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March 2018

Corporate Amicus: December 2017

by Noorul Hassan Aparajitha Narayanan

Luck Factor – An analysis of Gaming Law amendments

Recent Ordinances issued by the Government of Telangana, amending certain provisions of the Telangana State Gaming Act, 1974, have dealt a bad hand to the players and organisers of Online Rummy, resulting in their casting away their cards abruptly. As per the Ordinances, a game that depends partly on skill and partly on chance, cannot be termed as a skill game. Considering certain Supreme Court decisions, the authors raise the question as to whether classification of a game which is partly skill game and a partly chance game as a ‘non-skill’ game is appropriate. The article in this issue of Corporate Amicus further states that view of the legislature (in the Ordinances), making rummy illegal, is not in line with the view of the judiciary. The Public Gambling Act, 1867, Constitution of India and some other legislations applicable to the gaming industry, are also discussed by the authors.

 

Notifications and Circulars

  • Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 promulgated to amend the existing Insolvency and Bankruptcy Code, 2016 to curb the possibility of defaulting promoters of ailing entities from submitting resolution plans that may in turn lead to them acquiring the concerned entity’s assets at low valuations
  • Insolvency and Bankruptcy – Committee of Creditors to carry out due diligence of resolution plan – Amendments introduced in IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017
  • Managing risks and code of conduct in outsourcing of financial services by NBFCs – RBI issues directions
  • Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 providing for exhaustive definition of “capital instruments” issued
  • SEBI (International Financial Services Centres) Guidelines, 2015 amended to revise definition of ‘issuer’
  • Investment by FPIs in Government Securities – SEBI revises limit

 

Ratio decidendi

  • Applicability of Limitation Act to IBC - Limitation period applicable from the time right to apply accrues, which is 1-12-2016 when IBC came into force – NCLAT
  • Contract should be interpreted in accordance with terms expressly provided therein – Supreme Court rules on when express term can be implied
  • Counter-guarantee is an independent contract, separate from its underlying contract – Delhi High Court
  • Non-allotment of shares does not amount to ‘financial debt’ under IBC – NCLT
  • Arbitration Proceedings cannot be initiated post declaration of moratorium under IBC – Supreme Court
  • IBC - Notice issued by Law Firm on behalf of Operational Creditor when not a demand notice - NCLAT

 

December, 2017/Issue-75 December, 2017/Issue-75

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