India Business Law Journal – June 2020

Embracing change

A silver lining in every cloud

With no end in sight to the havoc being sown by the coronavirus, many professionals have returned to work, albeit remotely. Even government work, long seen as impossible without in-person interactions, is happening virtually, which has prompted suggestions of the appearance of green shoots of recovery.

But what of the large numbers of companies and workers that are floundering? Can we expect the green shoots being detected to reverse their fortunes? Or is this further evidence of the dichotomies within the economy? We would do well to recognize that only a recovery that embraces the economy as a whole can endure. Anything else would be a breeding ground for distrust and division.

Be that as it may, covid-19 has produced some positives, such as court hearings through video conferences and e-filing of cases. Expressing his disbelief at reaching this far, Attorney General KK Venugopal recently suggested a further step – video streaming of court hearings. This, he said, would make it possible “to judge the capacity of judges and lawyers, and the nature of cases which are being handled in courts”. Whether this happens, only time will tell, but whatever leads towards greater transparency and efficiency should be applauded.

This month’s Cover story provides further details about India’s courts embracing technology in the administration of law and lockdown. There has also been a re-allocation of resources with pre-covid matters being discontinued and work shifted to matters associated with the economic breakdown. As such, parties have had to grapple with a dramatic, though welcome reorganization.

Anand, at Anand and Anand, have needed “multiple rooms with multiple computers in case the hearings happen around the same time”. Meanwhile, clients who have got their day in court will have benefited from lower costs as well as speedy disposal of their cases. No surprise, then, that the general consensus is that virtual courts should continue to supplement actual courtrooms, even after normalcy returns.

In Keeping competitors at bay we turn the spotlight on non-compete clauses that are used to enforce obligations during M&A transactions. As we highlight, non-compete clauses should be carefully drafted to ensure they are not rendered ineffective by the courts. While India’s antitrust regulator recently reduced the information burden on parties with respect to non-compete clauses, it should be noted that they will still need to be compliant with competition law.

In this month’s What’s the deal? six senior lawyers reflect on challenges surrounding the exit of a star partner. Following one such exit at L&L Partners, Rajiv Luthra, the firm’s managing partner, said he hoped to involve personally and spent a couple of weeks in Mumbai and a week in Delhi “speaking to everyone”. Luthra will have included clients. The exit of an entire team or tens of lawyers will need even more careful handling as it will provoke widespread speculation from both inside and outside a firm. As the first step in the matter of replacing an exiting star, we are seeing firms resorting to staff that are seen as institutions within the firms.

Writing in this month’s Vantage point Mishal Choudhary, a New York-based research fellow at Columbia Law School, writes that the Indian government must create a data protection law to protect citizens’ data from tech companies. She says this is necessary especially in light of a recent order banning the use of 59 apps, including TikTok. While the order referred to “raging concerns” on aspects relating to data security and safeguarding the privacy of 1.3 billion Indians, Choudhary points out a data protection bill has been pending in the parliament since December 2019.

This month’s Intelligence report is India Business Law Journal’s 14th annual survey of the top international firms for India work. The report draws on an analysis of more than 600 law firms, from every continent, which have catalogued deals and disputes with an Indian element in the past 12 months.

Our report reveals the top 15 foreign law firms for India-related work. Also listed are 15 firms that are considered key players for India-related deals and an additional 20 firms that are classed as significant players.

As in previous years, our report zeroes in on the work of regional and specialist firms in key economies such as Australia, Canada, Germany, Japan and Singapore, along with regions such as Sub-Saharan Africa. Accordingly, we highlight 20 firms that are strategically active in areas and industries about seizing roles in India’s aligned segments.

Our report goes on to identify 15 “firms to watch,” and 10 firms to watch in the regional category. We believe these firms are committed to India firms involved in India-related credentials.

The survey marks the start of our 14th year of reporting and a big round of congratulations to all, bringing strength to the economy when India needs it most, and we thank you for your support.