Khurana Marches to Mumbai
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India Business Law Journal Your partner in legal intelligence February 2015 Volume 8, Issue 7 Shutting up shop The complexities of closing a factory in India Indian Law Firm Awards How Tata tapped the debt markets Why Indian firms are eyeing the Middle East Plus: expert advice from correspondent law firms www.indilaw.com Contents 3 Leader High time to disprove the cynics 15 4 Inbox 5 News Shutting up Media rebuked for reports of Amarchand split shop NALSAR’s hat trick with winning essay ACI fined for abuse of dominance The plight of Nokia’s Chennai plant highlights Khurana marches to Mumbai the perils and complexities of closing Phoenix poaches KSP team a factory in India Dentons and Dacheng unite 11 The wrap Business law digest: page 11 Dispute digest: page 13 23 15 Cover story Shutting up shop A busy corridor 22 Vantage point Road map for reform Outbound investment from India to the Lalit Bhasin, the president of the Society Middle East is gathering pace. What are of Indian Law Firms, explains why he the trends and where is the activity? now supports the phased entry of foreign law firms 23 Spotlight 33 A busy corridor 29 What’s the deal? Indian Law How Tata tapped the debt markets A case study of a hybrid bond issue Firm Awards that showed gumption and out-of-the-box thinking A celebration of excellence in India’s 33 Intelligence report legal profession Indian Law Firm Awards 56 Correspondents Expert advice from India Business Law Journal’s correspondent law firms 56 Banking & finance 65 Mergers & acquisitions Economic Laws Practice Amarchand Mangaldas 57 Canada-India trade & investment 66 Middle East-India trade & investment Bennett Jones Afridi & Angell 58 Capital markets Economic Laws Practice 67 Outbound investments & joint ventures India Law Offices 59 Competition & antitrust Trilegal 68 Private equity & venture capital 60 Dispute resolution Khaitan & Co Bharucha & Partners 69 Project finance 61 Energy & infrastructure Khaitan Sud & Partners Trilegal 70 Regulatory developments 62 Foreign direct investment Phoenix Legal Luthra & Luthra 63 Intellectual property 71 Taxation & transfer pricing Saikrishna & Associates Economic Laws Practice 64 Media & entertainment 72 UK-India trade & investment LexOrbis TLT February 2015 India Business Law Journal 1 Editorial board India Business Law Journal February 2015 Volume 8, Issue 7 ISSN: 1994-5841 Pravin Anand Shamnad Basheer Lalit Bhasin Himavat Chaudhuri Sumes Dewan Girish Gokhale Contact us Managing Partner Founder Managing Partner Chief Legal Managing Partner Senior Litigation Anand and Anand SpicyIP Bhasin & Co & Regulatory Lex Favios Consultant Editorial Affairs Officer DSK Legal Email: [email protected] Tata Sky Telephone: +852 3622 2673 Subscriptions & customer service Email: [email protected] Telephone: +852 3622 2623 Fax: +852 3006 5377 www.indilaw.com Toby Greenbury Manik Karanjawala Amit Anant Moghay Fali S Nariman Jane Niven Mysore R Prasanna Editor Consultant Partner General Counsel Senior Counsel Regional General Independent Vandana Chatlani Khaitan & Co Karanjawala & Co HSBC Counsel Consultant Jones Lang LaSalle Deputy editor Rebecca Abraham Sub-editor Simmie Magid Contributors Lalit Bhasin Production editor Pun Tak Shu Premnath Rai S Ramaswamy Vijaya Sampath Sunil Seth Ashok Sharma Pallavi Shroff Head of marketing Founding Partner President Senior partner Senior Partner Founder President Partner Fiona Leung Indian Corporate PRA Law Offices Indian Corporate Lakshmikumaran & Seth Dua & Amarchand Associate publisher Counsel Association Sridharan Associates Counsel Association Mangaldas Tina Tucker Publisher James Burden Printed in Hong Kong Amarjit Singh Shruti Dvivedi Sodhi Shardul Thacker Bhavna Thakur Jagannadham Rohan Weerasinghe Managing Partner Chief Compliance Partner Corporate Thunuguntla General Counsel & Amarjit & Associates Officer Mulla & Mulla & development adviser Strategist & Head Company Secretary Vantage Asia Publishing Limited Aircel Craigie Blunt & Caroe for entrepreneurs of Research Citigroup SMC Global Securities 21/F Gold Shine Tower 346-348 Queen’s Road Central Hong Kong Correspondent law firms Telephone: +852 3622 2673 Fax: +852 3006 5377 Email: [email protected] • Afridi & Angell • Khaitan Sud & Partners www.vantageasia.com • Amarchand Mangaldas • LexOrbis Directors James Burden, Kelley Fong • Bennett Jones • Luthra & Luthra Disclaimer & conditions of sale • Bharucha & Partners • Phoenix Legal Vantage Asia Publishing Limited retains the copyright of all material • Economic Laws Practice • Saikrishna & Associates published in this magazine. 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[email protected] +852 3622 2623 www.indilaw.com © Vantage Asia Publishing Ltd, 2015 2 India Business Law Journal February 2015 Opinion Leader High time to disprove the cynics How long is too long to wait by Indian law firms, which he believes now equip them to “stand up to the competition from foreign law firms”. for change to kick in? While international law firms take stock of the opportu- nities that may present themselves in India, many Indian overnments across the world have been swept companies have focused their gaze on opportunities into power on the back of bold promises of outside the country. In A busy corridor (page 23) we shine G change. But while such promises are a sure-fire the spotlight on an upswing of India-related transactions way to capture the imagination of the electorate, they also in the Middle East. “A lot of companies know they cannot run the risk of raising expectations to a level where they expand in India” and so look outward, explains Jayshree are almost impossible to meet. Gupta, a partner at Baker & McKenzie Habib Al Mulla. Has India’s government fallen into this trap? The mag- Singapore is another place that has seen increases nitude of the task at hand has always been daunting, in India-related transactions. This month’s What’s the but that didn’t stop people believing in Narendra Modi deal? (page 29) analyses a hybrid bond issue in the and his promise of change. Now, seven months after the lion city from a Tata Group company. The deal required euphoria and expectations began, the belief that India some out-of-the-box thinking to get past what Philip can be turned around has begun to fray at the edges. Lee, a partner at Herbert Smith Freehills, describes as If cynicism is not to take hold, the the “slightly unique” aspects of Indian inspirational promises must be followed regulations. up with bold and effective action. The Will this spur on more creative think- India Business Law Journal areas in which such action is required Your partner in legal intelligence February 2015 ing? With Indian companies seeking to Volume 8, Issue 7 are countless, and one could easily for- take on more debt, often to repay exist- give Modi’s government for not knowing ing debt, chances are it will. where to start. Rounding off this month’s line-up is a In terms of business law at least, a special report revealing the winners of good starting point might be to overhaul India Business Law Journal’s 2014 Indian the country’s antiquated labour laws, Law Firm Awards (page 33). The year which have long frustrated domestic gone by saw India Inc hold its breath and international companies. during the run-up to the general elec- This month’s Cover story (page Shutting up shop tions, and then breathe a collective sigh 15) offers a poignant reminder of just of relief as Modi’s victory gave rise to how serious the problem has become. The complexities of closing a factory in India hopes of change and the prospect of an Our coverage tells the story of Nokia’s end to the policy paralysis that had sti- Sriperumbudur factory, just outside Indian Law Firm Awards fled the country for several years. Since How Tata tapped the debt markets Chennai, which once boasted of being Why Indian firms are eyeing the Middle East then companies have been relooking at the largest handset manufacturing facility Plus: expert advice from correspondent law firms stalled investment plans and law firms in the world. Now, mired in a tax dispute www.indilaw.com have been competing for the new work. and excluded from the sale of Nokia’s To find out which firms finished the mobile phone assets to Microsoft, pro- year ahead of the pack, our editorial duction at the plant has ground to a halt. Yet Nokia is team sought the opinions of in-house counsel and other bound by India’s labour laws to continue paying its employ- qualified observers of India’s legal profession. Nomination ees until the tax dispute is resolved. forms were sent to thousands of India-focused in-house A key problem, according to Ajay Raghavan, a partner counsel and other legal professionals in India and around at Trilegal, is that the government rarely gives permission the world. Respondents were asked to nominate Indian for factories to be closed. “Seven or eight out of 10 cases law firms in each of the awards categories and to justify are rejected or stuck in a time warp,” he says.