MISCELLANEOUSCentral
Section 10 of The Bilateral Netting of Qualified Financial Contracts Act, 2020
The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.
Summary
- The provisions of this Act have overriding power over all other laws.
- If there is any conflict between this Act and any other existing law, this Act will prevail.
- This overriding power also applies to any legal instrument that gets its power from other laws.
- This ensures that netting agreements and qualified financial contracts are protected from conflicting rules.
Practical examples
1On April 5, 2026, a liquidator claims that under the Companies Act, 2013, Zenith Ltd cannot settle its debts through netting because it is undergoing winding up. However, under Section 10 of this Act, the netting provisions override the conflicting rules in the Companies Act, allowing the netting to proceed.
2On September 10, 2026, a bank tries to enforce an internal regulatory circular issued under a separate banking law that blocks the close-out of certain financial contracts. Because Section 10 states that this Act overrides any inconsistent instrument, the close-out netting rules of this Act remain fully effective, rendering the conflicting circular inapplicable.
FAQ
1. What does "for the time being in force" mean in Section 10?
It refers to any other law that is currently active and operating when the conflict arises.
Test yourself
Q1.According to Section 10, the provisions of this Act shall have effect notwithstanding anything inconsistent contained in:
Q2.What else besides "any other law" does Section 10 explicitly override if there is an inconsistency?
Q3.Which section of the Act contains the provision that overrides other conflicting laws?
Q4.Does Section 10 require a special court order to override another conflicting law?
Q5.What is the primary purpose of Section 10?