Corporate LawBeat

Your Daily Corporate Law Newsletter highlighting Corporate Law Cases of eminence and daily news bulletins of important Notifications & Circulars.

CORPORATE LAW CASES:

BHARAT SANCHAR NIGAM LTD AND ANOTHER Vs. M/s NORTEL NETWORKS INDIA PVT LTD (Civil Appeal Nos. 843-844 of 2021) – March 10, 2021

Supreme Court held that the Court while exercising jurisdiction u/s 11 of Arbitration and Conciliation Act, 1996 is not obligated to appoint arbitrator even in a case where claims are ex facie time-barred. Further, period of limitation to file application u/s 11 of Arbitration and Conciliation Act, 1996 is three years from date of refusal to appoint arbitrator or on expiry of 30 days, whichever is earlier.

KALPRAJ DHARAMSHI AND ANOTHER Vs. KOTAK INVESTMENT ADVISORS LTD AND ANOTHER (Civil Appeal Not 2943-2944,3138-3139,2949-2950 of 2020 & Civil Appeal No 847-848/2021)- 10 March,2021

Supreme Court Larger Bench held that u/s 14 of Limitation Act, 1963, a party is entitled to exclusion of period during which it was bona fide prosecuting a remedy before a court with due diligence. Further, the conduct of party and not mere act of indulgence, is relevant for considering whether it had waived its rights. Also, NCLAT must not interfere with decision of CoC taken based on its commercial wisdom by majority, excepting limited scope as provided u/s 30 & 31 of IBC, 2016. 

NEWS BULLETIN

Ministry of Finance notifies measures for selecting potential Section 148 cases- [F.No 225/40/2021/ITA-II] Dated March 04,2021 

CBDT in exercise of its powers u/s 119 of Income-tax Act, with an objective of streamlining the process of selection of cases for issue of notices u/s 148, directs categories of cases to be considered as 'potential cases' for taking action u/s 148 by Mar 31, 2021 for the A.Y 2013-14 to A.Y 2017-18 by the Jurisdictional Assessing Officer. 

Ministry of Finance provides measures to ease taxpayers from incidence of double taxation- [CIRCULAR No 2 of 2021] Dated: March 03,2021

CBDT relaxes provisions relating to determination of residency of a person. The Board said that s hort stay will not result in Indian residency. A person may not become a tax resident in any country in PY 2020-21 even after staying for more than 182 days or more in India resulting in double non-taxation and end up not paying tax in any country. The Board said that a person may become resident in India in some cases even if he stays for less than 182 days in India. In that situation, there may be a case of dual residency. However, due to applicability of DTAA, such person will become resident of only one country as per the "tiebreaker rule" in the DTAA. Therefore, if any individual is facing double taxation even after taking into consideration the relief provided by the respective DTAAs, he may furnish the information in Form -NR annexed to the circular by 31st March, 2021.