Tuli & Co

SUPREME COURT SETTLES THE LAW ON THE VALIDITY OF ARBITRATION AGREEMENTS CONTAINED IN UNSTAMPED / INSUFFICIENTLY STAMPED INSTRUMENTS: RE INTERPLAY BETWEEN ARBITRATION AGREEMENTS UNDER THE ARBITRATION AND CONCILIATION ACT 1996 AND THE INDIAN STAMP ACT 1899[1] Background The question of the validity of an arbitration clause contained in an unstamped / insufficiently stamped agreement has […]

As a part of the IRDAI’s continued efforts to enhance reinsurance business and in order to streamline the regulatory provisions for Indian Insurers, including Foreign Reinsurance Branches (FRBs) and International Financial Service Centre Insurance Offices (IIOs), the regulator notified the IRDAI (Re-insurance) (Amendment) Regulations 2023 (Amendment Regulations) on 23 August 2023[1] Read more

In April 2015, the Gujarat International Finance Tec-City, popularly known as “GIFT City”, was established by the Indian government to potentially serve as a global hub for economic activity. With a state-of-the-art infrastructure and a regulatory regime designed according to global benchmarks for improving ease of doing business[1], various industry stakeholders believe that GIFT City […]

ARG OUTLIER MEDIA PVT LTD v HT MEDIA LTD[1] The Delhi High Court has held that the jurisdiction of the Court while hearing a challenge under §34 of the Arbitration and Conciliation Act 1996 is limited, and contravention of a statute that is not linked to public policy or public interest cannot be a ground […]

DEBTS OF UNSECURED FINANCIAL CREDITORS HAVE PRIORITY OVER OUTSTANDING ELECTRICITY DUES IN THE IBC LIQUIDATION PROCESS: PASCHIMANCHAL VIDYUT VITRAN NIGAM LTD v RAMAN ISPAT PVT LTD[1] Authored by Aditya Gupte and Alexandra Celestine Facts 1. The electricity board supplied electricity to the corporate debtor, Raman Ispat, which was in liquidation proceedings. As per the agreement […]

The Delhi High Court has reiterated that the writ petition remedy under Articles 226 and 227 of the Constitution of India is only available against orders passed by an Arbitral Tribunal in exceptional circumstances, and in cases where there is bad faith or perversity. Facts IDFC and Hitachi entered into a Strategic Partnership Agreement and […]

On 30 June 2023, the IRDAI issued the “Guidelines on Remuneration of Non-Executive Directors and Key Managerial Persons of Insurers” (“Remuneration Guidelines”) for private sector Insurers (other than branch of foreign reinsurers), which expressly replace and supersede the IRDAI (Remuneration of Non-Executive Directors of Private Sector Insurers) Guidelines 2016 and the IRDAI (Remuneration of Chief […]

The insurance sector, both in India and worldwide, has long been a potential target for cyberattacks, due to the vast amount of sensitive data held by Insurers and insurance intermediaries pertaining to their prospects and policyholders, including personal and financial data. Driven by advancements in IT infrastructure over the past decade, popularisation of cloud infrastructure […]

CLAUSE STIPULATING THAT PARTIES “MAY BE REFERRED TO ARBITRATION” IS NOT A BINDING ARBITRATION AGREEMENT – GTL INFRASTRUCTURE v VODAFONE INDIA LTD The Bombay High Court has held that a clause which contains the words “may be referred to arbitration” takes away from the mandatory and binding nature of an arbitration agreement. Facts GTL and […]

ADITYA BIRLA FINANCE LTD v SITI NETWORKS LTD[1] The Delhi High Court has recently invoked the “group of companies” doctrine and referred the disputes between a lender and borrower (as well as the borrower’ssister concerns) to arbitration. Facts Aditya Birla had extended a term loan of ₹150 crores to Siti Networks under a Credit Arrangement […]

Commission payments to insurance agents and insurance intermediaries for distribution and servicing of insurance policies, as well as the overall expenditure of an Insurer vis-à-vis the premium earned by it in any particular financial year, has been historically subject to stringent limits in terms of the manner and timing of such payments/expenditure. For several years […]

Introduction On 3 January 2023, the IRDAI issued the “Guidelines on Issuance of File Reference Numbers (FRN) to Cross Border Re-insurers” (“2023 CBR Guidelines”), which superseded the former guidance under the IRDAI’s Guidelines on Cross Border Re-Insurers of 22 January 2021 (“2021 CBR Guidelines”). The stated objective for the 2023 CBR Guidelines was to “streamline […]

The Bombay High Court has reiterated that communications between a lawyer and client are privileged and cannot be disclosed to a third party without the express consent of the client. Brief facts The Petitioner, a Senior Advocate of the Bombay High Court, challenged a witness summons issued to him directing him to appear before the […]

The Bombay High Court has ruled that an award that relies on documents produced after the conclusion of arguments is patently illegal. Facts Land owned by Mr Gupta (“the Claimant”) was acquired by the National Highways Authority of India (“NHAI”) under the provisions of the National Highways Act 1956 (“NH Act”). Dissatisfied with the quantum of […]

Introduction Following a comprehensive review of the insurance legislative framework in India by the Finance Ministry, in consultation with the IRDAI and other stakeholders in the industry, the Government of India has issued a draft Bill titled “The Insurance Laws (Amendment) Bill, 2022” (“Draft Bill”) on 29 November 2022. The Draft Bill proposes significant amendments […]

The Delhi High Court has held that an arbitration clause in an earlier agreement remains binding on the parties even after they enter into subsequent agreements which do not contain an arbitration clause. Facts The parties entered into 2 agreements for the lease of premises. Differences arose between them which were settled by way of […]

Introduction On 13 October 2022, the Insurance Regulatory and Development Authority of India (“IRDAI”) had released an exposure draft on the IRDAI (Registration of Indian Insurance Companies) Regulations 2022 (“Draft Regulations”). Our article on the changes proposed to be introduced by the Draft Regulations is available here. Thereafter, following comments received from various stakeholders on […]

Introduction On 21 October 2022, the IRDAI had issued an exposure draft on the IRDAI (Re-insurance) (Amendment) Regulations 2022 (“October Draft”) with an aim to reduce the requirements on placement of reinsurance, revise the existing Order of Preference to be followed by a Cedant[1] while reinsuring its risks and increase the limits placed on cessions […]

Resolution Plan That Does Not Provision For Statutory Dues Cannot Be Approved By The NCLT Under §31 Of The IBC: Sales Tax Officer v Rainbow Papers Ltd. Brief Facts The Corporate Insolvency Resolution Process was initiated against Rainbow Papers by the NCLT on 12 September 2017. Prior to the CIRP order, the Sales Tax Officer […]

Introduction On 13 October 2022, the Insurance Regulatory and Development Authority of India (“IRDAI”) released an exposure draft on the IRDAI (Registration of Indian Insurance Companies) Regulations 2022 (“Draft Regulations”). The Draft Regulations follow from the recent increase in the permissible limit of foreign direct investment in Insurance Companies and other related changes to the […]

The Supreme Court has held that the procedural rigours of Order 38 Rule 5 (attachment prior to judgment) of the Code of Civil Procedure 1908 are not strictly applicable while deciding a prearbitration §9 Petition to secure the amount in dispute. Facts Essar Steel entered into an agreement with Essar Services for the latter to […]

Introduction In its continuing objective to promote insurance penetration in the country and to enhance ease of doing business, the IRDAI has issued an exposure draft on the IRDAI (Re-insurance) (Amendment) Regulations 2022 of 21 October 2022 (“Draft Amendment”). The Draft Amendment proposes to “harmonize the provisions of various regulations applicable to insurance companies and […]

The Calcutta High Court has held that a contractual clause stipulating that parties should make “every effort” to arbitrate constitutes a valid arbitration clause. Brief Facts The Petitioner, one of the partners in a partnership firm, expressed her intention to retire. In order to settle the disputes arising out of her retirement, the Petitioner issued […]

DECREE HOLDERS ARE NOT FINANCIAL CREDITORS UNDER THE IBC: SUBHANKAR BHOWMIK V UNION OF INDIA & ANR[[1]] 18 July 2022  The Supreme Court has refused to interfere with the judgment of a Division Bench of the High Court of Tripura, where the High Court had held that a decree holder falls under the class of […]

USE OF WORDS “EVERY EFFORT TO ARBITRATE” CONSTITUTES A VALID ARBITRATION CLAUSE: MANIKA SETT v SETT IRON FOUNDRY & ORS[1] 27 September 2022 Brief Facts The Calcutta High Court has held that a contractual clause stipulating that parties should make “every effort” to arbitrate constitutes a valid arbitration clause. The Petitioner, one of the partners […]

Introduction The commission/remuneration and rewards payable to insurance agents and insurance intermediaries (such as insurance brokers, corporate agents, web aggregators and insurance marketing firms) for the solicitation and procurement of insurance business have historically been strictly regulated in terms of the amounts and manner of payment. In this regard, Indian insurance companies have always been […]

INSURANCE OMBUDSMAN’S AWARD CAN BE ASSAILED IN WRIT JURISDICTION: ADITYA BIRLA SUN LIFE INSURANCE CO LTD v FATEMA F CHHATRIWALA[1] In a recent landmark decision, the Bombay High Court has held that an Insurance Ombudsman’s Award can be set aside in a writ petition on the ground of perversity. Facts In this case, the Insured […]

SUPREME COURT SETS ASIDE TRIBUNAL’S ORDER WHICH FAILS TO CONSIDER GROUP OF COMPANIES DOCTRINE: (ONGC v DISCOVERY ENTERPRISES PVT LTD & ANR) [1] A three-judge Bench of the Supreme Court has set aside an arbitral tribunal’s §16 order on the ground that it failed to consider the applicability of the “group of companies” doctrine. This […]

Delhi High Court has held that an order passed by an arbitral tribunal,, pursuant to the matter being remitted back to it cannot be treated as a fresh arbitral award Facts On 14 December 2017, an arbitral award was passed in favour of the Respondent. Aggrieved, the Petitioner filed an application before the Tribunal under […]

Arbitration cannot be invoked after the insured has executed A discharge voucher without protest: (BALKRISHNA SPINTEX PVT LTD v THE NEW INDIA ASSURANCE COMPANY LTD)[[1]] The Gujarat High Court has held that the insured cannot invoke arbitration after the execution of the discharge voucher without protest. Facts  The Plaintiff had taken a policy from the […]

DECREE HOLDERS ARE NOT FINANCIAL CREDITORS UNDER THE IBC: SUBHANKAR BHOWMIK V UNION OF INDIA & ANR[[1]] Facts   The High Court was considering a writ petition where the Court was requested to: (i) declare that the definition of “financial creditor” under the IBC should include a “decree holder” and (ii) a claim of a […]

Proposed changes could be next big milestone towards ease of doing business. Introduction On 26 April 2022, the Insurance Regulatory and Development Authority of India (IRDAI) issued a press release which stated that it had taken a major step in setting out a new mechanism for processing the requests and applications for the registration of […]

THE SUPREME COURT HAS REFUSED TO INTERFERE WITH THE NCLAT’S RULING THAT THE NCLT CAN HEAR MATTERS AGAINST A PERSONAL GUARANTOR WHERE THE COMPANY IS NOT UNDERGOING CIRP: MAHENDRA KUMAR JAJODIA V. STATE BANK OF INDIA STRESSED ASSET MANAGEMENT BRANCH [CA NO 1871-1872/2022] 20 June 2022 Background Facts State Bank of India filed an application […]

ARBITRATOR CANNOT REWRITE THE CONTRACT BETWEEN THE PARTIES: (UNION OF INDIA, MINISTRY OF RAILWAYS, RAILWAYS BOARD & ANR v JINDAL RAIL INFRASTRUCTURE LTD) [1] 6 June 2022 The Delhi High Court has held that an arbitrator cannot re-write the terms of the agreement between the parties merely because one of the parties subsequently finds it […]

APPELLATE ORDERS OF THE NATIONAL CONSUMER DISPUTE REDRESSAL COMMISSION CAN BE CHALLENGED IN THE HIGH COURT THROUGH A WRIT PETITION: (IBRAT FAIZAN v OMAXE BUILDHOME PVT LTD)[[1]] 67 of the Consumer Protection Act 2019 permits an appeal to be filed in the Supreme Court of India to challenge the NCDRC’s original orders, but not orders […]