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  RBI Reduces Risk Weight on Microfinance Loans and   Bank Financing to NBFCs: A Regulatory Overview By Abhishek Jat, Advocate   The Reserve Bank of India (RBI) has recently announced significant regulatory adjustments aimed at easing the risk weight requirements for microfinance loans and bank exposures to Non-Banking Financial Companies (NBFCs). These changes, introduced through two separate circulars dated February 25, 2025, mark a pivotal shift in the regulatory landscape, particularly for the microfinance sector and the broader financial ecosystem. Revisions in Risk Weights for Microfinance Loans In November 2023, the RBI had increased the risk weight on consumer credit, including personal loans, to 125%. However, certain categories such as housing loans, education loans, vehicle loans, and gold-backed loans were exempted from this hike. Following a comprehensive review, the RBI has now decided to recalibrate the risk weights specifically for microfinance lo...

  NCLAT's Ruling on the Mandatory Nature of the 14-Day Period Under Section 11A(3) IBC and the Primacy of Section 7 Applications By Abhishek Jat, Advocate   Introduction The Hon'ble National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, has ruled that the 14-day period under Section 11A(3) of the Insolvency and Bankruptcy Code, 2016 (IBC) is mandatory. This decision reinforces that when a Corporate Insolvency Resolution Process (CIRP) application under Section 7 is pending, any subsequently filed Pre-Packaged Insolvency Resolution Process (PPIRP) application under Section 54C beyond the 14-day window must not be considered before the Section 7 application. The ruling establishes that the 14-day period prescribed under Section 11A(3) of the IBC is mandatory, thereby reinforcing the precedence of a Section 7 Corporate Insolvency Resolution Process (CIRP) application over a subsequently filed Pre-Packaged Insolvency Resolution Process (PPIRP) under S...

  WhatsApp Notices No Longer Valid: Supreme Court Enforces Strict Compliance Under CrPC & BNSS By Abhishek Jat, Advocate In a significant ruling, the Hon’ble Supreme Court of India has categorically held that service of notices under Section 41A of the Code of Criminal Procedure, 1973 (CrPC) and Section 35 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) must strictly adhere to the statutory requirements. The Apex Court has clarified that digital means such as WhatsApp, e-mail, and SMS do not constitute a valid mode of service for these statutory notices. This judgment underscores the importance of procedural compliance to uphold due process and prevent misuse of electronic communication in criminal proceedings. Background of the Case The ruling was delivered in response to issues raised in the case Satender Kumar Antil v. CBI & Anr. (2022) 10 SCC 51 and subsequent compliance proceedings. The learned Amicus Curiae flagged instances where law enforcement agenc...

  The Hidden Risks in Business Contracts: Have You Checked Your Arbitration Clause? By Abhishek Jat, Advocate In the world of business, contracts are the backbone of commercial relationships. They define the rights, obligations, and remedies available to parties in case of disputes. However, one often overlooked aspect of contracts is the  arbitration clause . A recent case before the Andhra Pradesh High Court highlights the critical importance of understanding and carefully drafting arbitration clauses to avoid unforeseen legal complications. The Case at Hand: A Lesson in Arbitration Clauses In  M/s. Kranthi Grand DKNV Hospitalities vs. M/s. Manasa Estates and Hospitality Pvt. Ltd. , the Andhra Pradesh High Court dealt with a dispute arising from a sub-lease agreement dated January 6, 2018. The agreement included a clause naming a specific arbitrator, Sri Venu Gottipati, to resolve any disputes between the parties. The applicant, M/s. Kranthi Grand DKNV Hospita...

  30 Civil Law Terminologies: What Every Lawyer Must Know By Abhishek Jat, Advocate In the intricate world of civil law, mastering legal terminology is not just a matter of professional pride—it’s a necessity. A lawyer’s ability to articulate complex legal concepts with precision can make or break a case. Whether you’re drafting a contract, arguing in court, or advising a client, a robust legal vocabulary is your most powerful tool. In this blog, we delve into  30 essential civil law terminologies  that every lawyer must know. From  Ademption  to  Writ of Mandamus , these terms are the building blocks of a successful legal practice. Let’s explore these concepts, their meanings, and their practical applications in the legal realm.   1. Ademption A crucial concept in inheritance law, ademption occurs when a specific bequest in a will becomes ineffective because the asset no longer exists at the testator’s death. 2. Abatement Refers to the...

  Supreme Court Acquits Woman Accused of Abetting Rape: A Landmark Ruling on Abetment and Harboring Offenders By Abhishek Jat, Advocate In a landmark judgment, the Supreme Court of India has acquitted a woman accused of abetting a rape case, underscoring the necessity of clear and unambiguous evidence to establish criminal liability. The ruling in  Seetaben Laghdhirbhai vs. The State of Gujarat  (Criminal Appeal No. 771 of 2016) reinforces the principle that mere presence or passive knowledge of a crime does not constitute abetment under Section 107 of the Indian Penal Code (IPC). This decision is a significant reminder of the importance of due process and the high evidentiary standards required in criminal cases. Case Background The appellant, Seetaben Laghdhirbhai, was convicted by the Trial Court and later by the Gujarat High Court for abetting rape and harboring an offender under Sections 376, 212, and 114 of the IPC. The prosecution alleged that Seetaben prov...

  Whether the Second FIR is Maintainable in Law? Author: Abhishek Jat, Advocate   In a landmark judgment delivered by the Supreme Court of India, the Division Bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra addressed a critical legal issue:  whether the registration of a second FIR is maintainable in law . The case, titled  State of Rajasthan vs. Surendra Singh Rathore , has significant implications for criminal jurisprudence, particularly in cases involving multiple FIRs arising from the same set of circumstances. Background of the Case The case originated from an appeal filed by the State of Rajasthan against a judgment dated 22.09.2022, passed by the Rajasthan High Court. The High Court had quashed a second FIR registered against the respondent, Surendra Singh Rathore, holding that it was an abuse of the process of law. Facts of the Case First FIR : Registered on 04.04.2022, the first FIR was filed under Sections 7 and ...

  Whether a Writ Petition Can Be Entertained Against a Notice Issued Under Section 74 of the CGST Act, 2017? A Critical Analysis of Kerala High Court's Ruling Author: Abhishek Jat, Advocate   Introduction The Kerala High Court, in a recent ruling dated 6th February 2025, in WA No. 238 of 2025 , held that a writ petition challenging a show-cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) is not maintainable. The judgment significantly impacts taxpayers and businesses facing tax adjudication proceedings under the CGST regime. This article critically examines the legal reasoning behind the decision and its broader implications. The Legal Context: Section 74 of the CGST Act, 2017 Section 74 of the CGST Act, 2017, empowers tax authorities to issue show-cause notices in cases of tax not paid or short-paid due to fraud, willful misstatement, or suppression of facts. The provision stipulates procedural safeguards and time limi...

  Judicial Scrutiny of Post-Employment Restrictive Covenants: A Critical Analysis of M/s Ambyan Ventures Pvt. Ltd. v. Afza By: Abhishek Jat, Advocate Introduction The enforceability of restrictive covenants in employment agreements has been a contentious issue in Indian jurisprudence, primarily due to the constraints imposed by Section 27 of the Indian Contract Act, 1872. The case of M/s Ambyan Ventures Pvt. Ltd. v. Afza , adjudicated by the Hon'ble Civil Judge-02 (South), Saket Courts, New Delhi, presents a pivotal judicial pronouncement reinforcing the legal principles governing post-employment restrictions. The court, in its ruling, rejected the plaint under Order 7 Rule 11(a) and (d) of the Code of Civil Procedure, 1908 (CPC), citing the absence of a cause of action and the unenforceability of the agreement under the contractual framework of Indian law. Factual Matrix The plaintiff, M/s Ambyan Ventures Pvt. Ltd. , a dry-cleaning and laundry service provider, institute...