The Code on Social Security, 2020 and its relevance to the Insolvency Law – By Chidambaram Ramesh

Sweeping reforms are taking place in the labour laws. The second National Commission on Labour (2002), under the chairmanship of Ravindra Varma, was assigned with the task of proposing a type of umbrella legislation to cover the unorganised workers, particularly regarding wages, hours of work, working conditions, safety and social security. The Commission reviewed the current labour legislation and proposed that it be reconsolidated into broader classes such as industrial relations, wages, social security and welfare and working conditions. It emphasised the need for uniform and adequate social security coverage to prevent compromising workers’ basic needs. It suggested the simplification and unification of current laws towards this end. As a result of these recommendations, the Parliament has enacted the Code on Social Security, 2020.

Extended IBC suspension by another 3 months from the 25th September, 2020 – N. No. S.O. 3265(E) dated 24.09.2020

MINISTRY OF CORPORATE AFFAIRSNOTIFICATIONNew Delhi, the 24th September, 2020 S.O. 3265(E).—In exercise of the powers conferred by section 10A of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) [as inserted by section 2 of the Insolvency and Bankruptcy Code…

As on 31.07.2020, total 19,844 cases were pending before NCLT, including 12,438 cases under IBC

As on 31st July, 2020, total 19,844 cases were pending before National Company Law Tribunal (NCLT), including 12,438 cases under Insolvency and Bankruptcy Code (IBC). This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.

Public Policy – The Unruly Horse – By Dharmvir Brahmbhatt

Considering that the outbreak of novel Corona virus has pushed the world economy into a situation worse than the 2008 global financial crisis and many firms such as Avianca Airlines and Diamond offshore drilling have gone under there is a very high probability that what happened in 2008 to Lehman Brothers may happen again. Dealing with complicated cross border insolvencies might become a real challenge for different courts across the globe. However, UNCITRAL’s Model Law on cross border insolvency which has already been adopted by 48 states can be a solution to this looming problem. While it is true that in the Jet Airway’s case the courts in India and Netherlands were able to come to an agreement and were able to coordinate without adoption of Model Law, the adoption the model law has its own set of benefits. Adopting the Model Law will lead to reduced time in exchanging necessary information between countries and increase in credit recovery efficiency.

Section 29A of the Indian Arbitration & Conciliation Act to have a Retrospective effect: Clarifies the Delhi HC – By Rahul Kumar

The Hon’ble Delhi High Court on 21st July 2020, clarified the position of application of section 29A(1) of the Indian Arbitration and Conciliation Act, 1996. The court while deciding the issue of application of section 29A(1) in the matter of ONGC Petro Additions Ltd. v. Ferns Construction Co. Inc. [2020] ibclaw.in 24 HC held that section 29A(1) of the Arbitration and Conciliation Act, as amended in 2019 shall have the retrospective application.