ARTICLE
6 September 2024

India Business Bulletin – August 2024

The 2024 Bill seeks to replace the 90 years old Aircraft Act, 1934. Key highlights of the Bill include regulations for design, manufacture, maintenance, operation and sale of aircraft...
Worldwide Delhi Corporate/Commercial Law

General Updates

Bharatiya Vayuyan Vidheyak Bill 2024 ("2024 Bill") passed by Lower House of Parliament of India

The 2024 Bill seeks to replace the 90 years old Aircraft Act, 1934. Key highlights of the Bill include regulations for design, manufacture, maintenance, operation and sale of aircraft; functioning of related organizations; powers of Central Government; online grievance redressal mechanism for passengers; provisions related to domestic production; upgrading of infrastructure; promoting of fuel -efficient flight planning; appeal mechanism, amongst many

Guidelines for handling Public Grievances issued

With the aim to make grievance redressal time-bound, accessible and meaningful, comprehensive guidelines have been issued by the Government of India. Key highlights of the guidelines include appointment of nodal officers, appellate officers and sub-nodal appellate officers and dedicated grievance cells in all Ministry/ Department; reduction in timelines for effective grievance redressal to 21 (twenty-one) days and feedback mechanism.

Deadline extended for exhausting packaging materials claiming "100% fruit juice"

The Food Safety and Standards Authority of India has extended the previously set deadline of 31 August 2024 to 31 December 2024 for exhausting all pre-printed packaging materials bearing claims of "100% fruit juices".

Non - Registration of machinery involved in pan masala industry liable for penalty

Any company working in pan masala industry will face penalty in case their machinery is not registered with Goods and Services Tax Authorities. The Central Board of Indirect Taxes and Customs has now setup 1 October 2024 as the date for implementation of Rs. 1 Lacs (US$ 1400 approximately) penalty.

Clinical trials waived for drugs approved by certain countries

The Drugs Controller of India in a welcoming move to expediate availability of life saving drugs to the public in India, has removed the requirement of clinical trials – in case certain drugs are already approved by countries such as USA, UK, EU, Japan, Australia and Canada. The categories of drugs under the waiver include orphan drugs for rare diseases; gene and cellular therapy products; new drugs used in pandemic situations; new drugs used for special defence purposes and new drugs having significant therapeutic advances over the current standard care.

Displaying of time and date stamp for visuals of disasters / natural calamity / major accidents mandatory

As per the notice of Information and Broadcasting Ministry, it is mandatory for television channels to ensure that the time and date stamp is visible on the top of the visuals of disasters / natural calamity / major accidents to avoid misinformation among viewers.

As per the notice of Information and Broadcasting Ministry, it is mandatory for television channels to ensure that the time and date stamp is visible on the top of the visuals of disasters / natural calamity / major accidents to avoid misinformation among viewers.

Corporate Law Updates

Limited Liability Partnership (Amendment) Rules, 2024

The Ministry of Corporate Affairs ("MCA") amended the Limited Liability Partnership Rules, 2009 through the Limited Liability Partnership (Amendment) Rules, 2024. The amendments include establishing of Centre for Processing Accelerated Corporate Exit, effective from 27 August 2024. This Centre is now referenced alongside the Registrar in various sub-rules, particularly in clauses and provisions related to the accelerated exit process of the Limited Liability Partnership ("LLPs"). An explanation added to sub-rule (1) clarifies the definition and establishment of this Centre. These changes aim to streamline and expedite corporate exit procedures for LLPs.

Companies (Adjudication of Penalties) Amendment Rules, 2024

MCA has issued a notification amending the Companies (Adjudication of Penalties) Rules, 2014 through Companies (Adjudication of Penalties) Amendment Rules, 2024 by introducing mandatory e-adjudication for penalty proceedings, effective from 16 September 2024. The amendment mandates that all adjudication proceedings, including notices, document filings, hearings and payment of penalties, must be conducted electronically via a new e-adjudication platform developed by the Central Government. If an email address is unavailable for serving notices, they will be sent by post to the last known address and preserved electronically. This shift aims to streamline the adjudication process, enhancing efficiency and record-keeping.

Companies (Registration of Foreign Companies) Amendment Rules, 2024

The Companies (Registration of Foreign Companies) Rules, 2014 has been amended by MCA through Companies (Registration of Foreign Companies) Amendment Rules, 2024. Under the amendment, a foreign company must file the relevant Form along with prescribe fee with the Registrar, Central Registration Centre within 30 (thirty) days of establishing its place of business in India. Earlier, the filings were required to be made with the Registrar of Companies. The amendment will come into force on 9 September 2024.

Labour Law Updates

Boilers Bill, 2024 ("2024 Bill") introduced in Upper House of the Parliament of India

The 2024 Bill will replace the Boilers Act, 1923 and aims to enhance the safety of individuals working inside the boilers. Key features of 2024 Bill include Definition of Competent Authority; Constitution of the Central Boilers Board; functioning of Central Government, State Governments, and the Central Boilers Board; Specific provisions to ensure safety of the persons; Decriminalization of certain offences.

SHe-Box portal launched

The Ministry of Women and Child Development has launched a new portal under the name "SHe-Box" which is a centralized platform for registering and monitoring complaints related to sexual harassment of women in workplaces.

Employee entitled to salary and other benefits during period of illegal termination

The High Court of Jharkhand held that in cases where it is found that the employee was not at fault and yet, he was illegally terminated because of malice, it may be unfair to deny him the fruits of the employment which he would have enjoyed if not illegally/malafidely terminated. The Court directed employer to pay salary and other benefits including retirement benefits.

Labour Welfare Fund Monthly Contribution Online

Haryana Labour Welfare Board has now arranged deposit of contribution under Punjab Labour Welfare Fund Act, 1965 via online portal. The Labour Welfare Fund can be paid on monthly basis like Employees' Provident Fund ("EPF") and Employees' State Insurance ("ESI"). 

One day menstrual leave policy in Odisha

The Government of Odisha has introduced a one-day menstrual leave policy for women workers in both the state government and the private sector.

Intellectual Property Updates

Copyright protection over sound recordings to be protected

The Delhi High Court, while granting an interim injunction to the Plaintiff, in a matter where the Defendant refused to obtain a license for copyrighted sound recordings from the Plaintiff due to the high tariff and even requested a compulsory license from the Court for the same, held that the copyright held by the Plaintiff in sound recordings are to be protected and cannot be allowed to be infringed upon. The Defendant can reach out to the Plaintiff if it wishes to use the latter's sound recordings and can request a license for the same and pay the fees as demanded by the Plaintiff. 

Scope of Statutory License for broadcasting altered

The Department for Promotion of Industry and Internal Trade as per their office memorandum has withdrawn previous office memorandum of September 2016. The 2016 memorandum has extended the scope of Section 31D (Statutory licence for broadcasting of literary and musical works and sound recording) of the Copyright Act, 1957 to internet transmissions. The recent memorandum is in line with an order passed by the Division Bench of High Court, Bombay. 

Bombay High Court reinstates Interim Injunction after Pune District Court dismisses Suit on procedural grounds

The Pune District Court dismissed a 13-year-old lawsuit filed by a global fast-food giant against a local Pune eatery using an identical house mark. Note that the Pune based eatery was using the mark since 1992, on the other hand the global fast-food chain entered the Indian Market in 2014. Despite granting an interim injunction in 2012, the District Court ultimately found that the Plaintiff failed to provide evidence substantiating consumer confusion, infringement and actual damage caused to the Plaintiff. Further District Court noted that an improperly verified Evidence Affidavit has been filed by the Plaintiff, thus procedurally non-compliant. Additionally, the Court also found the suit to be non-maintainable because it was not instituted by persons duly authorized by the Plaintiff.

Aggrieved by the decision of District Court, the Plaintiff appealed the decision before the Bombay High Court, which reinstated the 2012 interim injunction until the date of the next hearing, clarifying that this reinstatement does not reflect a prima facie view of the Court on the merits.

Clarification issued on filing of Working Statement

The Indian Patent Office has now issued a Frequently Asked Questions ("FAQs") regarding filing of Working Statement. The FAQs provide clarification regarding timelines for filing of Working Statement of the granted patents – refer to the table below:

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(three) years. In this regard, we wish to clarify that if a patentee/ licensee who has failed to submit the working statement details for the financial year 2022-2023 or earlier within the prescribed time limit under the previous rules, they cannot file the working statement for these missed years by clubbing the lapsed period with the time available for financial year 2023-2024 as a 3 (three) year block under the new rules.

VIVO declared well-known mark

The Delhi High Court has declared the mark "VIVO" as a well-known mark in India. It is relevant to note that the mark was adopted in 2011 with respect to mobile phones and within a period of 13 years only has been recognised as well-known by Court. 

Case Laws

Conversion rate in foreign arbitral awards determined

The Supreme Court of India has ruled that in the matters where an award is passed in foreign currency, the relevant date for determining the conversion rate of foreign award is the date when the award becomes enforceable. Further, it is held that the foreign arbitral award becomes enforceable when the objections against it are finally decided.

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