ARTICLE
14 January 2025

India Business Bulletin (December 2024)

Archer & Angel

Contributor

Archer & Angel is a full-service law firm established in 1999.  Having a  team of seasoned professionals, headed by its Managing Partner Sanjay Chhabra, firm with its multiple offices has a pan india presence and  offers tailored and practical advice to clients across diverse industries worldwide. The firm advises on all aspects of law, including Corporate Commercial, M&A, Intellectual Property, Labour & Employment, Infrastructure, Construction & Real Estate, Litigation & Arbitration, Government Policy & Regulatory, and Information Technology.
The Parliament of India has passed the 2024 Adhiniyam marking a significant step in modernizing India's aviation industry by enhancing safety, innovation and streamlining operations.
India Intellectual Property

General Updates

Bharatiya Vayuyan Adhiniyam, 2024 ("2024 Adhiniyam") passed

The Parliament of India has passed the 2024 Adhiniyam marking a significant step in modernizing India's aviation industry by enhancing safety, innovation and streamlining operations. The key highlights of the Adhiniyam include regulations for design, manufacture, maintenance, operation and sale of aircraft; functioning of related organizations; powers of Central Government; second appellate mechanism; unilateral appointment of arbitrator by Central Government for payment of compensation for loss or damage; single clearance window for licensing; penalties and/or fine for violation of provisions amongst many.

Lower House passes the Banking Laws (Amendment) Bill 2024 ("2024 Bill")

The Lower House of the Parliament of India has passed the 2024 Bill. This Bill amends total of 5 Acts i.e. (i) Reserve Bank of India Act, 1934, (ii) Banking Regulation Act, 1949, (iii) State Bank of India Act, 1955, (iv) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and (v) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

Key amendments bought by the 2024 Bill include allowing bank account holders to have upto 4 (four) nominee; definition of fortnight has been revised and which would now mean 1st (First) day to 15th (Fifteenth) day or 16th (Sixteenth) day to the last day of each month; tenure and eligibility of directors of co-operative banks; increasing the threshold of substantial interest to Rs. 2 Crore (US$ 250,000 approximately); banks to decide remuneration of auditors etc.

Boilers Bill 2024 passed by Upper House of Parliament of India

With the aim to ease doing business and prioritising the safety of workers, this Boilers Bill 2024 will replace the century old Boilers Act, 1923. The Bill now awaits the approval of Lower House of Parliament. Key changes include provisions related to manufacturing, installation, operation, alterations, and repair of boilers; periodic inspection of boilers; streamlined boiler registration processes with a focus on digitalization; enhanced safety protocols through stricter compliance measures and more severe penalties for violations.

Reserve Bank of India ("RBI") eases payment by Unified Pay ments Interface ("UPI")

As per the recent notification by RBI, customers of Prepaid Payment Instruments ("PPIs") can now make UPI transactions through third party application providers ("TPAPs") platform. Holders of fully Know Your Customer compliant PPIs can now make UPI payment by linking their PPIs to UPI handles. Previously, payments could only be made if both the parties were using the same TRAP.

Information in Bengali made mandatory for signboards

The Municipal Corporation of Kolkata has made it mandatory for outlets the use of Bengali language in addition to other languages on signages. A tentative deadline of 21 February 2025 has been set for shops, restaurants and other business establishments to ensure compliance.

A year extension for IT hardware import management system

A notification from Directorate General of Foreign Trade has extended deadline for the IT hardware import management system, including laptops and other devices, until 31 December 2025. Importers will need to apply for new authorizations from 13 December 2024 to 15 December 2025.

Warning to Over-The-Top ("OTT") platforms for inadvertently glorifying and promoting drugs

An advisory has been issued by the Ministry of Information and Broadcasting for the OTT platforms, cautioning them against inadvertently promoting or glamorizing drug use without appropriate disclaimers or user warnings. The advisory emphasizes the serious repercussions such portrayals can have, particularly on young and impressionable viewers and urges platforms to exercise due diligence in content review and to include disclaimers or warnings in their programming. Further, it has been stated that non-compliance may lead to further regulatory scrutiny under the Information Technology Act, 2000 and the Narcotic Drugs and Psychotropic Substances Act, 1985.

Food Business Operators to submit quarterly report on Rejected and Expired Food Items

An advisory has been issued by Food Safety and Standards Authority of India ("FSSAI") to ensure that rejected/expired food items are not rebranded and sold in market. The information which requires to be submitted include quantity of rejected food items; quantity of expired products and action taken against such items on quarterly basis by FSSAI Licensed Food Manufacturers (including Repackers and Relabeller) and importers.

Draft Digital Personal Data Protection Rules, 2025 ("Draft Rules") notified

The Ministry of Electronics and Information Technology has released the Draft Rules for public comments and inputs.

Corporate Law Updates

The Ministry of Corporate Affairs ("MCA") extended the due date for filing of form CSR-2

The MCA has notified the Companies (Accounts) Second Amendment Rules, 2024. According to the said amendment, the due date for filing of form CSR-2 i.e., Report on Corporate Social Responsibility, for the financial year 2023-2024, has been extended till 31 March 2025 from 31 December 2024.

Changes introduced to Listing Obligations and Disclosure Requirements ("LODR") Regulations

The Securities and Exchange Board of India has introduced the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2024 ("Amendment") to further amend Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Amendment focuses on enhanced corporate governance and transparency for listed companies. Key changes include exemptions for certain related party transactions; stricter timelines for promoter reclassification; disclosure of fraud involving senior management only if it directly affects the entity; extended timelines for compliance; revised timelines for disclosure of material events; mandatory audio recordings of earnings calls; proper grievance mechanism and requirement of no-objection certificate for reclassification of promoters.

Labour Law Updates

Penalty imposed for non-sharing of Inquiry Report

The Supreme Court has imposed a penalty of Rs. 25000 (US$ 350 approximately) on the Indian Border Security Force for not sharing Inquiry Report with the Petitioner which is in clear violation of relevant provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Gratuity payment cannot be made in instalments

The High Court of Kerala held that Payment of Gratuity Act, 1972 does not provide for payment of gratuity in instalments as the purpose of gratuity is to serve as a retirement or terminal benefit ensuring immediate financial support to the employee or their dependents, as the case may be.

Last date for online payment of contribution set

The Government of Karnataka as per recent notification has set the date of 15 January 2025 as the last date for online payment of Labour welfare fund contribution. Further, it has been stated that delay in payment of contributions will attract penalty of 12% (twelve) per annum for initial 3 (three) months and thereafter 18 % (eighteen) per annum for 3 (three) months including inspections by relevant authorities for initiating legal proceedings.

Intellectual Property Updates

'MOCHI' Keeps Its Step, 'DESIMOCHI' Loses Its Grip'.

In a significant ruling, the Bombay High Court granted Plaintiff a temporary injunction against Defendant - restrained them from using the mark 'DESIMOCHI' and ordered to transfer the domain www.desimochi.com to Plaintiff. Recognizing and declaring 'MOCHI' as a well-known trademark under relevant provisions of the Trade Marks Act, 1999, the Court determined that minor alterations like adding 'DESI' could still mislead consumers. This decision underscores the principle that even slight modifications to a well-established trademark can constitute infringement if they cause brand confusion or dilute the trademark's identity. The judgment reinforces protection for established brands and highlights the need to maintain distinctiveness in the marketplace.

Ex-parte injunctions can be granted, even against owners of registered trademarks

The Delhi High Court ("DHC") recently granted an interim injunction to a leading pharmaceutical manufacturer. The Plaintiff sought the remedy of an ex-parte interim injunction against the Defendants who had managed to obtain a registration for one of their marks, against which the Plaintiff had already filed a cancellation petition. The registration owned by the Defendants was brought to the attention of the DHC and the court confirmed that ad-interim injunction orders can be passed even in cases where there is a registration in favor of the other party.

Registrar of Companies has no power to decide on the ownership of a trademark

The DHC was faced with a challenge against an order arising from the Ministry of Company Affairs. The Companies Act, provides for a challenge made by the registered owner of a trademark, allowing them to seek cancellation or rectification of a similar company name registered by a third party, provided such a challenge is made within 3 (three) years of the incorporation date of the company. In the present case, the Regional Director of the Ministry of Company Affairs order went beyond their permitted scope and the order dismissed the cancellation petition, on the grounds that the Applicant was not the registered owner of the trademark. The court held that the Regional Director could not undertake an examination as to the ownership of a trademark, since this adjudication can only be done by the Registrar of Trade Marks, or a Commercial Court. Accordingly, the order was set aside.

Copyright Society status granted to Screenwriters Rights Associa tion of India ("SRAI")

The Registrar of Copyrights has now granted SRAI the status of a copyright society as per relevant provisions of the Copyright Act, 1957 ("the Act"). SRAI can now (i) issue or grant license; (ii) collect royalties; (iii) distribute royalties post deduction of their expenses; and (iv) perform other functions as per relevant provisions of the Act for dramatic works and literary works associated with dramatic works. This will benefit screenwriters of television shows, Over-The-Top ("OTT") shows and films.

Case Laws

Directions for implementation of Prevention of Sexual Harassment ("POSH") Act across government departments issued

The Supreme Court of India has issued comprehensive directions to improve the implementation of the POSH Act at workplaces. Noting serious lapses in enforcement, the Court mandated all government bodies, private organizations and educational institutions to ensure proper formation of Internal Complaint Committees ("ICCs") and Local Committees. It stressed the need for awareness programs, regular updates on the functioning of these committees and clear communication of procedures to handle complaints. The Court also emphasized establishing SHeBox portals across States for easier grievance redressal and urged district officials to monitor compliance diligently. The deadline for setup of ICCs and a District Officer has been set as 31 January 2025.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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