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Trade Update 14
Foreign Trade Update
Institution and/or continuation of FTDRA proceedings of companies/firms against whom proceedings have been instituted under the Insolvency and Bankruptcy Code, 2016.
Vide Circular 32/2015-20 dated March 20, 2020, the Directorate General of Foreign Trade, basis the opinion of the Department of Legal Affairs, clarified that the institution and/or continuation of proceedings under Foreign Trade (Development & Regulations) Act, 1992 (FTDRA) against companies/firms against whom proceedings have been instituted in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC) are to continue unless there are specific directions by NCLT prohibiting these proceedings.
This clarification was mandated due to the confusion created by section 33(5) and section 35(1)(k) of IBC concerning institution and/or continuation of FTDRA proceedings. Section 33(5) of IBC provides that when a liquidation order has been passed, no suit or other legal proceeding (such as the FTDRA proceedings) shall be instituted by or against the corporate debtor. Simultaneously, Section 35(1)(k) of IBC provides that subject to the directions of the NCLT, the liquidator shall have the powers to institute or defend any suit, prosecution or other legal proceedings, civil or criminal, in the name of on behalf of the corporate debtor.
The Department of Legal Affairs clarified that all FTDRA proceedings are to continue unless NCLT prohibits the proceedings. The liquidator will be appointed as a respondent in the
proceeding to defend on behalf of the corporate debtor.
Trade Remedy Measures Update
The Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry has recently issued the following Final Findings concerning trade remedy measures.
• March 18, 2020- Final Findings have been issued in the Anti-dumping investigation concerning imports of “Electronic Calculators” originating in or exported from Malaysia