Actum Legal

                                                                                            The Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”) As per the new definition/criteria for classification of MSMEs which will be effective shortly from 1 st July 2020, many new entities will become MSMEs.   Therefore, a question arises as to -can these new MSMEs claim benefit under the MSMED Act under their existing contracts, as MSMEs? Is it legally possible to enable/stop them in this regard? As to the retrospective/prospective application of the 1 st June notification laying down the new criteria, the following cases have very important bearing on the topic: Purbanchal cable is the landmark judgement of the Sup...

THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE, 2020 The Insolvency and Bankruptcy Code (Amendment) O rdinance, 2020 ( "Ordinance" ) was issued on June 5 th , 2020 which suspended the initiation of CIRP (Corporate Insolvency Resolution Process) under the Insolvency and Bankruptcy Code, 2016 ( "Code" ) for 6 months. The main reason behind the Ordinance, as stated in the Ordinance, is the disruption caused by COVID -19. The amendments introduced by the Ordinance are as follows: No.1: The Ordinance inserted section 10A which states as follows: “10A. Notwithstanding anything contained in sections 7,9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified in this behalf: Provided that no application sh...

THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE, 2020                                                                                                                                   CS Brajesh Tiwary                                                                                                                                   ...

Exemptions to Private Companies Exemptions to Private Companies: The exemptions enjoyed by a private company are dealt with mainly by following two notification: 1.      G.S.R. 464( E ) dated 5 th June 2015;& 2.      G.S.R. 583 (E) dated 13 th June 2017 The exemptions have been explained in – Did you know? format. 1.    Did you know that a member can vote on a resolution for according members approval, even if such member is a Related Party. Explanation: As per exemption notification G.S.R. 464( E ) dated 5 th June 2015, in Section 188 (1), second proviso, where depending on the transaction value, prior approval of the members is required, a member can vote, even if such member is a related party, as second proviso to section 188(1) is not applicable to a private company. 2.   Did you know that - any body corporate which is holding, subsidiary, fellow subsidiary, associate, eligible in...