REGULATORY UPDATES– 1ST AUGUST, 2018

NCLAT DISMISSES CEMENT-MAKERS’ PLEA AGAINST RS 6,700 CRORE PENALTY IMPOSED BY COMPETITION COMMISSION OF INDIA FOR CARTELISATION:

The National Company Law Appellate Tribunal (NCLAT) dismissed cement manufacturers’ plea, challenging the order of fair trade regulator CCI to impose a penalty of Rs 6,700 crore for alleged cartelisation. A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya dismissed a batch of petitions by over 11 cement-makers. In August 2016, CCI had slapped approximately Rs 6,700 crore penalty on 11 cement firms including UltraTech, ACC, Ambuja, Ramco and JK Cement as well as the industry body Cement Manufacturers Association (CMA) for indulging in cartelisation. This was challenged by the cement makers before the Competition Appellate Tribunal, which had on November 22 stayed CCI’s direction to pay 10 per cent of the penalty within a month of the order.

SIMILAR TRADEMARKS FOR DIFFERENT ITEMS NOT BREACH OF LAW-SC:

In a landmark decision in the field of trademarks, the Supreme Court ruled on 26th July, 2018, Thursday that it was no infringement of law if two distinctly different products were marketed by two different companies with “deceptively similar” trademarks.  A decade-old trademark infringement case between Karnataka Cooperative Milk Producers Association, which has been marketing milk and milk products under the trademark ‘Nandini’ since 1985, and a group adopting the name ‘Nandhini’ for its restaurant and food products business in 1989, continued through the Registrar of Trademarks, Intellectual Property Appellate Board and Karnataka high court. With the board and the HC restraining the restaurant chain from using the ‘Nandhini’ trademark, the battle shifted to the SC in 2015.

A bench of Justices AK Sikri and Ashok Bhushan distinguished the products for which the deceptively similar trademarks were used. While ‘Nandini’ was for milk, milk products, cattle feed and other allied commodities, the ‘Nandhini’ trademark was for meat, fish, poultry, meat extracts, preserves, dried and cooked fruits and vegetables, jellies, jams, eggs, milk and milk products, edible oils and fats, salad  dressings etc. The court said, “Nandini/Nandhini is a generic name, representing a goddess and a cow in Hindu mythology, and it is not an invented or coined word by anyone to the dispute.”

LOK SABHA HAS PASSED INSOLVENCY AND BANKRUPTCY CODE AMENDMENT BILL:

On 31st July, 2018, the Lok Sabha has passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018.

MCA:

  1. MCA vide notification dated July 31, 2018 has released Companies (Accounts) Amendment Rules, 2018

 The following disclosures are now to be included in the report by Company’s Board of Directors:

  1. Compliance of maintenance of cost records as per Section 148(1) of the Companies Act, 2013,
  2. Compliance with provisions relating to constitution of internal complaints committee under the Sexual Harassment of Women at Workplace Act, 2013.

iii. Rule 8A has been inserted specifically dealing with matters to be included in the Board’s report for one person company and small company.

  1. Companies (Incorporation) Third Amendment Rules, 2018

MCA vide notification dated 27th July, 2018 has released the Companies (Incorporation) Third Amendment Rules, 2018.

  1. Notification of Section 5 and 6 of the Companies Amendment Act, 2017.

 MCA has notified following sections of the Companies Amendment Act, 2017 w.e.f. 27th July, 2018:

Section 5: the subscribers to the memorandum and persons named as the first directors shall now submit the declaration instead of an affidavit. [Section 7 of the Companies Act, 2013]

Section 6: A company shall have a registered office within thirty days of its incorporation instead of earlier mentioned 15 days. [Section 12 of the Companies Act, 2013]

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