Hi Folks
“Main zindagi ka saath nibhata chala gaya, Har fikr ko dhuein mein udata chala gaya…..” is a popular Mohammed Rafi song from the film Hum Dono. Translated it goes like this “I just kept going with the life, Kept on blowing every worry like smoke..”

Originally I had something else in mind to write about, but after young Karun Nair (called Unni in close circles) smashed a triple ton yesterday to join an elite club of cricketers, I cannot

but ponder if indeed Karun’s attitude towards the game is like this. Yesterday it did appear as if he batted without a fikr (worry) after he crossed some target but behind this ‘blowing the worry like smoke’ attitude is his steely grit, determination, focus and hard work. Having known him as a young boy with both my sons practising with him in the same cricket camp, I have seen him from close quarters. When he was selected for the KPL, I recall I had written about how a teenage Karun kept running for more than 2 hours one morning since his coach forgot to ask him to stop. Such is his discipline and obedience which has today stood him in good stead, making him fit, strong and level-headed. Here’s wishing him many, many more successes in a long and illustrious career!
If we as a nation want to see more kids taking up sports as a career, we must not only offer attendance and marks but create the right eco-system for it – more playgrounds (which are unfortunately being usurped by vested interests for buildings or welfare associations for parks and walking tracks), more coaches, more facilities, more financial assistance, less government interference, more CSR and above all a huge change in parental attitude. Parents must accept that sports is also a good career that needs to be nourished and that 10th standard onwards, it is not all studies and no play………….most children give up playing thanks to the gruelling coaching classes for competitive exams. There is lots more to say but I can vouch for the unstinted support that Karun’s parents have given him all through. Result is there for all to see and enjoy. The moot question is if your child loves sports and wants to work for it, do you believe in him / her? Can you support as much as you would for a traditional career ?
December has seen lot of activity with the Insolvency and Bankruptcy Code being notified w.e.f 1st December and most of the winding-up related provisions in the Companies Act, 2013 enforced through this code. Interesting and challenging times ahead for all professionals who can be appointed as Insolvency Professionals – new doors have been opened, are we ready to get in and create the room of confidence for the business class? I only hope we don’t blow away the opportunity in smoke !!
Back to LexSpeak’s 160th issue, where my team has made an honest attempt to compile relevant changes in law and regulations. Should you wish to refer to any of our older issues of Lexspeak, do visit our Resource Centre at sharadasc.comWarm regards

Consequent to provisions of Insolvency and Bankruptcy Code, 2016 (IBC) becoming effective w.e.f. 1st December, 2016, almost all the remaining sections of the Companies Act, 2013 have come into force effective 15th December, 2016.
  • Section 2(23) – Company Liquidator appointed by the NCLT from the Panel of Insolvency Professionals.
  • Section 7(7) (c) and (d) – NCLT can remove name of the company from Registrar of Companies or pass winding up orders, if false or fraudulent information has been furnished at the time of incorporation.
  • Section 8(9) – Proceeds from Sale of Assets by a Section 8 Company on its winding up to be credited to Insolvency and Bankruptcy Fund formed under the Insolvency and Bankruptcy Code, 2016.
  • Section 48 – Variation of Shareholder’s Rights
  • Section 66 – Reduction of Share Capital by a Company limited by shares, or limited by Guarantee and having a share capital, subject to NCLT approval
  • Section 224(2) – Action to be taken by the Central Government in pursuance of the Inspectors’ Report
  • Section 226 – Investigation proceedings cannot be stopped or suspended for any reason
  • Section 230 {except Sub-section (11) and (12)}; 231 – 233; 235-240 – Matters relating to compromise, arrangements, Mergers and Amalgamations falling under Chapter XV.
  • Sections 270 to 303, except Section 289 relating to stay of winding up – Matters relating to Winding up by NCLT
  • Section 324; 326 to 365; except Section 325 relating to Insolvency Rules in winding up insolvent companies – Provisions relating to every mode of Winding up and Official Liquidators
  • Sections 375 to 378 – Winding up of Unregistered Companies
  • Section 391(2) – Winding up provisions shall apply mutatis mutandis for closure of place of business of foreign company in India as if it were incorporated in India.
  • Section 434(1)(c) – Transfer of pending proceedings from District Court or High Court relating to arbitration, compromise, arrangements and reconstruction and winding up under the 1956 Act, to the NCLT
W.e.f 1st December, 2016 the much awaited Insolvency and Bankruptcy Code, 2016 has been notified to cover both corporate as well as non-corporate insolvencies. Also w.e.f 15th December, 2016, Sections 33 to 54 of the said Code have been notified relating to Liquidation process

MCA has notified the Companies (Transfer of Pending Proceedings) Rules, 2016 which shall come into force from 15.12.2016 except Rule 4 which shall come into force from 01.04.2017.
Highlights:
•    Proceedings relating to arbitration, compromise, arrangements and reconstruction, other than winding up under the 1956 Act, shall be transferred to NCLT Benches having territorial jurisdiction.
•    Proceedings wherein only orders are awaited shall not be transferred.
•    Voluntary winding up petitions and applications pending before a High Court shall continue to be dealt with by the High Court.
•    No fee shall be payable in respect of any proceedings transferred to the Tribunal.
Consequent to the Transfer of Pending Proceedings, certain difficulties have arisen with respect to the status of cases wherein hearings have been completed and only orders are pending. In order to remove these difficulties MCA has notified the Companies (Removal of Difficulties) Fourth Order, 2016 which shall come in force from 15.12.2016.
•    All Proceedings other than winding up wherein orders are not yet reserved by the High Court shall be transferred to NCLT.
•    All proceedings other than winding up under the 1956 Act that are reserved for orders; and winding up proceedings not transferred from the High Courts; shall be dealt as per the 1956 Act and the Companies (Court) Rules, 1959.
The above rules effective from 15th December, 2016 lay down the procedure for filing of petitions, forms to be used, and the applicable fees in respect of Compromises, Arrangements and Amalgamations.
CBTD has clarified that if you do not deduct tax at source or you have short deducted the tax at source but the recipient of the money has furnished a Return of Income U/s 139, has taken into account such receipt and has paid the tax due on such receipt and the person liable to deduct has furnished a certificate from an accountant in Form 26A to the Principal Director General of Income Tax ( Systems) and has further filed form 26A in accordance with the due process, then the person liable to deduct the tax at source will not be treated as a person in default.
It has been clarified that revenue subsidies received from the Government towards reimbursement of cost of production/manufacture or for sale of the manufactured goods are part of profits and gains of business derived from the Industrial Undertaking /eligible business, and are thus, admissible for applicable deduction under Section 80IB and 80 IC of Chapter VI-A of the Act.
W.e.f 15th December, 2016, the above rules comes into effect which lay down the procedure for filing of applications or petitions, forms to be used, and the applicable fees in respect of Reduction of share capital under Section 66 of the Companies Act, 2016.

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