Year: 2025

forum selection in employment contracts

Supreme Court Reaffirms Enforceability of Forum Selection in Employment Contracts

Insights | July 3, 2025 | Practice Area: ,

The Supreme Court of India recentlyreaffirmed the enforceability of exclusive jurisdiction clauses in employment contracts. InRakesh Kumar Verma v. HDFC Bank Ltd.the Court held that where multiple courts may have territorial jurisdiction under Section 20 of the Code of Civil Procedure, 1908, parties are free to contractually select one such court as the exclusive forum for dispute resolution, provided that the chosen court has a legitimate nexus to the dispute.
This decision is particularly relevant for corporations with large numbers of employees working across jurisdictions or employers with remote or hybrid workforces, as it provides clarity on how to mitigate forum shopping risks and ensure consistency in dispute resolution. The Court’s ruling also offers practical guidance on how employers can structure jurisdiction clauses to withstand legal scrutiny.

cape town convention

The Cape Town Convention: Its Application and Benefits in India

Insights | July 2, 2025 | Practice Area: , , , ,

S&R Associates and Stewarts are pleased to present their co-authored note on the Cape Town Convention.
India’s new Cape Town Convention act enforces global rules for aircraft financing, boosting investor confidence and lowering leasing costs. It streamlines repossession in insolvencies and aligns India’s aviation laws with international standards, encouraging growth and efficiency. The reform is set to attract foreign lessors and benefit passengers with better service and pricing.
This note discusses the implications and expected benefits of the Protection of Interests in Aircraft Objects Act 2025, which gives legal effect from May 1, 2025 to the Convention on International Interests in Mobile Equipment (known as the “Cape Town Convention” and referred to here as the “CTC” or the “Convention”) and the Protocol to the Convention on Matters Specific to Aircraft Equipment (the “Protocol”), which were adopted on December 16, 2001 in Cape Town, South Africa.
The Convention entered into force on April 1, 2004 and is applied to different sectors through individual protocols, one of which is the Protocol, which entered into force on March 1, 2006.

opportunities in Indian defence sector

New Opportunities in India’s Defence Sector

Insights | June 30, 2025 | Practice Area: , , , ,

Recent geopolitical dynamics, regional conflicts and related national security concerns have made the Indian defence sector ripe for additional growth and investment. As technologies evolve and new forms of warfare emerge, this growing sector is likely to witness further transformation. India’s proposed reform measures in the defence industry, together with rising domestic demand and increased focus on self-reliance, indigenization and exports; emerging technologies and technology transfers, innovation and R&D; as well as strategic international partnerships with global OEMs and key allies, are likely to provide new opportunities for private and foreign participation in the sector.
This note provides a broad overview of India’s defence industry and proposed reforms, including with respect to new defence technologies, the startup ecosystem, and international collaborations; the ease of doing business and FDI; defence acquisition procedures and recent budgetary allocation trends; along with the export of dual-use items and production-linked incentive schemes for the defence sector.

Indian Trusts Act

Succession Planning through Private Trust (Part 1): Implications under the Indian Trusts Act, 1882

Insights | June 25, 2025 | Practice Area: ,

In a country in which family structures, business dynamics, and forms of wealth are evolving rapidly, private trusts have emerged as a widely adopted method for succession planning. In this series of publications, we explore key aspects of setting up a trust, including tax and regulatory implications. In this part, we focus on the provisions of the Indian Trusts Act, 1882.

Energy Storage Systems

Electricity Consumers’ rights in relation to Energy Storage Systems under Draft Amendments to the Electricity Rules, 2005

Legal Updates | June 12, 2025 | Practice Area: , ,

On June 11, 2025, the Ministry of Power has issued draft amendments (“Draft Amendments”) to the Electricity Rules, 2005 (“Rules”) under which changes to Rule 18 of the Rules relating to energy storage systems (“ESSs”) are sought to be made.
Under the current form of the Rules, an ESS may be owned developed, owned, leased or operated by a generating company, a transmission licensee or a distribution licensee, a system operator or an ESS service provider. However, under the Draft Amendments, consumers are also permitted to develop, own, lease and operate ESSs.
Although the amendments may be small, they may impact models for energy delivery and infrastructure investment. Consumers may now have a choice on whether to purchase power from hybrid systems with inbuilt ESS or from an independent ESS service provider or develop its own ESS. For commercial and industrial consumers with large energy needs a captive ESS may offer an interesting proposition and reduce dependence on generating companies.

merger control

CCI issues Updated FAQs on Merger Control

Legal Updates | June 9, 2025 | Practice Area: ,

The Competition Commission of India (“CCI”) has introduced an updated version of the Frequently Asked Questions (“FAQs”) on combinations. The updated FAQs provide guidance on definition of ‘control’ under the Competition Act, 2002, clarification on certain aspects relating to deal value thresholds, stock exchange purchases (which require approval of the CCI), and several other key aspects of India’s merger control regime. This note provides a detailed description of the clarifications within the FAQs, and the implications of these clarifications on transactions going forward.

take privates

Take-Privates in India: Time to Revisit the Rules

Insights | June 4, 2025 | Practice Area: , ,

S&R Associates and Houlihan Lokey are pleased to present their co-authored white paper, Take-Privates in India: Time to Revisit the Rules.
2024 saw a resurgence of take-private M&A transactions globally, with 89 take-private transactions in North America and Europe valued at an aggregate of ~USD 150 billion and 14 take-private transactions in the U.K. valued at an aggregate of ~USD 21 billion. Interestingly, during the same period, no take-private transaction was announced in India.
We explore the current regulatory landscape for take-private transactions in India, compare it with other jurisdictions, and provide our suggestions on the way forward for greater efficiency in the market.

S&R Associates Announces New Counsel and Principal Associates

News & Announcements | June 2, 2025 |

We are pleased to announce that Lipsa Acharyya, Shivani Chhabra, Preeti Dhar and Sushmita Surhave been designated as Counsel at S&R Associates.
Dr. Deborshi Barathas been designated as Head of Public Policy and Knowledge Management.
We are also pleased to announce thatM. V. Abhinaya,Ishita Mathur,Ishan Seth,Henal Shah,Shwetank SharmaandTripti Sharmahave been promoted as Principal Associates.

A Deep Dive into the Draft Guidelines for Virtual Power Purchase Agreements

Insights | May 26, 2025 | Practice Area: , , ,

On May 22, 2025, India’s Central Electricity Regulatory Commission released draft guidelines for virtual power purchase agreements (“VPPAs”), further to an opinion from theSecurities and Exchange Board of India on regulatory jurisdiction. Unlike a ‘physical’ power purchase agreement, which involves the actual delivery of electricity, a VPPA is essentially a bespoke financial contract to hedge against market volatility and other risks. Pursuant to the draft guidelines,the difference between the VPPAprice and the market price will be settled bilaterally between the contractingparties.
In the United States and elsewhere, VPPAs have appealed to a wide variety of corporate buyers, including to meet renewable energy (“RE”) targets, improve sustainability performance and branding, andsecure long-term certainty on electricitycosts and RE intermittency.
While the draft guidelines specify that VPPAs will be non-tradable and non-transferable, the RE involved in a VPPA will be eligible for RE certificate (“REC”) issuances. If the RE generator sells electricity through power exchanges or other authorized modes, it may directly transfer the RECs received to an eligible consumer. Such consumer, in turn, can use such RECs for compliance or green attribute claims.
However, existing regulations on RECs do notprovide for the sale of ‘bundled’ certificates, where RECs can be sold together with their associated RE. This limitation may impact verifiability and ESG claims. The draft guidelines suggest that, apart from statutory certificates issued under REC regulations, no other environmental attribute certificate (“EAC”) may be transferred in a VPPA, potentially compromising the commercial viability of such arrangements.
Global trends indicate that VPPAs need not always include EAC transfers. However, the draft guidelines make REC transfers mandatory in VPPAs. Although transferred RECs can be used for meeting RE consumption targets, they cannot be traded. This may restrict consumers from entering into VPPAs for capacities not supported by RECs.

Corporate Debt Securities

RBI Eases Investments by FPIs in Corporate Debt Securities

Insights | May 22, 2025 | Practice Area: , , , , , ,

The Reserve Bank of India recently issued a circular onInvestments by Foreign Portfolio Investors in Corporate Debt Securities through the General Route(“RBI Circular”) on May 08, 2025, to withdraw short term investment limits and concentration limits, applicable on investments by FPI in corporate debt securities under the general route. This note highlights the changes to the regulatory framework brought about by the RBI Circular that are intended to provide greater flexibility and ease of investments for FPIs investing in corporate debt securities in India under the general route.