Competition News Alert – CCI invites public comments on proposed amendment to the Combination Regulations omitting requirement of furnishing non-compete information

The Competition Commission of India (“Commission / CCI”) has invited public comments on the proposed amendment to the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Amendment Regulations, 2020 (“Combination Regulations”). The proposed amendment omits Paragraph 5.7 from FORM I filings which seeks information regarding non-compete restrictions agreed between the parties to combination and justification for the same.

The proposed amendment aims to dispense with the ex-ante assessment of non-compete clauses under the merger review process i.e. under Section 6 of the Competition Act, 2002 (‘the Act”). All non-compete clauses will now be subjected to scrutiny under the antitrust provisions of the Act i.e., Section 3 and / or Section 4.

To read the Competition News Alert click at Download Newsletter.

For any further information/clarification, please feel free to write to:
Mr. M M Sharma at mmsharma@vaishlaw.com
Mr. Anand Sree at anand@vaishlaw.com

Arbitration Law Alert – Arbitration Proceedings and Force Majeure

Vaish Associates Advocates had earlier issued Frequently Asked Questions on Force Majeure and Contractual Obligations due to the impact of Covid-19 on on-going contracts.

In continuation of the same, along with a recent judgement clarifying the extent to which the parties can validly invoke the doctrine of frustration under the Indian Contract Act, 1872, we attach herewith a compilation of some recent judgments in cases wherein the parties sought to invoke force majeure clause / doctrine of frustration on account of COVID-19 outbreak and lockdown.

Following conclusions emerge out of the judgments:

• Every contract will strictly be governed by its terms and there cannot be a straight-jacket formula applied to ascertain whether the contractual obligations will be suspended/terminated/continued.
• In the event the contract provides for the force majeure clause and the recourse to be adopted in the event of force majeure, then parties cannot allege frustration of contract and have to be strictly bound by terms of the contract.
• If the contract provides for an alternative mode of performance, it has to be resorted before alleging an event of force majeure.
• Merely because the contract has become onerous/inconvenient, that in itself would not render the contract impossible/unlawful.
• Payment obligations arising out of the executed contract cannot be delayed/waived off due to the present COVID-19/lockdown situation.

In case of you require further clarification or information with regard to the issues covered, please feel free to write to:
Mr. Gaurav Varma, Principal Associate gauravvarma@vaishlaw.com