Being Head Legal and Contracts, the role and responsibilities are always very Dynamic and Challenging. While proactive mitigation of Legal Risk in business through documentation and/ or Litigation are imperative, devising innovative strategy and management Advisory towards solution are major key responsibilities, to support strategic planning and operational execution.
18 years of my journey in different Industries and Organisations, like Apeejay Group, Kotak Mahindra Bank, SREI Group of companies and presently in SPML Infra Ltd is full of excitement coupled with lot of learning on versatile Legal commercials aspects.
During this tenure, enormous changes have been WITNESSed in Debt recovery mechanism and related litigation in view of several landmark judgements / observation by Apex Court from time to time. The related Laws pertaining to Dispute resolution, Debt Recovery, Enforcement of Security and so on have been strongly implemented as well as amended drastically with the need of hour. As a result of this big swing, the overall industry dynamics towards legal operation took a new shape and as such the responsibility of the In house Legal Counsels in every industry including BFSI has been increased many folds as a Business partner from a mere support function. The approach towards dispute resolution in business got gradually changed in last 2 decades.
Meanwhile in 2016, Introduction of IBC was a real game changer. It has opened a new ERA for debt resolution and fulfilled multiple objectives of different earlier provisions/ mechanism like SICA, Winding up, CDR under one roof for the creditors.
Legislative intention of speedy disposal of commercial disputes by amending several Acts like Arbitration & Conciliation Act, 1996 and enforcement of The Commercial Courts Act, 2015 had surely aided the business house. Introduction of Fifth & Seventh Schedule in Arbitration & Conciliation (Amendment) Act, 2015 brought significant change, but at the same time NBFCs are facing big challenges towards adjudication through Arbitration and in appointment of Arbitrators for their small ticket bulk retail portfolio.
I can further recollect the Landmark Judgement of the Hon’ble Supreme Court dated 1st August 2014 in Dashrath Rupsingh Rathod vs State of Maharashtra & Anr. An overnight change was observed from the concept of the then Five Point jurisdictions to single Jurisdiction for a Creditor to initiate proceedings against dishonour of Cheques under section 138 N.I. Act. That had a major impact on the Finance Industry which had to face lot of operational inconvenience to go and file cases across the country. Subsequently representation was given by us based on the simple principal coupled with several other impacts, that “It’s debtor who should follow the Creditor and not the Creditor to run behind the debtor”. Based on such representation followed by several deliberations, finally the Law got amended and Sub Section (2) of Section 142 was inserted by Negotiable Instruments (Amendment) Act, 2015.
Have come across various crisis scenarios, which I believe had enriched the spectrum of my knowledge and management competency. It was always thrilling and challenging and was led to great job satisfaction.
Yes, in today’s business scenario within the ever-changing legal atmosphere, role of In-House Legal Counsels is indispensable to support and protect business. With the growth of business opportunities and economy in our country in last 2-3 decades, the legal complications in business have become inevitable, hence a proper and constant monitoring of Legal compliances, due diligence and mitigation of risk is a must, which can be well addressed by an In House Legal Counsel keeping the business objective in mind.
Broadly speaking, conceptualizing and synergising Legal strategies with the business and analysis of legal risk in commercial transaction with effective operation are perhaps the regular affairs.
Law as a subject is ever changing and very frequently gets updated with socio economical change in our Country. The challenge remains to foresee the implications and to customise the way forward to achieve the business goal.
While operating through PAN India,we have come across few State laws, procedure under those Laws sometimes varies from State to State and also from the Central Laws and it creates challenges. In this context I would refer the Gujrat Public Works Contracts Disputes Arbitration Tribunal Act 1992 and Madhyastham Adhikaran Adhiniyam 1983 which mandates Arbitration under the said Act and not under the 1996 Act. On careful perusal of both the Acts with 1996 Act, it seems the basic objective is common, i.e., effective adjudication of disputes, but 1996 Act having its own uniformity and is much more comprehensive, updated and widely enacted.
Close collaboration, interaction, sharing of knowledge and together deep driving to the rout cause of the legal issues in day-today operation would certainly improve the synergy. I personally feel that in today’s business world it’s like a relay race where both Law firms and in house counsels need to work as a team to ensure the desired outcome, which is only possible by doing brain storming together on the particular point of Law.
Detailed analysis of Legal complications coupled with regular study, following Legal sites, Magazine like Lex WITNESS, Research on Judgements, academic discussion, attending conference and seminars would definitely be a great help.
Understanding of business pain, goal and its end objective is a must before we formulate legal strategy. Proactive thinking, analysis of various situation from Legal and commercial perspectives and finding solution are the key area to develop for an in-house counsel.
Favorite Gadget – i phone
Favorite App – Facebook & LinkedIn
Favorite Automobile Brand – Land Rover
Favorite Writing Instrument – Fountain Pen
Favorite Holiday Destination – Kashmir
Favorite Cuisine – Bengali & Punjabi Cuisine
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