SEBI AND CORPORATE LAWS

Vol. 80, Part 5, for the week of December 17 – December 23, 2007

CONTENTS

STATUTES

Notification

companies act

- Section 4A of the Companies Act, 1956 - Public Financial Institutions - Specified Institution - notification no. s.o. 2007(e), dated 29-11-2007

government securities act

- Section 1 of the Government Securities Act, 2006 - Commencement of Act - Notified date - notification no. s.o. 2020(e), dated 30-11-2007

rules/regulations

government securities act

- Government Securities Regulations, 2007 - notification dated 1-12-2007

rbi/fema

- Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Third Amendment) Regulations, 2007 - Amendments in Schedule 1 - notification no. gsr 737(e) [no. fema 170/2007-rb], dated 13-11-2007

securitisation act

- Security Interest (Enforcement) (Amendment) Rules, 2007 - Amendments in rules 2, 8, 9 and 10 - notification no. s.o. 1837(e), dated 26-10-2007

reports

table of cases

Venkata Swamy Naidu (N.) v. Sri Sri Surya Teja Constructions (P.) Ltd. (AP)

subject index

Contempt of Courts Act, 1971

Actions for contempt

Limitation for

- Whether limitation under section 20 has to be computed with reference to date of filing of application for initiation of contempt and, therefore, if an application to initiate contempt proceedings is filed within one year from date on which contempt is committed, it would amount to initiation of contempt proceedings within limitation under section 20 - Held, yes - N. Venkata Swamy Naidu v. Sri Sri Surya Teja Constructions (P.) Ltd. (AP)

Contempts of subordinate Courts

Power of High Court to punish

- Whether Company Law Board (CLB) is judicially subordinate to High Court and, even if its administrative control is held not to vest in High Court under article 235 of Constitution, it would nonetheless be a Court subordinate to High Court under section 10 - Held, yes - Whether while subordinate Court may make a reference in case of a contempt of such Court or Advocate General may make a motion in that behalf, rule 5 of Contempt of Court Rules, 1980 does not bar High Court from taking cognizance of contempt, or in taking action for contempt of subordinate Courts under section 10 either suo motu or on a petition made by any person - Held, yes - Whether even if regulations 44 and 47 of Company Law Board Regulations, 1991 and Order XXXIX, rule 2A, of Code of Civil Procedure, 1908 are held to be a law relating to Contempt of Courts, these provisions would not preclude High Court, in an appropriate case, from taking action for contempt of orders of CLB - Held, yes - N. Venkata Swamy Naidu v. Sri Sri Surya Teja Constructions (P.) Ltd. (AP)

Contempt of Courts Act, 1971

- Section 10

- Section 20

MAGAZINE

features

company law

r. balakrishnan (Company Secretary of FOSECO India Ltd., Pune)

- Directors’ attendance register - Is it mandatory under the Companies Act, 1956

ashhok saxena (Company Secretary)

- Extension of time period - Registration/modification/satisfaction of charges

SEZs

tanuj bhushan and aparna sharma

- Special Economic Zones in India

case digest

table of cases

Bhogpur Co-op. Sugar Mills Ltd. v. Harmesh Kumar (SC)

Chamaraju (M.C.) v. Hind Nippon Rural Industrial (P.) Ltd. (SC)

Kishori Lal v. Chairman, ESI Corpn. (SC)

Subject Index

Consumer Protection Act, 1986

Service

- Whether wherever charges for medical treatment are borne under insurance policy, it would be a service rendered within ambit of section 2(1)(o) - Held, yes - Whether service rendered by medical practitioners of hospitals/nursing homes run by ESI Corporation cannot be regarded as a service rendered free of charge and, therefore, service provided by ESI hospital/dispensary falls within ambit of ‘service’ as defined under section 2(1)(o) - Held, yes - Kishori Lal v. Chairman, ESI Corpn. (SC)

Consumer Protection Act, 1986

- Section 2(1)(o)

Employees’ State Insurance Act, 1948

Matters to be decided by Employees’ Insurance Court

- Whether claim for damage for negligence of doctors of ESI hospital/dispensary would fall within purview of decisions being made by Employees’ Insurance Court - Held, no - Whether jurisdiction of consumer forum in such matters is ousted by virtue of sub-section (1) or (2) or (3) of section 75 - Held, no - Kishori Lal v. Chairman, ESI Corpn. (SC)

Employees’ State Insurance Act, 1948

- Section 75

Industrial Disputes Act, 1947

Lay-off and retrenchment

Procedure for retrenchment

- Whether provisions of sections 25G and 25H would have application in a case where section 2(oo)(bb) is attracted - Held, no - Bhogpur Co-op. Sugar Mills Ltd. v. Harmesh Kumar (SC)

Industrial Disputes Act, 1947

- Section 25G

Interpretation of Statute

- Liberal interpretation of beneficial legislation

Payment of Gratuity Act, 1972

Gratuity

Payment of

- Whether where a benefit had been extended by authorities under Act to a workman by recording a finding that he had completed requisite services of five years to be eligible to get gratuity and on writ petition, Single Judge did not interfere with said findings of authorities under Act, in that case, even if another view was possible, Division Bench of High Court should not have set aside findings recorded by authorities under Act and confirmed by a Single Judge of High Court by allowing appeal of employer - Held, yes - M.C. Chamaraju v. Hind Nippon Rural Industrial (P.) Ltd. (SC)

Payment of Gratuity Act, 1972

- Section 4