The Most Common Causes of Corporate Dispute

Corporate Conflicts
Criminal Matters » The Most Common Causes of Corporate Dispute

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Businesses are not only hard to set up but also to run and continue without harming anyone. The world of business is extremely unpredictable and no amount of preparation will cover what the possible corporate disputes could be. For reference, however, one can refer to the following most common corporate disputes.

What are Corporate Disputes?

Corporate disputes are a type of dispute that arises during the regular course of conducting business. With so many components or people involved in making the business run on a day-to-day basis, there are bound to be issued. For instance, there could be corporate fraud, problems with employees, contract breaching, problems with the shareholders, etc. There can also be causes with other companies or competition, the Government, the community, and also the consumers on any cause. Since it is a workplace, these problems need to be settled in a proper way often leading to litigation. Also, if the issues are ignored and not settled in time, it can affect the efficiency of the company and profitability. Therefore, it becomes essential, as an entrepreneur, to be aware of common corporate disputes and how to settle them.

Causes for Corporate Conflicts

There are many causes for corporate conflicts that can possibly arise. To be able to concise all of them in one space is hard. However, there are some major issues that fall are handled by most corporate litigation law firm which has been described in short below.

Breach of Contract

As a company starts, there are a lot of contracts signed to get things up and running. There will be contracts with vendors, employees, consumers, competitors, the community, shareholders, and business partners among all. The parties to these contracts are expected to follow the contract, do as it states, and not do anything that can lead to a breach. When one or more parties to a contract have not upheld their part of a contract, it results in a breach of contract. The victim party can, here, sue for a breach of contract and seek adequate compensation or resolution. Most contracts will have clauses that will come into effect in case of a breach. However, in most disputes of this nature, a judge will be referred to determine the extent of breach and damage.

Infringement of Intellectual Property

Intellectual property refers to creations of the mind or creations in which one has to put in mental effort. For instance, literary works, music, symbols, images, and designs are all considered intellectual property. The goal of having laws on these properties is to protect the creator and to discourage individuals from making undue illegal profits. There have been multiple scenarios where infringement of intellectual property has led to the creator losing their rights. In the case of businesses, patents, trademarks, and copyrights for their products must be protected. If there is a case where it has been harmed and used unfairly, the company can sue the party. Litigation will take place where the judge will decide the compensation and punishment for the other party. Here, it is important to keep in mind that some kinds of intellectual properties are licensed to other people to use in exchange for a fee.

Also ReadWhat Do You Need To Know About Intellectual Property Rights In India?

Employment Problems

Any company that has several employees needs to be taken care of and given proper rights. If not, these employees will have cause to file a case against their employer. Many corporate law firms in the country handle employment disputes like wage issues, wrongful termination, discrimination, harassment, severance pay problems, etc. In case of these employment problems, the employment contract signed by both the company and the employee will be referred to. Most of these issues are already addressed and set up within the contract. Out of all possible corporate disputes, employers must make sure to stay up to date and educate themselves about employee issues and come up with ways to address them should they arise in their company.

Also Read: Lex Solutions – Your One Stop Destination For All Things Legal

Fraud

In simple terms, fraud in the corporate space refers to anything or action did illegally. Corporate frauds have a sense of dishonesty and unethical news. Most frauds are committed with the aim to get an unfair advantage while disadvantaging the other person. Corporate frauds are quite complex and go beyond what can be possibly handled by a company without legal help. Some types of corporate fraud are selling or making gains from confidential and sensitive information, altering company records and financial statements, hiding company flaws, diversion of funds, etc. Depending on the type and extent of fraud related to financial motive, if a common settlement cannot be arrived at, a legal proceeding will take place in court. The judge will then decide how to settle the fraud and how to offer compensation.

Disputes Among Shareholders

Like there are employees, there are also many different types of shareholders. From a couple to thousands, the number of shareholders is not fixed. With such a high number of people, there is bound to be dispute and issue that requires legal help. Within this type of dispute, there can be several types of issues such as breach of contract, and fraud as mentioned above. Other issues such as poor management problems can commonly lead to disputes among the shareholders. For shareholder issues, employers must be thorough in what their rights would be and do everything in their capacity to protect them to prevent any problems.

Negligence Torts

Negligence refers to disputes that arise when the employer has not created a safe environment for the employees that leads to their harm. The said harm could be to the person’s property or self or wage. For instance, if there was a spill in the workplace that led to an employee slipping and hurting himself which leads to a legal case. The employee here can sue for loss of wages, medical bills, and also negligence at the workplace. These situations can arise anytime and are truly something outside the control of the employer. What is needed in such a case having a quick resolution process where the employee is given compensation and an option to settle without having to resolve litigation.

Conclusion

Corporate disputes are tricky to navigate as there is both money and reputation to protect. Lawyers such as the ones at Lex Solutions take care to navigate these cases properly to ensure both parties get what they want and there are no rights being harmed. The teams of lawyers at Lex Solutions are trained and have intensive experience in the law of mergers and acquisitions and related corporate disputes that will provide satisfactory results to all employers.

According to estimates, 65% of people living in urban areas around the world are tenants. This is also true in India due to the sky-high prices of real estate in the major cities and the large population of migrant workers who live there. Nevertheless, living as a renter can be a peaceful arrangement, but occasionally there are situations where one can run into rental problems and other connected issues, such as receiving an unauthorized eviction notice or the erratic behaviour of the landlord.

Are you, however, a renter who is experiencing such problems or simply curious about what to do if you ever find yourself in a similar situation? In that case, allow us to help you through this blog, which will briefly discuss about the several protections against landowner harassment.

What does illegal eviction of tenants mean?

An illegal eviction, also known as an unlawful termination of tenancy, typically happens when a landowner forbids a tenant from entering a rental property or removes the tenant’s belongings from the property through the use of force, intimidation, or other methods (such as cutting off utilities or changing the locks). However, if the landowners evict you without taking the proper legal action, they are breaking the law.

How Do You Respond When Your Landlord Forcibly Evicts You?

Almost every state has rental control legislation pertaining to tenant protection, and each state has established specific circumstances for which the landlord may lawfully evict the renter. Additionally, a tenant has a legal right under the law to appear in court and defend himself against unlawful eviction, and some of those accessible remedies for tenants are discussed below:

Grounds for eviction

Non-payment of rent, breach of the lease, property damage, and illegal activity are the most typical grounds for evicting a renter. The tenant must therefore review the provisions of the State Rent Control Act to ascertain the grounds for eviction specified in the Act. In addition, if the tenant is being evicted for any reason other than those specified in the Act—which is considered wrongful eviction—they must seek the help of an eviction lawyer and the enforcement agencies to halt this.

Suit for injunction

A renter might be unable to leave a property when asked to do so for a number of reasons, such as having a medical emergency or having his elderly parents live with him. When this happens, the tenant has the option to file a case in the appropriate court to obtain an injunction that will prevent them from being evicted for any other grounds (other than those listed in the State’s Rent Act). Along with the assistance of housing rental lawyers, the renter should take this action, if they are violently evicted without providing them with adequate notice.

Rent Controller

In the event that the tenant receives a notice of eviction on pretences, they should go see the rent controller of the relevant jurisdiction and explain why they believe the notice of eviction is invalid. Additionally, following the tenant eviction laws, the court will summon the tenant, who will then be forced to submit his or her case and the arguments supporting the necessary evidence.

Notice of rent payment

If the landowner claims that he has not received the required rent and lists this as the reason for serving the notice of eviction, the tenant may legitimately ask him or her to send the information to his bank account so that he can conduct the transaction and deposit the outstanding rent. Moreover, after agreeing to it, the landowner must give the tenant the information within 10 days of the date they received the notice.

Also Read: Lex Solutions – Your One-Stop Destination For All Things Legal

Steps that you must follow to legally evict a tenant in India

Because eviction laws differ from state to state, the following are typical recommendations for evicting a renter. Nevertheless, you can contact the tenants lawyer of Lex Solutions if you need any assistance.

Serve the Tenant With a Termination Notice

The tenancy must be terminated before a landlord can evict a tenant for cause, and the landowner shall provide the tenant with the required notice before taking legal action to do so. Three different kinds of termination notices are generally available:

  • Pay Rent or Quit: The tenant is required to pay the rent within a predetermined period (often three to five days) or leave the rented property.
  • Cure or Quit: A breach of the rental agreement or lease must be remedied by the tenant within a set amount of time.
  • Unconditional Quit: Without a chance to correct the offense or pay the rent, the tenant must leave the property.

But to evict a tenant without good reason, the landlord must give the renter a 30- or 60-day notice to leave the premises.

File an Eviction Lawsuit

If the renter does not correct the issue or quit the property within the allotted time, the landowner must initiate an unlawful detainer case in small claims court. Following this, landlords have the right to evict tenants by serving a legal notice to tenants to vacate their premises.

Wait for the Tenant’s Answer

Within the time frame given on the summons, the tenant may “answer” the complaint. The renter may, however, use the response to refute the charges or present a defence. And, for instance, a tenant might claim that the eviction was carried out in retaliation or that the unpaid rent was used to pay for repairs the landlord refused to undertake.

Receive a Judgment for Possession

A default judgment is granted to the landowner if the tenant ignores the eviction notice India. Moreover, the landowner is entitled to take ownership of the property if the renter replies with an answer but the court rules in his or her favor.

Remove the Tenant

Despite having the right to reclaim the property, the landlord is unable to evict a renter without the help of a law enforcement official. Nevertheless, the tenant will be informed of the legal eviction and the number of days they have to leave once such an official receives the judgment and the cost. Moreover, the law enforcement authority may physically evict the tenant if they don’t leave the property in the allotted period.

Also Read: Introduction To The Indian Judicial System And Court Hierarchy

Summing Up

Now that you are aware of the characteristics of evictions and how to deal with them in a nation like India, you must use them as needed. Additionally, as a landowner, you must evict a problematic renter per the law. And, to ensure that you are acting legally, consult a local landlord-tenant law attorney in your area. For such assistance, a legal firm in Chandigarh, lexsolution can offer you a one-stop solution.

FAQs

  • Can a tenant seek an injunction against the landlord?

According to the state rental rules present in India, a tenant does not have the right to issue an injunction against the landlord. Moreover, injunction procedures are always discretionary, and a court of law cannot grant a perpetual injunction in favour of the plaintiff against the right owner if the plaintiff is only a trespasser.

  • Can police evict a tenant in India?

Even if the renters behave disrespectfully, the police cannot assist in reclaiming the property. However, the only court with the authority to order the eviction of a tenant is the court of the rent controller under whose jurisdiction the property is located. 

  • When a tenant can get the benefit of protection against eviction?

If the tenant can show that the landlord gave his written approval to the subtenant, he is entitled to protection from eviction. Additionally, it disallows any other consent, including implied or oral permission.