The Legal Newswire

Corporate Affairs Minister Salman Khurshid Thursday said the directive of the Supreme Court on a curative petition on the Bhopal gas tragedy will have to be "factored in" within the proposed Companies Bill.

"The curative petition filed by the CBI (Central Bureau of Investigation) is before the Supreme Court, and whatever comes from the Supreme Court has to be factored in the Bill as on criminal liability of directors we need to have guidance," he said.

Consumer rights activists have strongly criticised the Reserve Bank of India's (RBI's) suggestion that banks be excluded from the purview of "class action suits" in the new Companies Bill. Companies Bill 2009, which was introduced in Parliament last year, has proposed to empower shareholders'
associations or groups of shareholders to take legal action in case of any fraud by a company, through class action suits.

A class action is a form of lawsuit where a large group of people collectively bring a claim to court, and is a deterrent for frauds.

City law colleges are gearing up to facilitate their students in registering for the All India Bar Exam (AIBE), despite their objection to the examination and protest from students. The examination is mandatory for fresh law graduates before they start practising in any court in the country.

If a person suffers permanent disability in an accident caused by a vehicle, the compensation due to him should be computed taking into account not only the victim's present earnings but also future loss of income, Supreme Court has ruled.

The SC distinguished between claim for damages and compensation and said damages were given for an injury whereas compensation stood on a slightly higher footing.

The Double Taxation Avoidance Agreements (DTAAs) signed between India and other countries determine the tax liability of a foreign enterprise in India. As a matter of fact the provision of DTAA’s which India has signed with other countries, e.g. tax treaty with South Africa will supersede the domestic tax law of India and Africa.

Provisions of Indian Income Tax Act can of course be applied, but only if and when they are more beneficial to the assessee compared to the provisions of the treaty. This is an internationally accepted legal position, which has also been confirmed in a large number of court decisions in India (see Azadi Bachao Andolan 263 ITR 706)........

A court order helps the taxman go after the money paid by local firms to overseas parents towards brand royalty

Get as good as you give — this is what the Delhi High Court is telling Indian subsidiaries of foreign firms.

In July 2010, it passed a landmark ruling that has significant implications for foreign firms that have consumer facing brands in the Indian market. These firms usually collect a royalty from their Indian subsidiaries for using their brands. The High Court ruling now puts a check on any “exorbitant” royalty payout. It has an even more subversive effect. The ruling says that because huge sales from the Indian market effectively ‘boost’ the value of the foreign brand, the Indian subsidiary should get paid by its foreign owner for this ‘brand enhancement’......

Pratap BHanu Mehta's editorial on the Liberhan Commission report in the Indian Express.

While Pepsico was defending the use of outdated raw materials in their plant, the Bombay high court on Tuesday asked if they would apply the same yardstick in the United States when it comes to complying with legal norms there.