The Insolvency and Bankruptcy Code, 2016

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By: Ramesh Vaidyanathan and Mansi Singh

Sixteen years after the Justice Eradi report recommended a new insolvency law for India and the setting up of the National Company Law Tribunal (“NCLT”), the constitutionality of NCLT being upheld by the Supreme Court of India and a new company law coming into force in 2014, the Insolvency and Bankruptcy Code (“Code”) finally came into effect on May 28, 2016.

The Code seeks to consolidate and amend the laws relating to reorganisation and insolvency resolution of companies, partnership firms and individuals in a time bound manner. The Code seeks to establish an Insolvency and Bankruptcy Board of India (“Board”). The highlight of the Code is that it provides creditors an option to revive the defaulting company by drawing up a resolution plan instead of directly aiming for liquidation.

Need for a new law:

India ranks an abysmal 136th out of 189 countries in resolving insolvency according to the “Doing Business 2016 report” of the World Bank. [1] Unsurprisingly, it is telling that India did not have a single law dealing with insolvency and bankruptcy before the Code. Rather, we had several laws that dealt with insolvency for companies such as the Sick Industrial Companies Act 1985, the Recovery of Debt Due to Banks a

No Dual Royalty For Playing Songs In Public

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By: Nidhi Tandon

When it comes to the copyright of a song, lyricists and music composers of a song are the first owners and their works (literary and musical works) are considered to be independent and separate from that of the music producers. By virtue of the amendment of the Copyright Act, 1957 in the year 2012, this understanding was overturned in the recent judgment of the Supreme Court in IPRS (Indian Performing Rights Society Limited) and CISAC (International Confederation of Societies of Authors and Composers) v/s Aditya Pandey and Synergy Media Entertainment. As per the amendment, the producer of sound recording (music producer) is categorized as the “author” of the copyright subsisting in a song, which is a derivative work of the music (musical works) and lyrics(literary works) put together and has independent copyright of his work.

The dispute before the Court was:

If X and Y were to create the music (musical works) and lyrics (literary works) for a sound recording (derivative work) being produced by Z, three distinct copyrights

A new phase of Corporate Litigation in India: NCLT replaces CLB

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By: Mansi Singh

Close on the heels of The Insolvency and Bankruptcy Code (Insolvency Code) enacted in May 2016, the Ministry of Corporate Affairs (MCA) notified[1] the setting up of the National Company Law Tribunal (NCLT) with effect from June 1, 2016 and dissolution of the Company Law Board (CLB).

The idea of setting up NCLT was proposed for the first time in 2000 by the Justice Eradi Committee formed to examine the laws relating to insolvency and winding up of companies. The Committee proposed the setting up of NCLT to reform the insolvency/dissolution process that involved multiple agencies and court proceedings leading to inordinate delays. The government amended the Companies Act, 1956 (1956 Act) in 2002 to establish the NCLT and the National Company Law Appellate Tribunal (NCLAT) to take over the functions that were being performed by CLB. As the constitutional validity of NCLT was challenged and