Cross-Border Mergers Permitted in India

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By: Sharanya Ranga and Riya Dutta

With protectionist winds holding sway in the developed economies, India seems to be bucking the trend with the notification of Section 234 of the Companies Act, 2013 (“Co Act”) on 13th April 2017 allowing outbound mergers subject to specific conditions. While the erstwhile Companies Act, 1956 provided only for inbound mergers, i.e. merger of a foreign company with an Indian company, this provision gives the green signal for cross-border mergers, both inbound and outbound.

Whether Contractual Obligation Precedes the Word of Law?

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By: Sharanya Ranga, Laxmi Joshi and Aditi Rani

The Delhi High Court in the case of Cruz City 1 Mauritius Holdings versus Unitech Limited recently ruled that contravention of India’s exchange control laws (“FEMA”) cannot be a ground to challenge enforcement of foreign arbitral awards. Significantly, this ruling comes in the wake of the Tata Sons – Docomo settlement in March 2017 where the parties mutually agreed to not proceed with the enforcement of a foreign arbitration award allegedly involving violation of FEMA. While the judgment in the Tata-Docomo matter is yet to be pronounced, the Delhi High Court appears to be all set to clear the air on the question of enforcements of such foreign arbitral awards in India and settling the on-going debate on the enforcement of the contractual obligations without flouting Indian laws.

AoA over SHA: Overriding Powers!

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By: Laxmi Joshi and Aditi Rani

Young India is turning entrepreneurial and with dozens of success stories of start-ups making it big, the age of entrepreneurship seems to have finally arrived. However, even a great and innovative idea, without adequate capital backing is not enough to set up a successful venture. Fund raising is a highly challenging task for any enterprise, especially a startup. With little to offer the traditional lenders in terms of hard assets, past performance and market value, most startups turn to private and professional investors for investments.