating in or imported from China PR

August 26, 2021
Seeks to extend the Anti-Dumping Duty (ADD) on imports of "Axle for Trailers" originating in or exported from People's Republic of China, imposed vide Notification No. 54/2016- Customs (ADD), dated 29th November, 2016, till 28th January, 2022.

August 26, 2021
Seeks to levy anti dumping duty on imports of “ Natural Mica based Pearl Industrial Pigments excluding cosmetic grade ” originating in or exported from China PR for a period of five years.

August 27, 2021
Seeks to amend Notification number 56/2018-Customs(ADD) dated 4th December, 2018, to extend the levy on "uncoated copier paper" from Indonesia & Singapore upto 28th February, 2022.

August 31, 2021
Seeks to amend Notification number 48/2016-Customs(ADD) dated 1st September, 2016 , to extend the levy on "Glass Fibre and Articles thereof" from China PR upto 31st October, 2021 .

Circulars

August 16, 2021
Amendment in Circular No.38/2016-Customs with the insertion of a new entry 5(d) to enable Pr.Commissioners/Commissioners of Customs to decide the amount of security required in certain cases of provisional assessments-reg.

August 16, 2021
De-notification of Inland Container Depots/Container Freight Stations/Air Freight Stations -reg.

August 16, 2021
De-notification of Inland Container Depots/Container Freight Stations/Air Freight Stations -reg.

Instructions

August 09, 2021
Regarding Import of Split Cassia label as Cinnamon-reg.

August 11, 2021
Strict implementation of the Import Policy i.r.t. Transmission apparatus incorporating reception apparatus (ITC HS Code - 8525 60 00), by the Customs Authorities-reg

August 17, 2021
Verification of the Preferential Certificates of Origin and difficulties being faced by the trade in implementation of the Customs (Administration of Rules of Origin under Trade Agreements) Rules (CAROTAR), 2020.

August 17, 2021
Instructions and clarifications by Directorates/Commissionerates/Audit: Scope of Section 151 A of the Customs Act, 1962 - reg.

The Verdict

Section 7 of The IBC & The Limitation Act

On 4th August 2021, a two-Judge Bench of the SC ruled that a final judgment, decree, and /or recovery certificate passed / issued by a court or tribunal would give rise to a fresh cause of action for a financial creditor to initiate proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016. A look at relevant details of the significant judgment.

Go Figure

Statistics Related To GST In India

Did you know that France was the first country to adopt GST tax system in 1954 while India adopted it in 2016. Go figure the statistics of the highest taxpayers and tax paying states.
Lawtitude

Analysis of U.S. Corporate Transparency Act

With the start of this year 2021, the United States assured itself of gearing up against the incessant rise of frequent activities of economic crimes like money laundering, terrorism financing, etc., and promised to reduce the same. One such move was to give effect to the Corporate Transparency Act, 2021 as it got passed and enacted as part of the National Defense Authorization Act.

Quid pro quo

It is something given or received for something else

Ratio decidendi

The principle or rule that constitutes the basis of a decision of a Court of Law

Toxic tort

A tort in which there is personal injury or damage to property due to exposure to certain toxic substances.

Severability clause

A clause in a contract that provides that provisions are severable. Also, a clause in a statute that makes the statute's parts or provisions severable so that one part can be invalidated without invalidating the whole

Infographic

Limited Liability Partnership : A Legal Entity But Not a Company

Infographics depicts everything we need to know about a Limited Liability Partnership (LLP) – an entity with features of a partnership firm and the higher accountability of a company. 

Lawlipop

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

10-year professional experience = lifelong proficient ID 

Declare Cow National Animal- Allahabad High Court

(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

Loving (2016)

Does law supersede love? This movie is an American biographical – legal drama based on the historic decision of the U.S Supreme Court in the case of Loving Vs. Virginia. 388 U.S. 1 (1967).

The true story revolves around Mildred Delores, a coloured woman and a white man Richard Perry Loving. Both grew up in Virginia, lived in an area which had substantial mixed-race community. Both were family friends, studied together in high school, fell in love and wanted to get married. Virgina adhered to Racial Integrity Act of 1924, which made inter racial marriage / same sex marriages a crime. Hence, they married in Washington in 1958. However, a few weeks later they were arrested and sentenced to imprisonment for a year citing anti- miscegenation laws. The Judge suspended the sentence on condition that they do not return to Virginia together for at least 25 years. 

Mildred then approached the Attorney General Robert F Kennedy for help who referred them to the American Civil Liberties Union. Constitutional experts rule that their ordeal could be presented in the Supreme Court of United States. After several hearings and based on other similar cases, in 1967, the US Supreme Court unanimously overturned the conviction of the Lovings’ and struck down the anti-miscegenation laws as unconstitutional. Landmark civil rights case poignantly depicted in the critically acclaimed award-winning movie. 

Book/Novel

The Last Trial (2020)

Alejandrao “Sandy” Stern is one of the best criminal defense lawyers. At 85, he finally decides to call it a day. But his old friend Dr. Kiril Pafko asks Sandy to defend one last case. Dr. Pafko, the Nobel prize winning cancer researcher is accused of fraud, insider trading and murder. Sandy has to start from scratch – learning and unlearning everything he knew (or thought he knew) of his good friend. As the case commences, Sandy begins to investigate and learns that evidence and reality are glaringly apart. Sandy has to prove his mettle as a lawyer while protecting his friend. A page turning thriller from the celebrated lawyer – author Scott Turow.    

TV Series

Chicago Justice (2017)

The series showcases the professional lives of the Chicago State Attorney’s prosecutors who traverse through local politics, media perception and the law to provide justice. 

Life is 10% what happens to you and 90% how you react to it - Charles Swindoll

Readers' Corner

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