Corporate Law

In a significant ruling with far-reaching implications for the Indian film and entertainment industry, the National Company Law Tribunal (NCLT), Mumbai Bench, has admitted Reliance Entertainment Studios Private Limited into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The order, dated August 19, 2026, was passed by a bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar, on a petition filed

The Karnataka High Court, in a ruling reported on August 20, 2026, has held that the overriding effect of the Insolvency and Bankruptcy Code, 2016 (IBC) under Section 238 does not automatically bar the continuation or initiation of proceedings under other statutes. The judgment clarifies an important boundary of the IBC's non obstante clause, holding that the overriding effect operates only to the extent of actual inconsistency between the IBC and the other law in question, a

The Bombay High Court, in a judgment delivered on August 20, 2026, has upheld the power of the Insolvency and Bankruptcy Board of India (IBBI) to levy a 0.25 percent regulatory fee on the realisable value of approved resolution plans under the Insolvency and Bankruptcy Code, 2016 (IBC). A division bench of Justices Manish Pitale and Shreeram V. Shirsat dismissed a batch of writ petitions in Hazel Mercantile Limited and Others v. Insolvency and Bankruptcy Board of India and Ot

The board of directors of every company registered under the Companies Act, 2013 must prepare a Board Report (also referred to as the Directors' Report) and attach it to the financial statements laid before the company at its annual general meeting. Section 134(3) prescribes the mandatory contents of this report, and non-compliance can result in penalties on the company and every officer in default under Section 134(8). The Board Report serves as the primary disclosure docume

Every company registered under the Companies Act, 2013 must file an annual return with the Registrar of Companies (ROC). For small companies and One Person Companies (OPCs), the Ministry of Corporate Affairs (MCA) introduced Form MGT-7A, an abridged version of the full annual return (Form MGT-7), through the Companies (Management and Administration) Amendment Rules, 2021. Form MGT-7A requires significantly fewer disclosures than MGT-7, reducing the compliance burden on smalle

The Bombay High Court, in a judgment delivered on August 20, 2026, has upheld the power of the Insolvency and Bankruptcy Board of India (IBBI) to levy a 0.25 percent regulatory fee on the realisable value of approved resolution plans under the Insolvency and Bankruptcy Code, 2016 (IBC). A division bench of Justices Manish Pitale and Shreeram V. Shirsat dismissed a batch of writ petitions in Hazel Mercantile Limited and Others v. Insolvency and Bankruptcy Board of India and Ot

The Supreme Court, in Employees Provident Fund Organisation v. Rachna Jhunjhunwala & Anr. (Civil Appeal No. 9768/2026), has held that claims by the Employees' Provident Fund Organisation (EPFO) towards interest and damages under Sections 7Q and 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, if not determined and finalised before the commencement of the Corporate Insolvency Resolution Process (CIRP), are contingent liabilities that cannot be rais

The Ministry of Corporate Affairs (MCA), vide notification G.S.R. 725(E) dated August 12, 2026, has notified the Companies (Indian Accounting Standards) Amendment Rules, 2026. Issued under Sections 133 and 469 of the Companies Act, 2013, and prepared in consultation with the National Financial Reporting Authority (NFRA), these amendments update several Indian Accounting Standards (Ind AS) to align them with evolving international financial reporting practices. The amended rul

Converting a partnership firm into a Limited Liability Partnership (LLP) allows business owners to retain the operational flexibility of a partnership while gaining limited liability protection for all partners. The statutory framework for this conversion is provided under Section 55 of the LLP Act, 2008, read with the Second Schedule. The process involves obtaining digital signatures, reserving the LLP name, filing prescribed forms with the Registrar of Companies, and execut

The Supreme Court of India on 31 July 2026 dismissed the appeal filed by the Competition Commission of India (CCI) against the National Company Law Appellate Tribunal (NCLAT) order that had set aside a Rs 301.61 crore penalty imposed on Grasim Industries Limited for alleged abuse of dominance in the viscose staple fibre (VSF) market. A bench comprising Justices JB Pardiwala and K Vinod Chandran upheld the NCLAT's finding that the CCI had violated principles of natural justice

Filing DIR-3 KYC is a mandatory compliance requirement for every individual holding a Director Identification Number (DIN) in India. The Ministry of Corporate Affairs (MCA), through the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025, notified vide G.S.R. 943(E) dated 31 December 2025, has changed the filing frequency from annual to once every three consecutive financial years. This significant reform, effective from 31 March 2026, also consolidat

The Corporate Laws Amendment Bill 2026, introduced in the Lok Sabha on 23 March 2026 by Finance Minister Nirmala Sitharaman, has been referred to a Joint Parliamentary Committee (JPC) for detailed examination. The Bill proposes amendments across 107 clauses to two foundational statutes, the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. Its stated objective is to decriminalise routine procedural defaults, raise compliance thresholds for smaller enterpris

The Bombay High Court has ruled that the May 2026 amendment to the Insolvency and Bankruptcy Code, 2016 (IBC), which removed the automatic interim moratorium for personal guarantors of corporate debtors, applies to insolvency applications that were already pending when the amendment took effect. The decision clears the path for creditors to continue parallel recovery proceedings against personal guarantors even while insolvency applications filed under Section 95 of the IBC r

The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has struck down a condition inserted by the National Company Law Tribunal (NCLT) into a resolution plan approved by the Committee of Creditors (CoC) for a Micro, Small and Medium Enterprise (MSME) corporate debtor. The condition in question required 5 percent of the corporate debtor's equity to be reserved for public shareholders, a term that had no basis in the resolution plan as approved by t

Introduction In M&A transactions, the buyer and the seller frequently disagree on valuation. The buyer values the target based on current performance and verified financials, while the seller prices the business based on projected growth and future potential. An earn-out clause bridges this gap by making a portion of the purchase consideration contingent upon the target achieving agreed performance milestones after the closing date. In India, earn-out provisions have become i