Know Recovery of dues remedies under Laws of India and what are the Pre-Litigation Techniques and more on Recovery to avoid any Outstanding being treated as Bad-Debts
Business Law 101 aka Why the Heck Do I Need a Business Lawyer?Jeffrey O'Brien
An overview of basic business law concepts and a discussion of some common mistakes which your business attorney - if you have one, that is -- can help you avoid.
1Legal Issues for Managers 2007GIRLecture 9(Week 10)M.docxfelicidaddinwoodie
1
Legal Issues for Managers: 2007GIR
Lecture 9
(Week 10)
Module 3 (Part 2):
The Law of Business Associations
Law of Agency &
Law of Partnership
1
Administration
Ensure that you check the announcements on [email protected] ([email protected]) and your marks in My Marks.
You should now have your Mid-Semester Exam marks available in My Marks. If you want genuine feedback (not simply checking your grade as they have been scanned), you can see your exam papers this week during the times provided on [email protected] course site. A time will also be made available for the Deferred Mid-Semester Exams when we have received them back from scanning.
A notice about the time, date & place of the Deferred Mid-Semester Exam is now available on the course website.
IF you want to do well on the FINAL EXAM, in addition to making a genuine effort on the ASSIGNMENT continue practising your ILACs before you attend your seminars, add a few notes to your answers, download the seminar slides and try to attempt the answer again on your own. If you did not have a satisfactory answer, see your tutor in consultation and bring along your ILAC homework attempts. This is the most effective way to prepare for the Final Exam.
2
2
Recap of Last Week
The Law of Companies/Corporations
Summary
The essential characteristics of a ‘company’ and why they are important.
The different types of business structures available, in particular companies, and when can they be used to meet the needs of business & society.
The main duties imposed upon the directors of a company.
The concepts of insolvency and insider trading.
The way companies can be wound-up.
Quick Question:
The Corporations Act 2001 (Cth) prohibits trading in shares with the advantage of information that is not publicly available. This offence is also known as …………………………… and is prohibited by section ..........
3
3
Business Structures
BUSINESS
STRUCTURES
Sole
Trader
Partnership
Joint
Venture
Incorporated
Associations
Trust
Company
Proprietary
Company
Public
Company
Large
Small
4
Seek the advice of a good accountant & lawyer when considering what form of business structure you may want to set-up. The main consideration should be liability – Not taxation. Thus, this message applies to today’s lecture and next weeks! Strategic planning is the key to business success.
44% of businesses fail in the first 3 years
Failing to plan, is planning to fail!
See separate mind-map on the types of companies in those lecture slides when available
http://www.business.gov.au/business- ...
How to do register your company effectively without riskDigital Vishnu
Filerscorner provides legal company registration in Coimbatore. We also Provide Trademark, Copyright, GST, MSME, one person Company Registration in Coimbatore.
Business Law 101 aka Why the Heck Do I Need a Business Lawyer?Jeffrey O'Brien
An overview of basic business law concepts and a discussion of some common mistakes which your business attorney - if you have one, that is -- can help you avoid.
1Legal Issues for Managers 2007GIRLecture 9(Week 10)M.docxfelicidaddinwoodie
1
Legal Issues for Managers: 2007GIR
Lecture 9
(Week 10)
Module 3 (Part 2):
The Law of Business Associations
Law of Agency &
Law of Partnership
1
Administration
Ensure that you check the announcements on [email protected] ([email protected]) and your marks in My Marks.
You should now have your Mid-Semester Exam marks available in My Marks. If you want genuine feedback (not simply checking your grade as they have been scanned), you can see your exam papers this week during the times provided on [email protected] course site. A time will also be made available for the Deferred Mid-Semester Exams when we have received them back from scanning.
A notice about the time, date & place of the Deferred Mid-Semester Exam is now available on the course website.
IF you want to do well on the FINAL EXAM, in addition to making a genuine effort on the ASSIGNMENT continue practising your ILACs before you attend your seminars, add a few notes to your answers, download the seminar slides and try to attempt the answer again on your own. If you did not have a satisfactory answer, see your tutor in consultation and bring along your ILAC homework attempts. This is the most effective way to prepare for the Final Exam.
2
2
Recap of Last Week
The Law of Companies/Corporations
Summary
The essential characteristics of a ‘company’ and why they are important.
The different types of business structures available, in particular companies, and when can they be used to meet the needs of business & society.
The main duties imposed upon the directors of a company.
The concepts of insolvency and insider trading.
The way companies can be wound-up.
Quick Question:
The Corporations Act 2001 (Cth) prohibits trading in shares with the advantage of information that is not publicly available. This offence is also known as …………………………… and is prohibited by section ..........
3
3
Business Structures
BUSINESS
STRUCTURES
Sole
Trader
Partnership
Joint
Venture
Incorporated
Associations
Trust
Company
Proprietary
Company
Public
Company
Large
Small
4
Seek the advice of a good accountant & lawyer when considering what form of business structure you may want to set-up. The main consideration should be liability – Not taxation. Thus, this message applies to today’s lecture and next weeks! Strategic planning is the key to business success.
44% of businesses fail in the first 3 years
Failing to plan, is planning to fail!
See separate mind-map on the types of companies in those lecture slides when available
http://www.business.gov.au/business- ...
How to do register your company effectively without riskDigital Vishnu
Filerscorner provides legal company registration in Coimbatore. We also Provide Trademark, Copyright, GST, MSME, one person Company Registration in Coimbatore.
Complianceship Venture Solution LLP - Legal Services Provider in Delhi NCRMd Shahbaz Alam
Complianceship is the technology driven platform which is a group of dedicated, research oriented and skilled professionals who deliver innovative and distinguished corporate business solutions through a unique model of integrated legal and financial consulting services since 2017. visit : https://complianceship.com/
The speaker will highlight and discuss of a number of case stories which illustrate frequent missteps made by entrepreneurs and startups.
Topics will include:
when and how to document your deal
capitalization
raising funds
attracting investors
and more!
The discussion will use real case stories to illustrate each topic in a meaningful and easy to understand manner.
By understanding these common missteps, entrepreneurs and startups will be better able to more successfully navigate the pitfalls and traps that can keep their startup from getting off the ground.
Please come with your questions, comments and scenarios.
About the Speaker
Alidad Vakili is an attorney in the Palo Alto office of Foley and Lardner, an international law firm. He regularly represents startup and emerging growth companies at every stage of the company lifecycle—from startup to liquidity. He frequently advises clients on a variety of strategic growth issues including venture capital and private equity financing, private offerings, joint ventures and M&A transactions. His work includes not only advising on major corporate milestones but also significant involvement in day-to-day operations and strategic business issues, such as formation, governance, and commercial agreements.
common business dispute legal claims by business lawyer David Steinfeld.pdfDavid Steinfeld, Esq.
The three distinct but broad categories of claims that are commonly brought in business disputes in Florida are those grounded in contracts, those based on torts, and those provided by statute. Contract claims may be predicated on a written or oral agreement or a contract implied by law. Torts are claims based on negligence or intentional bad acts. Statutory claims are those where a specific statute defines the claim and the relief.
Lawsuits are not the only forum within which businesses can address their disputes. Businesses also have arbitration and direct resolution methods including mediation in addition to the court system. Therefore it is more appropriate to define these claims within the context of the more inclusive concept of business disputes as opposed to limiting them to just lawsuits.
CBA Presentation: Common Legal Mistakes Small Businesses Make And How To Avoi...John Watkins
May 2009 Presentation for Chamblee Business Association on common legal mistakes that small businesses make and possible ways to avoid them. This presentation is the result of seeing mistakes made over and over again. This presentation is available as a podcast (slides and audio) at www.ctflegal.blip.tv
A former managing partner at an international law firm, Mario left the ethos of a large firm to make the transition to a practice that specializes in fostering business and entrepreneurial relationships. His interest is not in "billing time" but helping businesses implement best practices and strategies that anticipate the future of business.
Crowdfunding is a popular way to raise money quickly for a cause or a product. What about using crowdfunding to raise money for your law practice? Potential ethical trap?
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
Complianceship Venture Solution LLP - Legal Services Provider in Delhi NCRMd Shahbaz Alam
Complianceship is the technology driven platform which is a group of dedicated, research oriented and skilled professionals who deliver innovative and distinguished corporate business solutions through a unique model of integrated legal and financial consulting services since 2017. visit : https://complianceship.com/
The speaker will highlight and discuss of a number of case stories which illustrate frequent missteps made by entrepreneurs and startups.
Topics will include:
when and how to document your deal
capitalization
raising funds
attracting investors
and more!
The discussion will use real case stories to illustrate each topic in a meaningful and easy to understand manner.
By understanding these common missteps, entrepreneurs and startups will be better able to more successfully navigate the pitfalls and traps that can keep their startup from getting off the ground.
Please come with your questions, comments and scenarios.
About the Speaker
Alidad Vakili is an attorney in the Palo Alto office of Foley and Lardner, an international law firm. He regularly represents startup and emerging growth companies at every stage of the company lifecycle—from startup to liquidity. He frequently advises clients on a variety of strategic growth issues including venture capital and private equity financing, private offerings, joint ventures and M&A transactions. His work includes not only advising on major corporate milestones but also significant involvement in day-to-day operations and strategic business issues, such as formation, governance, and commercial agreements.
common business dispute legal claims by business lawyer David Steinfeld.pdfDavid Steinfeld, Esq.
The three distinct but broad categories of claims that are commonly brought in business disputes in Florida are those grounded in contracts, those based on torts, and those provided by statute. Contract claims may be predicated on a written or oral agreement or a contract implied by law. Torts are claims based on negligence or intentional bad acts. Statutory claims are those where a specific statute defines the claim and the relief.
Lawsuits are not the only forum within which businesses can address their disputes. Businesses also have arbitration and direct resolution methods including mediation in addition to the court system. Therefore it is more appropriate to define these claims within the context of the more inclusive concept of business disputes as opposed to limiting them to just lawsuits.
CBA Presentation: Common Legal Mistakes Small Businesses Make And How To Avoi...John Watkins
May 2009 Presentation for Chamblee Business Association on common legal mistakes that small businesses make and possible ways to avoid them. This presentation is the result of seeing mistakes made over and over again. This presentation is available as a podcast (slides and audio) at www.ctflegal.blip.tv
A former managing partner at an international law firm, Mario left the ethos of a large firm to make the transition to a practice that specializes in fostering business and entrepreneurial relationships. His interest is not in "billing time" but helping businesses implement best practices and strategies that anticipate the future of business.
Crowdfunding is a popular way to raise money quickly for a cause or a product. What about using crowdfunding to raise money for your law practice? Potential ethical trap?
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
1. Author of “Methods, Strategy, Solutions, Savings on Recovery of Dues – Arising out of
Commercial Transactions” published by BLOOMSBURY PUBLISHING HOUSE
FIREFLIES
LEGAL LLP
ADV. LALIT K JAIN
B.Com, LL.B, LL.M (IPR & IT), MBL (NLSIU),
PGDFM – DLP (Finance), D.C.L, D.P.B.M
(Co-Founder and Senior Partner)
The contents of this PPT are exclusively owned by Fireflies Legal LLP. Any act of copy, reproduction or illicit distribution of the same would amount to Copyright Infringement.
2. A Fact Business Entities should know
“Law In Itself Is a Progressive Step
Towards Your Business Growth”
2 FIREFLIES LEGAL
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3. What we have covered in this PPT?
3 FIREFLIES LEGAL
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1. What do you mean by Commercial Transaction?
2. What You mean by Recovery of Dues?
3. What is a “Disputed Transaction” and “Undisputed Transaction” and how it affects your recovery
and how to avoid?
4. What are the various Business Entities that are in operation in India?
5. What do you mean by “Debt” and “Legal Debt”?
6. What are the various methods of “Recovering the Dues in Indian Laws”?
7. Know the Pre-Litigation Strategy to be taken by Business Entities and its relevance
8. Is a Written Contract a mandatory requirement in Today’s Business era?
9. What exactly is Written Contract?
10. Major Reasons as to why the Litigation happens in Commercial Transactions?
11. What is the best way to avoid small business litigation?
12. How to Choose Legal Advisor?
13. Whether Online Drafts makes Your Business Contract easier or there is a risk involved?
4. What we have covered in this PPT?
14. What are the common mistakes while ensuing the process of Recovery of Dues?
15. Whether transactions done through E-mail, whatsapp, phone are acceptable evidence in the
Court of Law?
16. What is the status of Post Dated Cheques in Recovery Procedure?
17. What are the relief measures if a business is registered under MSME?
18. Can a Legal Suit be filed under Criminal Court for Recovery of Dues?
19. What are quick legal course of action available for Recovery of Business Dues?
20. Can there be a prosecution if cheques taken in advance get bounce
21. What are the rights of Legal Heir after the death of Principal Creditor?
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5. Transactions Vs Commercial Transactions Vs
Non-Commercial Transactions
Commercial Transactions can
be simply be termed as an
interaction between two or more
parties (of all kinds) in which
goods, services or something of
value is exchanged for some
type of consideration. Do note
that under Indian Contract Act,
conisderation plays a very
important role in making an
contract enforceable and
unueforceable
5 FIREFLIES LEGAL
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Transactions means
an act called as
dealing between two
parties and it can
either be commercial
transaction or non-
commercial
transactions and is not
tested by Legal
Forums
Transactions which are not
commercial in nature are
Non-Commercial.
For ex., if a friend gives
someone a loan (friendly
loan) and the only document
it has is a proof of payment
and/or MOU and/or
Undertaking and/or an
acknowledgement of
acceptance
Commerical or Non-Commercial can be recovered under Indian Laws, subject to certain restrictions under
remedial part
6. What do you mean by Recovery of Dues?
6 FIREFLIES LEGAL
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The term “Recovery of Dues” in Commercial Transactions means
any dues which is not paid by the goods receiver/services availer which
he/she/they is/are legally liable to pay but does not pay for reasons not known
to recipient and since no payment is made the process is taken to call for
outstanding dues and this process of taking steps to recover outstanding dues is
most of times and infact is termed as “Recovery of Dues”. The dues are termed
as “Legal Debt” which has utmost significance in Recovery Laws”
Note: The term “Recovery of Dues” basically also relates to the recovery proceedings taken by Banks,
NBFC, Societies, etc but it may or not be the outcome of Commercial Transactions. Here, the
Recovery of Dues is arising out of Commercial Transactions
7. What is Disputed and Undisputed Transactions?
Definitions How it affects your recovery
of dues?
How to avoid them?
7
“Disputed” in Transaction means
either Breach of Contract by failing
to perform as per requirement (if
there is a written contract) or not as
per market practice (if not in written
form). Raising Dispute has become a
fashion to avoid legal action against
them and also act as disturbance for
Supplier/Service Provider to claim
the money under Laws at summary
process. “Non-Disputed” means
having proof of all compliance by
Aggrieved Party and no dispute
being raised or if raised can be
proven at the earliest being bad in
facts
Reasons why You shall be serious on
closing this dispute issues that if not
taken this matter on time, this will
stop You from availing the summary
remedy for recovery in your business
and the matter which can be closed
in a year or less than that will take a
good time and efforts and money to
prove
oBe Vigilant
oGet into Written Contract
oEnsure regular correspondence of
factual stand
oEnsure closure or clarification on any
dispute raised, whether valid or not
oTake Legal opine and move ahead
FIREFLIES LEGAL
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8. 8 FIREFLIES LEGAL
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Types of Business Entities
◈ Sole Proprietorship Firm
◈ Partnership Firm
◈ Company (Pvt or Public)
◈ One Person Company (OPC) Pvt Ltd
◈ Limited Liability Partnership
◈ Hindu Undivided Family (HUF)
◈ Individual Persons
◈ Body of Individuals
◈ Association of Persons
◈ Liaison Office of Foreign
Company
◈ Joint Venture
◈ Consortium
◈ Trust (Pvt or Public)
9. Debt Vs Legal Debt
9
Such Debt may be a Debt according to aggrieved party but it does not necessary be called as Legal
Debt.
FIREFLIES LEGAL
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Any payment which is outstanding according to aggrieved party, whether arising
out of written contract or not, and such aggrieved party, believes such outstanding
as Debt without being tested under Law and put as Debt in its Balance sheet is a
Debt.
The Courts at various intervals have dismissed the recovery claims due to not
finding the Debt being a Legal Debt. Debt even if outstanding but not prove-able
before Court disqualifies for being a Legal Debt and since so, no recovery can be
made.
10. Ways for Recovery of Dues in Law
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Criminal Summary
Proceedings for Cheque
Dishonour/Bouncing Cases
Summary Suit
(Order 37)
Insolvency Petition
MSME
Arbitration
Contractual
Arbitration Regular Civil
Suit
Recovery Civil
Proceedings under The
Commercial Courts
Private Criminal
Proceedings
(Under The Commercial Courts,
Commercial Division and Commercial
Appellate Division of High Courts Act,
2015)
(Under Section 138 to Section 145 of
Negotiable Instrument Act, 1881 (As
Amended))
(Under Micro Small Medium Enterprises
(MSME) Act (Governed by Arbitration and
Conciliation Act, 1996, as amended))
(Under Civil Procedure Code)
(Under Arbitration and Conciliation Act, 1996 and
its Rules or Rules as chosen of any Institution
which has their own methods of conducting
Arbitration Proceedings)
(Under Criminal Procedure
Code read with Indian Penal
Code)
(Under The Commercial Courts, Commercial
Division and Commercial Appellate Division of
High Courts Act, 2015)
(Under Civil
Procedure Code)
11. Pre-Litigation Strategy to be taken by Business Entities
Keep your records clean
Maintain a chain of E-mail conversations with your Clients
Keep a record of the notices received or sent.
If possible maintain a set of Sample Drafted
Documents in advance, duly audited and
authroised by a Business Lawyer.
11 FIREFLIES LEGAL
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12. Written Contracts and their importance in a Business
What exactly is a Written
Contract?
The term “Written Contract”
shall not mean that the contract
must be signed by the parties
concerned. It means that the
contract must be expressed and
when its existence and
enforceability can be traced to
conduct of the parties to the
contract, although the expressed
contract may not be signed by
the parties concerned.
Why are Written Contracts so
necessary?
There is no better alternative of
having written contract and in fact
written contracts are undisputed at
any point of time. Having business on
implied contract are not invalid but it
is subject to argument and
interpretation which actually takes a
lot of time on resolving the cases and
in fact having no contract will give
less legal remedial measure to recover
the money and hence the best
strategy is to have a written contract.
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13. Major reasons why Litigation happens in Commercial
Transactions
1 Either of the Party does not play their role as per agreed terms
2 Miscommunication
3 Poorly drafted contractual document
4
Different Understandings and interpretation of the Parties as to
the law
5 Ego, Greed or Revenge
6
Saving money by not hiring experience Legal Advisor and making
contractual documents from the Internet
13 FIREFLIES LEGAL
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14. 14
Ways to
avoid
litigation for
a Small
Business
Making written Agreements
and Contracts
Hold Meetings and keep Minutes of
Meeting and get the same signed by
all the Parties attending including the
Owner/s to avoid any issues later
Discuss relevant and
prospective issues
FIREFLIES LEGAL
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Communicating regularly
At each stage of relationship,
prepare clear documents that
leave no room for
misunderstanding
Making written Agreements
and Contracts
Hold Meetings and keep Minutes of
Meeting and get the same signed by
all the Parties attending including the
Owner/s to avoid any issues later
Discuss relevant and
prospective issues
15. How to choose a Legal Advisor?
1. Telling all remedies and
suggesting the best one to go
for
2. Not to Miss Dates/fail to
turn up at Court dates
3. Avoiding needlessly seeking
adjournments and allowing
the case to drag on for years
4. Avoid Mis-report, confuse
client with vagueness and half
truths
5. Avoid Accepting
unfavorable Consent Terms
(The term Consent Terms means mutually
decided terms between two or more
litigation parties or non-litigation parties
to resolve any kind of disputes)
6. Avoid answering/returning
client’s calls, text messages
and emails
15
Choosing Legal Advisor is as per one’s Strategy. However, there are certain points which one can
remember while selecting Legal Advisor. The Legal Advisor shall do the following:
FIREFLIES LEGAL
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16. 16
Whether Online Drafts make your Business Contract easier or there is
a risk involved?
FIREFLIES LEGAL
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You should consider these factors before deciding whether an online legal services company is your best
choice
• They do not understand your Business Strategy and there is no understanding consensus meeting and
hence they are not in a position to analyze what type of entity is best for you
• They do not discuss the Levels of Liability Protection available to you nor how to conduct your business
for maximum protection
• The contracts you buy from them will be One-Size-Fits-All and it may contain the provisions which may
not be appropriate for your requirements
• They will not advise you about the local regulations, such as trade license requirements, which may
restrict your business operations or prohibit it altogether at the location you choose.
• In regard to IPR, they don’t inform you what is the best way to protect your IPR
• The list goes on and on and on…
It is all about your safety and your security and one small mistake either in commercial agreement from legal
aspects or formation; it may ruin your whole idea of business set-up
17. Common mistakes while ensuing the process of Recovery
of Dues?
Taking it casually to recover the money
Waiting for the last month before Limitation ends to claim the money
Not going for the Best Legal option available at that time
Costing is important in Legal but having a good lawyer with business background is
even more important than your costs
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18. 18
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Emails – Yes, but with condition
WhatsApp – No, but it can be in certain
cases
Phone – No
Whether transactions done through Email,
WhatsApp, Phone are acceptable
evidence in the Court of Law?
What is the status of Post Dated Cheques
in Recovery Procedure?
Post Dated Cheques (PDC) plays an
important role in recovery procedure and
the result of PDC bouncing is Section 138
case. But there are ways to ensure your
PDC results in legal debt and falls under
Section 138 features else if not taken care,
PDC will not bring any value to Section 138
proceedings.
19. 19
What are the relief measures to a Business that is
registered under MSME?
MSME is future and in fact Government by bring this MSME is already acting as savior to
many MSME. There are many benefits from Legal Perspective such as:
• Defined Period of Credit Days
• Defined Period of raising dispute
• Defined period of MSME process
• MSME Samadhan
• Online and Arbitration mode
• Special Law prevailing over other remedy
• Defined interest rate to be claimed for
• Appeal only post deposit of 75% with Appellate Court
FIREFLIES LEGAL
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20. For Recovery of Dues
Can a Legal Suit
be file under
Criminal Court?
Practically no and
in certain situation
you can but that
becomes part of
your Legal Strategy
What are quick legal course of action available for Recovery of Dues?
Instead of knowing “Quick Legal Course of Action’ let’s understand the “Best Legal Course
of Action”. Best option depends on case to case and it purely depends on Legal Strategy
and I always prefer Legal Strategy starts with Contracts but if you have missed then also
given important to Legal Strategy at the time of you plan to take an action. Please note
that being in Business market, our aim shall be to maintain good relations to do business
but at same time to ensure recovery is done and hence this does call for pre-litigation
strategy and strategy at later course when you plan to move ahead. Sharing option wise
the best remedy but it depends:
Contractual Arbitration
MSME Arbitration
Section 138 with any other remedy as available
NCLT (if arrears are above Rs.1 Crore)
Summary Commercial Suit
Regular Civil Suit
Private Criminal Case, depends on case to case and strategy wise
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LLP
21. Can there be prosecution if cheques taken in advance
gets bounce?
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FIREFLIES LEGAL
LLP
Yes, but laws to be complied with
What are the rights of the Legal Heirs after the death of
Principal Creditor?
Legal Heir has same right to claim but no doubt with certain compliances
22. We hope that this information will be useful in upgrading your legal information
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