Liability for damages caused by handling of hazardous wastes

By

-

November 15, 2021

This article is written by Riya Yadav from Pranveer Singh Institute of Technology College of Law, Kanpur. This is an exhaustive article which deals with the liability for damages caused by handling hazardous wastes.

Table of Contents

Introduction

For the proper handling or management of hazardous waste in the environment, the Government of India (GOI) introduced the Hazardous Wastes (Management and Handling) Rules, 1989. However, these rules were suppressed with notification of the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008. The 2008 Rules were further amended by the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2016. According to R u le 17 of the 2016 Rules, hazardous waste refers to the kind of waste whose physical, chemical, reactive, toxic, flammable explosive or abrasive characteristics cause danger to health or environment, whether alone or when in-tuned with other wastes or substances, and shall include wastes as laid come in schedules of the principles.

Application of strict liability in the current system

The Environment (Protection) Act, 1986 governs the liability for damages caused by the handling of hazardous wastes. For example, to protect the air by removing trace metals from a flue gas only to transfer these contaminants to land through improper solid waste management practices, the Act provides liability rules for a spread of costs from certain kinds of pollution incidents. However, it is the foundation of strict liability within the common law doctrine. While considerable debate remains for individual decisions, strict liability appears to be accepted by the courts in cases of abnormally dangerous conditions or activities. Key factors in adjudicating if an activity is ‘abnormally dangerous’, and the corrosiveness which may result, is whether society should expect complete protection from such risk and whether the activity is an appropriate or uncommon practice for the situation within which it occurs. Thus as an example, day to day emissions of sulphur dioxide from the influenced plant, although hazardous, wouldn’t be the common law doctrine of strict liability since they are the traditional part of operations unavoidable under common practices and are appropriate for his or her location during a properly located power station.

On the other hand, a spill of rare toxic materials is ordinary and thus would fall within the strict liability guidelines. There does, however, seem to be some movement by the courts towards imposing strict liability altogether in cases of particular danger, whether normal or otherwise, with the reasoning that a private engaged in an exceedingly dangerous activity should bear the worth of that danger. Hence, under common law doctrine, strict liability tends to be upheld for incidents like spills of hazardous substances. Given the philosophical underpinnings of strict liability within common law, it’s not surprising that the current environmental legislation provides strict liability for hazardous pollution accidents. The remainder of this section will briefly review liability rules provided by several pieces of environmental legislation, and also explain why the application of the doctrine of strict liability for the damages so caused is not viable anymore.

Need for the law for controlling hazardous wastes

The Ministry of Environment, Forests and Climate Change, in 2006, published the National Environmental Policy; this policy is supposed to guide the controlling of hazardous waste. The main principle of this policy is a legal liability which specifies that civil liability would deter environmentally harmful actions and compensate the sufferer for environmental damages.

Section 9 of the Environment Protection Act, 1986, stipulates provisions about the furnishing of data to authorities and agencies, as well as remedial measures where the discharge of any pollutant over the prescribed standards occurs or is apprehended to occur due to an accident or other unforeseen act or event. The identical is reproduced as below:

Where the release of any environmental pollutant over the prescribed standard takes place or is apprehended to arise due to a twist of fate or different unexpected act or event, and for that reason the individual accounts of the region at which such discharge takes place or is apprehended to arise shall additionally forthwith intimate the reality of such incidence of apprehension of such incidence; and be bound if known as upon, to render all assistance.
On receipt of records concerning the reality or apprehension on any incidence of the person stated in sub-section(1) of Section 9, whether or not through intimation to thereunder sub-segment or otherwise, the government or companies stated in sub-section (1) shall, as early as practicable, move to execute such remedial measures to be taken as important to save the sufferer or mitigate environmentally.
The charges, if any, incurred with the aid of using any authority or organization regarding remedial measures stated in sub-section (2), along with interest from the date while the call for the charges is made till it is paid, can also be recovered with the aid of using such authority or organization from the individual involved as arrears of land sales or a public call for.
In exercising powers conferred under Section 6 and Section 25 of the Environment Protection Act, 1986, the authorities of India have notified Environment Protection Rules, 1986. Rule 12 of the stated policies and modification made thereof lays down aforesaid government who will be intimated approximately the stated prevalence or apprehension. The stated provisions are:
Where the release of an environmental pollutant is in the manner of the prescribed requirements takes place or is apprehended to arise due to a twist of fate or a different unexpected act or event, the individual responsibility of an area at which such discharge takes place or is apprehended to arise shall forthwith intimate the act of such prevalence or apprehension of such prevalence to any or all of the subsequent government or businesses
The officer-in-charge of emergency or catastrophe alleviation operation in an exceeding district or some other location of a state or union territory by way of means of something designation or by way of means of the authorities of the state or union territory, and in whose jurisdiction the industry processes.

Central board or state board due to the fact the case ought to also be and its local officials having nearby jurisdiction who’ve delegated powers beneath under Section 20, 21, and 23 of the Water (Prevention and Control of Pollution) Act, 1974 and Section 24 of the Air (Prevention and Control of Pollution) Act, 1987.

The Hazardous Wastes ( Management, Handling, And Transboundary Movement) Policies, 2008, has been notified by the authorities of India in exercising the powers conferred by Sections 6, 8, and 25 of the Environment (Protection) Act, 1986. Besides laying down provisions for managing and control of hazardous waste, it additionally stipulates the delivery of twist of fate reporting and legal responsibility of occupier, transporter, operator of a facility, and importer in regards to damages brought about to the surroundings by way of means of 1/3 events because of incorrect managing of risky wastes. The accessibility of the economic penalty for any violation of the provisions beneath the rules has additionally been stipulated, the same is reproduced as below:

Accident reporting and compliance

Wherein a twist of change takes place on the electricity or risky waste substances or at some stage in the transportation of the risky waste, the occupier or operator of the electricity or the transporter due to the fact the case is additionally, shall record straight away to the state pollutants panel approximately about the accidents in Form V Rule 14.

Liability of occupier, transporter, operator of a facility, and importer

The occupier, transporter, importer, and operator of the electricity will be accountable for all damages brought about to the surroundings of a third party due to incorrect management or disposal of the risky wastes.

The occupier and the operator of the electricity will be at risk of paying economic consequences as levied for any violation of the provisions beneath those policies through the state pollutants manipulate panel with the earlier approval of the relevant pollutants which manipulate panel. The concept of sustainable development, the precautionary precept, and as a consequence, the polluter can pay precept are implemented for passing any order or choice or by way of means of the tribunal.

The National Green Tribunal Act 2010 lays down provisions for remedy, reimbursement, restitution, and legal responsibility in Section 15 and Section 17, and which is given below:

The tribunal may also, by way of means of an order, offer:-

Relief and reimbursement to the sufferers of pollutants and different environmental harm emerging below the enactments laid down in the schedule 1 (together with coincidence happening at the same time as dealing with any hazardous substance)
For restitution of assets broken.
For restitution of the surroundings for such areas.

The remedy and reimbursement and restitution of assets and surroundings referred to in clauses (a), (b), and (c) of subsection (1) will be introduced to the comfort paid or payable under the Public Liability Insurance Act, 1991.
No utility for furnish of any reimbursement or remedy or restitution of assets of surroundings below this segment will be entertained by way of means of the tribunal until it is made inside five years from the date on which the motive for such reimbursement or remedy arise so long as the tribunal may also if it is happy that the applicant changed into avoided by way of means of enough motive from submitting the equipment in the stated length, permit it to be filed inside a similar length now no longer exceeding sixty days.
The tribunal may also have, related to the harm to public health, assets, and surroundings, divide the reimbursement or remedy payable laid down in Schedule 2 in order to provide reimbursement or remedy to the claimants and for restitution of the broken assets.
Every claimant of the reimbursement or remedy under this Act shall intimate the tribunal approximately the equipment filed or due to the fact the case is additionally, competitor remedy acquired from the alternative court or authority.

Where the dying off, or harm to, an individual (aside from a workman) or harm to any assets or the surroundings has resulted from a coincidence or the unfavourable effect of a hobby or operation or manner, below any enactment in step with Schedule 1, the individual will be at hazard of pay such remedy or reimbursement for such death, injury, or damage, below any or all of the heads, laid down in Schedule 2, as can also be decided by way of means of the tribunal. If the death, harm, injury, or damage due to a coincidence or the unfavourable effect of any activity or operation or manner below any enactment laid down at Schedule 1 can’t be attributed to any particular activity or operation or manner, however, is that the blended or resultant impact of seven such activities, operations, and methods, the tribunal may also apportion the legal responsibility for remedy or reimbursement among the ones answerable for such activities, operations, and the methods on an equitable basis. The tribunal shall, simply in case of a coincidence, observe the precept of no-fault. The National Green Tribunal Act, 2010, has additional provisions of penalty for failure to conform with orders of the tribunal. Section 26 of the Act stipulates that whoever fails to comply with any order or award or selection suggestions for enforcing liabilities for environmental damages because of dealing with and disposal of hazardous waste and penalty of the tribunal below this Act, will be punishable with imprisonment for a period which may also extend to 3 years, or can be ten crore rupees, simply in case of failure or contravention. However, the payment or fine may also surpass twenty-five crore rupees and one lakh rupees day by day simply in case of regular default.

Thus, a regulatory framework exists within the country that needs a possible polluter to be responsible for all damages caused to the environment or third parties due to improper handling of hazardous wastes or disposal of the hazardous wastes. Further, provisions have also been laid down in respect of monetary penalties associated with improper handling or disposal of hazardous wastes.

What’s in the future

Chemical substances, produced either by means of commercial activities or in sort of hazardous waste, can cause excessive fitness impairment or perhaps loss of life if taken by people in huge amounts. On the other hand, there are chemical substances that can lead to destructive effects even in small doses. Some of the excessive fitness results which might also additionally arise to the populations uncovered to unsafe chemical substances like Genetic defects, Reproductive abnormalities and so on.

Over the years, certain vital enhancements were made over with growth in focus on approximately unsafe systems. Consequently, if we find out about managing or lowering unsafe materials or wastes manufacturing typically then there can be plenty of higher practices than seeking to get rid of the wastes properly. Yes, the significance of right unsafe waste management can not be harassed and prolonged enough. But lowering the amount of waste or, higher yet, getting rid of it might be the idealized solution. We desire for the higher, and as visible from here, interest in sustainability and green practices will now no longer be trendy; it will likely be the norm.

Goal for the future

The main aim that needs to be given effect in the near future is that of waste avoidance. Waste avoidance simply means avoiding the production of waste. It is also known as waste reduction or waste minimization. Minimization is at the top of the waste pecking order, and incompatible with the popular concept. It means depleting the amount of waste that is produced and can be attained simply. Slight changes of processes or changing procurement practices can enhance efficiencies in using resources and lead to major depletion in the quantity of waste produced. There is a need for introducing broadened guidelines that could cover the related objects, such as paper, IT equipment, or furniture.

Conclusion

As the times have changed, everything around us needs to change. It also applies to the work of managing hazardous wastes, including legal provisions and other processes. Except for a truthful and better eternal shift in impact, shareholders in waste management and municipalities have to enhance their systems with era solutions. To regulate the prevailing system more efficiently, there is a need to digitize waste management. Legal provisions governing it should also be amended in respect of the current scenario.

References

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

All you need to know about gender stereotypes at the workplace

By

Sneha Mahawar

-

November 15, 2021

0

sex and equality — Image source: https://bit.ly/3mH5Q7H

This article is ‌written‌ by Sharad ‌Yadav from the ‌Institute ‌of ‌ ‌Law, Nirma‌ ‌University. This article will help you to understand the problems which women face at the workplace and the solution to reduce gender stereotypes.

Introduction

The past few years have seen a decline in many gender-related barriers and biases, yet gender stereotypes continue to create problems in women’s careers. Many opportunities for women continue to be negatively affected by gender stereotypes. Gender stereotypes exist despite having the provision of equal opportunities in workplaces. Women’s self-confidence, competence and ability are heavily impacted due to gender stereotypes in the workplace. Discrimination against women includes those differences of treatment that exist because of stereotypical expectations, attitudes and behaviours towards women. This article will be covering the aspects related to sexual harassment at the workplace, judicial stereotypes, the meaning of gender discrimination and the solutions to eliminate gender discrimination at the workplace.

India’s position

In India, like many other countries in the world, the pay gap exists across the sectors. According to the 2018 Monster Salary Index, the average pay gap stands at 22.5 percent. This index also shows that this gap increases with an increase in tenure and higher education. This showed that women earn less compared to their male counterparts, even though having the same qualifications and skills. At the time of promotion, women often face disadvantages due to the deeply ingrained societal gender roles disadvantage by deeply ingrained societal gender roles.

Gender discrimination

Discrimination in the job refers to treating people differently because of the characteristics that are not related to their skills or requirement of the job. Discrimination can be of any type related to race, sex, political opinion, national caste,race and others. According to International Labour Organization (ILO) “Discrimination at workplace is a violation of human rights that waste human talents having a detrimental effect on the productivity and economic growth.”

Glass ceiling

The glass ceiling is yet another outcome of gender discrimination. The Americans coined the term “glass ceiling” to describe the phenomena of social and organizational prejudiced attitudes that create artificial barriers and keep women from holding top positions. This glass ceiling does not exist because of employer-biased attitudes or any male domination in the company but exists due to women’s final disposition, their family, children and also job demand.

Sexual harassment at the workplace

Sexual harassment affects negatively and has psychological as well as health effects. It is against individuals’ very fundamental human rights. In the landmark case of Vishaka and others vs. State of Rajasthan and “Others” (1997), the Apex Court not only defined sexual harassment but also laid down the guidelines or code of conduct for workplaces to prevent and punish the offenders. In the year 1999 again the Apex Court further enlarged the definition of sexual harassment in the case of Apparel Export Promotion Council vs A.K. Chopra (1999). Sexual harassment is defined as any act which is verbal or gestures sexual advance, sexually explicit and derogatory statement toward women worker by their male superior or anyone who is in the position to harass them. Also, The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 was a significant step towards addressing harassment in the workspace.

Judicial stereotyping in India

Judicial Stereotyping is the practice of judges perpetuating harmful stereotyping by ascribing specific attributes to a social group which ultimately acts as a barrier to justice. The use of stereotypes by the Judges points toward a lack of accountability in the legal system. One of the famous cases underlying misogyny was the Mathura Case of 1979 which serves as a blatant failure of our Indian judiciary. In this particular case, two policemen were acquitted of charges of rape by relying on factors like absence of “marks of injury” and “habituation with sex”. After the coming out of the judgment, four law professors wrote to the Supreme Court questioning the concept of consent in the judgment. It is said to be the turning point in the women’s rights movement in India.

In 2015, stereotypes were removed from a prominent medical jurisprudence textbook with an emphasis on the need to sensitively deal with people of alternate sexual orientation, sex workers, and children in rape cases.

Transgender people

In the year September 2018, the Supreme Court (SC) scrapped Section 377, a colonial-era ban on gay sex. Many organizations still seem to be hiring transgender people just for the sake of it, to tick boxes, without fully understanding. Many organisations are still not comfortable having a transgender person as a leader or a manager. We need to educate people on this issue, only scrapping Section 377 would not be sufficient.

Anti-harassment policies

Similar to the requirements under the POSH Act The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013, organisations must put in place requisite grievance redressal mechanisms for transgender individuals to deal with the harassment-related complaints while at the same time keeping the identity of the complainant anonymous.

Schemes for women empowerment

National Commission for Women (NCW)

In the year 1992, the Government of India set up the NCW statutory body with a specific mandate to study and monitor all matters pertaining to the legal safeguards provided for women, review the existing legislation to propose amendments wherever necessary, etc.

Reservation for women in local self-government

The 73rd Constitutional Amendment Act passed in 1992 by Parliament for ensuring one-third of the total seats for women in all elected offices in local bodies whether in rural or urban areas.

The National plan of action for the girl child (1991-2000)

The plan of action is to ensure the survival, protection and development of the girl child with the ultimate objective of creating a greater future for the girl child.

National Policy for the Empowerment of Women, 2001

The Department of Women & Child Development in the Ministry of Human Resource Development has prepared a “National Policy for the Empowerment of Women” in the year 2001. The main goal of this policy is to bring about the development and empowerment of women.

Double standard

It is often noticed that identical professional behaviour differentiate people depending on the gender of the person. The study conducted by the Harvard Bussiness Review, 2018 examining gender language in leadership examination found that women are frequently told that “they need to be more confident and assertive” while being told “they are too bossy” in the same evaluation.

A new world of work

According to a report around 51 percent of India’s workforce is self-employed compared to 33.5 percent who are casual labourers and around 15.6 per cent who are salaried workers. We can conclude that the vast majority of workers are not covered by the nation’s labour regulations. A large number of women work in the informal economy as compared to the formal sector. In a largely unregulated domestic work sector, there are around 2.3 million women domestic workers out of a total of 3.9 million domestic workers. We need to have found ways of both meeting the existing gaps in social security and protection and creating a safe and healthy environment for women workers.

Effect on women’s self-evaluation

Gender stereotypes affect how women evaluate themselves. Women’s self-description differs from men’s self-description and is less agentic than men’s. Women tend to go through the process of assessing their own “fit”, with colleagues of the same type of job, and the result came out negative. Lack of confidence can have an adverse effect on one’s own mind. Negative expectations can give rise to self-directed bias. It is shown in the study that women when working collaboratively with men are unwilling to take an equal amount of credit for a good outcome and are likely to see themselves as less competent than their male counterparts.

Male being supervised by women

In Indian business, there are only a few females who hold supervisory positions however, with the changing scenario, the prevalence of women in supervisory positions has become very common. The workplace is considered to be the domain of males only, and women are considered as homemakers. Previously there were not many women who worked in the offices. Now, not only are women working in the offices but are holding some of the top positions in the company. Women are also considered as capable as men in doing the work in the offices.

Changing the mindset

We all need to change our mindsets. Everyone needs to recognize their social role and find ways of coming out of gender stereotypes. We can teach the men and boys that it is not a bad thing if they take the instruction from a woman.

Solutions to eliminate gender bias at workplace

Toxic work culture still continues, it makes it hard for some employees to achieve their desired career progress. We can reduce this bias by following the methods given below:

Educate workers

The first step of solving any type of issue is education. If your employee is not aware that there is an issue then how will they change it. Make sure your organization employees know what gender bias looks like and how to avoid it—showing some examples and conducting small workshops every month to educate people can be a step ahead. Evaluate and standardize pay

Companies should make efforts to evaluate the current pay structure and make sure that the head is aware of any discrepancies that might fall in line with this national average. Women should be encouraged and should be treated equally. By acknowledging it, you can take steps to make your compensation system more progressive and reflective of equal pay for equal work.

Stand up against it

People need to stand up against any kind of bias or even during discussions. Everyone needs to recognize while having lunch or in any other place. It’s how you increase awareness of what gender bias sounds and looks like. It can present an opportunity to teach someone else what is the preferred treatment in the workplace. It’s not going to be an easy task because standing against people often needs courage, but you are standing for the right thing. This will help you to eliminate gender bias in the workplace.

Offering flexible work hours

The COVID pandemic has taught us that work can be done from home. Big companies like Amazon, Facebook, Apple, Google are now offering hybrid work regimes. Remote work helps in minimizing gender bias and allows men and women to optimize their working hours from the location of their choice. It encompasses a range of flexibility that includes working remotely and adjusting the usual working offers to capitalize on people’s available and productive hours of the day. It will also help those women who have to care for their children at home. Family-friendly policies and flexibility allow employees to maintain autonomy and consistency, improving satisfaction and engagement for female employees.

Mentoring programs

It’s not enough to encourage women within the workplace, they also need extra guidance and knowledge to achieve their career ambitions. Many research suggests that mentoring programs make for a more diverse work hierarchy. It helps minorities and women a brighter spotlight and helps them climb the professional ladder with the help of network, skill, and organizational knowledge. Mentoring relationships and pairing women with senior leaders can help them to get promotions by learning from them. These mentors do not necessarily belong to the same gender. It might be beneficial for men to mentor women as men still hold most senior leadership positions in companies across the nations. Mentorship will help women to feel more connected and engaged with their place of employment.

Conclusion

Women’s participation at the workplace has increased over time, but we still have to go ahead. The stereotypes which exist at the workplace today exist even in many prominent organizations. Educating the people about the same is very important. Once in a month or two months, every organization should start conducting a stereotypes awareness workshop to inform the organization’s people.

References

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

Modern-day banking : a comparison between e-banking & internet banking

By

Oishika Banerji

-

November 15, 2021

1

stock-market-trading — Image source: https://bankingschool.co.in/foreign-exchange/what-are-depository-receipts-adr-gdr-and-idr/

This article has been written by Manasi Sheth pursuing the Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution from LawSikho. This article has been edited by Prashant Baviskar (Associate, Lawsikho) and Smriti Katiyar (Associate, Lawsikho).

Table of Contents

Introduction

Digitalization has turned the world upside down. With the constant upgradation in technology, e, all sectors have benefitted, the banking sector being no different. Remember a time when one had to stand in long queues to deposit cheques or negotiable instruments or when people could not transfer money on a bank holiday? Well, we have left those kinds of days behind us. Now, the transfer of money from one account to another is just one click away. Payment to vendors has become so easy. Out shopping for vegetables? Forgot your wallet? UPI payments are just a click of your phone away. Modern-day banking has made life easier and simpler. Electronic signature has replaced physical signature. There was a time when buying something meant the hassle of dressing up and stepping out but shopping these days is also a click away. Liked a dress online? E-banking to your aid.

Covid-19 has changed the dynamics of monetary transactions. Most people were out of jobs, out of cash, and had to stand in long queues outside the banks for cash withdrawal. These hassles made people turn to digital banking. It was at this time that UPI payments such as Paytm, Google Pay, BHIM, etc gained their footing in the Indian banking sector. According to a survey by Statista Research Department 32% of the people who took the survey turned to digital banking in 2020. Most people think Internet Banking and Electronic Banking are one and the same but there is a difference between the two.

Electronic banking

Electronic Banking or as better known as E-Banking is a form of banking which can be done using a form of electronic means such as a laptop, computer, mobile, tablet, Etc. It allows individuals and corporations to access all the banking and financial facilities using networks such as the internet.

There are different types of E-banking facilities such as:

Types of E-banking

Out of all these Automated Teller Machines are the most popular type of E-banking. These Machines allow people to withdraw funds, deposit them, set or change their card PIN and other services but the banks do charge a nominal fee after the limit of a certain specified free limit is crossed, if such transaction is done from any other bank’s ATM.

These days mobile banking is gaining a foot in the banking sector since everyone these days owns a smartphone which has made banking easier with the aid of banking apps and UPI apps. All you have to do is register with your bank for mobile banking, set up an id-password or in case of UPI, set up an UPI pin, set daily limit for transaction, and you are good to go.

Almost everyone these days owns a debit card. With this card you can directly access the funds available in your bank account using the debit card pin. You can usually set a debit card pin using the ATM facility.

E-banking also facilitates direct deposit and withdrawals. Under this service, the bank allows the customer to approve regular paychecks or give the bank the authority to deduct funds for instalments.

Electronic Banking has a much wider scope than Internet banking. We can also say internet banking is a form of E-banking. Let us take a look at what internet banking actually is, its scope and advantages.

Electronic Banking also provides services such as:

Mobile Banking;
E-commerce shopping;
Debit Cards;
Internet Banking;
Electronic Clearing Services;
Electronic Funds Transfer;
ATM’s;
Telebanking.

Internet banking

Internet banking, also known as net-banking or online banking, is an electronic payment system which enables the customer of a bank or a financial institution to make financial or non-financial transactions online using the internet. This service gives customer’s online access to almost every service provided by a bank, which is available through a bank’s local branch including NEFT/RTGS fund transfers, deposits, and online bill payments. Internet banking can be accessed by any individual who has registered for online banking at the branch where they hold an account. After registering for online banking facilities, a customer does not even need to visit the bank every time he or she wants to avail of a banking service. It is not only very convenient but also a very secure method of banking. Net banking portals are secured by User/Customer IDs and passwords and the passwords are to be changed frequently so as to remain safe.

Features of internet banking

Safe and secure method of banking;
Hassle free process;
Avoidance of queues for all utility bill payment;
Easy transfers from one account to another;
Unique user id and password;
Application for fresh cheque book;
Keep a check on your balance and all investments.

Internet banking also provides various services, such as:

NEFT/RTGS funds transfer;
Balance Check;
Utility bill payment;
Open or close fixed deposit account;
Buy sovereign gold bonds;
Buy Insurance;
Set-up auto payment;
Book all kinds of tickets online;
Issue of Cheque book;
Buying/selling Shares, IPOs;
Buying or Selling using E-commerce websites;
Daily Account Statements.

Advantages of internet Banking

One of the most important and prominent features of internet banking is its 24×7 availability, most of the banking transactions can be done even after the banking hours and are not time restricted.
Another one is that one can keep a proper track on all their transactions.
It is also very quick i.e., people do not have to visit their bank’s branches for any transaction, it can be done directly with a touch or a click.

Comparison between e-banking and internet banking

The terms ‘E-Banking’ and ‘Internet Banking’ are often misunderstood and confused with each other but that is not the case, let us break down these two phenomena and understand their points of comparison.

Definition

E-Banking: E-Banking is a blanket term used to indicate a process through which a customer is allowed to carry out personal or commercial banking transactions using an electronic and telecommunication network. It is a product offered by banks which facilitates online banking, with the help of which the customer can have access to the bank account in just one click.

Internet Banking is a method of banking in which transactions are conducted electronically via the internet.

Types of Service

E-banking includes various regular transactions such as internet banking, mobile banking, ATM’s, smart cards. It is one of the latest additions to electronic banking.

Internet Banking is helpful for traditional banking services offered by a bank’s branch such as funds transfer, online payments, bill payments, and more.

How to use these services?

To use the services of electronic banking and internet banking, the company or individuals need to first and foremost own a bank account with banks that offer such services, then apply for such services at their bank’s local branch. The banks normally within 24-48 hours process such requests and then assign a temporary unique id and password for internet banking to the customer through this process customers can also apply for M-Pin for mobile banking (which can later be changed by the customer).

Are electronic banking and internet banking one and the same?

No, as discussed above the terms electronic banking and internet banking are often misunderstood and confused with each other. However, both of those terms are different but not mutually exclusive. Electronic banking is a wider/broader concept which includes services such as internet banking, mobile banking, ATM, debit card, etc while internet banking is the latest addition to e-banking is a form of electronic banking which offers traditional banking services like viewing account statements, balance check, funds deposit, withdrawal, transfer. Thereby we can say that internet banking is a part of electronic banking.

Conclusion

The banking infrastructure has changed drastically with increasing technological advancement in the banking sector. Just a few days back I myself used the facilities of mobile banking to buy stocks of a company. The Pandemic that we faced has changed the way we use banking facilities. People prefer using modern contactless banking methods. Traditional banking is slowly starting to become a relic of the past. Modern-day banking has eliminated the need for paper. Financial transactions have become fast-tracked with a reduction in the need for human assistance in the banking process. With advantages, however, come certain disadvantages such as online frauds. People are becoming easy targets for phishing. People are not cautious enough with the Id-passwords, M-Pin, UPI id and PIN, CVV number, they share it with others and that is how fraud occurs. With the banking sector introducing new ways of transactions, they should also conduct sessions on educating the customers for such services.

References

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

IP paralegal work outside India : an overview

By

Diganth Raj Sehgal

-

November 15, 2021

0

This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides necessary information about IP paralegal work outside India.

Table of Contents

Introduction

A paralegal is a person who is qualified to undertake substantive legal work through education, training, or job experience. This necessitates a working grasp of legal ideas before undertaking responsibilities of a professional lawyer. In the United States and the United Kingdom, paralegals are quite active. They are also well compensated. Because the bar exam abroad is difficult, few people pass it, and they all majorly end up working as paralegals. There are numerous options available to you while pursuing your legal degree. Working as a paralegal may appear to be an excellent method to break into a firm. Intellectual property is an emerging branch of law that demands a lot of skills, qualities, knowledge from the lawyers, and therefore if you begin your career in IP as a paralegal instead of directly becoming a lawyer, it will not only be beneficial for you in terms of experience but will also make you knowledgeable before you take the pilot seat.

For additional information on this topic refer to:

United States of America

IP paralegals assist IP attorneys in completing client tasks. IP paralegals must always work under the supervision of a practicing attorney because they are not attorneys and have not been admitted to the patent bar or the bars of any state. The tasks that an IP paralegal may be assigned depending on the sort of attorney for whom they work. An IP paralegal who works for a patent prosecutor may assist in the preparation of documents to be filed with the US Patent and Trademark Office in conjunction with a patent application for a novel scientific invention. However, an IP paralegal who works for a copyright attorney, can assist the attorney in obtaining a copyright for a novelist who has just finished writing a new book.

LawSikho has launched a US Intellectual Property Law and Paralegal Studies Course to help paralegals acquire remote international jobs. The same can be accessed here:

IP paralegal (Trademark)

Attorneys in IP law (i.e. Intellectual Property, primarily trademarks, designs, and copyrights) and related branches of law are supported, and their files are followed up on advice on IP matters, searches, filing of trademarks, domain names and designs, conflict handling, etc.
Letters and official documents are written, legal file preparation, file administration and follow-up, pricing quotations, invoicing, and billing follow-up. Input into the database that is accurate. Clients are to be contacted by phone, e-mail, or in person, collaboration with your coworkers, deadlines are to be monitored independently, management of the administrative office.

IP paralegal or legal assistant

Prosecution of patents and trademarks, including electronic filing of US applications and recording responses (US and PCT).
Handle general prosecution timelines for each, foreign applications and responses, IDS, assignments, prior art, and other support documents; daily docketing system maintenance/operation, including docketing of all prosecution and due dates for all patents, annuities, and trademarks.
Maintaining and generating docket reports for attorneys, legal support for discovery, researching, and basic due diligence, transactional support with scanning, review for critical dates, and ensuring timely response for correspondence.
Paralegals or legal assistants are listed as one of the most in-demand jobs in Canada. Provinces such as Manitoba and Nova Scotia are struggling to fill the labour demand for legal assistants, which has led to provincial governments to start the global recruitment process for highly skilled foreigners who want to immigrate to Canada. Paralegals can earn a very attractive salary in Canada, earning up to $71,000 per year, according to Payscale.

Junior IP paralegal

Multiple patent attorneys/agents will be supported, and the applicant will handle the US and international dockets, help with the US and foreign patent filing and prosecution, manage attorney/agent calendars, coordinate meetings, and plan travel.
Will help in-house counsel with the preparation, filing, and prosecution of US patent applications, including the preparation and submission of Office Action replies, Information Disclosure Statements, Amendments, and RCEs, and the drafting and execution of formal documents (Declarations, Assignments, Powers of Attorney).
Prepare meeting agendas, travel plans, and cost reports. Further, write letters, memoranda, and email correspondence to in-house attorneys/agents and colleagues on their own.

United Kingdom

In the United Kingdom, the number of paralegal employment is growing as more law companies realize that certain sorts of work do not require personnel to be professionally qualified, which saves money and keeps lawyers pleased.

A list of IP paralegal work in the United Kingdom can be accessed here:

IP paralegal

The applicant will be assisting top-tier employees that have a bright future ahead of them, will be involved in filing, modifying, and preparing patent applications in the United Kingdom and the European Union.
Liaising with senior fee earners and keeping them up to date on critical situations. Creating a variety of formal letters and messages for clients, adding needed information to the firm’s DMS, management of one’s diary.

IP firms and job of an IP paralegal

A well-known law firm with a burgeoning IP practice is always in need of a paralegal. You’ll assist them with the day-to-day operations of the office and be involved in client portfolio management. Because of the flexible working structure, you will have the chance to collaborate with all members of the team, ensuring that your responsibilities stay varied. Some of the major responsibilities of an IP paralegal in a law firm are:

Preparing and sending client emails/letters and reports;
Managing all client file administration, including mailing bills and regular reminders to clients/foreign attorneys, as well as updating schedules;
Keeping an eye on surveillance services and doing exploratory searches across a variety of platforms;
Keeping all pertinent communications and attorney schedules/deadlines up to date in the firm’s internal systems;
Preparing tenders/pitches, including all essential presentations, and drafting commercial bids with conditions of engagement;
Creating sophisticated multi-case, multi-jurisdiction invoices, and cost estimates.

IP (Patent) paralegal

Assisting to produce cost estimates for clients to undertake a recordal project using the “cost calculator” tool.
Adapting standard procedures and work-flows vis-a-vis the firm’s offshore support center to suit individual client and project requirements.
Managing overall project delivery and being the first point of contact for any queries they need to escalate.
Keeping an oversight of the project to ensure it is completed on time and within the allocated budget.
Drafting documents, liaising with clients, trouble-shooting.
Conducting patent research via Patent and Trademark Office and private databases.
Performing preliminary patent searches, requesting comprehensive search reports from agents/search vendors, and performing internet investigations regarding search results.

An IP (Patent) paralegal job offer can be accessed here:

Salary of IP paralegal

According to the Bureau of Labor Statistics (BLS), the national average annual compensation for a paralegal is $54,500, which is somewhat higher than the average annual wage for all professions, which is $51,960. As a paralegal, you may earn a little more than $54,500 in some areas, but you must choose the correct jurisdiction.
The average IP paralegal salary in Chicago is $62,681 as of October 29, 2021, but the range typically falls between $55,435 and $70,776. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession.
The average salary for an Intellectual Property (IP) paralegal in the United Kingdom is £27684. As of March 03, 2021, the average Intellectual Property (IP) paralegal pay in the United Kingdom is £31,873, with a salary range of £24,166 to £42,270. Salary ranges rely on a variety of things, including schooling, certifications, supplementary talents, and the number of years you’ve worked for in that field.

Conclusion

A paralegal is an essential member of any legal team. They assist lawyers during trials and in case preparation. Because paralegals are taking on additional responsibilities that were previously assigned to legal secretaries and entry-level lawyers, they are at the core of the law business. As has been discussed in this article and the additional websites cited, the work opportunities of IP paralegals outside India are immense and several, and therefore one interested in the IP field can pursue being a paralegal before entering into the main profession.

References

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

Understanding a non-disclosure agreement

By

Abanti Bose

-

November 15, 2021

0

Non-disclosure agreement — Image Source - https://rb.gy/cacge5

This article is written by Arushi Agarwal, pursuing Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho. The article has been edited by Prashant Baviskar (Associate, LawSikho) and Ruchika Mohapatra (Associate, LawSikho).

Table of Contents

Introduction

A non-disclosure agreement (NDA) ensures that any information pertaining to a business is kept secret by the receiving party. Since the information pertaining to the business is valuable, disclosure of such information is often likely to cause a loss to the business. NDA is the first legal document that should be executed before beginning discussions on commercial relationships in which you are required to disclose confidential or sensitive information relating to your business to another entity. For example- it should be executed before the parties present their business model to a venture capitalist, it should be executed when the party hires a consultant with whom the party needs to share inside information. NDAs are even part of the employment agreements. Through this article, the author seeks to simplify the concept of non-disclosure agreements along with providing a sample template for better understanding.

Who needs to sign an NDA?

The entity which receives the information after signing an NDA is under an obligation to maintain confidentiality and must ensure that the information is not disclosed to third parties. An NDA is usually applicable to top management, employees, officers, consultants, and anyone else who receives the information from the receiving party.

The kind of business relationship with respect to which an NDA is contemplated is important. Usually, in an investment transaction, the obligation to maintain confidentiality is only with respect to the investee since the investee will be providing confidential information to the potential investor. However, if you are contemplating a joint venture, the information disclosed by you is also protected under the NDA. So, if the other side sends you an NDA, it is advisable to go through it and see whether information disclosed by you is also protected under the NDA. If not, then there is a requirement to insert a clause imposing the obligation on the other party.

The key issues that should be looked out for in an NDA

Examine the obligations under an NDA carefully

If you have received an NDA from another party, you should examine your obligations and restrictions carefully. The document may have various other kinds of provisions like non-compete and non-solicitation obligations. Hence, it is very important not to presume that the only obligation under the documentation is confidentiality.

Furthermore, the NDA may require you to enter further NDAs with other people as well, particularly people external to the organisation with whom the information is shared. In those cases, the receiver of the information must keep on record the further NDAs that are signed by them with the persons with whom the information is shared.

The scope of confidential information

Every NDA will contain some definition of what information is to be considered confidential. The party disclosing the information will want the definition to be broad and cover all information disclosed, while the receiving party will negotiate to have a specific and narrow definition.

Often, the receiving party will ask the disclosing party to specify which information is disclosed is confidential and only such information is then treated confidentially. The disclosing party, on the other hand, usually demands that all information disclosed without exception or with few specific exceptions, be treated as confidential information.

It is also possible that the party disclosing the confidential information specifies that not only the terms and details of the transaction being entered into are confidential, but the very fact that the transaction being entered into is itself also confidential. For example, where an acquisition is about to take place, not only the terms at which it is to take place and the information that is exchanged during the transaction is confidential, but the very fact that the acquisition is about to take place is also confidential. In such cases, the parties to the transaction will be required to be extra careful not to allow the existence of the potential transaction to be disclosed beyond the available exceptions.

Remedies available for disclosure

An NDA must specify the remedy for a breach which could be monetary damages or injunctive relief. Injunctive relief usually involves an order from a court directing the disclosing party who has breached the agreement to return the information and stop disclosing it further. Sometimes, monetary damages cannot compensate for the harm that may be caused by disclosure, so most NDAs specify that in case of a breach injunctive remedies can be invoked by parties.

Requirements to mark documents as ‘Confidential’

Some NDAs state that only information that is clearly identified and marked as “CONFIDENTIAL” will be protected. But it may not be practical to implement it in all situations. For example, the receiver may have access to the entire server on the site of work, and the disclosing party may not be able to specifically mark every new document that is already in the server. Therefore, this requirement should be customised depending on the situation. If confidential information pertaining to your business is being provided to another entity, you may want to exclude the marking requirement. If you are likely to be the receiver of information, it is good that the confidential information is specifically marked.

Include some standardised exceptions and allow certain disclosures

Should you be liable for wrongful disclosure if you disclose information that was already known to you, or if an entity that is unrelated to you, discloses confidential information to the public? In every NDA, there are certain exceptions to confidential information which should be carefully considered.

Similarly, there may be situations where it may be necessary to disclose confidential information. For e.g. What if the other party is required to disclose information pursuant to a court order? What if the law is modified in future and certain components of the information that you have disclosed cannot be kept confidential? It would be commercially impractical if you hold him liable for breach simply for complying with the law or an order of the court. Therefore, the purpose and the extent of disclosure under certain compulsions and legitimate reasons must be specified as exclusions from the duty of confidentiality.

Return of information

Most NDAs require original and copies of confidential information to be returned upon request. Requesting electronic information may not be practical. However, some NDAs require the receiving party to delete such information from all their electronic records. Receiving parties, in such circumstances, may ask for a right to retain certain copies for the purpose of record-keeping or proper accounting only.

Duration for which the information is to be kept confidential

Often confidentiality obligations, if included within other obligations, are made to last even beyond the expiry of the main content, However, where there is a separate non-disclosure agreement entered, the duration for which the information is required to be kept confidential must be provided for in this agreement. This duration will depend upon the nature of the business and the nature of the information.

In dynamic, fast-paced businesses, chances are that information related to product technology may become obsolete quickly and therefore, the duration would be shorter. However, details such as customer or supplier data, business model etc. may not be a longer duration of confidentiality imposed.

Sample non-disclosure agreement

NON-DISCLOSURE AGREEMENT
This Non-Disclosure Agreement (“Agreement”) is made on this____ (“Effective Date”) by and between:

_____, a company established under the laws of _____ and having its principal place of business at ____ (hereinafter referred to as “Disclosing Party”, which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns) of the First Part.

AND

______, a company incorporated under the laws of _ and having its principal place of business at ____ (hereinafter referred to as “Receiving Party”, which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns) of the Second Part.

WHEREAS:
A. The Disclosing Party is engaged in the business of providing _____ (“Business”).

B. The Disclosing Party and the Receiving Party are interested in discussing a possible ____. The Parties acknowledge that with respect to the proposed transaction, both the Parties may exchange certain information, material and documents relating to each other’s business (hereinafter referred to as “Confidential Information”)

C. In consideration of the mutual promises and agreements between the Parties hereto, the Parties have agreed to review such Confidential Information to govern the use and disclosure of the Confidential Information.

NOW THEREFORE IT IS HEREBY AGREED BY AND AMONGST THE PARTIES AS UNDER:

CONFIDENTIAL INFORMATION
For this Agreement, the term “Confidential Information” shall mean such information disclosed by the Disclosing Party to the Receiving Party including all information communicated in writing or orally relating to business affairs, any technical data, or know-how, including but not limited to, that which is or relates to:

Inventions, ideas, processes, research, formats, formulas, object code, data, programs, specifications, other works of authorship.
Product plans, products, services, customers, markets, software, developments, hardware configuration information.
Non-public market information, product plans.
Marketing or finances of the company in any form, customer information, business plans and strategies, price lists and market studies and such other proprietary information relating to the business of the Disclosing Party which is not in the public domain.
NON-DISCLOSURE AND CONFIDENTIALITY
The Receiving Party acknowledges that the Disclosing Party shall be privy to Confidential Information relating to the Disclosing Party. Accordingly, the Receiving Party agrees and acknowledges:

That the Receiving Party shall not, without the prior written consent of the Disclosing Party, directly or indirectly disclose or cause to be disclosed any Confidential Information to any third party.
That the Receiving Party shall take all steps as may be reasonably necessary to protect the integrity of the Confidential Information and to ensure against any unauthorized disclosure thereof.
The Receiving Party shall strictly adhere to the provisions mentioned above except.

To the extent that such Confidential Information is already in the public domain, other than by breach of this Agreement
The receiving Party shall not, except as and to the extent required, make any copies or reproduce the Confidential Information.
INJUNCTIVE RELIEF
The Parties acknowledge that due to the extent of the disclosure of the Confidential Information to the Receiving Party, the Receiving Party understands that the Disclosing Party shall suffer irreparable damage if the Receiving Party breaches any of its obligations under this Agreement and that monetary damages shall be inadequate to compensate the Disclosing Party. Consequently, the Receiving Party must acknowledge that, in addition to any other remedies of rights, the Disclosing Party shall have the right to obtain injunctive relief to enforce the terms of this Agreement.
DISPUTE RESOLUTION AND GOVERNING LAW

Any disputes arising in connection with this Agreement shall be referred to arbitration of a sole arbitrator to be appointed by the Parties. The place of arbitration shall be ____. The arbitration proceedings shall be governed by the Arbitration and Conciliation Act, 1996 and shall be in the English language. The arbitrator/ arbitral panel shall also decide on the costs of the arbitration proceedings.
This Agreement shall be governed in accordance with the laws of India and shall be subject to the jurisdiction of the courts at Mumbai, India.
INDEMNIFICATION
The Disclosing Party hereby provides complete indemnity to the Disclosing Party for any loss or damage caused to the Disclosing Party or any of its affiliates and assignees due to the breach of obligations of the Receiving Party under this Agreement.

IN WITNESS WHEREOF THE PARTIES HERETO HAVE SET AND SUBSCRIBED THEIR RESPECTIVE HANDS TO THESE PRESENTS ON THE DAY, MONTH AND YEAR HEREINABOVE MENTIONED:

Signed and Delivered

By the Disclosing Party _____, through Mr. _____

_____

Signed and Delivered

By the Receiving Party _____, through _____

_______

Conclusion

If you have confidential information, beware of a confidentiality statement that might look like an NDA but has just the opposite effect. This sort of clause will typically say that the agreement does not create a confidential relationship or does not create any obligation of secrecy or confidentiality. That means that the other party has no obligation to keep any of your confidential information secret.

Whether you draft one from scratch or use a non-disclosure agreement form, an NDA is a great way to protect sensitive business information from being disclosed to the public before you’re ready. If you routinely receive confidential information from others, you would probably also be asked to sign their NDAs. Just be sure you read them first and understand your obligations.

References

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

How to get remote work opportunities in IP law

By

Diganth Raj Sehgal

-

November 15, 2021

0

legal nomad — Image Source: https://bit.ly/2k0QK2F

This article is written by Vanya Verma from O.P. Jindal Global University. This article focuses on how one can get remote work opportunities in IP law.

Table of Contents

Introduction

Recent advancements that have made it possible for attorneys to work remotely have increased job openings. Working as a lawyer from home has various advantages. Not only will you be free to work anywhere you want, whether it’s in your home office or a quiet cafe, but you’ll also be able to get more hours in the same amount of time because you won’t be commuting. Many lawyers who work in offices undertake some side work from home to supplement their income. Further, this article will focus on how IP lawyers can get remote opportunities from international clients.

Ways to find remote jobs

There are several websites dedicated to remote attorney jobs, as well as general job posting sites with a large number of advertisements for remote work in a range of legal professions.

Keep your LinkedIn profile updated

As remote companies often seek people who are computer and software savvy, your LinkedIn page and other social media accounts will likely be inspected considerably more extensively than in a traditional position. LinkedIn is where professionals connect and expand their networks. As a result, LinkedIn is one of the finest locations to find international clients. One can utilise the search function to find prospects interested in their services.

Make certain that your web presence is professional and representative of who you are. Make sure your resume is error-free. Many applications are rejected due to typographical problems or irrelevant information. Make sure your CV and cover letter are tailored to the position you’re looking for.

Use Twitter to find clients

Many overseas professionals utilise Twitter to find the services they require. You may also utilise the search option to find clients there. You may also use Twitter’s powerful filtering capabilities to refine your search results and identify relevant clients. When utilised correctly, Twitter’s Advanced Search can uncover a plethora of opportunities.

Respond to questions on Quora.

People come to Quora to find answers to their difficulties. And by delivering those solutions, you can get on the radar of potential clients. All you have to do now is look for industry-specific questions to answer. If you provide communication services, for example, you can answer inquiries about video conferencing, VoIP, and other services you offer. As a result, make every effort to provide as many useful responses as possible. You can also promote your company and the services you offer there in a subtle manner.

Quora answers are open to the public, and they show up in relevant search results as well. As a result, when other firms are looking for comparable solutions, they will see your responses as well. Prospects will approach you for business if your replies are valuable. You can even use paid advertisements to promote your responses to potential clients.

Participate in international webinars

Online workshops and worldwide webinars are also popular ways to get international clients. It’s also simple because most webinar platforms include a built-in chat option for interacting with participants. You can also conduct one-on-one interactions with possible clients during the webinar if a private chat is provided.

Then, for event-related posts on social media platforms, many event organisers develop dedicated hashtags. It allows you to communicate with the presenters and guests more easily. As a result, you’ll be able to connect with potential customers.

Best sites to find remote IP work opportunities

Conclusion

Remote and work-at-home jobs are fast gaining popularity. Remote jobs give independent professionals the freedom to keep doing what they do best while also allowing them to be more productive, without the stress and limits of regular work. Apart from cost savings, remote work benefits organisations by linking them with competent experts from all over the world, who they would not have had the opportunity to work with under more traditional location-restricted situations.

References

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

International provisions regarding pre-packaged insolvency resolution procedure : what can India learn

By

Abanti Bose

-

November 15, 2021

0

This article is written by Aditee Arya, pursuing Certificate Course in National Company Law Tribunal Litigation from LawSikho. The article has been edited by Aatima Bhatia (Associate, LawSikho) and Ruchika Mohapatra (Associate, LawSikho).

Table of Contents

Introduction

The pre-pack insolvency resolution process (hereinafter PIRP) is prearrangement carried out by the promoters of the company without involving the resolution professional. To carry out PIRP the corporate debtor along with its creditors whether secured or unsecured or operational creditor whoever will together come up with a solution for resolving the insolvency of the corporate debtor and for which they do not apply to the NCLT for appointing an insolvency professional. So, this is an out of court arrangement by the debtor and the creditors, only, without involving court or insolvency professionals, but they shall follow the basic procedures of the code such as securing the interests of the creditors, such that PIRP does not become a way of escape for the corporate debtors by fraudulently selling the stressed assets of the company to other organization before entering into IRP in order to provide an incorrect valuation of the assets of the company during the IRP to defraud the creditors and they shall have an automatic moratorium period just like in IRP.

The article will discuss what is pre-pack insolvency and how dissimilar it is from an insolvency resolution process as per the provisions provided under codes of different countries along with taking a look at the trends of cases that are applied for insolvency under the code in India and how many of them are either resolved, withdrawn or stay pending will be looked upon. The focal point of the article lies in the various provisions concerning pre-packaged insolvency of different countries like the UK, US, Singapore, South- Korea etc. The article will briefly analyse the provisions regarding the pre-packaged insolvency resolution process for Micro, Medium and Small-scale companies that are brought lately under the Insolvency & Bankruptcy Code (Amendment Act), 2021.

Benefits of PIRP

A pre-pack is an arrangement whereby the sale of all or part of a company’s business and/or assets is negotiated and agreed, before an insolvency practitioner (IP) is appointed with the relevant documentation being signed and implemented, immediately or shortly after the appointment is made. It comes with many advantages for the companies such as it saves time, costs, efforts, payment of insolvency professionals, application fees etc. It also keeps the management of the company in hands of the promoters of the company unlike in the regular insolvency resolution process where all the management of the company including displacement of the assets of the company, day to day business practices, all properties and other functions and powers of the directors or the owners of the company are taken over by the insolvency professional from the debtors. It would also reduce the stress and workload of NCLT, and it definitely provides more flexibility as compared to the proper statutory process under the insolvency process.

IBC is gaining acceptance as a means for debt resolution lately. From looking at the figures of FY 2020-21 there appears to be a significant rise in the no. of registration of applications for insolvency resolution. When IBC first came in 2016 till 2017 only 37 cases were registered whereas at the beginning of 2020 the number stood at 2196. Though circumstances changed a lot since March 2020 due to the COVID-19 pandemic, more and more companies were going to suffer losses and the borrowers were left with no source of borrowing to rejuvenate the economy. The economy was falling but the numbers for insolvency applications were rising. So, by the fourth quarter of the financial year 2020, the caseload stood at 4,139. i.e., it almost doubled when fresh bankruptcy proceedings were suspended.

According to the data of IBBI only 8% of cases have been approved with resolution plans, 8% of cases got withdrawn, 22% of cases got closed, 27% cases went into liquidation and the remaining 41% cases were still pending by the end of December 2020. The resolution percentage remains very low because of which MSMEs suffered many of the cases which were withdrawn due to lack of requirement of 1 cr. Rupees for initiating insolvency. This data shows how much India needs a pre-pack insolvency process to lift up the business and the economy.

International Provisions of Pre-Pack Insolvency

United Kingdom

The Insolvency Act, 1986 of the United Kingdom did not have provisions disallowing or allowing pre-pack insolvency resolution. When businesses and corporations started to resolve insolvency on their own without appointing and without the interference of resolution professionals, thereon it started to become a traditional practice in the UK. However, a drawback to this practice was that the corporate debtors dissolved their assets without any notice to the affected creditors because of which losses were suffered and interest of the creditors was losing in the UK.

Statement of Insolvency practice called SIP ’16 was released in 2009 to resolve the related party transactions and bring more transparency in the insolvency resolution process. The SIP refers to pre-packaged sales. In this arrangement, the assets and the businesses of the corporations are negotiated for sale before the appointment of the administrator. The administrator here acts as the insolvency practitioner when the process is authorised by the administration then the sale is executed.

United States

Section 363 of the United States bankruptcy code permits prearranged bankruptcy. The US has a separate bankruptcy court who has restructuring powers of a debtor whereas the original jurisdiction lies with the district courts but they can refer matters or go for appeals to the bankruptcy court, as well. The US laws have a provision wherein there is a trustee who assists the bankruptcy judges in performing their functions effectively. They help in the smooth functioning of the process and do not interfere with the insolvency process by overtaking the business and the assets of the corporate debtor.

The trustee helps in bringing transparency to the process to protect the interest of the creditors so that the corporate debtor does not dispose of the business assets to somewhere to their advantage and at the loss of the creditors and also ensures that no laws are violated by the debtors during carrying out the insolvency process. The trustee makes sure that the debtor informs all the creditors of his plan and looks if any creditor has objections against the structure. He then has to take approval from the bankruptcy court. It provides to all the creditors a disclosure statement and a plan structure. After the plan is approved by all the creditors then the corporate debtor files a petition before the court.

UNCITRAL (United Nations Commission on International Trade Law)

The UNCITRAL has provisions for expedited reorganization proceedings in which restructuring negotiations are held on a voluntary basis, and a plan is confirmed only after a majority of affected creditors agree to it. This provision is similar to pre-packaged insolvency proceedings.

Canada

In Canada when a business is in a distressed situation then they do not enter into liquidation usually they find a buyer for their company i.e., in Canada Pre-packaged selling is done, as well. The business of the corporate debtor is sold and the revenues therein are used to structure a plan for the creditors. The companies apply under the company’s creditor arrangement act under which they look for a buyer for the company. The selling of the business then has to be approved by the court and provides the title to the buyer.

Singapore

Singapore has come up with Insolvency, Restructuring, and Dissolution (Amendment) Act, 2020. This Act was amended in wake of the COVID-19 situation for micro and small companies. To bring a pre-pack scheme for them. This is very much similar to the Indian process in which a moratorium period is imposed when a company enters into the resolution process. In order to process and get the restructured plan’s approval by the court, the company needs to show that the majority of the creditors approves the plan.

Indian laws

IBC (Amendment) Act, 2021

India introduced the IBC (Amendment) Act, 2021 to give a hand to the falling MSMEs. There was a severe downfall of the MSMEs in 2020 due to Covid-19. The government even banned more registration of applications till December 2020 and came up with a pre-packaged insolvency resolution process (PIRP) as an amendment in the IBC, 2016.

Section 54(A) -54(P) has been made as a special provision for PIRP, also to mention that all other sections are also applicable over PIRP. It can be applied by any MSME corporate debtor subject to some conditions, like, the corporate debtor must not be undergoing any PIRP or CIRP presently or in the previous 3 years from the date of the application. The application has been approved by 66% of the creditors and the creditors must not be a related party of the corporate debtor, no order of liquidation is passed against the corporate debtor, etc.

The corporate debtor before filling the application for initiating the PIRP needs to obtain the declaration from the financial creditors as specified in Section 54 of the Code.
Section 11 (aa): No proceeding of CIRP OR PIRP can be initiated against a corporate debtor who is already undergoing a PIRP.
The corporate debtor prepares a base plan for resolution and that plan has to be approved by the financial creditors to proceed further then that plan will be submitted to the adjudicating authority i.eNCLT which can either be approved or rejected by them. If the plan is rejected then a resolution professional will be appointed.
If the plan is accepted by the NCLT then a moratorium period will be imposed and resolution professionals will be appointed: 54 (E) (1).
The PIRP process is faster than CIRP, COC shall be appointed within 7 days 54(F)(2), 54(D)(1) PIRP shall be concluded within 120 days and after approval, the resolution plan shall be submitted before the NCLT within 90 days.
Section 54(H): The management of the company in PIRP does not get transferred to the resolution professional instead it remains with the board of the corporate debtor only, but if any fraudulent activity is detected during the process for instance the assets of the company are being disposed off or being concealed, or creditors are related parties etc then the management of the company would not stay with the corporate debtor board.
Regulation 48, IBBI (PIRP) Regulations 2021: PIRP will be conducted and guided according to the Swiss challenge which will help bring a better resolution plan.

What can India learn from international provisions?

Debtor-in-possession and US trustee: This concept from the US can be adopted in Indian Insolvency laws and specifically in pre-pack. It means that even during the resolution process, the management of the company remains with the board of the company itself. But the US also has a provision of appointing a US trustee who is a person who helps the court in performing its functions properly by assisting them and ensuring that transparency shall remain in the process and that the interest of all the stakeholders is kept as the working remains in the hands of the debtor only, so the concept of the debtor in possession and of US trustee can be adopted by India.
The Phoenix Company Concept in the UK: Phoenix is a fictional bird who is reborn from its own ashes. Similar to this concept, the UK has a provision for its insolvent companies that the directors or shareholders of the insolvent company can buy back it and form another new company with the same objectives. In India, this happened with the Essar steel group when they bought back their own company, but it was considered illegal. Therefore, Section 29A was introduced in IBC which prohibits such buy-back. The UK has enumerated various procedures and steps, regulations before setting up a phoenix company. India has been burdened a lot already with numerous applications coming for insolvency, so the phoenix company concept is something that can be adopted by checking that the creditors agree with the company doing so.
Specialized Bankruptcy Court: India should have specialized judges and courts to handle insolvency and bankruptcy issues. The order of these judges should be final with appeals available before higher courts. In the United States, there are specialized bankruptcy courts who identify the matter and announce the final order thereupon though the original jurisdiction vests with the district courts which can be referred to those specialized courts.
Transparency: Internationally pre-packaged insolvency is accompanied by more transparency in the process to ensure that the creditors and all other stakeholders interests remain protected. As flexibility and more freedom is given to the corporate debtor in the pre-pack process, with these powers some obligations are also necessary to be imposed over the corporate debtors to keep a check on the exercise of these powers.

Conclusion

Pre-pack is a modern practice, and it should definitely be promoted in the Indian economy because if it is implemented with some checks and regulations, it can really help the business and the economy of the country grow alongside. It has many advantages, for instance, it saves the capital, time, and efforts of the company, which is already undergoing insolvency, and, in that situation, they have to go through fees of IRP and various court procedures. It also helps in reducing the burden of the NCLT who has an ample caseload of companies’ law cases and many other IBC cases as well.

Many companies find themselves stuck in the insolvency period and so many of them have withdrawn their cases from the NCLT because it took a lot of time and money. Additionally, the creditors had to suffer in that period which discouraged them from further investing in other businesses as their money was stuck due to delay in the resolution. Therefore, it is best for the companies to go through the pre-pack process and as such they must first come up with their own plan and then get it approved by the tribunal, this saves the time of both the company and the tribunal.

References

Singh, H. (2020). Pre-packaged Insolvency in India: Lessons from USA and UK. SSRN Electronic Journal. doi:10.2139/ssrn.3518287
Tollenaar, N. (2019). The US Chapter 11 Plan Procedure. Pre-Insolvency Proceedings, 114-160. doi:10.1093/oso/9780198799924.003.0006
Wadhwa, A., Wadhwa, K., Wadhwa, A., Wadhwa, R., Wadhwa, A. H., Shetty, T., . . . Datar, A. P. (2019). Wadhwa Law Chambers guide to insolvency & bankruptcy code: (an exhaustive commentary on the Insolvency & Bankruptcy Code, 2016). New Delhi, India: Wadhwa Sales Corporation

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

All you need to know about contract of indemnity

By

Abanti Bose

-

November 14, 2021

0

business-contracts-4-things (1) — Image Source: https://rb.gy/msix72

This article is written by Gauri Atreja, pursuing Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho. The article has been edited by Zigishu Singh (Associate, LawSikho) and Ruchika Mohapatra (Associate, LawSikho).

Table of Contents

Introduction

Indemnity is a type of compensation that falls under the umbrella of compensation. In addition, an indemnification agreement regulates remuneration in the event of a contract. The indemnifier accepts the duty to indemnify voluntarily, and shockingly, even a distant risk of catastrophe will oblige him. The misfortune should occur as a result of the indemnifier or any outsider’s actions. A contract of indemnity is a contract that keeps a person who has engaged into or is about to enter into a contract or incur any other liability, insured against loss, regardless of third-party default or not.

Indemnity is insurance that protects you from potential losses. The word indemnis comes from the Latin word indemnis, which means ‘unharmed’ or ‘loss-free.’ In its broadest definition, it refers to reimbursing a person for any losses he or she has suffered. The need to pay occurs for a variety of reasons, including an agreement, duties originating from the parties’ relationships, or statutory requirements.

An indemnity agreement should also have the basic elements of a contract, such as free assent, lawfulness, and so on. As a result of indemnification, the promisor is obligated to protect the promisee from any misfortune caused by the promisor’s own actions or the actions of a third party. Due to the rule that one person cannot complete all exchanges on their own, he should have the opportunity to work with his business where he is addressed by someone else when managing a third individual.

In English law, indemnification refers to a commitment to protect a person from the consequences of their actions, which might be explicit or implicit. Indemnity is not restricted to contract cases. Between a principal and an agent, an employer and an employee, and so forth, an indemnification right may exist.

In a broad sense, indemnification might be defined as “protection from calamities.” Indemnity is a type of insurance that protects you from misfortune. Section 124 of the Indian Contract Act, 1872, which lies under Chapter VIII of the Act, represents an indemnity agreement. An agreement of compensation is defined in this section as an agreement “by which one party swears to safeguard the other from the misery caused to him by the promisor’s agreement, or by the lead of some other individual, is known as a “contract of indemnification.”

Definitions of indemnity

According to Halsbury, Indemnity is an express or implied contract that protects a person who has entered or is going to enter into a contract or incur any other duty from loss, regardless of whether a third-party default.

Black’s Law Dictionary defines Indemnity in numerous ways:

As was described in Moorhead v. Waelde, “A contractual or equitable right under which the entire loss is shifted from a tortfeasor who is only technically or possibly at fault to another who is primarily or actively responsible.”

The facts in Adamson v Jarvis serve as a superb illustration of the concept of Contract of Indemnity. The defendant gave the plaintiff, an auctioneer, instructions to sell particular livestock. After some time, the plaintiff discovered that the defendant did not possess the livestock in the first place. Because the plaintiff was the auctioneer, the livestock owner sued him, and the plaintiff sued the defendant for compensation for the loss he had suffered as a result of the defendant’s activities. The plaintiff, having acted on the defendant’s request, was entitled to presume that if what he did turned out to be wrongful, he would be compensated by the defendant, according to the court.

A contract of indemnity is defined by Section 124 of the Indian Contract Act as “a contract by which one party promises to rescue the other from loss caused to him by the promisor’s behaviour, or by the action of any other person.” The indemnifier is the person who provides the indemnity, while the indemnity-holder or indemnified is the person who receives the indemnification.

Nature of contract of indemnity

A contract of indemnification can be express or implicit, depending on the circumstances, though implied indemnity does not appear to be covered under Section 124 of the Indian Contract Act.

A broker in possession of a government promissory note forged an endorsement on it and gave it to a bank. The bank applied for and received a fresh promissory note from the Public Debt Office in good faith. Meanwhile, the genuine owner filed a conversion lawsuit against the Secretary of State, who then sued the bank on the basis of an implied indemnification. It was decided that: “ When a person performs an act at the request of another, and the conduct is not inherently tortious to the knowledge of the person performing it, and the act injures the rights of a third person, the person performing the act is entitled to an indemnification from the person who requested that it be done”. [Bank of India v. Secretary of State].

Is indemnity agreement valid?

One of the types of contracts is an indemnification contract. The same principles that apply to contracts, in general, apply to such transactions, therefore laws like free consent, the legality of the object, and so on are equally applicable.

When a party’s permission is obtained through coercion, fraud, or misrepresentation, the agreement is voidable at the request of the person whose consent was obtained in this manner. The contract’s object must be legal, according to the Contract Act’s requirements. Depending on the provision of the law to which it is subject, an agreement whose goal is contrary to the law or to public policy is either unlawful or void.

When is a contract of indemnity enforceable?

The question is whether the indemnifier’s liability begins when the indemnified has actually incurred loss or when there is a reasonable expectation that the indemnified will.

In cases like Shankar Nimbaji v Laxman Sapdu and Chand Bibi v Santosh Kumar Pal, the former perspective was held. The plaintiff filed a complaint against defendant no. 2 to recover Rs. 5,000/- plus interest from him through the sale of a mortgaged property and, in the event of a deficit, for a decree against his inheritance, which was in the hands of his sons. Defendant No. 2 died while the litigation was pending. Plaintiff cannot sue the defendant in the expectation that the revenues from the sale of the mortgaged property will be insufficient and that a deficit will result. [Laxman Sapdu vs. Shankar Nimbaji].

While purchasing specific property, the defendant’s father agreed to pay off the plaintiff’s mortgage obligation and vowed to indemnify him if they were found guilty of the debt. Plaintiff brought a lawsuit to enforce the covenant after the defendant’s father failed to pay the mortgage loan. The suit was deemed premature in terms of the cause of action on indemnification because the plaintiff had not yet sustained any damages. [Santosh Kumar Pal vs. Chand Bibi].

In the following cases, the courts had a different point of view

The plaintiff undertook to operate as a commission agent for the defendant firm for the purchase and sale of “Hessian” and “Gunnies,” charging a commission on all such sales, and the defendant firm committed to indemnify the plaintiff against all damages arising from such transactions. The plaintiff company bought some Hessian from a man named Maliram Ramjidas. The defendant company failed to pay for the Hessian or accept delivery. Then Maliram Ramjidas resolved it for a lower price and sued the plaintiff company for the difference in damages. The plaintiff company fell into liquidation, and the liquidator sued the defendant firm to recover the amount claimed by Maliram under the indemnification agreement. The defendant maintained that the plaintiff was not allowed to maintain the suit under indemnity because they had not yet paid Maliram any money for their liability. It was found to be negative and in favour of the plaintiff, with the directive that any money obtained from the respondent firm be paid to Maliram Ramjidas. [Gopal Purushotham v. Osmal Jamal & Sons Ltd.]

Following the landmark judgment in Gajanan Moreshwar v Moreshwar Madan Mantri, it is well known that the indemnifier’s liability begins when the indemnified loss becomes absolute, certain, or impending. The promisee is not required to compensate for the loss.

Conclusion

Despite its various provisions, the Indian Contract Act of 1872 is still ambiguous when it comes to indemnifier rights. Nonetheless, the promisor is not diminished by the lack of such a provision. These rights are based on natural equity and have a broad scope, and they are an important aspect of indemnity law. According to Jaswant Singh v. Section of State, the indemnifier is to the indemnified in the same way that a creditor is to the debtor, i.e., the indemnified is entitled to the indemnity-securities holder’s in the same way as a creditor is to his major debtor.

It was decided that the indemnifier’s rights are identical to those of a surety; a surety is entitled to the benefits of all securities owned by the creditor.

It is reasonable to assume that the phrase indemnity has both broad and narrow applicability. The English concept of indemnity is broad enough to cover a promise of indemnification against loss occurring from any cause, while the Indian Contract Act’s definition is much more limited. In some ways, Indian law on contractual indemnities has deviated from English law and taken its own route. However, their commonalities vastly outnumber their differences.

References

http://www.ejusticeindia.com/contract-of-indemnity-nature-and-the-scope/

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

Understanding syndicate loan agreement

By

Abanti Bose

-

November 14, 2021

0

This article is written by Arushi Agarwal, pursuing Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho. The article has been edited by Zigishu Singh (Associate, LawSikho) and Ruchika Mohapatra (Associate, LawSikho).

Table of Contents

Introduction

Banks provide loans to various corporations, start-ups, proprietors and even the Government on a very large scale. Oftentimes the loan amount is so huge that even the bank is unable to lend the same, in such cases two or more banks (lenders) enter into a loan agreement and lend money to one borrower. Such an agreement is called a syndicate loan agreement.

The syndicate loan, also known as a syndicated bank fund, is offered by a group of lenders called syndicates, that comes together to provide funds for one borrower. The borrower can be a corporation, a project or a government. The agreement has a lead bank that lends a large share of the loan. The lead banker also ensures that there is a set order of cash flow in the agreement and the other lender banks are aware of the said order. In July 2019, Power Finance Corporation took a three-year syndicated loan from the State bank of India, Hong Kong and MUFG (Mitsubishi UFJ) Bank Limited in Singapore.

The loan may include a fixed amount of funds, line of credit (continuous transfer of amounts over a period), or a combination of the two, the interest rate can be fixed or floating, depending on the benchmark rate as decided by MIBOR (Mumbai Interbank Offer Rate) in India. A benchmark rate is a standard rate against which other interest rates are calculated. The rate is regularly updated and publicly accessible as calculated by an independent body.

These syndicates can be banks, mutual funds, angel investors. A large corporation or government can borrow a huge loan to finance large scale mergers and financing large scale projects in mining, energy, transportation, telecommunications, petrochemicals etc.

What is the main purpose of a syndicate loan agreement?

The amount involved in a syndicated loan agreement is much higher than that of a regular loan. In such a case it is not possible for one single lender to have such money thus, more than one lender is the right choice. Even if a single lender has the means to lend such a huge amount it is not advisable for him to do so. The main purpose of such an agreement is to ensure that the burden to bear the risk should not be on one lender if the borrower defaults his payments, then one single lender should not be subjected to such a huge loss, Since the amount of this loan far exceeds the amount of a standard loan, multiple lenders help in spreading the risk evenly.

Moreover, different lenders specialise in different types of assets, loans, and projects. It is advisable to have lenders in the agreement that are aware of the risks involved in the loan, various methods of the valuation of the assets pledged as the security against the loan and any other details related to the syndicated loan. The expertise of a lender in a specific area also encourages the borrower to go for a syndicated loan agreement.

What are the different types of syndicate loans?

There are majorly three different types of syndicated loan agreements that are used around the world. They are:

Underwritten deal

In this type of loan, the lead banker, or the underwriter syndicates the entire amount of the loan, under this deal, the lenders guarantee that if the entire loan is not subscribed then the remaining amount will be underwritten/ absorbed by them, and they shall then ensure that the entire loan is subscribed.

Underwriting as a concept is very commonly used in the corporate world. Shares of a company are often underwritten. This ensures that if all the shares are not subscribed by the public, then the remaining shares are bought by the underwriters and then it is their responsibility to sell those shares.

Club deal

Under this type of loan, the loan amount is generally small. The lower cap is usually $25 million and the higher the amount can go up to $150 million. The lead banker and the other lenders share the fees and earned from the loan facility, equally.

Best efforts syndication deal

Under this deal the lead banker does not guarantee the entire loan amount, insisting the undersubscribed portion of the loan is used keeping in mind the changing market conditions. If any part of the loan remains undersubscribed, the borrower will be forced to accept a loan of a lower amount or cancel the loan agreement entirely.

What are the essential clauses of a syndicate loan agreement?

Definition and interpretation

Every agreement has a section that contains the basic information to identify the parties to the agreement. This section mentions the details of the borrower and the lender. Details such as names of their organisation, addresses of the registered offices, occupation, company identification number. Any changes in any of these details of either of the parties should be notified to the other party in the manner mentioned in the notice clause.

Terms that have meanings specific to this agreement should also be defined in this clause. This ensures that the terms are interpreted correctly throughout the agreement and it is read smoothly.

Facilities

This clause is one of the most important clauses in the agreement, this clause contains the amount of loan that is to be given to the borrower by the lenders, the purpose for which the loan has been taken, the number of advancements the lenders are willing to make and the conditions that must be satisfied before and after the loan has been advanced, the clause should be precise and verified properly.

Some of these conditions are:

No advancements will be made by the lenders unless they receive all the necessary documents that they have demanded.
The representations made by the borrower are all true.

Utilisation

Under this clause, the borrower makes timely requests to the lender to extend their line of credit towards the borrower. This request is known as the utilisation request. It is an elaborate yet simple clause.

It contains the details such as the mechanism in which the utilisation request should be sent, the procedure after the utilisation request has been received by the lenders, the medium through which the amount will be transferred to the borrower, etc.

Repayment, prepayment and cancellation

It is one of the most essential clauses in a loan agreement. This clause specifies how and when the loan is to be repaid by the borrower to the lender. It’s a simple clause that contains many details. The repayment can be a lump sum or on a periodical basis. In the case of periodical payments/ equated monthly instalments (EMI), it should specify the number of instalments, period of which when the instalment becomes due, modes of payment and the undertaking of the borrower stating that he shall pay all the dues of the lenders.

It is important that a loan agreement allows the borrower to repay the loan early. This is known as making a prepayment, it makes the loan more flexible. The word prepayment refers to making repayment more than the EMI that is specified in the agreement, generally, these excess amounts are adjusted against the outstanding principal amount when the payment is made, the borrower is required to pay prepayment changes when such prepayment is made, these prepayment charges are determined by the lender.

Under cancellation, the lenders agree to cancel all or part of the borrowed obligation to repay this and this becomes effective upon the occurrence of a specified event mentioned in the agreement.

Interest

In a loan agreement, the interest clause is crucial as it sets out the interest rate on the loan, there are two main types of interest rates: fixed interest rate and floating interest rate. This clause contains important details such as the method of calculating the interest rate, any changes in the said method, the period when the interest should be paid, the means of payment of the interest i.e., cheque/ bank transfer, details of default interest.

Obligations and undertakings

Loan agreements often provide that the borrower will indemnify the agent banks and lenders for losses, liabilities, and related expenses they incur from litigation or other claims related to the loan or the borrower, the borrower also ensure that he shall hold the lender, its officers, employees, advisors an agent harmless against all losses, claims and liabilities which are a result of the acts of the borrower.

The other obligations are paying the stamp duty on the agreement and various other ancillary documents, paying the taxes, paying for any additional costs that are incurred under the agreement.

An undertaking is a pledge that requires the borrower to fulfil certain conditions, or which stops the borrower from doing certain actions or which possibly restricts certain activities. Some of the undertakings are:

The borrower shall inform the lender of any material circumstances affecting the ability to repay the loan or nay charges to the lender.
The borrower shall comply with all relevant laws and obtain all authorization which are necessary for the borrower’s ability to enter and perform its obligations under the agreement.
The borrower shall supply to the lenders such information relating to the financial condition, as the lenders from time to time reasonably require.

Representations of the borrower

A representation is an assertion that is made most likely to induce the other party to enter a contract or take some action. Some of the common representations made by the borrower are as follows:

The borrower is competent to enter into this agreement.
The agreement is binding upon borrower.
The information provided by the borrower to the lender is true and fair.

Event of default

Different lenders have different definitions for default in their loan agreements, the definition of the event of default will change depending on the:

Type of loan the party will enter,
The positions of the parties,

The most common events of default across syndicated loan agreements are:

Failure to make payment.
Misrepresentations made under the agreement ‘Winding up/ Insolvency. Cessation or stopping of business.
Cross default i.ee when the borrower defaults on any other loan provided by any other bank or the same bank.
If the borrower uses the loan amount, or any part of it, for any purpose other than the purpose specified in the agreement.

Governing law

This clause states which rules, and laws are to be followed to govern the agreements if legal action is taken against either of the parties to the agreement, this clause contains the courts that have jurisdiction over the dispute matters of the agreement. Usually, all the agreements are governed in accordance with the laws of India and any competent court that has jurisdiction under the law where the lender is situated has jurisdiction over the matters of the agreement.

Miscellaneous

A miscellaneous clause is essential to every agreement. It contains various sub-clauses such as waiver, severability, survival etc. However, loan agreements contain two or more important sub-clauses which are as follows:

Amendment clause: this clause gives the right to the financial institutions to amend any clauses in the loan agreement that they want without informing the borrower any amendment case should be read in detail and understood properly.
Notification clause: the borrower must duly inform the lender of any change in address, change in primary business operations, any major change in the books of accounts that may or may not adversely affect the loan, etc. during the tenure of the loan. The tie frame within which this information must be notified and the mode of notification is specified in the clause.

Conclusion

Although the means of access to credit and finance has diversified and proliferated everywhere in the world, syndicated bank loans remain the preferred option for raising large amounts of funds. A large number of funds and stakes involved resultantly makes it imperative for all stakeholders to be absolutely thorough in their negotiations and agreements to avoid avoidable conflicts in future. A well-drafted agreement goes a long way in ensuring that.

References

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

Financial structuring of real estate projects

By

Shoronya Banerjee

-

November 14, 2021

0

This article has been written by Raghav Madan, pursuing the Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho. This article has been edited by Zigishu Singh (Associate, Lawsikho) and Ruchika Mohapatra (Associate, Lawsikho).

Table of Contents

Introduction

Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project. In terms of real estate, a loan sanctioned to construct or develop a new real estate project is what is commonly referred to as real estate project finance. Any individual or a firm or company engaged in the business of real estate development or construction (generally a developer) can avail of project finance.

One of the biggest challenges for the stakeholders involved in a specific project is to structure it in such a way that it requires minimum cost and fields maximum returns by way of cash flows. This structuring depends upon various factors like the type of project, development stage of the project, financial instruments and legal framework underlying them, parties involved and their background in terms of loan repayment, etc.

Perhaps, structuring becomes vital for a project’s success and to obtain a favourable outcome. It is the effective and efficient structuring of a real estate project which yields the maximum output for all the parties.

Key elements of an optimal real estate project structure

A successful project must carefully consider the following points:

Assessing the nature of the project;
Selection of optimal financial Instruments;
Project development stage;
Parties involved and allocation of the risk;
Effective legal processes;
Favourable economic environment of the country;
Organised management of the project.

Let’s discuss these points in more detail.

Nature of the project

The nature of a real estate project is divided into 4 types:

Residential real estate projects which include both new construction and resale homes. The most common category is single-family homes. These projects are preferred when you are building condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, and other high-value and multi-generational homes.
Commercial real estate projects include shopping centers and strip malls, medical and educational buildings, hotels and offices. Apartment buildings are also often considered commercial, even though they are used for residences since they are built to produce income.
Industrial real estate projects such as manufacturing buildings and property or warehouses. These are preferred when you want to use them for research, production, storage, and distribution of goods.
Land which includes vacant land, working farms, and ranches. There are further subdivisions within vacant land which includes undeveloped, early development or re-development subdivision and cluster.

The nature of the project helps in ascertaining the feasibility plan and the acceptable return on investment of a project. It provides a broad outline as to how much time and investment the project would require.

Instruments used in funding a real estate project

There are various instruments used to finance a real estate project. Each instrument has its own benefits as well as consequences. Accordingly, it is important to assess the available resources and use it to the advantage of the project. Some of them are as follows:

Debt

Debt takes the form of loans, usually from the banks but occasionally from wealthy individuals or syndicates. The key thing to understand about debt is that the downside is capped i.e., if the project goes bad, the lender can generally foreclose and take the property. The upside is the stability in returns i.e., debt gets a fixed return (generally expressed as an annual interest rate).

Some of the most common debt instruments in a real estate project includes:

Non-Convertible Debentures (NCDs) which are used by companies to raise long-term capital. This is done by a public issue. NCDs have a fixed tenure and investors who invest in these receive a regular interest at a certain rate. Based on the situation, they can either be secured or unsecured;
Loans from Banks/Financial Institutions are like an ordinary loan except for the fact that security demanded would be much higher and a thorough due diligence would be conducted. Any delay in compliances or low credit rating is now taken very seriously and could be a ground for rejection for granting loan;
External Commercial Borrowings (ECBs) which though a very restrictive mode of finance for real estate but are a great way to raise funds in bulk with a very less rate of interest. But again, they also have very demanding legal requirements such as stringent criteria of eligibility of both: lender as well as the borrower, compliance with Foreign Exchange Management Act (FEMA) Rules, end-use restrictions, all-in-cost ceiling, etc.

Equity

In simple terms, equity is ownership of assets that may have debts or other liabilities attached to them. Some common sources of equity in real estate project finance are as follows:

Friends and family which is usually in smaller chunks that you can raise from people you know and used in very early stages;
Crowd-funding which is relatively a new source of finance. Sites such as fundrise and realty mogul serve as clearing-houses for equity, connecting sponsors to a large number of equity providers;
Family-offices which is generally considered as the best source of capital. These are typically small offices set up by extremely wealthy families to manage their investments. Family-offices are used to investing in private deals and they often move quickly and demand reasonable if interested in the deal;
Institutional money for raising humongous investment. These investors are extremely sophisticated and risk averse. In exchange for the large sum of money, they demand very stringent financial controls/ reporting/ auditing. They always keep a very detailed exit clause to ensure they are able to exit in benefit;
Foreign Direct Investment (FDI) which is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.

Asset class

Real Estate Investment Trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and commercial forests;
Infrastructure Investment Trust (InvIT) which is a business trust (like REIT), registered with the market regulator, that owns, operates, and manages operational infrastructure assets. These long-term revenue-generating infrastructure assets, in turn generate cash flows, which are then distributed to the unitholders periodically.

Lease rental discounting

Lease Rental Discounting (LRD) is a term loan offered by banks against rental receipts derived from lease contracts with corporate tenants. The loan is provided to the lessor based on the discounted value of the rentals and the underlying property value.

Financial Instruments play a key role in structuring the project as per the needs. It also depends upon the discretion of the project developer. Some developers avoid equity to prevent dilution of their control over the project and some may avoid debt in order to get out of rigid obligations.

Status of development of the project

The development status helps in finding out the funding requirements and building trust towards lenders. The closer a project is to its completion, the easier it is to fund since the lenders will have a lot more reliability on a project’s ability to generate cash flows. Different instruments of funding are used in different stages of the project. Broadly, the financing of a real estate project could be divided into 3 categories:

Land Acquisition Phase;
Construction Phase;
Completion Phase

Let us discuss how a real estate project is financed in different stages and challenges pertaining it.

1. Land Acquisition Phase

This is the preliminary stage of a real estate project. At this stage, there is a lot of uncertainty and risk around the project and its success. Therefore, the funding is extremely difficult especially with regards to the debt since the RBI has set out very rigid regulations that restrict the commercial banks to fund the land acquisition. On the flip side, adventurous equity investors are motivated by the high risk-high return factor and thereby equity is more dominant at this stage.

Generally, these projects are financed through Non-banking Financial Companies (NBFCs). And since the risk is high, NBFCs generally fund the project at this stage based on certain conditions. For example, one of the most common requirements is NBFCs asking to keep a debt-to-equity ratio of 40:60 whereby the bank will give 40% debt provided you have 60% equity. Generally, the project developers will not have 60% equity at the start and they accumulate it by entering into two kinds of transactions:

a. Joint Development Agreement

Joint Development Agreement (JDA) is an arrangement between the landowner and the builder/developer, where the landowner contributes his land and the developer takes the full responsibility of obtaining approvals, construction, launching, and marketing the project with the help of financial resources. However, the downside of this agreement would be that you will have to share profits and dilute control by giving certain rights based on the terms of this JDA.

b. Joint Venture Agreement

A Joint Venture Agreement (JVA) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This venture will have its own identity, separate from the participants’ other business interests. In project finance, it is specifically called a Special Purpose Vehicle (SPV).

The main benefit of this SPV is less requirement of daily management and limited liability to repay the amount (since the risk of repayment would restrict towards SPV only and not the parent company). However, since the SPV has very limited assets and limited liability, the NBFCs will now demand twice the security. For instance, a loan of Rs. 50 given to an SPV should have provided security of Rs. 100.

2. Construction Phase

After acquiring the land, the construction of the project begins. At this stage, a loan becomes relatively easier. NBFCs will now provide the loan even if the debt-to-equity ratio is 70:30 (provided the SPV has no compliance or regulatory issues).

Once the construction starts to yield returns (by way of cash flows from the project), the SPV can now start paying off all the loans, dividends, or any other funds raised for the project. If the cash sales are generated beyond expectations, the developer can also pre-pay the loans (subject to a prepayment penalty).

3. Completion Phase

At this stage, the project is almost or fully complete. Although a developer has very little or no funds left, loans are now granted very easily. Even the project starts to generate revenue at a very high pace.

The project is now assessed from the estimated cost to the actual project cost. The outcome of the project is valued to measure whether it was profitable or loss-making. Generally, the actual cost always exceeds the estimated costs followed by delays, in prices, unforeseen circumstances, etc.

As concluded, the funding of the project becomes easier over time since the lenders start to build trust in the project completion and possible returns. Therefore, projects should be structured in such a way that they move towards the completion stage as soon as possible.

Favourable economic environment

Interest rates impact the price and demand of real estate. For example, lower rates bring in more buyers, reflecting the lower cost of getting a mortgage, but also expanding the demand for real estate, which can then drive-up prices.

Real estate prices often follow the cycles of the economy, but investors can mitigate this risk by buying units of REITs or other diversified holdings that are either not tied to economic cycles or that can withstand downturns. Government policies and legislation, including tax incentives, deductions, and subsidies can boost or hinder demand for real estate. These economic and market-friendly environments influence not only how a project would be financed but also whether a project would be worth it in the first place.

Legal processes

Due diligence

A legal due diligence investigation is seeking information about the business to make sure that the investment or purchase is beneficial. The investigation seeks to reveal all important facts and potential risks and liabilities. Once the facts are collected and analysed, an informed decision can be made. In project finance, typically 3 types of due diligence are carried out:

Title Due Diligence;
Lender Due Diligence;
Investor Due Diligence.

Appropriate due diligence is conducted for the purpose of ascertaining risk assessment and credit rating so as to find out what is the possibility of repayment. If the bank is satisfied, then the developer would be allowed to go forward with the loan. However, if the bank is not satisfied and feels the risk factor is too high, the project would require alternative structuring of finance. Therefore, it is important that before indulging in project finance, a party must come with a clean background.

Some of the typical assessments in due diligence include credit history, market position, company profile, cash flow analysis, technical parameters, development mode, etc. Based on these factors, a sanction letter is provided with few terms and conditions followed by legal due diligence reports and technical valuation reports. Accordingly, legal documentations and approvals take place.

Structuring

Suppose Mr. A decides to build a skyscraper near an airport. He finds out that this would yield him a lot of returns compared to what he would invest in the project. Now this project may sound very fancy for a developer but a lawyer knows that such projects will never get approved. Hence, it is important to properly legally structure a project. Let us discuss it in more detail:

The structuring of the project can be divided into two parts:

Commercial structuring which is in consonance with the objectives of client;
Legal structuring which is in consonance with the objectives of law.

There might be a situation where what is commercially viable would not be legally viable. This is where the job of a lawyer is the most important. Legal representatives have to bridge this gap by structuring a solution that is legally viable keeping in mind the commercial interests of the clients.

This structuring gap could be the nature of the project, place, financial aspects, govt. policies, etc. Typically for resolving this issue, legal teams carry out thorough due diligence, take out the necessary red flags and create an alternative approach to the red flags by way of enforceability.

Project management of the parties

Since the project is dealing in thousands of crores, multiple parties are included for its completion. Therefore, it is important that a project is properly organized and managed by all the stakeholders through a collaborative effort. The main aim is to avoid two of the biggest risks in the project- Time Overrun and Cost Overrun. As a result, there shall be setting up of practical plans, effective designing of leaders, data collection and testing, timely evaluation of the project, and comparing it with the setup plan. Apart from all the technicalities, it is the effective management of the project that has the biggest influence on a project’s success.

Conclusion

It is often viewed that structuring a real estate project is an art considering the complex challenges that are needed to be overcome such as type of project, development stage of the project, financial instruments and legal framework underlying them, complex legal structures, objectives of the parties, etc.

Perhaps, structuring becomes vital for a project’s success and to obtain a favourable outcome. It is the effective and efficient structuring of a real estate project which yields the maximum output to all the parties. Having said that, there is no perfect structure to any project. Parties involved in the project can have contradicting objectives and would prefer different structures. This is where the role of stakeholders becomes even more essential. Different objectives lead to the two biggest problems in the project- cost overrun and time overrun. It is important that the different set of parties collaborate and critically analyze from a broader perspective and come to a common point. The objectives should be dedicated towards what is healthy for the project and its completion with no (or bare minimum) cost overrun and time overrun. As quoted by Henry Ford, “Coming together is a beginning, keeping together is progress, and working together is a success.”

References

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

S. No.	Website	About
	Flexjobs	Flexjobs is a great job board and the finest location to look for legitimate remote work. Currently, they have over 36,000 active job advertisements from 4,000 employers. All of them are categorised by industry, as well as full-time and freelance positions. You may discover positions at all levels, from entry-level to executive and management, and the majority of them are remote and flexible.
	Upwork	Upwork is a global freelancing marketplace that links businesses with independent workers to generate work and communicate remotely. Upwork is one of the most well-known remote job sites, with work in a wide range of fields. It is completely free to join Upwork. Upwork provides you with 60 connections per month as a freelancer. At least two connections are required for any proposal or job application you submit. Upwork restores your connections at the end of each month, giving you a total of 60 connections to utilise with your applications. Content writing, video editing, web design, research, and programming are just a few of the jobs offered on Upwork. Upwork also allows freelancers to take proficiency tests to assess their abilities and stand out, with the results being used by clients to narrow down the most suitable individuals.
	Indeed	Indeed is one of the most comprehensive and well-designed remote employment boards available today. It gathers information from all across the internet in order to bring employment and remote work opportunities together. Job ads are organised by industry or kind, income, location, firm name, and level of experience. Indeed serves a wide range of businesses, including engineering, education, real estate, and even the arts, entertainment, and publishing. There are almost 2,000 remote jobs listed on Indeed, including these and many others. Indeed, being one of the most popular remote work sites also advertises jobs by location.
	Authentic Jobs	Authentic Jobs has a long list of well-known clients and is particularly well-known for creative remote work. Web designers and web developers are among the freelancer profiles, making it an extremely tech-oriented remote job website. Designers and creative workers have found Authentic Jobs to be a valuable resource. The platform, which promises excellent work chances, makes it simple for freelancers to navigate its remote job board. On this remote employment portal, open positions are organised by skills, location, levels, company type, and compensation.
	Freelancer.com	Australia-based Freelancer.com is a freelancer job market that allows clients and organisations to post remote jobs for freelancers to bid on, which is a slightly different approach than the other remote job sites. Freelancer is a free membership programme that allows freelancers to bid on up to eight tasks each month. However, paid membership plans (varying from $0.99 to $59.95) are available that provide additional benefits such as larger bid allowances, unique profiles, daily withdrawal capabilities, and the ability to bid on higher-priced job postings.
	Hubstaff Talent	By providing a completely free service as a remote job listing site, Hubstaff Talent has succeeded to create a stir among the nomad world. This implies that when freelancers are engaged, they are paid in full according to the terms of the contract they signed with employers, and the payment is sent straight from the employer to the freelancer. The Hubstaff Talent website is simple to access and has a minimalistic design. Type, experience level, full-time or part-time, and country are all categories for remote work. Compared to its larger and older peers, Hubstaff Talent’s job postings are currently modest, but it has a lot of potential, and it wouldn’t be shocking if Hubstaff Talent receives a larger share of industry attention in the future.
	ProBlogger	ProBlogger is a website that connects freelancers with content writing jobs and hires content writers to create high-quality content for a variety of businesses. Its clients include huge corporations in need of copywriting services, as well as freelance writers who run their blogs and websites and hire other freelancers to generate content for them. Writing jobs can be filtered by position level, kind, and industry, as well as employment or contract length.
	Guru	One of the things that the Guru team strives for and believes in is work-life balance. It has more than 1.5 million Gurus around the world who specialise in diverse subjects. The site features a large number of remote work opportunities that can be filtered by category and type, budget, location, and whether or not the company is using a verified payment method. Because Guru is one of the larger platforms for remote job postings, it includes services like daily job matching and job ideas to save users time from having to sift through dozens of job posts.
	Virtual Vocations	Virtual Vocations has one of the largest databases for remote job advertisements. Furthermore, Virtual Vocations assures that these work from home opportunities are quality leads by putting them through a rigorous screening procedure. Virtual Vocations has a wide selection of career categories, including business services, travel, education, information technology, accounting, and even Non-Profit. General or Virtual Assistants are the most popular job category on Virtual Vocations, with jobs including social media management, administrative tasks, copywriting, and design, to mention a few.
	Jobspresso	Jobspresso is a simple-to-use platform for finding great remote employment. Jobspresso’s crew verifies that every job they offer is genuine by analysing employers’ websites and social media accounts, and they maintain their listings up to date to include only open positions. Jobspresso’s finely selected job listing contains exciting remote opportunities in tech, customer service, marketing, and more to help you realise your dream of working from home.
	Outsourcely	Outsourcely’s goal is to connect remote workers with clients and businesses. Outsourcely’s platform was created to foster full-time status for remote workers and a stable, fluid workforce for companies and entrepreneurs, resulting in long-term success. When employers hire freelancers, Outsourcely does not charge a commission fee. The freelancer is hired directly by the employer, and the freelancer is paid directly by the employer. Design and multimedia, sales and marketing, writing and content, and many other jobs are available on Outsourcely. Outsourcely’s site has unique features such as direct video and chats interaction between freelancers and employers, as well as real-time customer service, making it one of the best remote job sites for startups.
	Fiverr	Fiverr is a marketplace for freelancers where you can purchase and sell services for as little as $5.After you sign up for Fiverr, you must construct a “Gig,” which is a statement that informs potential clients about the services you do for $5.If you get hired, do outstanding work, and obtain a good rating from your client, you’ll have a better chance of getting more jobs through Fiverr because other employers and client prospects can see your ratings on your membership profile. Good ratings also help you advance in the Fiverr ranks, increasing your credibility. Fiverr is one of the many virtual labour websites that connect people and businesses from all over the world.
	AngelList	Angellist is the place where the world meets startups. Angellist is a job board dedicated to linking job seekers with employers. If you join up as a job seeker, it signifies you are particularly interested in working for a startup. When you come across a job posting, you can either select “Apply” or “Interested.”The startup will be alerted of this and can choose whether or not to select the “Interested” option. If both the freelancer and the startup are interested, a “Match” is created, and both parties will receive an introductory email from Angellist. Angellist not only categorises job postings by type and industry, but also offers a list of “A-List Candidates” (those with high rankings and scores from previous work experiences, education, and skills) and “A-List Companies,” which feature well-funded startups, to further enhance the site’s matching feature.
	Working Nomads	Working Nomads is a remote job board with a handpicked selection of work from home positions from companies all around the world. The site, which is updated daily, is frequently viewed by job seekers offering services in marketing, design, sales, development, and other industries. The site’s projects and remote jobs include both temporary and full-time opportunities. Working Nomad’s founders ensure that only legitimate job postings display on their website for job seekers to pick from. Expert potential workers and freelancers make up Working Nomad’s talent pool for firms and recruiters, since the site draws a large number of remote job seekers, making it one of the greatest places to locate remote jobs.
	Dribble	Dribble is a social media site where graphic designers, web designers, illustrators, and other creatives can share and promote their work and current projects. Companies and companies looking for the best designers, software engineers, and small studios in the globe can utilise Dribble to find the right fit in under 24 hours. Dribble has been able to successfully connect clients and freelancers based on over 30,000 projects from some of the world’s largest corporations. All while charging up to four times less than working with a traditional agency.