ALAYA LEGAL BULLETIN
Arbitration and Litigation
The scope of examination by the Referral Court under Section 11 of the Arbitration and Conciliation Act, 1996 (1996 Act) is limited.
The Court held that the scope of examination under Section 11(6-A) of the 1996 Act should be confined to the existence of an arbitration agreement. Similarly, the validity of an arbitration agreement should be restricted to the requirement of formal validity such as the requirement that the agreement be in writing.
The Court observed that Section 11 (6-A) of the 1996 Act uses the expression "examination of the existence of an arbitration agreement". The purport of using the word "examination" connotes that the legislature intends that the Referral Court has to inspect or scrutinise the dealings between the parties for the existence of an arbitration agreement.
Tribunal’s award must be challenged under Section 34 of the Arbitration and Conciliation Act, 1996 (1996 Act).
The Court held that when the award is made by the facilitation council/tribunal by exercising jurisdiction vested in it, however erroneous the award may be, the same has to be challenged only by invoking Section 34 of the 1996 Act.
Comments are invited on the draft Arbitration and Conciliation (Amendment) Bill, 2024.
The Department of Legal Affairs is presently in the process of considering further amendments to the 1996 Act. In view thereof, the Arbitration and Conciliation (Amendment) Bill, 2024, and a tabular statement depicting existing provisions and proposed amendments have been prepared.
The department is inviting comments/feedback from the public as part of the public consultation exercise on the draft amendments.
Corporate and Commercial
Deferring the Corporate Insolvency Resolution Process (CIRP) was in breach of the discipline of law laid down in the Insolvency and Bankruptcy Code, 2016 (IBC).
The Hon’ble Supreme Court allowed an appeal filed against the order of the High Court of Telangana to the extent that it directed the deferment of the CIRP of the Corporate Debtor.
It was held that there was absolutely no reason for the High Court of Telangana to exercise its jurisdiction under Article 226 by directing the deferment of the CIRP.
Such a direction under Article 226 was in breach of the discipline of the law which has been laid down in the provisions of IBC.
No compulsion to specify names of creditors in the balance sheet, or general entry acknowledging debt sufficient to initiate a Corporate Insolvency Resolution Process (CIRP).
The Hon’ble Supreme Court dismissed a plea, ruling that the company's balance sheet is prepared in the statutory format as per Schedule 3 of the Companies Act 2013, which does not provide for giving the specific name of every secured or unsecured creditor.
It was observed that the presence of debt entries in the balance sheet is sufficient for the corporate debtor to acknowledge its liability.
The Hon’ble Supreme Court set aside the National Company Law Appellate Tribunal (NCLAT) order which closed the Insolvency Process against Byju’s settlement with the Board of Control for Cricket in India (BCCI).
The Hon’ble Supreme Court set aside the NCLAT order that had closed the insolvency proceedings against Byju's after accepting a settlement of approximately Rs 158 crore with the BCCI.
The Court ruled that the NCLAT erred in invoking its inherent powers under Rule 11 of the NCLAT Rules in the presence of a prescribed procedure dealing with the withdrawal of the insolvency application.
Energy and Sustainability
The National Electricity Plan launched by the Cabinet Minister for Power and Housing & Urban Affairs.
Central Electricity Authority (CEA) with the aim of transmitting 500 GW of renewable energy installed capacity by the year 2030 and over 600 GW of renewable energy installed capacity by the year 2032, has prepared the detailed Nation Electricity Plan (Transmission) in consultation with various Stakeholders.
As per the National Electricity Plan, over 1,91,000 ckm of transmission lines and 1270 GVA of transformation capacity are planned to be added during the ten-year period from 2022-23 to 2031-32 (at 220 kV and above voltage level). In addition, 33 GW of HVDC bi-pole links are also planned.
Discussion Paper on Methodology for capacity credit of generation resources and coincident peak requirement of utilities under Resource Adequacy Framework by Central Electricity Authority (CEA).
CEA has released a draft discussion paper on methodologies for calculating capacity credit for solar, wind, and other renewable energy sources. The paper addresses the coincident peak requirements of states and union territories for national grid stability.
Central Electricity Regulatory Commission (Indian Electricity Grid Code) (First Amendment) Regulations, 2024.
CERC has issued the Central Electricity Regulatory Commission (Indian Electricity Grid Code) (First Amendment) Regulations, 2024, amending the Principal Regulations namely Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023.
These amendments will come into effect upon publication in the official Gazette, except for specific provisions related to the injection of infirm power and scheduling rules for generating stations.
Key amendments include new timelines for the injection of infirm power which means the electricity injected into the grid prior to the date of commercial operation of a unit of the generating station, provisions for undertaking a trial run of Wind/Solar/ESS/Hybrid Generating Station, etc.
Information Technology and Artificial Intelligence
IndiaAI at MeitY & Meta collaborates to advance Open Source AI Innovation, R&D and Skill Development in India.
IndiaAI and Meta have announced the establishment of the Center for Generative AI, Srijan at IIT Jodhpur, along with the launch of the “YuvAi Initiative for Skilling and Capacity Building” in collaboration with the All India Council for Technical Education (AICTE), for the advancement of open source artificial intelligence (AI) in India.
Featured Posts
The Petroleum and Natural Gas Regulatory Board Act, 2006 (PNGRB Act) regulates the refining, processing, storage, transportation, distribution, marketing, and sale of petroleum, petroleum products and natural gas.
While the PNGRB Act remains silent on the issue of pipelines developed for self use by customers i.e., captive pipelines, the Board has, time and again, sought to exercise its jurisdiction with respect to laying, operating and expansion of such pipelines.
This article presents an analysis of the cases IMC Limited v. Union of India and Ors. and Indian Oil Corporation Limited v. Petroleum and Natural Gas Regulatory Board where the Delhi High Court has examined whether or not entities can lay a captive pipeline for the transport of its petroleum and petroleum products without the authorization of the Board.
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Disclaimer: The content provided in this newsletter is intended only for the purposes of general awareness and should not be considered as legal advice. Readers are advised to consult with a qualified legal professional in relation to any specific issues that are mentioned herein.