The Epidemic Diseases (Amendment) Bill 2020

• The Epidemic Diseases Act 1897 is a British era legislation containing provisions for containment of epidemics. The Act contained special powers required for implementing measures to control the spread of the disease.
• In 2020 the colonial legislation was amended in order to address issues and events surrounding the Covid19 pandemic. 

Major amendments:

1. Includes definition of “healthcare professional”. 
2. Introduction of preventive measures against violence inflicted on healthcare workers and damage to property. Any person causing harm to life of healthcare workers or property would be punishable with a maximum fine of Rs. 2 lakhs and or imprisonment of up to 5 years.   
3. Modalities of investigation and trial by government authorities
4. Expansion in powers of central government to inspect and detain person/s arriving or leaving the country through various modes of transport.

The Essential Commodities (Amendment) Bill 2020

• The Essential Commodities Act 1955 was enacted to ensure that delivery of certain commodities or products and their prices are not affected due to hoarding or black marketing of such products. Originally, pulses, oil, certain drugs and fuel were regulated under this Act.
• In 2020, the Act was amended primarily to declare masks and sanitizers as “essential” to regulate their availability and price due to their use in the fight against the Covid19 pandemic. However, a couple of months later, they were removed from the “essential commodities” list.

Major amendment(s):

1. 1. Cereals, edible oil, oilseeds, pulses, onions, and potato were deregulated and removed from the list of commodities regulated.
   2. Such regulation can be imposed only under extraordinary circumstances such a war, famine epidemics etc. which will lead to surge in prices.
   3. Removal of punitive measures such a preventive detention, confiscation of vehicles and attachment of properties of those suspected to be hoarders / black marketers.
   4. Farmers to be given the liberty to directly sell their produce to Farmer producer organizations (FPOs), corporates, retailers and co-operative societies without having necessarily to go through the Agriculture Produce Market Committee (APMCs) a marketing Board set up by respective state governments. Hitherto, the first sale was allowed only at the “mandis” of the APMC by way of auction. The amendment proposes the removal of such restriction. Such removal will give farmers the bargaining powers. This proposed amendment will also ensure direct purchase from farmers and increased profits to them. It was feared that by bringing in private investors and corporatizing the farm produce, corporates would make profits s government intervention would become minimal. The farmers would earn a pittance.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act 2020

The Bill was introduced in 2020 to facilitate free trade of farmers outside the Agricultural Produce Marketing Committee (APMC) yard also known as “mandis.”

Salient Features:

1. Promote interstate and intra state trade and commerce of agricultural produce outside physical markets such as ‘mandis’ and  Agricultural Produce Market Committee (APMC) markets / yards and other markets notified under the State Agricultural laws.
2. Enable farmers realize the full price by direct marketing without having to go through intermediaries. Eliminate middlemen / intermediaries and thereby enable farmers engage in direct marketing of their produce.
3. Farmers will not have to pay cess or levy or conveyance charges for such sale.
4. Create an electronic trading platform for ensuring seamless trading.

The legislation has been primarily being opposed on grounds that more than 80% of the farmers are infrastructural challenged as they do not have access to storage until they directly sell their produce. Also, there were concerns of them earning their MSP- Minimum Support Price. The provisions implied that Mandis / APMC yards will altogether stop. Intermediaries would be wiped out.

The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services 2020

The Act seeks to empower farmers by creating a national framework for contract farming by way of agreement(s) between farmers and buyers before the production or rearing of any farm produce. Farmer(s) dealing with agri -business firms, processors, wholesalers, retailers and or exporters must get into mutually beneficial price agreements / contracts. The main objective was to promote transparency.

Salient Features:

1. Enable farmer access modern technology, better seed and other inputs. This will reduce cost of marketing and improve income of farmers.
2. Emphasis on research of modern technology to be used in Agriculture.
3. Formation of Farmer Produce Organizations (FPOs) throughout the country to bring a collective group of farmers in ensuring their concerns are satisfied.
4. Establishment of a 3-level dispute mechanism with express timelines for dispute redressal is being put in place to ensure farmers legal recourse through Courts. It can also be addressed locally through such conciliation boards.

The main concern in this legislation is about farmers being taken for a ride in the name of contract farming. The government though states that the contract will contain express terms and conditions governing the price and the timelines for payment.

Note:

The above three Acts came to be collectively known as “Farm Laws”. All three Acts were passed in both of houses of Parliament amidst September 2020 despite raging protests by farmers. Unexpectedly the year-long farmer’s protests turned violent and there was a pandemic within a pandemic. Consequently, all three Farm laws which were passed in September 2020 were repealed in December 2021.

The Tax Amendment Bill 2021

The Taxation Laws (Amendment) Bill, 2021 amended the Income Tax Act, 1961 (IT Act) and the Finance Act, 2012.

Major amendment(s)

1. The 2012 Act had amended the IT Act to impose tax liability on the income earned from the sale of shares of a foreign company on a retrospective basis (i.e., also applicable to the transactions done before May 28, 2012).  The 2021 Bill nullified this retrospective basis for taxation.
2. The government has stated that no further orders shall be passed on retrospective basis. Further it has expressly clarified that even previous orders passed on retrospective basis shall be nullified. Such retrospective orders passed in the past shall be invalidated.

The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill 2021

• The Deposit Insurance and Credit Guarantee Corporation (DICGC) Act was enacted in 1961 to establish a Corporation to provide insurance to citizens for their bank deposits and guaranteeing credit facilities given by banks and financial institutions.  The objective of the Act is to provide time bound access to their deposits in case they face any restrictions from accessing such deposits.
• The last few years have seen a spate of cases where banks (particularly co-operative banks) which have failed to fulfil their financial obligations due to liquidity crisis, non-performing assets and consequently being placed under moratorium. Increasing non-performing assets led to severe liquidity crunch resulting in freezing depositors accounts and capping the limit on withdrawing their own funds. This put small depositors in severe distress. In order to address this crucial concern, the government proposed amendment(s) to the DICGC Act 1961.
• The DICG Amendment Bill 2021 amended the Deposit Insurance and Credit Guarantee Corporation Act, 1961.

Major amendment(s):

1. Section 15 contained a provision that that every insured bank for as long as it is registered, be liable to the corporation, a premium on its deposits at such rates not exceeding 15 paise per annum for every Rs. 100 of the total amounts of the deposits in that bank at the end of that period or the date of its cancellation. The amendment to proviso to section 15(1) of the Act is an enabling provision that lets the Corporation to raise the ceiling on the amount of premium with previous approval of the Reserve Bank of India.
2. Section 18A was introduced to allow for payment of the insured deposit amount to depositors on an interim basis where the Corporation would be liable to make such payment subject to satisfaction of certain conditions, modalities of payment and within certain timelines.
3. Section 21 which deals with repayment of amount by insured bank to the corporation was amended to introduce sub sections (3) and (4) relating to repayment /deferring repayment within certain timelines and subject to approval by the RBI and also the interest for delay in repayment up to 2% points higher than the repo rate.

The Limited Liability Partnership (Amendment) Bill 2021

The Limited Liability Partnership (Amendment) Bill, 2021 amended the Limited Liability Partnership Act 2008 which regulates the functioning of Limited Liability Partnership Firms – LLPs.

Major amendment(s):

1. Non-compliance or failure to comply with certain provisions like change in (i) constitution of the LLP or (ii) registered office (iii) arrangement between LLP and partners etc. have been de-criminalized. Only monetary penalty ranging between Rs. 2,000 to Rs. 5 lakhs is imposed.
2. Small LLP can be formed where (i) the contribution from partners is up to Rs 25 lakh (may be increased up to five crore rupees), (ii) turnover for the preceding financial year is up to Rs 40 lakh (may be increased up to Rs 50 crore).  The central government may also notify certain LLPs as start-up LLPs.
3. Establishment of special courts and adjudicating officers for speedy disposal of cases relating to LLPs. Appeals can be made to appellate tribunals of NCLT and fixing their limitation period.

The Insolvency and Bankruptcy Code (Amendment) Bill 2021

• The Central government promulgated the IBC Amendment Ordinance 2021 in continuation of its previous measures such as increasing the threshold of the default limit to INR 1 Crore and suspending the initiation of insolvency against companies during the Covid19 pandemic. The Ordinance amended the Insolvency Code to allow / enable the central government to notify pre-packaged insolvency resolution process for micro, small and medium enterprises (MSMEs).
• A pre-package is a form of structuring / re-structuring in which the management negotiates and arrives at a settlement with the creditors in a time bound manner. While this not only saves time and money but it also enables the management to continue to run the affairs of the business without handing it over to a resolution / interim resolution professional and indulging in lengthy IBC process. For the NCLT, this would mean easing the burden of cases as the companies come with agreed pre-packaged solutions. Such pre- packages are being offered to companies and LLP’s.
• Sections 54A to 54P has been introduced vide Chapter IIIA the IBC which expressly details the procedure / process for initiation of insolvency resolution process for MSMEs.

The Occupational Safety, Health & working conditions Code 2020

The Code consolidates the following 13 legislations into one and regulates occupational safety, health and working conditions of workers in all establishments.

Salient features:

1. Provisions of the Code relating shall be applicable to establishment with at least 10 workers including those engaged in hazardous sectors such as mines, docks etc. The term “employees” include workers, managerial, administrative staff and supervisory staff whose monthly salary is Rs. 15,000.
2. The government has wide powers to exempt / suspend any class of establishment from complying with the provisions of this Code for upto 1 year due to emergency situation.
3. The Code retains provisions of duties of employers in providing health and safe workplace to employees. Additionally, employer must ensure safety from hazards in high risk sectors such a mines, docks, plantations, construction sites by informing about safety protocol and providing safety equipment.
4. To establish portals for interstate migrant workers to register themselves on and become eligible for ration and other benefits in the destination State.
5. Establishments of occupational safety and health advisory Boards shall be set up by the Central / State government that advice the respective government on matters of implementing the Code.

Industrial Relations Code 2020

The Industrial Relations Code 2020 consolidates the following 3 legislations into one and is enacted to supervise and decide on industrial/ trade disputes, regulate and monitor employment conditions in industrial undertakings and establishments.

Salient features:

1. Key definitions have been amended – Employer, Industry, Industrial dispute, Strike, Worker
2. Increase in threshold of number of employees of 300 in an establishment to comply with this Code. Previously, the number of employees was 100.
3. All establishments to give notice of at least 14 days prior to proposed strike. Previously, this clause was applicable only to public utility services such as railways, post & telegraph departments etc.
4. Industrial tribunals will replace the existing dispute redressal system. Cases will be decided either by two member or single member tribunals depending on the nature of the cases. National industrial tribunal shall be constituted to adjudicate cases of national importance or affect interests of one or more States. The appropriate government has the power to exempt any establishment from complying with the provisions of this Code.
5. The Code will have a built-in arbitration / dispute redressal mechanism. The arbitration and Conciliation Act 1996 shall NOT apply to such cases.
6. The Code also incorporates setting up of a reskilling fund, contributions of which will be utilized in skill development of retrenched workers.

Note:

The Codes on (i) Industrial relations, (ii) Social security (iii) Occupational safety and wages are simply known as the Labour Code.

The Model Tenancy Act 2021

The Central government approved the draft model tenancy Act (MTA) for circulation to all States and Union territories. They could entirely adopt the MTA or suitably modify their existing rental laws.

Salient features:

1. The Act requires the landlord and tenant to sign a written agreement which specifies the rent, period of tenancy and other related terms.  Security deposit is capped at two months’ rent for residential premises, and six months’ rent for non-residential premises.
2. Capping the amount of security deposit to a maximum of 2 months’ rent for Residential premises and 6 months’ rent for non-residential premises.
3. The Act expressly specifies conditions / situations for eviction of tenant.
4. Establishment of a three-tier quasi-judicial dispute adjudication mechanism consisting of: (i) Rent Authority; (ii) Rent Court; and (iii) Rent Tribunal.  No civil court will have jurisdiction over matters pertaining to provisions under the Model Act.

The Arbitration & Conciliation Amendment Bill 2021

The Arbitration and Conciliation (Amendment) Bill, 2021 amends the Arbitration and Conciliation Act, 1996.

Major amendments:

1. Hitherto, a party was allowed to file an application to set aside an arbitral award (i.e., the order given in an arbitration proceeding).  Courts had interpreted this provision to mean that an automatic stay on an arbitral award was granted the moment an application for setting aside an arbitral award was made before a court.  In 2015, the Act was amended to state that an arbitral award would not be automatically stayed merely because an application is made to a court to set aside the arbitral award. The Bill specifies that a stay on the arbitral award can be provided (even during the pendency of the setting aside of the application) if the court is satisfied that: (i) the relevant arbitration agreement or contract, or (ii) the making of the award, was induced, or effected by fraud or corruption.  This change will be effective from October 23, 2015.
2. The Act specified certain qualifications, experience, and accreditation norms for arbitrators in a separate schedule.  The Bill removes the Schedule for arbitrators and states that the qualifications, experience, and norms for accreditation of arbitrations will be specified under the regulations.