India Business Bulletin (March 2025)

GENERAL UPDATES

Parliament of India has passed Protection of Interests in Aircraft Objects Bill, 2025 ("2025 Bill")

In an effort to further boost the Aviation sector in India, the 2025 Bill has been passed by the Indian Parliament. The 2025 Bill will boost aircraft financing and leasing efficiency as well as align the sector with the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment for which India is signatory since 2001.

The Carriage of Goods by Sea Bill, 2024 ("2024 Bill") passed

The Lower House of the Parliament of India has passed the 2024 Bill which will replace a century old Indian Carriage of Goods by Sea Act, 1925. This Bill will ensure India's further compliance with international obligations and maritime conventions. Further, the Bill aims to modernize regulations governing the responsibilities, liabilities, rights, and immunities related to goods transported from an Indian port to another Indian/international port.

Bills of Lading Bill, 2025 ("2025 Bill") passed by Lower House of Parliament

The Indian Bills of Lading Act, 1856 will be replaced by 2025 Bill. This Bill aims to simplify, modernize the legal framework for shipping documents and to align India's maritime laws with global standards.

Various Memorandums of Understanding ("MoUs") signed between India and Mauritius

With the aim to strengthen cooperation and economic collaboration a total of 8 (eight) MOUs have been executed between both the nations in various fields such as Maritime; Public administration and governance; Financial sector; Diplomatic and security cooperation etc. One of the important MOU signed is in relation to combating financial crimes and threats.

Online Portal launched for seeking extension on revised schedule M implementation

The Central Drugs Standard Control Organisation (CDSCO) has launched an online application system under the Online National Drugs Licensing System (ONDLS) to facilitate Micro, Small, and Medium Enterprises (MSMEs) in seeking 1 (one) year extension for compliance with the revised Good Manufacturing Practices (Schedule M) norms. MSME pharma units with an annual turnover below INR 250 crore (US$ 30,865,000 approximately) can apply for an extension.

Import restrictions imposed on platinum alloys

The Directorate General of Foreign Trade has imposed restriction on import of platinum alloys with less than 99% purity. This is a move to prevent illicit gold-platinum blends.

Import duty removed from EV Batteries and mobile phone components

With the aim to boost local manufacturing, import duties on around 35 components for EV battery production and 28 components for mobile phone manufacturing have been removed by the Ministry of Finance.

AI Kosha portal launched

With the aim to accelerate Artificial Intelligence ("AI") innovation, the Ministry of Electronics and Information Technology has launched the AI Kosha portal that provides access to AI datasets, models, and tools.

CORPORATE LAW UPDATES

Expansion of Micro, Small and Medium Enterprises (MSME) Classification Criteria

The Ministry of Micro, Small and Medium Enterprises through its recent notification has revised the investment and turnover criteria for MSME classification. The revised thresholds for MSME are as follows:

Note that the revised thresholds have come into force from 1 April 2025.

LABOUR LAW UPDATES

Exemption to Information Technology ("IT") and Information Technology Enables Services ("ITES") establishments for certain provisions of Andhra Pradesh Shops and Establishment Act, 1988 ("the Act")

All IT and ITES establishments are exempted from certain provisions of the Act for a further period of 5 (five) years, subject to fulfilment of conditions such as 48 (forty-eight) weekly working hours, beyond which employee will be entitled for overtime wages; weekly off; women employee permitted during night shift subject to adequate security and transport provisions; identity cards for employees; security guards for night shift vehicles; obtain bio-data of each driver and conduct pre-employment screening of the antecedents amongst others.

Karnataka Agricultural Produce Marketing (Regulation and Development) (Amendment) Bill, 2025 ("2025 Bill") passed

The Karnataka Government has passed the 2025 Bill which brings e-commerce platforms under its regulatory ambit. Key highlights of 2025 Bill include mandatory license from Director of Agricultural Marketing; allowing only licensed traders to register on platform; periodical reports and returns submission; digital payment option; dispute redressal; appeal procedure; penalties and obligation of warehouse service provider.

Direct master servant relationship has to be established on paper

The Supreme Court of India observes that for a person to claim employment under any organization, a direct master-servant relationship has to be established on paper.

In the present case, the Court was dealing with the issue whether the private Respondent was employees of the Appellants or not. It was contended by the Appellants that the private Respondent was hired through the contractor and though he had worked for the Appellants, but only as a representative of the contractor with whom there was a contract for labour supply. On the other hand, it was contented by the Respondent that he was an employee under the Appellants for the reason that there was a supervisory control over him by the Appellants and he was transferred to various places to perform its duties - which contention was rejected by Court.

Marriage certificate not required for maternity leave

The High Court of Madras recently observed that no doubt, maternity leave is granted to married woman, however, a marriage need not be compulsorily registered and therefore, the employer cannot seek proof beyond doubt for the factum of marriage unless it is disputed. The court directed the employer to grant maternity leave to the Petitioner which was rejected on the ground that she has not produced a marriage certificate.

Leave Encashment cannot be withheld upon dismissal from service

The High Court of Karnataka held that any attempt of the employer to take away the right of any part of terminal benefit of employee, which in the present case is, leave encashment, without any umbrage of a statutory provision, such action is not valid.

Reinstatement with 50% (fifty) back wages awarded

The High Court of Madhya Pradesh upheld the award of Labour Court directing the Petitioner to reinstate Respondent with 50% back-wages, as the termination was held to be without assigning any reason and without giving any notice of retrenchment and retrenchment compensation. The termination was found to be bad in terms of relevant provisions of the Industrial Disputes Act, 1947.

Controlling Authority has jurisdiction to decide the issue of gratuity

The High Court at Calcutta held that during Corporate Insolvency Resolution Process ("CIRP") and as the company remained active therefore Controlling Authority has jurisdiction to decide the issue of gratuity. Further, the court observed that CIRP is a recovery mechanism for creditors unlike liquidation wherein company's life is put to an end.

INTELLECTUAL PROPERTY UPDATES

Right of giving a license in works is an inherent right of a copy right owner

The Delhi High Court (DHC) clarified that the right to grant a license for its work is an inherent right of a copyright owner under relevant provisions of the Copyright Act, 1957. The court also highlighted that the act of the Defendants of playing the sound recordings in their restaurants/ bars, for which the Plaintiff holds the copyright, prima facie amount to infringement of the Plaintiff's copyright. The Defendants were restrained from playing songs owned by Phonographic Performance Limited without appropriate license.

Exemplary damages awarded in Trade Mark Infringement suit

A whooping amount of INR 2,34,82,986 (US$ 291,000 approximately) as compensatory damages and INR 1,00,00,000 (US$ 124,000 approximately) as exemplary damages in favour of the Plaintiff and against the Defendants were awarded by DHC in a Trademark Infringement suit. The Defendants in this matter were engaged in selling counterfeit medical products.

"TAJ" declared well known mark

DHC has declared the "TAJ" related to luxury hotel chain as well-known mark.

Draft Guidelines for Examination of Computer-Related Inventions (CRI), 2025 ("2025 Guidelines") released

The Office of the Controller General of Patents, Designs, and Trade Marks has released the 2025 Guidelines for public comments. The 2025 Guidelines include various case laws recently pronounced by Courts across India related to overcoming objection under 3 (k) of the Indian Patents Act, 1970; pointers to be considered for ascertaining

CASE LAWS

Arbitrator has the power to interpret terms of the contract

While dealing with a case related to the Arbitral Award, the Delhi High Court ruled that interpretation of the terms of the contract falls within the domain of the Arbitrator and even if there is an available alternative view, the Court cannot substitute its own opinion. In this matter, the issued revolves around enforcement of Force Majeure clause by Defendants and seeking suspension of their fee obligation during COVID-19. The Defendants thereafter initiated arbitration proceedings against Plaintiff.

Jurisdictions of Indian Courts reaffirmed

The Supreme Court of India has reaffirmed that Indian Courts will have jurisdiction wherein arbitration is conducted under a foreign centre and there are conflicting arbitration clauses in international commercial agreements.

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