Law Enacted in 2015
1. The Negotiable Instruments (Amendment) Act, 2015
The Act amends the Negotiable Instruments Act, 1881 and replaces the
Negotiable Instruments (Amendment) Ordinance, 2015 which was promulgated on
June 15, 2015.
It stipulates that in case
of a cheque being dishonored: If the cheque is delivered for collection to the
account of the payee (person who receives the cheque), the jurisdiction lies in
the area of the bank branch where the payee maintains an account, or If the
payee presents a cheque to a bank in any other way, the jurisdiction lies in
the area of the bank branch where the drawer (person who writes the cheque)
maintains an account. (Section 142(2)) It further provides that if the payee
has filed a complaint against the drawer in a court with appropriate
jurisdiction, all subsequent complaints against that person regarding cheque
bouncing will be filed in the same court, irrespective of whether the cheque
was delivered for collection or presented at a bank within the territorial
jurisdiction of that court. (Section 142A) The Act also amends the definition
of ‘cheque in the electronic form’. It is defined to mean a cheque drawn in
electronic form by using any computer resource and signed in a secure system
with digital signature (with or without biometrics signature) and asymmetric crypto
system or with electronic signature, as the case may be. (Section 6) Further,
the definitions of ‘computer resource’, ‘digital signature’, ‘electronic
system’ and ‘asymmetric crypto system’ are amended to be the same as those
assigned to them in the Information Technology Act, 2000.
2. Arbitration and Conciliation (Amendment) Act, 2015 The Act replaces
the ordinance which was promulgated in December 2014.
It makes Part I of the Act, which applies to matters where the
place of arbitration was India, to international commercial arbitrations as
well, even if the place of arbitration is outside India. (Section 2(2)) It
changes the relevant Court for all arbitration matters to the relevant High
Court in case of International Commercial Arbitrations. (Section 2(1)) Besides
pegging the time period for disposal of cases by a Court at one year, it also
makes provision for fast track procedure for arbitration, which would
necessitate rendering of an award within 6 months. (Section 29A) Another
significant feature of the Act is that it provides additional grounds of
contravention of the fundamental policy of Indian Law and conflict with the
notions of morality or justice, in addition to the grounds already specified in
the Act for setting aside an arbitral award. (Section 34 (2)) You may read:
Amendment of Indian Arbitration Act: A Sigh of Relief for the Indian
Arbitration Professionals and Clients! By Anil Xavier
3.The Commercial Courts, Commercial Division and Commercial Appellate Division
of High Courts Act, 2015
The Act replaces the ordinance which was promulgated in October 2015. It
provides for creation of Commercial Courts, equivalent to district courts,
which may be set up in all States and Union Territories, by the State
Governments after consulting with their respective high courts. Setting up of
Commercial Divisions has been made possible in those High Courts which exercise
ordinary original civil jurisdiction, that is, the High Courts of Delhi,
Bombay, Calcutta and Madras. The Commercial Appellate Division is empowered to
hear appeals relating to a commercial dispute, filed in a High Court against
the orders of Tribunals like the Competition Appellate Tribunal, Debt Recovery
Tribunal, Intellectual Property Appellate Tribunal, Company Law Board or the
National Company Law Tribunal, Securities Appellate Tribunal, and Telecom
Dispute Settlement and Appellate tribunal. The minimum pecuniary jurisdiction
of the Commercial Courts and Commercial Division is stipulated as one crore
rupees.
4.The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax
Act, 2015
The Act make provisions to deal with the problem of the Black
money that is undisclosed foreign income and assets, the procedure for dealing
with such income and assets and to provide for imposition of tax on any
undisclosed foreign income and asset held outside India. It functions as an
addition to the Prevention of Money Laundering Act, 2002. It applies a flat
rate of 30 per cent to undisclosed foreign income or assets of the previous
assessment year. (Section 3(1)) No exemption, deduction or set off of any
carried forward losses (as provided under the IT Act) would apply. This would
apply from April 1, 2016 onwards. It provided for a one-time compliance
opportunity to persons who have any undisclosed foreign assets (for all
previous assessment years) will be provided for a limited period. Such persons
were permitted to file a declaration before a tax authority, and pay a penalty
at the rate of 100%. The compliance window was opened from July 1, 2015 to
September 30, 2015. Tax at the rate of 30 percent and penalty at the rate of 30
percent is to be paid by December 31, 2015, according to the government
statement. You may read: Lok Sabha passes Black Money Bill, Jethmalani terms it
totally worthless and is a kind of Amnesty Scheme by M.A. Rashid
5.The Citizenship (Amendment) Act, 2015 The Act amends the Citizenship Act,
1955.
which regulates the acquisition and determination of citizenship after
commencement of the Constitution. While the Act provided that any person who
is/has been a citizen of Pakistan or Bangladesh or any other country which is
notified by the central government will be ineligible to apply for Overseas
Citizenship of India, the amendment extends this provision to cover persons
whose parents/grandparents/ great-grandparents were citizens of any of the
above countries. (Section 7A) The Bill also introduces a provision for
registration of a person as an Overseas Citizen of India cardholder under
‘special circumstances’, even if s/he does not satisfy any of the listed
qualifications. Further, it empowers the Central Government to notify that
Persons of Indian Origin cardholders shall be considered to be Overseas Citizen
of India cardholders from a specified date. Persons of Indian Origin enjoy
fewer benefits than Overseas Citizens of India. (Section 7A (3)) The Bill
provides that where a person renounces their overseas citizenship, their spouse
shall also cease to be an Overseas Citizen of India (Section 7C). It also empowers
the Central Government to cancel the Overseas Citizenship of India card where
it is obtained by the spouse of an Indian citizen or Overseas Citizen of India
cardholder, if: (i) the marriage is dissolved by a court, or (ii) the spouse
enters into another marriage even while the first marriage has not been
dissolved. (Section 7D (f))
6. The Public Premises (Eviction of Unauthorized Occupants) Amendment
Act, 2015
The Act amends the Public Premises (Eviction of Unauthorized Occupants)
Act, 1971. The amendment act widens the definition of public premises. It also
introduces timelines for eviction of unauthorized occupants. The Act stipulates
15 days for vacation of the premises, after such order is passed by the Estate
Officer. This period may be extended if the Estate Officer feels there are
compelling reasons which prevent a person from vacating the premises in 15
days. (Section 5 (1)) Further, if an Estate Officer receives information that a
person is in unauthorized occupation of the premises, they must make an order,
within seven days of receiving this information, directing persons who have
occupied the premises to show cause as to why they should not be evicted.
However, any delay in issuing this order will not invalidate proceedings.
(Section 4 (1)) In case a period is in arrears of rent payable, the Estate
Officer may order that they pay rent or damages, after issuing a notice asking
the person to explain why such as order should not be made. The explanation
must be provided within seven days of the notice. (Section 7(3)) The Act
provides for a period of one month for disposal of an appeal from the Estate
Officer’s orders. (Section 9(4))
7. The Motor Vehicles (Amendment) Act, 2015
The Act amends the Motor Vehicles Act, 1988. The Act provides for application
of provisions of the Principal Act to e-cart and e-rickshaw. E-kart and
e-rickshaws are defined to mean special purpose battery powered vehicles of
power not exceeding 4000 watts, having three wheels for carrying goods or
passengers, as the case may be, for hire or reward, manufactured, constructed
or adapted, equipped and maintained in accordance with such specifications, as
may be prescribed in this behalf. It however exempts e-karts and e-rickshaws
from Section 7(1) which stipulates that a learner’s license cannot be granted
to a person unless s/he has held a driving license to drive a light motor
vehicle for at least one year.
8. The Constitution (Scheduled Castes) Orders (Amendment) Act, 2015
The Act amends Constitution (Scheduled Castes) Order, 1950 to modify the list
of Scheduled Castes in the States of Haryana, Karnataka and Odisha and the
Constitution (Dadra and Nagar Haveli) Scheduled Castes Order, 1962. The
President is empowered by Article 341 of the Constitution of India to specify castes
which will be deemed as Scheduled Castes through a notification, as also
empowers the Parliament to include or exclude castes from the list of scheduled
Castes. The Act adds the following communities to the list of Scheduled Castes:
Haryana: Kabirpanthi Julaha Karnataka: Bhovi, Od, Odde, Vaddar, Waddar, Voddar,
Woddar, Bovi (NonBesta), Kalluvaddar, Mannuvaddar Odisha: Dhoba, Dhobi, Rajak,
Rajaka, Dom, Dombo, Duria Dom, Adhuria Dom, Adhuria Domb, Katia, Khatia, Kela,
Sapua Kela, Nalua Kela, Sabakhia Kela, Matia Kela, Gaudia Kela, Khadala,
Khadal, Khodal, Turi and Betra Dadra and Nagar Haveli: Chamar, Rohit The Act
also updates the name Uttaranchal to Uttarakhand in this list.
9. The Insurance Laws (Amendment) Act, 2015.
The Act amends the Insurance Act, 1938; the General Insurance Business
(Nationalization) Act, 1972; and the Insurance Regulatory and Development
Authority Act, 1999. The Act, among other things, stipulates that shareholding
by a foreign company (direct and indirect) should not exceed 49% of paid-up
capital of an Indian insurance company. It makes this cap inclusive of foreign
portfolio investments and states that the companies should be Indian owned and
controlled. (Section 2 (7A) of the Insurance Act) It also provides a separate
definition for ‘health insurance business’ as the effecting of contracts which
provide for sickness benefits or medical, surgical or hospital expense
benefits, whether in-patient or out-patient travel cover and personal accident
cover. (Section 2 (6C) of the Insurance Act) Minimum paid-up capital
requirement for a person exclusively in the health insurance business has been
increased from 50 crore to 100 crore. (Section 2 (8A) of the Insurance Act) It
increases from 2 years to 3 years, the time period for calling into question a
life insurance policy on the ground of misstatement. (Section 45 (1) of
Insurance Act) The four public sector general insurance companies, presently
required as per the General Insurance Business (Nationalization) Act, 1972
(GIBNA, 1972) to be 100% government owned, are now allowed to raise capital,
keeping in view the need for expansion of the business in the rural and social
sectors, meeting the solvency margin for this purpose and achieving enhanced
competitiveness subject to the Government equity not being less than 51% at any
point of time. (Section 10B of General Insurance Business (Nationalization)
Act, 1972) The Act omits Section 25 of the General Insurance Business
(Nationalization) Act, 1972 which restrained foreign insurers from issuing
insurance policies in India without prior government permission. It empowers
the IRDA to withhold a registration of a foreign insurer, in addition to the
power of cancelling it, if they have been debarred by law or practice of his
country to carry on insurance business. (Section 3 of Insurance Act) This
provision also includes any foreign company engaged in re-insurance business
through a branch established in India. It also empowers the IRDA to suspend or
cancel registration wholly or in part, when the transfer or amalgamation has
happened without the approval of the authority. (Section 4 of the Insurance
Act)
10. The Mines and Minerals (Development and Regulation) Amendment Act, 2015
The Act amends the Mines and Minerals (Development and Regulation) Act, 1957.
It adds a new Fourth Schedule to the Act, incorporating bauxite, iron ore,
limestone and manganese ore as notified minerals. It also introduces the
prospecting license-cum-mining lease, which is a two stage-concession granted
for the purpose of undertaking prospecting operations followed by mining
operations. (Section 2 (ga)) Further, it increases the mining lease period for
all minerals other than coal, lignite and atomic minerals, from 20 years to 50
years. (Section 8A (2)) It provides for the creation of a District Mineral
Foundation (DMF) and a National Mineral Exploration Trust (NMET). The DMF is to
be established by the state government for the benefit of persons in districts
affected by mining related operations. The NMET shall be established by the
central government for regional and detailed mine exploration. Licensees and
lease holders shall pay the DMF an amount not more than one-third of the
royalty prescribed by the central government, and the NMET two percent of
royalty.
11. The Coal Mines (Special Provisions) Act, 2015
The Act replaced two ordinances issued by the government – the first on
October 21, 2014 and the other in December, 2014, after the apex court
cancelled the allocation of 214 blocks since 1993. All the 204 mines whose
allocation was cancelled by the Supreme Court, are defined in the act as
‘Schedule-I coal mines’. Out of these, the 42 mines which were already
producing and ready to produce coal were defined as ‘Schedule-II coal mines’.
Other 32 coal mines which are at various stages of development were defined as
Schedule-III coal mines. These coal mines are meant for specified end-use and
the Central Government has been empowered to move mines from Schedule I to
schedule-III. The new Act has provisions for allocation of coal mines through a
transparent bidding process i.e. E-auction, in order to ensure the continuity
in coal mining operations and promotion of optimum utilization of coal
resources. The Act also facilitates E-auction of coal blocks for private companies
for captive use and allots mines directly to state and central Public Sector
Undertakings (PSUs). It contains provisions that propose strong measures for
rehabilitation and compensation for displaced persons. It further enables sale
of coal especially to small, medium and cottage industries which will increase
employment & incomes in these sectors.
12. The Andhra Pradesh Reorganization (Amendment) Act, 2015
The Act amends the Andhra Pradesh Reorganization Act, 2014. The Bill
increases the strength for the Legislative Council for Andhra Pradesh to 58
members. In doing so, it increases the number of members to be elected by
members of municipalities, district boards and other local authorities to 20
members. The number of members to be elected by members of the State
Legislative Assembly has been increased to 20 and to be nominated by the
Governor to 8.
13. The Regional Rural Banks (Amendment) Act, 2015
The Act amends the Regional Rural Banks Act, 1976. It removes the 5 year limit
over the responsibility of Regional Rural Banks to provide managerial and
financial assistance, thus allowing such assistance to continue beyond this
duration. The Act raises the amount of authorized capital of each RRB to INR
2,000 crore and states that it cannot be reduced below Rs one crore. Further,
it allows RRBs to raise their capital from sources other than the Central and
State Governments, and sponsor banks. In such a case, the combined shareholding
of the Central Government and the sponsor bank cannot be less than 51%.
Additionally, if the shareholding of the State Government in the RRB is reduced
below 15%, the Central Government would have to consult the concerned State
Government. The Act further states that any person who is a director of an RRB
is not eligible to be on the Board of Directors of another RRB. It also adds a
provision for directors to be elected by shareholders based on the total amount
of equity share capital issued to such shareholders. If the equity share
capital issued to shareholders is 10% or less, one director shall be elected by
such shareholders. Two directors shall be elected by shareholders where the
equity share capital issued to them is from 10% to 25%. Three directors shall
be elected in case of equity share capital issued being 25% or above. If
required, the central government can also appoint an officer to the board of
directors to ensure effective functioning of the RRB. (Section 9(1) (f))
14. The Warehousing Corporations (Amendment) Act, 2015 The Act
amends the Warehousing Corporations Act, 1962.
It does away with the Central Government’s responsibility of being a
financial guarantor to the central warehousing corporation. Accordingly,
provisos to certain sections relating to the government’s responsibility of
being a guarantor to the central warehousing corporation are proposed to be
omitted.
15. The Payment and Settlement Systems (Amendment) Act, 2015
The Act amends the Payment and Settlement Systems Act, 2007, extending its
application to a designated trade repository, or issuer, in relation to payment
systems. It introduces a new provision for settlement and netting in relation
to central counter parties (who is a system provider who by way of novation
interposes between system participants). It states that upon an order of
declaration of insolvency, dissolution or winding up in relation to a central
counter party, the payment obligations and settlement instructions between the
central counter party and the system participants are to be determined by the central
counter party in accordance with the gross or netting procedure or any other
provision of this Act. This must be approved by the RBI while issuing
authorization and such determination would be final and irrevocable. This
provision would override that of the Companies Act, 1956, Companies Act, 2013
and the Banking Regulation Act, 1949. (Section 23 (5) and (6)) It introduces
another provision which empowers the RBI to direct system providers of a
payment system to ensure protection of funds collected from customers. (Section
23A)
16. The Companies (Amendment) Act, 2015
The Act amends Companies Act, 2013. It removes the requirement of a minimum
paid up share capital amount for private and public companies. It introduces a
provision stipulating punishment for contraventions for acceptance of deposits
from the public. Such a contravention would now entail a minimum fine of Rs one
crore and a maximum of Rs 10 crore, in addition to the deposit or interest that
is due; and up to seven years imprisonment and fine between Rs 25 lakh to Rs
two crore, or both, for every defaulting officer of the company. If proved that
the defaulting officer of the company did so willfully, he will be liable for
the offence of fraud, under this Act. The Act limits the constitution of
benches of Special Courts only for the trial of offences where punishment is
imprisonment of two years or more. All other offences are to be tried by a
metropolitan or first class judicial magistrate. Further, doing away with the
requirement of a special resolution with regard to related party transactions,
the Act states that a resolution would not be necessary for transactions
between a holding company and its wholly owned subsidiary whose accounts are
consolidated with such holding company and have been placed before the
shareholders for their approval.
17. The Constitution (One Hundredth Amendment) Act, 2015
The Act amends the Constitution of India to give effect to the acquiring of
territories by India and transfer of certain territories to Bangladesh in
pursuance of the agreement and its protocol entered into between the
Governments of India and Bangladesh. 18. The Delhi High Court (Amendment) Act,
2015 The Act amends the Delhi High Court Act, 1996. The Bill increases the
pecuniary jurisdiction of the High Court of Delhi to INR 2 crore. Consequently,
the Bill empowers the Chief Justice of the Delhi High Court to transfer any
pending suit to a relevant subordinate court....
The Negotiable Instruments (Amendment) Act 2015 came in to force with
retrospective effect. According to the notification published in the official
Gazette dated 26.12.2015 the Amendment shall be deemed to have come into force
on the 15th day of June, 2015. Rajya Sabha passed the Negotiable Instrument
(Amendment) Bill 2015 on 7th December 2015 . Lok Sabha had passed the Bill in
August 2015. The Act will replace Negotiable Instrument (Amendment)
ordinance which was re-promulgated on 25th September 2015. The amendment makes
changes in provisions relating to the territorial jurisdiction for filing
Cheque dishonour Cases in the Negotiable Instrument Act. As per the Amendment
The offence under section 138 shall be inquired into and tried only by a court
within whose local jurisdiction,— (a) if the cheque is delivered for collection
through an account, the branch of the bank where the payee or holder in due
course, as the case may be, maintains the account, is situated; or (b) if the
cheque is presented for payment by the payee or holder in due course, otherwise
through an account, the branch of the drawee bank where the drawer maintains
the account, is situated. It was in Dashrath Rupsingh Rathod vs. State of
Maharashtra a three Judge Bench of the Supreme Court held that a
Complaint of Dis-honour of Cheque can be filed only to the
Court within whose local jurisdiction the offence was
committed, which in the present context is where
the cheque is dishonored by the bank on which it is drawn. The Court clarified
that the Complainant is statutorily bound to comply with Section 177 etc. of
the Cr.P.C. and therefore the place or situs where the Section 138 Complaint is
to be filed is not of his choosing. Supreme Court in Dashrath Rupsingh Rathod
v. State of Maharashtra & Anr. overruled the two Judge Bench Judgment in K.
Bhaskaran v. Sankaran Vaidhyan Balan (1999) 7 SCC 510 wherein it
was held that “the offence under Section 138 of the Act can be completed only
with the concatenation of a number of acts.....
