18 September 2020

Corporate Amicus: May 2020


Electronic execution of contracts in the time of pandemic COVID-19
By Kumar Panda

COVID-19 crises has posed a challenge for execution of contracts. The article in this issue of Corporate Amicus hence does an in-depth analysis of electronic execution of contracts. It not only elaborately discusses the governing laws of contracts in India, i.e. Indian Contract Act, 1872, the Information Technology Act, 2000 and the Indian Evidence Act, 1860, but also touches upon many case law on the subject. The author in this regard also discusses various type of electronic agreements - ‘Click-wrap Agreements’, ‘Shrink-wrap Agreements’ and ‘Browse-wrap Agreements’. Further, according to the author, considering the ease of execution coupled with the enforceability, there is an increased recognition for these forms of execution. However, parties must carefully analyse other implications such as payment of stamp duty, etc. The article also states that it is also necessary to deal with notarization of e-contracts as e-notarization has not been recognized in India so far...

Notifications and Circulars

  • Name reservation and re-submission for companies and LLPs – Time limit extended
  • Annual General Meeting (AGM) by Companies whose financial year ended on December 31, 2019 can be held by September 30, 2020
  • COVID-19 Regulatory Package – Review of Resolution Timelines under the Prudential Framework on Resolution of Stressed Assets
  • FDI from neighboring countries - Foreign Exchange Management (Non-debt Instruments) Rules amended
  • Acquisition of equity after renunciation of rights - Foreign Exchange Management (Non-debt Instruments) Rules amended
  • COVID-19 - Meetings (AGMs and EGMs) through Video Conferencing or Audio-Visual Means
  • Rights issue – Relaxations from certain provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
  • Export of goods and services – Realisation and repatriation of export proceeds – Relaxation
  • Mutual Funds - Relaxation in compliance with the requirements

Ratio decidendi

  • COVID-19 is a force majeure event justifying injunction on invocation of bank guarantees – Delhi High Court
  • SARFEASI Act is applicable to Cooperative Banks – Supreme Court

News Nuggets

  • Competition Commission of India issues advisory to businesses in the backdrop of COVID-19
  • Approved Resolution Plan whether binding only on stakeholders involved in Resolution Plan – Amendment in Section 31(1) of IBC prospective
  • Employee cannot choose a combination of employer’s scheme and scheme under Payment of Gratuity Act, 1972
  • Independent directors – Time limit for inclusion in database extended
  • International Financial Services Centres Authority established from April 27, 2020
  • Draft Valuers Bill, 2020 – MCA seeks public comments
  • Draft procedure for submission of audit files to NFRA
  • Extension of last date of filing Form NFRA-2

May, 2020/Issue-104 May, 2020/Issue-104

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