Emergency Arbitration: A Necessity for Legislative Clarifications?

By Saumya Vanwari, Fourth Year Student at Institute of Law, Nirma University

The long-awaited dispute on the enforceability of “Emergency Award” was finally settled by the Supreme Court in ‘Amazon.com NV Investment Holdings LLC v. Future Retail Limited & Ors. The two-judge bench ruled in favour of Amazon and declared the Emergency Arbitration (“EA”) passed by the Singapore Arbitrator as enforceable in India. It also concluded that except SLP, the single judge’s order on emergency award was not appealable within Section 37(2) of the Arbitration and Conciliation Act (“A&C Act”).

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The Orator Saga: Validity of Interest-Free Loans as Financial Debt

By Ankur Mishra, Fourth Year Student at Institute of Law, Nirma University

On 26 July 2021, the Hon’ble Supreme Court in M/s. Orator Marketing Pvt. Ltd. v. M/s. Samtex Desinz Pvt. Ltd. analyzed the status of interest-free loans as financial debt. The SC categorically observed that an interest-free loan, which is advanced to finance the business operations of a corporate body, qualifies as financial debt under Section 5(8) of the Insolvency and Bankruptcy Code 2016 (the Code). The Court remarked that lenders of such debt would qualify as Financial Creditors and would be competent to initiate Corporate Insolvency Resolution Process (CIRP) against the defaulting debtors under Section 7 of the Code. This article seeks to analyse the Supreme Court’s judgment vis-a-vis the NCLT and NCLAT’s decision in the same case while highlighting the other significant rulings in this regard.

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The Unreported Case of Aurobindo Pharma’s Non-Compliance

By Aryaman Kapoor and Samriddhi Guha, Second Year Students at Jindal Global Law School

On August 12, 2021, the Board of Directors of Aurobindo Pharma Limited, announced its financial results for the first quarter along with the dividend. At the same time, it also announced its agreement to acquire a majority stake in Cronus Pharma Specialties India Private Limited. After this notice was made public, the stock of Aurobindo Pharma Limited spiraled down by 25% and hit a fresh 52-week low due to a decline in revenue as well as a rejection by the market of the Cronus Pharma acquisition deal due to the low revenue base. After this, on August 20, 2021, there was another notice issued by Aurobindo Pharma in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (‘LODR’), in which it was stated that the agreement to acquire Cronus Pharma was mutually terminated by both the parties and that the Board of Directors approved this termination of the acquisition. After this notice was made public, the stock of Aurobindo Pharma rebounded reflecting a positive reaction of the investors towards the termination of their plan to acquire Cronus Pharmaceuticals.

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Reviewing Taxation (Laws) Amendment, 2021 in Times of Global Capital Code

By Anmol Ratan, Fourth Year Student at NLSIU Bangalore

Back in 2010, Dani Rodrik, a renowned economist at Harvard proposed the idea of the political trilemma and hyper-globalisation in his book, The Globalisation Paradox: Democracy and the Future of the World Economy (W.W. Norton, 2010). Over the course of his book Rodrik hinted at the latent yet potent tension amidst national sovereignty, democracy and hyper-globalisation’. Calling the trio the Political Trilemma of the World Economy, he argued that a nation cannot have all the three constituent phenomena all at once. It was also put forth by him that the neoliberal agenda of hyper-globalisation is not just hostile to the ideals of sovereignty and democracy but is also counterintuitive to their project. While some have disputed Rodrik’s bold claim for being abstract, there is more to it than what meets the eye. Rodrik has illustrated his thesis and meta-argument well in his book, however, his proposed idea of the sheer incongruity of hyper-globalisation with sovereignty and democracy seems to have been reinforced yet again by the recent developments in the laws of taxation.

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Two Indian Parties Can Pick A Foreign Seat: But What About Substantive Law?

By Mr. Ajar Rab, Partner at Rab & Rab Associates LLP and Ms. Kirpen Dhaliwal, LL.M Candidate at NALSAR Hyderabad and research assistant to Mr. Ajar Rab

The recent judgment of a three-judge bench of the Supreme Court in PASL Wind Solutions Private Ltd.. v. GE Power Conversion India Private Ltd. (“PASL”) is a monumental victory for party autonomy in Indian arbitration. The Supreme Court has upheld the freedom of Indian parties to elect a seat of arbitration outside India, settling the much-debated law on this issue. Permitting two Indian parties to choose a foreign seat is a positive development as it effectively brings the Indian Arbitration and Conciliation Act, 1996 (“Arbitration Act”) in conformity with Article 1(3)(b) of the UNCITRAL Model Law, 1985 (“Model Law”). Article 1(3)(b) of the Model Law adopts a place-centric approach to define ‘international arbitration’. It recognizes the freedom of the parties to determine a place of arbitration outside of the State in which their place of business is situated.

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