9th April 2K20
Economic Times
Ø Govt defers updation of base year for CPI-IW
Ø Goldman pegs India's growth at 1.6 per cent in FY21
Ø Govt extends term of Banks Board Bureau members
Ø Govt to soon issue guidelines for real estate sector
Ø FinMin allows states to borrow Rs 3.20 L cr from market
Ø Irdai permits insurers to grant moratorium on term loans
Ø Virus may push 400 mn Indians into poverty
Ø Global gold ETFs post record asset growth in Q1
Business Standard
Ø India Inc seeks Rs 2 trillion in govt relief as lockdown hits businesses
Ø Coal India arm SECL takes slew of measures to deal with coronavirus
Ø RIL's net debt might not rise in 2020-21 despite coronavirus, says report
Ø Panic buying amid coronavirus lockdown helped pharma market grow 9%
Ø Non-Life insurers' underwriting losses rise on higher claims, competition
Business Line
Ø Traders propose extension of lockdown till April 30
Ø Govt caps expenditure for Ministries, Departments
Ø I-T refunds up to ₹5 lakh to be released immediately
Ø JNPT to issue essential service duty pass to EXIM trade members
Ø Essar Ports cargo handling jumps over 23 per cent to 49.22 MT in 2019-20
Ø L&T Hydrocarbon Engineering bags project from Indian Oil Corporation
Mint
Ø Corporate affairs ministry eases compliances for passing special resolutions
Ø Finance ministry says due to lockdown govt’s cash position may be stressed in Q1
Ø India to buy Middle East crude oil for its strategic reserves
Ø Covid-19: WTO sees 'ugly' trade plunge, likely worse than financial crisis
Ø World economy faces $5 trillion hit that is like losing Japan
Financial Express
Ø Global trade will plunge by up to a third in 2020 amid pandemic: WTO
Ø Economists pitch for Rs 3 lakh crore additional package to tide over COVID-19 crisis
Ø DoT relaxes time for self certification under mobile tower radiation norms
Ø Fiscal stimulus through the GST system
Deccan Chronicle
Ø Virus-hit Iran urges IMF to approve $5bn loan
Ø Sensex ends 173 pts lower, Nifty below 8,800; IT, bank stocks slip
Ø 400 million Indian workers may sink into poverty due to covid19: UN
Ø Maruti Suzuki India cuts production by 32 percent in March
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👉 The NCLT has stated that Memo will be a user-friendly document which will help in arriving at decisions quickly, and avoid filing of reply and rejoinder.
The Applicants shall state facts in five to ten lines, as well as the reliefs, and serve the same upon the Opposite Party along with its application.
The Opposite Party, in turn, shall brief their defence in five to ten lines and serve the same upon the Applicants within 24 to 48 hours.
Upon exchange of brief facts, both the parties shall jointly draft the points for determination by NCLT.
- Based on the points for determination, both the parties shall separately set out reasons in support of their respective stands in two to three lines on each of the points for determination.
- Relevant Material Papers, if any, for determination of the points from either side, shall be annexed with the Joint Memo of Written Submissions which shall capsule all the above steps in two to three pages.
- After being signed by both the parties, this Joint Memo shall be filed one day before the date of hearing or at least six hours before hearing.
- If the opposite party does not appear even after service is affected upon him/them, the Applicant shall place brief facts, reliefs, relevant material papers and reasons for seeking reliefs in the form of this Memo one day before or six hours before the hearing date.
It is also clarified that in the event situation demands grant of ad-interim relief by NCLT even before filing this Memo, non-filing of this Memo will not become hindrance to NCLT in granting such relief.
👉 New Delhi, Apr 7 (PTI) Describing the IL&FS matter as a "watershed moment", Corporate Affairs Secretary Injeti Srinivas has said it was a blessing in disguise that forced the government to take the bull by its horns and address the difficult issue of corporate governance. Nearly two years after the IL&FS problems surfaced in late 2018, the resolution process is in progress and is expected to be completed this year.
Soon after the fiasco came into light, the corporate affairs ministry superseded IL&FS board, initiated probe into some group entities and various entities, including independent directors, came under the regulatory scanner. It also had an adverse impact on non-banking financial companies (NBFC) sector and triggered liquidity concerns. When asked about the spillover effects of IL&FS fiasco on NBFCs and overall corporate governance, Srinivas the matter exposed cracks in the edifice of corporate governance in the country. "I think IL&FS was a watershed moment... A highly acclaimed group such as IL&FS, which was considered to be the gold standard, turned out to be badly mismanaged and misgoverned. "In a way, it was a blessing in disguise because it forced us to take the bull by its horns and address the difficult issues of corporate governance," he told PTI. DHFL was among the entities in the NBFC space that faced problems in the wake of the crisis at IL&FS. According to Srinivas, who has a key role in spearheading the efforts to address issues arising out of the crisis, many believe that IL&FS caused DHFL crisis but it is equally true that IL&FS helped us to detect DHFL in a more timely manner. "It is not to say that all NBFCs are bad but those which grew recklessly by over-leveraging and had poor risk management, failed. Equally, we have to admit that post IL&FS, NBFC sector did face liquidity issues. "But those without asset-liability mismatch have been able to slowly recover. However, those NBFCs with serious asset quality issues are the ones that are facing the music," the secretary said. He noted that the maze of transactions between hundreds of subsidiaries within the IL&FS group created a veil that concealed the real picture and timely intervention of the government prevented value destruction. "Broadly, if you look at, against the Rs 94,000 crore external debt (around Rs 73,000 crore secured and Rs 21,000 crore unsecured), we expect substantial recovery. Far more than the average 43 per cent recovery we have had from the IBC (Insolvency and Bankruptcy Code) so far," he said. The NCLAT has approved the entire proposal of the government, which is in the "final stages of resolution". "We had hoped that bulk of the resolution would be over by August ''20. But now due to COVID-19, that is likely to be delayed by a few months.
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👉🏻Income tax dept asks taxpayers to keep their e-filing account safe
(Income tax department has asked taxpayers to be careful with their income tax e-filing account and report account misuse by any unauthorised person)
👇🏻 👇🏻 👇🏻
https://bit.ly/3e6C5dA
👉🏻Companies can hold EGMs through VC or OAVM - MCA
(MCA allows companies to hold EGMs through VC or OAVM complemented with e-Voting facility/simplified voting through registered emails)
👇🏻 👇🏻 👇🏻
https://bit.ly/39TOMVP
👉🏻Impact and Economic Measures in India due to COVID-19
(Impact and Economic Measures in India due to COVID-19 discussed by CA. Anshu Budhia)
👇🏻 👇🏻 👇🏻
https://bit.ly/2yMzt4n
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👉 The National Company Law Tribunal (NCLT) on Tuesday urged all the litigants to file "Joint Memo" of written submissions, so as to avoid the lengthy process of filing replies and rejoinders and ensure rapid disposal.
The NCLT had restricted its functioning to hear only urgent matters via video conferencing amid the COVID-19 pandemic. It has now urged that in "surreal times" like these, the users of NCLT under Companies Act 2013 and Insolvency and Bankruptcy Code 2016, should cooperate with the Tribunal by filing joint memos, containing points for determination as mutually decided by the parties.
Such memo will have to be filed before the Tribunal one day before the date of hearing or at least six hours before the hearing.
However, situations that demand grant of ad-interim relief have been exempted from this requirement and it has been clarified that non filing of joint memo will not become a hindrance to NCLT in granting such ad-interim relief.
The Tribunal has notified the following steps to be undertaken for filing a joint memo:
"The Applicants shall brief facts (mention the supporting material papers while narrating facts) in five to ten lines and the reliefs thereto and serve the same upon the Opposite Party along with its application.
The Opposite Party, in turn, shall brief their defence (mention the supporting material papers while narrating facts) in five to ten lines and serve the same upon the Applicants within 24 to 48 hours.
Upon exchange of brief facts, both the parties shall jointly draft the points for determination by NCLT.
Based on the points for determination, both the parties shall separately set out reasons supporting their respective stands in two to three lines on each of the points for determination. The applicants shall first set out its reasons in bullet points, and then the Opposite Party shall set out its reasons in bullet points.
👉 COVID-19 has retarded the momentum of wheels of the Indian economy, the corporates. The All India Association of Industries had estimated a loss of Rs 2,00,000 crore ($26.35 bn) by March 31, 2020 due to pan India lockdown.
In order to prevent and absorb the effect of such huge losses and to respond to the dynamics of the business environment, which has been changing every second in the wake of the globally-spread WHO-declared pandemic, the central government seems to be responding in a structured manner by providing various sops, relaxation, extensions and amendments to the existing legal framework in the country.
Across the globe, it is observed that the corporates which were in the pink of financial conditions have witnessed a sharp decline due to COVID-19.
Supply chains are disrupted, valuation of the stocks on bourses have substantially decreased amidst global down selling, and the valuation of businesses have fallen steeply.
Amidst the nationwide lockdown on account of COVID-19, the acting president of the National Company Law Tribunal (NCLT) notified that all benches of the NCLT shall hear only inevitable urgent cases with prior notification on email from applicants.
Insofar as matters not construed as urgent, e.g. pertaining to the extension of time, approval of resolution plan and liquidation under IBC, the Insolvency Bankruptcy Board of India (IBBI) has, vide notification dated March 29, 2020, amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 granting certain relaxations.
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