Corporate Legal Update



US firm Hughes fears closure over unpaid fees, banking services across India could be hit
US satellite broadband provider Hughes Network Systems may have to shut its Indian operations due to unpaid levies owed to the government, which could put thousands of banking services at risk. Hughes’ India unit, that provides services to defence, education and banking sectors in India, has told the telecom ministry that it faces bankruptcy as it can’t pay the Rs 600 crore it owes after the Supreme Court’s telecom verdict.


NCLAT sets aside insolvency proceeding against Flipkart
The National Company Law Appellate Tribunal has set aside insolvency proceedings against e-commerce major Flipkart. Cloud Walker, an operating creditor which imported and retailed LED TVs on Flipkart’s platform, dragged the company to NCLT last year over alleged default of Rs 26.95 crore towards procured imported televisions as per the supply agreement. On October 24, the tribunal admitted its application for initiation of corporate insolvency resolution process against Flipkart, which moved the NCLAT.




Worldwide Legal Buzz

U.S. Supreme Court rejects Apple appeal in patent fight with VirnetX
The US Supreme Court has refused to hear Apple Inc’s bid to avoid paying about $440 million in damages for using patent licensing firm VirnetX Inc’s internet security technology without permission in features such as FaceTime video calling. The justices rejected Apple’s appeal in the case dating back to 2010 in which VirnetX accused Apple of infringing four patents for secure networks, known as virtual private networks, and secure communications links.


Forensic science failures putting justice at risk, says UK regulator
Innocent people are being wrongly convicted and criminals are escaping justice because of failure of the forensic science system to meet basic standards in the UK, a forensic science regulator of the country has said. Delivering a stark message, Dr Gillian Tully said the service had been operating “on a knife-edge” for years. She warned of wide-ranging problems threatening the safety of justice, saying that too few providers are meeting the quality standards that were meant to stop errors.



Law & Technology

EU’s new AI proposals face criticism as Legal Tech may face explainability hurdles
The European Commission has released a whitepaper proposing a new regulatory approach for high-risk and low-risk artificial intelligence systems, including an “explainability” requirement to make understanding the mystery of AI’s “black box” clearer. Many in the legal tech industry are split about how such a requirement will affect their technology. While some legal tech companies say the explainability requirement will “dumb down” future legal tech features, others argue legal tech has already cleared the explainability hurdle nearly 10 years ago.




Delhi HC denies bail to ex-CFO Bhushan Steel for committing non-disclosure of documents
The Delhi High Court has denied bail to Nitin Johari, ex-CFO and Director of Bhushan Steel, for committing an offence pertaining to non-disclosure of documents which are required under the Indian Accounting Standards. Johari, a Chartered Accountant (CA) by training, was also part of the company’s Committee of Board of Directors on Borrowing, Investments and Loans and was arrested on charges of enabling various fraudulent methods to be undertaken to ensure huge inflow and outflow of funds.


SC acquits man of murder charges 36 years after the incident
A man, who was charged with the murder of his friend 36 years ago, was acquitted after the Supreme Court overturned the conviction handed down by the trial court and affirmed by the Calcutta high court. A bench of justices L Nageswara Rao and Deepak Gupta ruled that the evidence relied upon by the prosecution to prove the guilt of Md. Younus Ali Tarafdar was not sufficient and cannot lead to the conclusion that he committed the murder.





The Mineral Laws (Amendment) Ordinance, 2020 was promulgated on January 10, 2020. The Ordinance amends the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and the Coal Mines (Special Provisions) Act, 2015 (CMSP Act). The CMSP Act provides for the auction and allocation of mines whose allocation was cancelled by the Supreme Court in 2014.


Act provides a list of all such mines; Schedule II and III are sub-classes of the mines listed in the Schedule I. Schedule II mines are those where production had already started then, and Schedule III mines are ones that had been earmarked for a specified end-use.






By Sec. 125(5) Cr.P.C., Magistrate is expressly empowered to cancel an order passed under Sec. 125(1) on fulfilment of certain conditions




SC – The Hon’ble SC while dismissing the Appeal against the Punjab and Haryana HC judgement, has observed that the order passed in the present case by Family Court reviving the maintenance application of the wife under Sec.125 Cr.P.C. by setting aside the order on settlement passed in the year 2017, is not hit by the embargo contained in Sec.362 Cr.P.C.

The Family Court has done substantial justice in reviving the maintenance application of the wife which needs no interference by the High Court under Sec.482 Cr.P.C. Sec.125 has to be interpreted in a manner as to advance justice and to protect a woman for whose benefit the provisions have been engrafted. – Hon’ble Justices Ashok Bhushan and R. Subhash Reddy [19-02-2020]

Counsel for the Parties – Mr. Rishabh Jain, Mr. Bhaskar Vali, Mr. Pramit Saxena, AOR

Read the full judgment with iDRAF (Issue,Decision,Reasoning,Arguments,Facts) on the headline Link



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