Article
Draft Employees’ Provident Funds Amendment Bill, 2019 – An analysis
by Ankit Parhar
The first article in this issue of Corporate Amicus elaborately discusses various features of the Draft Employees’ Provident Funds and Miscellaneous Provisions (Amendment) Bill, 2019 which was recently released by the Ministry of Labour and Employment. The Author believes the replacement of ‘basic wages’ with ‘wages’ in conformity with the definition as provided in the Code on Wages, 2019 is a positive step and will bring in the much-needed uniformity across various labour laws, though certain grey areas remain. Further, according to the author while the introduction of limitation period for initiating enquiry under Section 7A of EPF Act or the time period within which such enquiry is to be completed, is a welcome move, the limitation for initiation of an enquiry under Section 7C should be reduced to one or two years after the completion of the enquiry under Section 7A. The article, among other things, also discusses about new provisions for compounding of offences and enhancement of penalties, mandatory satisfaction of certain pre-conditions for grant of exemption, any amount due under the EPF Act being the first charge, option to opt for the National Pension System, and reduction in rates of employees’ contributions for specified class of employees…
‘Appointed date’ in a scheme of arrangement – More flexible and effective
by Rohit Subramanian
Considering the issue with two dates i.e. the “appointed date” and “effective date” for reconstruction of a company or companies involving merger or amalgamation as envisaged under Chapter XV of the Companies Act, 2013, the author in the second article in this issue of Corporate Amicus discusses at length the General Circular No. 09/2019 issued by the Ministry of Corporate Affairs on 21st of August, 2019. The said circular clarifies the position on tenability of stipulated “appointed date”. The Article also discusses the two important judgements – One of Supreme Court and another of the Madras High Court, with different views on the ‘appointed date’. According to the author, the Circular provides companies with much needed flexibility with respect to the timelines and manner of effectuating the provisions of the scheme and is yet another example of the government’s drive towards improving the regulatory environment and facilitation of doing business in India…
Notifications and Circulars
- Significant Beneficial Owner – Extension of last date for filing Form BEN-2 and BEN-1
- ‘Report on unpaid dues’ to be submitted by listed entities to stock exchanges along with the draft scheme
- Regulation of commercial and technical arrangements entered by broadcaster, distributor and local cable operator for providing broadcasting services relating to television
- Harmonization of Turn Around Time and customer compensation for failed transactions using authorized Payment Systems
- SEBI eases regulatory framework for Foreign Portfolio Investors
Ratio decidendi
- Corporate Insolvency Resolution Process initiated under IBC is maintainable even if company’s name has been struck off from register of companies – NCLAT
News Nuggets
- Preliminary draft Code on Social Security Bill 2019 issued
- Interim order to restrain corporate debtor before admission of application, is valid
- Insolvency – No provision to discriminate against dissenting financial creditors
- Competition – DG can investigate matter beyond CCI order of investigation
- Arbitration possible in case of ‘simple allegations’, not involving fraud
- Legal fiction of arbitration award being a decree not to include appeal
- Arbitration – Limitation – Cause of action and computation of time limit
- Arbitration – Recourse to Section 9 not available when award enforceable under Section 36
