General Updates
Foreign Exchange Management (Overseas Investment) Directions, 2022 amended
Prior to the amendment, under the Overseas Portfolio Investment ("OPI") route, listed Indian companies and resident individuals were restricted to investing only in units of Overseas Investment Funds. Now, pursuant to the above amendment, Reserve Bank of India ("RBI") has allowed listed Indian companies and resident individuals to make investments in units or any other instruments issued by Overseas Investment Funds regulated by the financial sector regulator in the host jurisdiction. In other words, investments under OPI are now permitted not only in units but also in other financial instruments such as shares.
Further, the RBI has extended this allowance to unlisted Indian entities as well, enabling them to invest in units or any other instruments issued by an investment fund or vehicle set up in an International Financial Services Centre as OPI.
India International Arbitration Centre (Conduct of Micro and Small Enterprises Arbitration) Regulations 2024 ("2024 Regulations") notified
India International Arbitration Centre has notified the 2024 Regulations. Key highlights of the Regulations include definitions to various terminologies; no filing fees for claim/counterclaim; minimal administration and arbitration fee; appointment of Sole Arbitrator; disclosure requirement of Arbitrators; special provisions of Fast Track Procedure; Interim Relief and Provision for Legal aid / waiver of 50% (fifty) of administration fee.
Only Food and Health Sector to submit Self Declaration Certificate
In compliance of an order passed by the Supreme Court of India, the Ministry of Information and Broadcasting has now issued a fresh notification – as per which only advertisers/advertising agencies engaged in food and health sector activities are advised to upload the Self Declaration Certificate prior to issuing advertisements. This would be an annual exercise as per the notification. The present notification is in supersession of the previous notification issued early last month, wherein this Self Declaration Certificate was mandatory for all sectors.
New Criminal Laws effective from 1 July 2024
The three new criminal laws i.e. the Bharatiya Nyaya Sanhita, 2023, the Bharatiya Nagarik Suraksha Sanhita, 2023 and the Bharatiya Sakshya Act, 2023 have now come into force from 1 July 2024.
Corporate Law Updates
Online forms to monitor voluntary liquidation process rolled out
The Insolvency and Bankruptcy Board of India ("IBBI") has rolled out 4 (four) online forms to monitor the voluntary liquidation process. For ongoing cases wherein (i) no application for dissolution of the Corporate Person ("CP") has been filed; (ii) an application for dissolution or withdrawal / suspension of the voluntary liquidation process of the CP has been filed with Adjudicating Authority ("AA"); and (iii) dissolution of the CP or withdrawal / suspension of voluntary liquidation process has been ordered by AA can submit the information under relevant forms by 30 September 2024.
Company and directors penalised for violation of significant beneficial ownership ("SBO") declaration requirements
The Registrar of Companies, Uttar Pradesh has imposed a penalty on a multinational company, its director and other key persons of INR 8,14,200 (US$ 10,200 approximately) for violating the terms of SBO declaration under the Companies Act, 2013.
Labour Law Updates
Penalty on default in contribution reduced
The Employees' Provident Fund Organisation ("EPFO") has reduced the penalty charged to 1% per month / 12% per annum (previously it was based on period of default i.e. number of months) on employers, who default in contributing to the Employees' Provident Fund, Employees' Pension Fund and Employees' Deposit Linked Insurance Schemes.
Employees Pension Scheme 1995 amended
The Ministry of Labour has amended the Employees' Pension Scheme,1995 ("EPS"). As per the amendment, EPS members with less than 6 months of contributory service can now avail withdrawal benefits. The Ministry has also modified 'Table D' to ensure that every completed month of service is taken into account to provide proportionate withdrawal benefit to the members. The amount of withdrawal benefit will depend upon the number of completed months of service and the wages on which EPS contribution was received.
Central Civil Services (Leave) (Amendment) Rules, 2024 ("2024 Rules") notified
The Ministry of Personnel, Public Grievances and Pensions has notified the 2024 Rules as per which both commissioning mother (intending mother of the child born through surrogacy) and surrogate mother (woman who bears the child on behalf of the commissioning mother) are eligible for maternity leave of 180 (one hundred and eighty) days. The commissioning father (intending father of the child born through surrogacy) is also eligible for 15 (fifteen) days of paternity leave within 6 (six) months from the date of delivery of the child. The commissioning mother can also available childcare leave.
Intellectual Property Updates
Registered Copyright cancelled/revoked
While dealing with a case law related to the validity of copyright registrations secured by the Respondent, the Delhi High Court ("DHC") has ordered for cancellation/revocation of the two copyright registrations. As per the Court, the Respondent has failed to comply with the statutory requirement of giving notice of copyright application to every person (who claims or has any interest in the subject-matter of the copyright or disputes the rights of the applicant).
Injunction secured for violation of "Terms of Use" and noncompliance of GS 1 standards (GSI General Specification)
The DHC while deciding a case law related to infringement of registered certification trademark for barcode generation with the prefix "890" and Terms of Use, has granted an interim injunction against the defendants from using, selling, offering for sake, issuing or allocating 13-digit barcode numbers starting with "890" or deceptively similar marks to give an impression that their certification is in compliance with GS 1 standards.
Registration of Design in foreign jurisdiction not a ground for cancellation
Kolkata High Court has ruled that the publication of design should be in tangible form to allow a person to apply or visualize the design. Registration of design in a foreign country per se is not a ground for cancellation of the registered design. It has been further ruled that "Merely showing such designs on a foreign unverified website does not amount to prior publication."
Sub-Committee formed by Karnataka High Court
As per the notification by the Karnataka High Court, a sub-committee has been established for drafting rules related to the IP Division of the High Court. Post dissolution of Intellectual Property Appellate Board many High Courts such as Delhi, Chennai have already formed their IP Rules and are already functioning based on the same.
Case Laws
Retrenchment compensation to be based on category of labour
The Delhi High Court ("DHC") in a labour-management appeal matter has upheld the award passed by the learned Labour Court holding respondent workman retrenchment as violative of relevant provision (condition precedent to retrenchment of workmen) of the Industrial Disputes Act, 1947. The Court held that retrenchment compensation must be based on the category (skilled/semi-skilled) of the Labour.
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