India Business Bulletin (December 2025)

General Updates

Negotiations on India – New Zealand Free Trade Agreement (“FTA”) concluded

With the aim to foster trade, investment, innovation and job creation in India and New Zealand, FTA negotiations between the countries have been concluded. This will deepen economic integration along with trade liberalisation and tariff concessions.

Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (“SHANTI”) Act, 2025

The SHANTI Act has received assent from the President of India and replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010. SHANTI Act enables private companies or joint ventures to build, own, operate and decommission nuclear power plants under permission from the Government of India. Cap of 49 % (forty-nine) has been put on Foreign Direct Investment. Other features of SHANTI Act include creation of Appellate Tribunal for Electricity; statutory status to Atomic Energy Regulatory Board; revised Nuclear Liability Framework amongst others.

Order issued regarding usage of term “Tea”

As per recent order, the Food Safety and Standards Authority of India has directed all Food Business Operators to comply with the provisions of the Food Safety and Standards Regulation and refrain from using the term “Tea” for any products which are not derived from the plant Camellia sinensis.

Corporate Law Updates

The Companies (Specification of Definition Details) Amendment Rules, 2025

The Ministry of Corporate Affairs (“MCA”) has amended the definition of small company under relevant provisions of the Companies Act, 2013. As per the aforesaid amendment, paid up capital and turnover of a small company shall not exceed INR 10 (ten) crores and 100 (one hundred) crores respectively.

Deadline extended for filing of financial statements and annual returns

The MCA has extended the deadline till 31 January 2026 for professionals and companies to file their financial statements and annual returns without payment of any additional fees.

Introduction of modification utility and commencement of levy of fee for delayed filing of forms under Regulation 40B of the Corporate Insolvency Resolution Process (“CIRP”) Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) introduced a new modification on its portal, that allows Insolvency Professionals to correct or update CIRP forms that have already been submitted. These changes can be made using One-time password (“OTP”) based verification and are free if done before the form's respective due date. 

Further, IBBI has started charging a late filing fee of INR 500 (five hundred) per month plus Goods and Services Tax (“GST”) for CIRP forms due on or before 31 December 2025 but filed after that date.

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Seventh Amendment) Regulations, 2025

The IBBI has issued the IBBI (Insolvency Resolution Process for Corporate Persons) (Seventh Amendment) Regulations, 2025. The said regulation requires every resolution plan to disclose in IBBI's prescribed format (i) complete beneficial ownership details of the resolution applicant including ultimate natural persons, shareholding structure and jurisdictions of intermediate entities; and (ii) an affidavit stating whether the resolution applicant is eligible for the benefit under Section 32A of the Insolvency and Bankruptcy Code, 2016.

The Companies (Amendment) Act, 2025 (“Amendment 2025”) proposed

The Lower House of Parliament of India has introduced the Amendment 2025 which proposes to amend provisions relating to the threshold for Corporate Social Responsibility (“CSR”) applicability and framework of constitution of CSR committee. The proposed limits for a company are Net Worth of INR 100 crore (previously INR 500 crore) or Turnover of INR 500 crore (previously INR 1000 crore) or Net Profit of INR 3 crore (previously 5 crore) during the immediately preceding financial year.

Labour Law Updates

Haryana Shops and Commercial Establishments (Amendment) Act, 2025 (“Act 2025”) notified

The Haryana Government has notified Act 2025 and key changes include applicability on establishment with less than 20 (Twenty) employees; increase in daily working hours from 9 (Nine) to 10 (Ten) hours; break after 6 (Six) hours; quarterly overtime limit of 156 (One Hundred Fifty-Six) hours; penalty provisions; procedure for registration of establishments; issuance of Appointment Letter and Identity Card; notification of Closure; amongst others.

Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025 (“Ordinance 2025”)

The Government of Gujarat has notified the Ordinance 2025, key highlights of which include applicability on the establishment with 20 (Twenty) or more workers; increasing daily number of working hours to 10 (ten) with weekly limit of 48 (forty eight) hours; allowing women working at night between 9 pm and 6 am; break after 6 (Six) hours; increasing overtime hours from 125 (one hundred twenty five) to 144 (one hundred forty four) in a quarter; applicability of POSH Act; appropriate working conditions; mechanism for addressing sexual harassment complaints; proper light and CCTV camera; rest rooms; transportation facilities; amongst others.

Madhya Pradesh Shops and Establishments (Second Amendment) Act, 2025 (“Amendment 2025”) notified

The Government of Madhya Pradesh has notified the Amendment 2025 as per which all establishment/registered employer within 30 (thirty) days has to apply with prescribed fees and details on the designated portal. Other features of Amendment 2025 include removal of requirement of renewal of registration certificate; online procedure for registration certificate amendment and closure of establishment; fees for registration; amongst others.

Right to Disconnect Bill, 2025 (“Bill 2025”) tabled in Parliament of India

In the Lower House of the Parliament of India, the Bill 2025 has been introduced which provides employees to abstain from attending any calls, emails, text or meetings, beyond their working hours. Employees can do this without fear of any disciplinary or punitive action from employers. The Bill further mandates establishment of Employees' Welfare Authority; counselling services and Digital Detox Centres for the welfare of employees.

General Provident Fund nomination made by employee in favour of one of the parents before marriage becomes invalid post marriage

The Supreme Court of India has held that although nomination was in favour of mother of the deceased, however, the condition stipulated in the nomination form rendered at the time of death of deceased, void. The General Provident Fund of the deceased shall be distributed between the wife and mother of deceased.

Temporary employee is also entitled to maternity benefit even though technical break in service is granted

The High Court of Judicature at Bombay held that even if a woman is working on temporary basis, she is entitled to the benefits of the maternity leave under Maternity Benefits Act, 1961 and merely because the woman is granted a technical break (i.e. generally a gap of few days - as per norms of employment of the organization) in service is no ground to deprive her of the benefit.

Intellectual Property Updates

Dynamic+ interim injunction against Defendants (Registrants and DNRs) for protection of trademark ‘COLGATE', ‘COLPAL' and ‘COLGATE PALMOLIVE'

The Delhi High Court (“DHC”) has passed Dynamic+ interim injunction and directions to various Government and registration agencies (such as Banks, Ministry of Electronics and Information Technology, Ministry of Home Affairs, Registry Operators offering services in India, National Internet Exchange of India and other relevant Government authorities) holding that protection of brand names, trademarks etc., is not only for the purpose of protecting the Intellectual Property and goodwill of businesses but also to take effective steps against the large-scale cheating and deception of innocent consumers and users who are suffering huge losses due to misuse of trademarks and brand names on fraudulent domain names/websites.

Instructed eye test reaffirmed in Design infringement and novelty cases

The DHC while dealing with an appeal arising out of an order passed by single judge in a Design Infringement case, has held that it is necessary for a design to aesthetically appeal for it to be registrable. While analysing the significance of novelty of registered design with prior art, it has been observed by Court that it was an “instructed eye” test i.e. one that is aware of prior art and able to recollect the specific features of the prior art.

Injunction granted on grounds of Triple Identity

In a recent judgement, the DHC has ruled that the similarity of rival marks, overlapping nature of goods and similar trade channels has resulted in a case of “triple identity” and thereby warranting the grant of interim relief against the Defendants using the Plaintiff's TESLA mark. The Court held that “TESLA” is the dominant and identical element of both the parties' marks, and the mere addition of descriptive terms does not sufficiently distinguish the goods and services of the Defendant from those of the Plaintiff. A consumer of average intelligence and imperfect recollection would be unable to distinguish between the competing products.

Changes in provisions related to atomic energy invention

Following the enactment of SHANTI Act, the provision related to non-patentability of invention related to atomic energy under the Patent Act, 1970 have been changed. The revised Section 4 of the Act to be read as: “The patents may be granted for inventions relating to nuclear energy subject to the provisions of this Act and section 38 of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming Act, 2025.”

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