AMLEGALS Blog | Latest Legal Updates, Insights & Expert Analysis

Group Insolvency – Proposed Framework and Its Significance

August 29, 2025

Introduction India’s business landscape is characterized by large groups of interconnected companies, including parent firms, subsidiaries, and affiliates with deeply intertwined financial and operational relationships. When a company within such a group faces insolvency, the distress often spreads throughout the network, making isolated resolutions inefficient and value-destructive. Traditionally, the Insolvency and Bankruptcy Code, 2016 (IBC)…

Section 11 application cannot be filed until Section 8 dismissal is set aside

August 29, 2025

Surender Bajaj v. Dinesh Chand Gupta and Ors. Court – Delhi High Court Citation – ARB.P. 1076/2025 Date – 19.08.2025 The Hon’ble Delhi High Court has held that a Section 11 Application cannot be filed if order dismissing Section 8 Application is not set aside as such order amounts to res judicata. The Court held,…

How Cashfree Payment’s Remote MCP is Redefining Payment Integration for India’s SMEs

August 29, 2025

INTRODUCTION Small and medium enterprises (hereinafter referred to as “SMEs”) put food on the table for most Indians. Think of a neighborhood Kirana store, a small eatery down the lane, an online apparel seller in the heart of Bengaluru, or even a local taxi service in Cochin. Individually, each of these may not seem like…

Unsigned Arbitration Agreement can be binding based on Party Conduct

August 28, 2025

Introduction In a significant ruling that reinforces the primacy of substance over form in commercial contracts, the Supreme Court of India has held that an arbitration agreement can be binding even if it is not signed by a party, provided their conduct demonstrates clear consent to its terms. The bench in the case of Glencore…

Privacy & Data Localization: Impact On MNCs and Cloud Services

August 27, 2025

INTRODUCTION In the modern-day economy, data is no longer an afterthought of a business, it has become an invaluable resource. It is the currency that drives commerce, innovation, and consumer confidence. In this regard, the question of where data should reside is polarizing governments, businesses, and consumer trust. The increasing number of cyber threats, evolving…

ITC Reversal for Non-Proof of Payment Within 180 Days

August 26, 2025

The Hon’ble Calcutta High Court in Tara Lohia Private Limited v. Additional Commissioner, CGST & CX, WPA 9655 of 2025, July 9, 2025, held that assesses must prove through bank statements or equivalent evidence that supplier payments were made within 180 days to retain ITC under Section 16(2) of the Central Goods and Services Tax…

Section 29A of the IBC: Who can be a Resolution Applicant?

August 26, 2025

Introduction Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016, is a critical and often-debated provision that has fundamentally shaped India’s insolvency landscape. It acts as a gatekeeper, establishing a restrictive framework that determines who is ineligible to submit a resolution plan for a distressed company. The section was introduced to protect the integrity…

Comparative Roles of the IRP and RP in CIRP

August 26, 2025

Introduction Under the Insolvency and Bankruptcy Code, 2016 (IBC), the Corporate Insolvency Resolution Process (CIRP) is a time-bound mechanism managed by two distinct office-holders: the Interim Resolution Professional (IRP) and the Resolution Professional (RP). The process begins with an IRP, who takes immediate control of the debtor’s assets, stabilizes operations, verifies creditor claims, and forms…

Close connection required to bind non-signatory to Section 9 proceedings

August 26, 2025

K.Bala Vishnu Raja v. Emaar Hills Township Private Limited and Others Court – Telangana High Court Citation – CC.R.P. Nos. 1014 and 1184 of 2024 Date – 19.08.2025 The Hon’ble Telangana High Court has held that an a Non-signatory must have close and live connection to the Arbitration Agreement for being made a part of…

Pre-Packaged Insolvency Resolution Process (PIRP) for MSMEs

August 26, 2025

Introduction Financial distress experienced by Micro, Small, and Medium Enterprises (MSMEs) in India is often not an indication of fundamental business weaknesses but rather the result of external shocks like delayed payments, supply chain disruptions, or working capital gaps. Traditional insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) have proven to be costly, time-consuming,…

India’s Labour Codes: Key Implementation and Compliance Issues

August 25, 2025

INTRODUCTION India’s labour law landscape has long been characterized by a complex and fragmented array of regulations. With over 40 central labour laws and numerous state-specific enactments, navigating compliance has been a significant challenge for employers and employees alike. Recognizing the need for simplification, modernization, and better protection for workers, the Government of India undertook…

Restrictive Covenants after termination of Employment Contract are void

August 25, 2025

Neosky India Limited & Anr. v. Mr. Nagendran Kandasamy & Ors. Court – Delhi High Court Citation – O.M.P.(I) (COMM.) 183/2024 Date – 11.08.2025 The Hon’ble Delhi High Court has held that Restrictive Covenants after termination of Employment Contract are void as per the Section 27 of the Indian Contract Act 1872. The Court vacated…

Navigating Pre-Advertisement Interventions in Trademark Applications

August 25, 2025

Introduction Trademark disputes frequently raise complex issues involving the rights of prior use, the procedures prescribed for registration, and the scope of third-party intervention at different stages of the trademark application process. One recurring point of controversy relates to whether a third party is entitled to be heard by the Registrar before the advertisement of…

Understanding Form G in IBC

August 22, 2025

Introduction The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) has reshaped India’s approach to insolvency by establishing a clear, time-bound, and transparent mechanism aimed at protecting stakeholder interests, ensuring fair outcomes, and supporting economic stability. Within this framework, Form G occupies a pivotal position in the Corporate Insolvency Resolution Process (CIRP), acting…

Cross Border Intellectual Property Enforcement

August 22, 2025

INTRODUCTION In today’s interconnected global economy, intellectual property (hereinafter referred to as “IP”) is no longer confined by national borders. Businesses operate in multiple jurisdictions, supply chains span continents, and products and services are accessible worldwide via digital platforms. While globalization has expanded market opportunities, it has also made IP rights more vulnerable to cross-border…

Proceedings between Expiry of Arbitrator’s Mandate and its Extension are not Void if Mandate is Extended

August 22, 2025

Glen Industries Private Limited v. Oriental Insurance Company Limited Court – Calcutta High Court Citation – AP-COM/540/2025 Date – 12.08.2025 The Hon’ble Calcutta High Court has held that the proceedings between Expiry of Arbitrator’s Mandate and its Extension are not Void if Mandate is Extended. The Court held, “13. The legislative intent was that…

The 2025 Online Gaming Bill Explained

August 22, 2025

INTRODUCTION The online gaming industry in India is growing at an unprecedented rate. It fulfills the criteria of a very dynamic branch of the digital economy. Affordable smartphones, cheap data plans, and youth with technology knowledge have converted casual plays into a full-fledged industry. Real-money platforms such as fantasy sports, poker, rummy, and other skillful…

Role and Responsibilities of the Committee of Creditors

August 21, 2025

Introduction In India’s insolvency ecosystem, the Committee of Creditors (CoC) occupies a pivotal position within the Corporate Insolvency Resolution Process (CIRP) framework established by the Insolvency and Bankruptcy Code, 2016 (IBC). After the National Company Law Tribunal (NCLT) admits a company into the CIRP, the interim resolution professional collects and validates claims and forms the…

Arbitrability of Frauds in India: Evolving Jurisprudence

August 21, 2025

Introduction In India, arbitration is one of the most preferred methods of resolving commercial disputes because it upholds party autonomy, procedural flexibility, and cost-effectiveness. In complex and document-intensive cases, specialized tribunals and streamlined processes frequently offer more efficient and reliable outcomes compared to traditional litigation. A critical question in this domain is whether disputes involving…

Award refusing to frame issue for counter claim is patently illegal

August 20, 2025

Indraprastha Power Generation Co. Ltd. v. EM Services (I) Pvt. Ltd. Court – Delhi High Court Citation – O.M.P 717/2010 Date – 13.08.2025 The Hon’ble Delhi Court has held that an Arbitral award refusing to frame an issue for the counter claim is patently illegal and would be against the fundamental policy of…

DPDP Act: Challenges and Business Impact for SMEs and Startups

August 20, 2025

INTRODUCTION In the digital era, the term data has evolved for businesses spread across various economic sectors. The rise of e-commerce, fintech, and digital startups has led to massive personal data collection, making privacy a central concern. In a landmark step and paramount legislation, Indian legislators have passed the Digital Personal Data Protection Act (hereinafter…

GST Penalty Quashed for Breach of Natural Justice

August 19, 2025

The Gujarat High Court, in Tractors and Farm Equipment Ltd. & Anr. v. Union of India & Ors. , Special Civil Application No. 22073 of 2019, decided on 03.07.2025, quashed the penalty imposed under Section 129 of the Goods and Services Tax (hereinafter referred to as “GST”) Act, 2017, on the ground that the authorities…

Gender Pay Gap & Pay Transparency in India – 2025 Outlook

August 18, 2025

INTRODUCTION The gender pay gap continues to be a prominent challenge in India’s labor market, reflecting disparities in remuneration not only for comparable work but also across roles, seniority levels, sectors, and career trajectories. These gaps are influenced by a combination of systemic factors such as occupational segregation, differences in access to leadership roles, interruptions…

SEBI’s Algo-Trading Shake-Up: Striking the Balance Between Innovation and Oversight

August 15, 2025

Introduction On a contemporary scale, India’s financial markets have greatly evolved, accompanied by swift technological upgrades. One of the most important invention influencing market participation is algorithmic trading (hereinafter referred to as “algo-trading”). If in the distant past, it was a highly technical and sophisticated tool used by large institutional players, nowadays, it has gone…

Non-signatories cannot participate in Arbitration proceedings

August 14, 2025

Kamal Gupta & Anr. v. L.R. Builders Pvt. Ltd. & Anr. Court – Supreme Court Citation – 2025 INSC 975 Date – 13.08.2025 The Hon’ble Supreme Court has held that non-signatories to an arbitration agreement cannot be allowed to participate in arbitration proceedings as it waters down the concept of confidentiality. The Court held,…

Group of Companies Doctrine in Indian Arbitration

August 14, 2025

Introduction Arbitration is a popular method of dispute settlement in India, particularly in commercial transactions. Traditionally, arbitration agreements have been binding only on the signatories to the contract. However, modern commercial realities often involve complex corporate structures where multiple entities, though legally distinct, form part of a larger business group and are closely involved in…

PhonePe Ruling: Data Privacy Boundaries in Fintech

August 13, 2025

In the case of PhonePe Private Limited v. State of Karnataka & Ors. (W.P. No. 3757 of 2023), (GM-Police), pronounced on 29 April 2025, the Hon’ble Karnataka High Court (“HC”) was confronted with a critical question at the intersection of fintech regulation, privacy, and police investigative powers. BACKGROUND: THE REGULATORY FLASHPOINT PhonePe Private Limited…

Exclusive Jurisdiction Place deemed as Seat of Arbitration

August 13, 2025

Activitas Management Advisory Private Limited v. Mind Plus Healthcare Private Limited Court – Supreme Court Citation – SLP (C) No. 27714 of 2024 Date – 05.08.2025 The Hon’ble Supreme Court has held that in absence of the seat or venue mentioned in the Arbitration Agreement, the Place of Exclusive Jurisdiction shall be deemed as…

Personal Guarantor under Insolvency and Bankruptcy Code 2016

August 13, 2025

Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) has radically transformed the corporate debt resolution framework in India by introducing time-bound processes and strengthening creditor rights. While much of the discussion around the IBC revolves around corporate debtors, a crucial aspect is its treatment of personal guarantors to corporate debtors. A personal guarantor is an…

Ground for setting aside Arbitral Award under Section 34

August 13, 2025

Introduction Arbitration has emerged as a preferred mode of Alternative Dispute Resolution (ADR) in India and globally, particularly for commercial disputes. Its appeal lies in its flexibility, party autonomy, cost-effectiveness, and relative speed compared to traditional litigation. The Arbitration and Conciliation Act, 1996 (the “Act”) provides the legal framework for arbitration in India. A central…

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