MSMED Act is of prospective nature, has no retroactive effect

The Apex Court has iterated that the MSMED Act of 1993 is of prospective nature and has no retroactive effects. In Odisha State Financial Corporation vs Vigyan Chemical Industeries decided on 5 August 2025, the Supreme Court strongly disapproved of the Odisha State Financial Corporation (‘OSFC’) for its legal mismanagement. A bench of Justices J B Pardiwala and R Mahadevan has put forward that procedural compliance is not just a mere formality; it is rather a substantive safeguard designed to protect the interests of State instrumentalities and the public exchequer.

The liability to make payments under Sections 3 and 4 of the The Interest On Delayed Payments To Small Scale And Ancillary Industrial Undertakings Act, 1993 can only arise after the Act has come into force. Since no prior events and liabilities are attached, the Act only acts prospectively and has no retroactive role. 

The Court referred to the International Airport Authority’s case on the question of when a corporation may be considered an instrumentality or agency of the government. This is not by mere government ownership. These include (1) entire shareholding by the government, (2) substantial financial assistance by the state, (3) state-conferred or protected monopoly, (4) deep and pervasive government control, (5) performance of functions of public importance closely related to governmental duties, and (6) transfer of a government department to the corporation. These are indicative tests and their cumulative effects determine whether a corporation qualifies as “State” under Article 12 of the Constitution. 

Section 29 of the State Financial Corporation Act, 1951 empowers financial corporations to enforce security without court intervention, limiting their liability strictly to funds recovered from the borrower’s assets. These corporations cannot be held personally liable. The judgement has reaffirmed the principle established in the Assam Small Scale Industries case.

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Exciting Opportunity! Apply Now: Deputy Counsel Legal Position at Citi India (2–5 Years PQE)

The Deputy Counsel Legal Position at Citi India offers an unparalleled opportunity for lawyers to grow their career in one of the world’s most prestigious financial institutions. Citi, a global banking giant, is actively seeking qualified legal professionals for the role of Deputy Counsel (Counsel III) at its Mumbai office. This full-time in-house legal role is ideal for candidates with 2 to 5 years of experience, particularly those with a background in banking, finance, or regulatory advisory.

For motivated legal professionals, this is a high-impact opportunity to work directly with senior management and provide critical legal support for strategic financial operations. If you are looking for a challenging, fast-paced, and intellectually stimulating legal role, read on.

Why Citi?

Citi is one of the most trusted names in global finance, operating in over 160 countries and serving millions of clients, including corporations, governments, institutions, and individuals. At Citi, legal counsel plays a vital role in ensuring compliance, navigating complex regulations, and helping the business adapt to global legal landscapes.

By joining Citi’s legal team, you’ll be working at the intersection of law, finance, and international policy—contributing not just to compliance, but to shaping the way banking is conducted around the world.

Key Responsibilities

In the Deputy Counsel Legal Position at Citi India, you will:

  • Advise internal stakeholders on Indian banking laws, global regulations, and risk mitigation strategies
  • Assist in structuring complex financial transactions, mergers, and regulatory submissions
  • Draft, review, and negotiate contracts, agreements, affidavits, and other legal documentation
  • Evaluate legal and reputational risks in new and ongoing business operations
  • Work closely with risk, compliance, and audit teams to implement a sound legal framework
  • Contribute to regulatory change management by tracking trends and legislative developments
  • Liaise with regulators, external counsel, and law enforcement agencies as needed
  • Provide training and awareness on legal issues to internal departments

This role combines legal advisory and risk management with a practical understanding of banking operations, offering you a holistic in-house legal experience.

Who Should Apply?

This role is best suited for legal professionals who meet the following criteria:

  • A degree in Law (LL.B. or Juris Doctorate) from a recognized university
  • 2–5 years of PQE, preferably in a bank, NBFC, law firm, or regulatory body
  • Strong command over RBI regulations, FEMA, SEBI guidelines, and other financial sector norms
  • Proven experience in contract negotiation, stakeholder engagement, and regulatory advisory
  • Excellent written and verbal communication skills
  • Ability to work under pressure, manage multiple tasks, and meet strict deadlines
  • An active bar license in good standing

Location and Nature of Work

  • Location: Mumbai, Maharashtra
  • Mode: Full-time, In-office
  • Team: Legal (Counsel III Level)
  • Reporting: You will work directly with senior counsel and interact with global legal teams as required.

How to Apply

If you’re interested in the Deputy Counsel Legal Position at Citi India, apply using the official application link:

Apply Here: https://lnkd.in/gq5-F9he

Make sure your resume clearly reflects your legal experience and highlights relevant exposure to financial and regulatory matters.

Why This Role Matters

In today’s complex legal environment, especially within banking and finance, in-house legal counsel must go beyond basic compliance. They must anticipate regulatory changes, proactively mitigate risk, and act as strategic business partners. At Citi, you’ll do all that and more.

This position isn’t just a job—it’s a chance to build a long-term, high-impact legal career within an elite international financial institution. You’ll gain insights into global markets, collaborate with experienced professionals worldwide, and contribute to legal innovation in banking.

Final Word

If you’re a legal professional looking to elevate your career, the Deputy Counsel Legal Position at Citi India is your gateway to excellence. Apply today to become part of Citi’s legacy of legal leadership and financial innovation.

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