Corporate Laws (Amendment) Bill, 2026: Transforming India’s M&A and Capital Structuring Framework

On March 23, 2026, Finance and Corporate Affairs Minister Nirmala Sitharaman introduced the Corporate Laws (Amendment) Bill, 2026 (Bill No. 85 of 2026) (“Bill”) in the Lok Sabha. The Bill was subsequently referred to a Joint Parliamentary Committee for detailed examination.

The Bill proposes amendments to the Limited Liability Partnership Act, 2008 and the Companies Act, 2013 across 107 clauses, with a stated objective of facilitating greater ease of doing business, decriminalising procedural defaults, and modernising the corporate governance framework.

Read the article “Corporate Laws (Amendment) Bill, 2026: Transforming India’s M&A and Capital Structuring Framework” authored by Mr. Saheb Singh Chadha, Associate Partner, Mr. Akshay Chugh and Ms. Ria Agrawal, Associates, published on Lexology : https://lnkd.in/guaMvFUk

For any clarification, please write to [email protected]

Customs and GST Alert – May 2026

We are pleased to share with you our latest Customs and GST Alert, covering recent judgments and regulatory updates.

We trust that you will find the same useful.

Looking forward to receiving your valuable feedback.

For any clarification, please write to:

Mr. Shammi Kapoor
Senior Partner
[email protected]

Mr. Arnab Roy
Partner
[email protected]

ITAT: STCG on Index-Based Derivatives Not Taxable in India under India–Mauritius DTAA

The ITAT, in EM Delta One, has held that short-term capital gains earned by a Mauritius-based FPI from trading in index-based derivatives are not taxable in India under Article 13(4) of the India–Mauritius DTAA.

Rejecting the tax department’s attempt to tax such gains as share-related income under Article 13(3A), the Tribunal clarified that derivatives and shares are distinct asset classes under the Securities Contracts (Regulation) Act, 1956 and the Income-tax Act, 1961. The mere fact that derivatives derive value from underlying shares or indices does not alter their legal character.

Relying on its earlier ruling in Estee India Fund, the ITAT reiterated that gains from derivative transactions are taxable only in the country of residence of the investor and cannot be recharacterised as gains from shares for treaty purposes.

The ruling offers important clarity for foreign investors resident in jurisdictions with similar DTAA provisions, including Singapore, UAE, Saudi Arabia, and others, while noting that treaties such as those with the UK, USA, and Canada follow a different approach to capital gains taxation.

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Delhi High Court Upholds Registration of TRANSFORMOTION, Rejects Volkswagen’s Opposition to 4MOTION

In Volkswagen AG v. The Registrar of Trade Marks & Anr. (2026:DHC:2029), the Delhi High Court upheld registration of Maruti Suzuki’s “TRANSFORMOTION”, rejecting Volkswagen’s opposition based on alleged similarity with its “4MOTION” mark.

Volkswagen argued deceptive similarity, but the Court held that the marks are visually, phonetically, and conceptually distinct, noting the clear structural difference between “4MOTION” and “TRANSFORMOTION”. The Court further observed that “MOTION” is commonly used in the automobile industry and cannot be monopolised. It also accepted that “TRANSFORMOTION” is a coined expression derived from “transformation”, giving it a distinct identity. Emphasising that automobiles are high-value goods purchased with care, the Court found a low likelihood of consumer confusion and recognised the independent goodwill of both parties.

The ruling highlights that trademark protection does not extend to common or descriptive industry elements, and that similarity must be assessed holistically, particularly in markets involving informed consumers where minor overlaps are unlikely to mislead.

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Discharged Accused Stands on a Higher Footing Than Acquitted Accused: Supreme Court

In Ex. Sqn. Ldr. R. Sood v. Union of India & Ors., 2026 INSC 366, the Supreme Court of India has clarified that an accused who is discharged stands on a higher footing than one who is acquitted after a full-fledged criminal trial, reaffirming the legal consequences and protections flowing from an order of discharge.

The case arose from criminal proceedings initiated against a former Indian Air Force officer in connection with an incident dating back to 1987. Although criminal proceedings were instituted, the Sessions Court discharged the accused at the threshold, finding that no prima facie case was made out and that mandatory legal requirements were not satisfied. Despite such discharge, departmental proceedings were subsequently initiated, culminating in his dismissal from service. The legality of such action fell for consideration before the Supreme Court.

At the outset, the Court undertook a detailed examination of the distinction between discharge and acquittal. It reiterated that discharge is a pre-trial termination of proceedings on the ground that the material on record is insufficient to even frame charges, whereas acquittal is a post-trial determination rendered after evaluation of evidence.

Emphasising the legal effect of discharge, the Court observed:

“Discharge is a pre-trial termination of proceedings for lack of evidence. As and when ordered, discharge signifies and reinforces the position that there is no material against the accused for him to stand trial. Whereas, acquittal is a posttrial outcome declaring the accused either innocent due to lack of credible material or on account of grant of the benefit of doubt. Insufficient evidence to even frame charges for standing trial would lead to a discharge while evidence presented not proving guilt leads to acquittal”

Drawing a clear doctrinal distinction, the Court further held:

“In that sense, an accused discharged of a criminal offence stands on a better footing than an accused who is finally acquitted after a full-fledged trial.”

In arriving at this conclusion, the Court relied on its earlier decision in Yuvraj Laxmilal Kanther v. State of Maharashtra, 2025 SCC OnLine SC 520, reiterating that, by its very nature, discharge stands on a higher pedestal than acquittal.

The Court explained that while an acquittal follows a complete trial where evidence is led but ultimately fails to establish guilt on the other hand a discharge reflects a stronger judicial determination that the case itself lacked sufficient foundation to proceed. In other words, a discharged person ought never to have been subjected to the rigours of a criminal trial in the first place.

Rejecting the contention that discharge places an individual in a weaker position than an acquitted person, the Court termed such understanding as “fallacious”. It held that once an accused is discharged, he cannot be treated as occupying a lesser position merely because there was no formal acquittal after trial.

Significantly, the Court held that a discharged person is entitled to all consequential benefits and cannot be subjected to adverse civil or administrative consequences on the basis of the same allegations. It emphasised that once discharge is recorded, the individual ceases to be an accused altogether, and the foundation for further punitive action on identical facts stands substantially eroded.

In this backdrop, the Supreme Court held that the continuation of disciplinary action, despite a clear discharge in criminal proceedings, was unsustainable in law.

The judgment thus crystallises the legal position that discharge is not a lesser relief than acquittal, but in fact represents a stronger exoneration at the threshold stage, reinforcing that individuals should not be subjected to the consequences of prosecution where even a prima facie case is absent.

Authored By
Rajat Jain, Advocate
Email: [email protected]
Mobile No. 9953887311

Amendment to Section 52A of the Maharashtra Stamp Act, 1958: Enhanced Thresholds for Grant of Allowance on Stamp Duty

The Amendment Act further amends Section 52A of the Maharashtra Stamp Act, 1958 (“Maharashtra Stamp Act”), which deals with applications for grant of allowance on stamp duty.

Section 52A of the Maharashtra Stamp Act governs the procedure for applications seeking allowance of stamp duty paid on instruments which are spoilt, misused or not required for use. Prior to the Amendment Act, Section 52A(1) permitted such applications only where the allowance sought was above rupees 5 lakhs. This threshold has now been revised upward to rupees 20 lakhs, significantly narrowing the class of transactions eligible to invoke the refund mechanism under this provision.

The Amendment Act also introduces a restructured decision-making framework under Section 52A(2), by substituting the earlier provision with a tiered authority structure. On receiving an application, the authority competent to decide the same is now determined based on the quantum of allowance sought, as follows:

(i) the Additional Controller of Stamps, where the amount of allowance exceeds rupees 20 lakhs and is up to rupees 1 crore;
(ii) the Joint Inspector General of Registration and Superintendent of Stamps, where the amount of allowance exceeds rupees 50 lakhs and is up to rupees 1 crore; and
(iii) the concerned Deputy Inspector General of Registration and Deputy Controller of Stamps of the Division, where the amount of allowance exceeds rupees 20 lakhs and is up to rupees 50 lakhs.

Where the amount of allowance exceeds rupees 1 crore, the above-mentioned authorities are required to forward the application, along with their remarks, to the Chief Controlling Revenue Authority for a final decision. This represents a departure from the earlier sub-section (2), which did not expressly set out a differentiated, tiered referral mechanism of this nature.

Additionally, Section 52A(1)(b) has been amended to include the Joint Inspector General of Registration and Superintendent of Stamps alongside the existing “concerned” authority as a recipient of copies of the refund application, thereby broadening the supervisory oversight at the application stage itself.

However, the revised framework appears to create an overlap in jurisdiction between the Additional Controller, the Joint Inspector General of Registration and Superintendent, the Deputy Inspector General of Registration and Deputy Controller of Stamps for cases between rupees 20 lakhs and rupees 50 lakhs, and rupees 50 lakhs and rupees 1 crore.

From an implementation standpoint, further clarification regarding allocation of jurisdiction among authorities may help ensure consistency in processing and minimise procedural uncertainty.

The above views on the Maharashtra Stamp (Amendment) Act, 2026, published in the Maharashtra Government Gazette on 7th April, 2026 (“Amendment Act”) are of our Associate Partner, Mr. Saheb Singh Chadha.

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