Cross-border insolvency – The ever-evolving framework
By Manasa Tantravahi
The first article highlights the law on cross border insolvency in India as it stands today. Discussing the need for such insolvency proceedings, the article deliberates upon the four main necessities as prescribed in the Model Law by the United Nations Commission on International Trade Law. It discusses elaborately the evolution of the law starting right from the report of the Bankruptcy Law Reforms Committee in 2015 and then goes on to address various case law, Insolvency Law Committee report of 2018 and the Cross-Border Insolvency Rules/ Regulations Committee report of 2020. The article also deliberates on the latest Notice dated 24 November 2021 by the Ministry of Corporate Affairs which brings India a step closer to finalizing a framework. The author points out various gaps in the drafts which have left much room for speculation and concludes by stating that though the recommendations are steps in the right direction, India still has a long way to go for a proper cross border insolvency law...
BOCW Act: Applicability on factories?
By Apeksha Bansal
The second article discusses the applicability of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (‘BOCW Act’) to factories wherein construction activity for the purpose of expansion or constructing godowns is being undertaken. Considering the definition of ‘building or other construction work’, the author opines that a view can be taken that since expansion or construction will take place inside the factory which is subject to the provisions of the Factories Act, the exclusion will apply. However, on further scrutiny, the author points out that the building constructed, as a godown or as a part of expansion of the factory will not be treated as a factory and hence workers engaged in the construction of said building will not be treated as workers for the Factories Act. The article also deliberates upon the question as to who is liable to pay cess i.e., whether the employer of the establishment or the contractor. The author points out that while paying and collecting cess, the impact of the BOCW Cess read with Welfare Cess Rules should be appropriately dealt with by businesses...
Ratio decidendi
- Sessions Judge or Additional Sessions Judge lacks jurisdiction to try offences under the Insolvency and Bankruptcy Code, 2016 – Bombay High Court
- For initiating Insolvency Resolution Process against personal guarantors, commencement of Corporate Insolvency Resolution Process of the corporate debtor not mandatory – NCLT, Kochi
News Nuggets
- Damages mandatorily payable by employer for delays in payment of EPF contribution
- Interest liability on compensation under Employee’s Compensation Act arises from date of accident
- Consumer complaint against telecom companies is maintainable even if arbitral remedy prescribed under the Indian Telegraph Act, 1885
- Consumer – ‘Services availed for earning livelihood by means of self-employment’, explained
- Consumer Protection Act, 2019 covers services of medical practitioners
- No compensation under Sections 73 and 74 of Indian Contract Act, 1872 unless actual loss/damage is sustained
- Penalty cannot be imposed under Companies Act, 2013 when dealing with application under Insolvency and Bankruptcy Code
