Inside India's Courts
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India Business Law Journal Your partner in legal intelligence June 2008 Volume 2, Issue 1 Inside India’s courts Senior counsel reveal the challenges facing the judiciary Piracy in Bollywood The dawn of Islamic finance Money laundering laws in a spin The best foreign law firms for India-related work www.indilaw.com Contents 3 Leader Flies in the ointment 13 4 Inbox 7 News Inside India’s Bar Council of India in the dock Indian AIM listings falter courts BSE in trademark battle Ashok Desai, Soli Sorabjee and others discuss the challenges facing the country’s judiciary 11 The wrap Legislative and regulatory developments Plus: Interview with Justice Manmohan Singh 13 Cover story of Delhi High Court Inside India’s courts 19 Vantage point Democratic disdain Retrospective amendments to fiscal 21 statutes undermine faith in the rule of law, argues Pradeep Dinodia The dawn 21 Spotlight of Islamic The dawn of Islamic finance finance 27 Money laundering laws in a spin Simple regulatory changes could transform India Widely welcomed measures to tackle the into a regional hub for shariah-compliant finance clandestine transfer of funds have been and facilitate new investment in infrastructure undermined by infighting over the allocation of adjudicating powers 31 What’s the deal? Facing the music 35 India’s entertainment industry has been rocked by a series of high-profile copyright Jewels in the cases. Amarjit Singh discusses a dispute over a Bollywood soundtrack and its crown implications for artists and IP owners The best foreign 35 Intelligence report law firms for Jewels in the crown India-related work 54 Correspondents Expert advice from India Business Law Journal’s correspondent law firms 54 Corporate governance 58 Legal process outsourcing PSA, Legal Counsellors Clairvolex 55 Direct taxation 59 Regulatory developments KR Chawla & Co Singhania & Partners 56 Foreign investment 60 Retail & logistics OP Khaitan & Co Mulla & Mulla & Craigie Blunt & Caroe 57 Intellectual property Lex Orbis June 2008 India Business Law Journal 1 Editorial board India Business Law Journal June 2008 Volume 2, Issue 1 ISSN: 1994-5841 Contact us Usha Amonkar Pravin Anand Ruby Anand Shamnad Basheer Lalit Bhasin Himavat Chaudhuri VP - Legal Affairs Managing Partner General Counsel Visiting Ass. Professor Managing Partner General Counsel Editorial Mahindra & Mahindra Anand and Anand GE George Washington Bhasin & Co NDTV Imagine Email: [email protected] Law School Telephone: +852 6123 6578 Subscriptions/customer service Email: [email protected] Telephone: +852 8197 5088 Fax: +852 3006 5377 www.indilaw.com Editor Alfred Romann Deputy editor Frank Hancock A Jayagovind Doug Jones AM Mohit Kapoor N Kini RS Loona Managing Director Vice Chancellor Partner VP & Gen. Counsel GM & Corp. Secretary Managing Partner Vandana Chatlani ABN Amro Asia National Law School Clayton Utz GCG, India Hindustan Coca-Cola Alliance Corporate Contributors Corporate Finance of India University Beverages Lawyers Pradeep Dinodia Ben Frumin George W Russell Moira Shaw Raghavendra Verma Sub-editor Simmie Magid Production editor Pun Tak Shu Som Mandal Amit Anant Moghay Mysore R Prassanna Premnath Rai Balaji Rao Martin Rogers Associate publisher Managing Partner Senior Manager Group Executive Founding Partner Managing Director Partner Tina Tucker FoxMandal Little HSBC Securities & President (Legal) Premnath Rai Starwood Capital Clifford Chance Executive editor Capital Markets (India) Aditya Birla Group Associates India Chris Hunter Publisher James Burden Cover photography Vishal Sabharwal www.vishalsabharwal.com Printed in Hong Kong Sudhir Shenoy Amarjit Singh Richard Symonds Shardul Thacker Nigel Thompson Diljeet Titus Senior VP, Legal Managing Partner Senior Counsel Partner Senior Partner Senior Partner Tata AIG Life Amarjit & Associates World Bank Mulla & Mulla & Baker Botts Titus & Co Craigie Blunt & Caroe The information in this publication does not necessarily reflect the views of any editorial board members or of the organizations for which they work. Vantage Asia Publishing Limited 1801 Wing On Central Building 26 Des Voeux Road Central Hong Kong Correspondent law firms Telephone: +852 8197 5088 Fax: +852 3006 5377 Email: [email protected] Competition & antitrust: P&A Law Offices www.vantageasia.com Corporate governance: PSA, Legal Counsellors Directors Direct taxation: KR Chawla & Co James Burden, Chris Hunter Foreign investment: OP Khaitan & Co Infrastructure & energy: Trilegal Disclaimer and conditions of sale Intellectual property: Lex Orbis Vantage Asia Publishing Limited Legal process outsourcing: Clairvolex retains the copyright of all material published in this magazine. No part Licensing & franchising: Singh & Associates of this magazine may be reproduced Mergers & acquisitions: Amarchand Mangaldas or stored in a retrieval system with- out the prior written permission of Real estate: AKS Law Associates the publisher. The views expressed Regulatory developments: Singhania & Partners in this magazine do not necessarily reflect the views of the publisher, Retail & logistics: Mulla & Mulla & Craigie Blunt & Caroe its staff or members of the editorial Securitization & structured finance: Trilegal board. The material in this magazine is not offered as advice and no li- Venture capital & private equity: Crawford Bayley & Co ability is assumed in relation there- to. The publisher, staff and all other contributors to India Business Law Journal disclaim any liability for the consequences of any action taken Subscription information or not taken as a result of any mate- rial published in this magazine. India Business Law Journal is published 10 times a year and has an annual subscription price of US$690. © Vantage Asia Publishing Ltd, 2008 To subscribe, please call +852 8197 5088, email [email protected] or subscribe online at www.indilaw.com. 2 India Business Law Journal June 2008 Opinion Leader Flies in the ointment Faced with opposition to liberalizing In India’s case, one such “fly” is the increasing incidence of money laundering. Criminal activity associated with “dirty China’s economy 30 years ago, money” has become a primary concern. But as our coverage illustrates, widely welcomed measures to tackle the clandes- Deng Xiaoping is said to have tine transfer of funds have been undermined by infighting among the authorities (Money laundering laws in a spin, page retorted: “When you open the 27). Controversy centres on the judicial bodies established to window, some flies come in” administer the anti-money laundering provisions. The forma- tion of tribunals and the appointment of adjudicators have been suspended because the judiciary and the government his first anniversary issue of India Business Law are unable to agree on the allocation of adjudicating powers. In Journal illustrates well the strains and stresses – the common with reforms to other areas of Indian jurisprudence, a T “flies” – that accompany any far-reaching attempt hornet’s nest of opposition was immediately disturbed. Legal at reform. Much of our coverage this past year has inves- limbo and paralysis are the result. tigated the different forms such difficul- Similar examples appear throughout this ties take: frustration at the failure of the issue of India Business Law Journal and it is country’s legal system to perform the hard to escape the conclusion that India’s India Business Law Journal facilitating role that should be one of its Your partner in legal intelligence June 2008 rapid economic growth is posing problems main functions; dissatisfaction with the Volume 2, Issue 1 that the current regulatory and judicial unpredictable imposition of new, expen- architecture are too inflexible to address. sive and sometimes vague regulatory The pressure points – in the government, constraints; unhappiness with the short- the regulatory authorities and the courts – comings too often displayed by some are increasingly noticeable. of the country’s legal professionals; and Vantage point contributor Pradeep increased exposure to international eco- Dinodia of accountancy firm SR Dinodia & nomic influences over which domestic Co, writes powerfully on the undemocratic authorities have little or no control. exigencies that parliament’s predilection The magazine’s focus has been to nei- Inside India’s courts for retrospectivity can give rise to (page 19), Senior counsel reveal the challenges facing the judiciary ther ignore these flaws nor dwell on them, while our examination of a recent case of but rather to explore how law firms, local music piracy (Facing the music, page 31) and international, are crafting effective Piracy in Bollywood provides a pertinent reminder of the woe- strategies to enable their clients to achieve The dawn of Islamic finance fully inadequate mechanisms for enforcing Money laundering laws in a spin their business goals. Devising suitable The best foreign law firms for India-related work intellectual property rights in India. solutions is the responsibility of the nation’s www.indilaw.com Meanwhile, the need for regulators to professional elites as well as its politicians. keep laws up to date or miss opportunities As in the case of China, the benefits that is well illustrated in our report on Islamic accrue are undeniable: rapid economic growth, the chance to finance (page 21). Simple regulatory changes could transform lift many millions out of poverty, and then some. Lawyers play a India into a regional hub for shariah-compliant finance and crucial role in this process. And their role is growing. The Cover clear