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January 2020

Corporate Amicus: November 2019

Article

Reinforcing consumer’s interest: Introduction of product liability
by Sonia Abrol and Kritika Rastogi

The article in this issue of Corporate Amicus discusses the scope of new provision related to product liability introduced in the newly enacted Consumer Protection Act, 2019. Authors point out as to how the new Act caters to product liability of various stakeholders involved in the chain of distribution of a product from the manufacturer to the distributor. The authors note that certain statutes in India have in general safeguarded the interests of the consumers in connection with faulty or defective products i.e. the Indian Contract Act, 1872, the Sale of Goods Act, 1930 and the Drug and Cosmetics Act, 1940, etc., however, there is no particular statute for this. Provide definition of the terms Product, Product liability, Product liability action, Product manufacturer, Product seller and Product service provider, the new statute bifurcates the responsibility of the product manufacturer, product service provider and that of the product seller and provides clarity as to when any or all of them would be held liable, and when exceptions to product liability action against product seller and product manufacturer can be claimed...

Notifications and Circulars

  • Guidelines for registered intermediaries to combat Money Laundering and Terrorism Financing transactions
  • SEBI restricts Mutual Funds to invest in unlisted Commercial Papers
  • SEBI introduces a new framework for issuance of Depository Receipts
  • Resignation of statutory auditors from listed entities and their material subsidiaries
  • Framework for listing of Commercial Paper
  • Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019
  • Companies (Creation and Maintenance of databank for Independent Directors) Rules, 2019 notified
  • Debt and Non-Debt Instruments identified by Central Government under FEMA
  • Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified
  • Foreign Exchange Management (Non-debt Instrument) Rules, 2019 notified

Ratio decidendi

  • NCLAT permits Dutch Trustee (counterpart of an insolvency resolution professional under IBC) to participate in meetings of the Committee of Creditors as observer - NCLAT
  • Time-barred winding up petitions will not be benefitted by Section 238A of the IBC – Supreme Court
  • Winding up order is not irrevocable, and the proceedings can be transferred to NCLT under IBC – Delhi High Court
  • Competition – DG’s report finding contravention of provisions, not binding on CCI– Delhi High Court

News Nuggets

  • Draft guidelines for setting up, authorisation and operation of Authorised Vehicle Scrapping Facilities (AVSF) issued
  • Draft notification to recognise all medical devices as drugs issued
  • MCA allows filing of e-form DIR-12 by ‘ACTIVE non-compliant’ company in certain cases
  • Scheme for Compromise and Arrangement under Sec 230-232 Companies Act, 2013 is permissible during liquidation under IBC
  • Corporate debtor undergoing liquidation cannot initiate CIRP against another corporate debtor
  • IBC shall have an over-riding effect over the Tea Act, 1953
  • Food safety in and around school premises – FSSAI issues draft regulations
  • Arbitration – Plea of unequal bargaining is no ground to disallow application under Section 45
  • Arbitration – Production of additional evidence when permissible u/s.34
  • Data privacy - Consent to store and access cookies must be specific

November, 2019/Issue-98 November, 2019/Issue-98

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