VodafoneIdea’s AGR, ORS Drinks, Next CJI Appointment and More

“Society will not forgive us if we don’t take care of our doctors and don’t stand for them”

-Supreme Court bench on case about insurance claim of doctors and healthcare providers who lost their lives during the COVID-19 pandemic

Restricted relief for VodafoneIdea, or is it?

VodafoneIdea has finally secured a relief from the top court regarding its grievance over the AGR dues. The court did not rule directly on the issue of dues owed by the telco but has gone ahead and allowed the government to reconsider its demands against the company.

The court called the matter one of policy and public interest and said that there was no reason why the government should be prevented from taking appropriate action in the matter considering that it is too a stakeholder in the issue now having infused equity in the struggling company.

While VodafoneIdea would have breathed a sigh of relief, a written order of the top court published a few days after the relief was granted in open court held a crucial detail. The court said that the scope of its order was restricted to VodafoneIdea alone owing to its “peculiar circumstances”. This clarification rules out the possibility of other telecom companies seeking similar relief for their respective dues. However, even more importantly, the court also said that VodafoneIdea’s relief is restricted to the extent of the relief the company sought in its petition before the court.

This minute but critical detail may significantly limit the scope of waiver or restructuring the company may have been hoping for or working towards since the petition it filed before the court spoke only about the additional demands made by the government up to the year 2016-17 and for penalty and interest on penalty on the same.

Does the court’s labelling of the issue as a policy matter open the doors for the government to consider reassessment over and beyond the dues till 2016-17 or does the court’s clarification on the scope of its order restrict the government action arresting the potential lifeline the company could have got?

Key Rulings:

• Supreme Court has laid down a principle that arbitral awards that are passed after undue and unexplained delays that too without resolving the dispute are in violation of public policy and as such liable to be set aside
• Lawyers advising clients accused under PMLA cannot be summoned by investigative authorities unless exceptional circumstances exist, the Supreme Court has ruled
• In another clarification to the IBC regime, the Supreme Court has ruled that preferred shareholders are not financial creditors under the code and as such cannot initiate insolvency proceedings against corporate debtors

Courts:

• Supreme Court permits government to reassess VodafoneIdea’s AGR dues in a big relief for the telco
• In the ongoing controversy involving ORS drinks, the Delhi High Court has said that it will not interfere with the FSSAI’s directive banning sale of products with misleading ORS labels, such products are health hazard
• Anil Ambani withdraws petition challenging show-cause notice issued by IDBI Bank from the Bombay High Court
• A PIL petition flagging privacy concerns of Indians against Chinese AI platform DeepSeek has been filed in the Delhi High Court; court has sought government’s plan to tackle the issue
• Delhi High Court restrains one Questsole from selling products that look like Crocs footwear

Quasi Courts:

• NCLAT has held that CCI does not have the jurisdiction to examine anti-competitive practices in the patented drugs market given that the issue falls under Patents Act

Other:

• President signs off on appointment of Justice Surya Kant as the next chief justice of India after the sitting top judge recommended his name to the government as per protocol

The Big Listings:

• Nov 12: NCLT in Ahmedabad to hear petition for Vedanta’s demerge
• Nov 17: Supreme Court to hear Sahara’s plea for court’s nod to sell its properties to Adani to raise funds
• Nov 18: Securities Appellate Tribunal to hear appeal by Jane Street challenging SEBI’s move to allegedly refuse access to important documents to the firm in the case against it

* The dates of hearing can change and a concrete list is prepared just a day before

Legal Moves:

• Shalini Sinha leaves HUL to join Magnum Ice Cream as General Counsel
• Kanika Sachhdeva and Raunak Singh elevated to partnership by CMS IndusLaw
• Three lawyers made retainer partners at S&R Associates
•  Amitabh Sharma joins as partner at JSA Advocates & Solicitors