WHAT TO DO IF AN NRI FILES A CASE AGAINST MY COMPANY?
The following article deals with the various methods to resolve a dispute, the court proceedings, etc. in case a company or firm is suing or is being sued by an NRI. An NRI can file a case in the court of relevant jurisdiction. Many states has also constituted commercial courts, which address disputes having a transaction value of more than Rs 1 crore.
Main Dispute Resolution methods used in jurisdiction to resolve large commercial disputes-
- In addition to the methods of Arbitration and Litigation, other methods like Mediation or Conciliation can also be used before or during the proceedings to resolve a dispute.
- Disputes with the value of Rs 3,00,000 or more could be heard by designated Commercial Courts under the Commercial Courts Act, 2015. Commercial disputes could be due to
- Financing transactions
- Import or export of goods or services
- Admiralty or maritime law
- Franchising
- Joint venture or shareholder agreements
- IPRs
- Most of the huge commercial contracts have an arbitration clause, which provides for the preference of the parties to arbitration rather than a lengthy court case. In India, an arbitration proceeding shall be completed within 12 months.
Limitation Period in the proceedings of the court-
- Most claims under the contract are subject to a limitation period of three years.
Courts addressing the contract disputes-
- A civil court’s jurisdiction is determined by the value of the dispute, i.e. the pecuniary jurisdiction and the territorial jurisdiction.
- Special tribunals have been provided with to deal with some issues of a specific nature-
- National Company Law Tribunal (NCLT) deals with the shareholder disputes, cases of oppression and the mismanagement, other company related claims, etc.
- Competition Commission of India- dealing with the anti-trust or competition law disputes
- Debt Recovery Tribunal- deals with the debt recovery proceedings by the banks or certain financial institutions.
Lawyers who have the right of audience to conduct cases in courts having jurisdiction over the large commercial disputes-
- Lawyers enrolled with any of the Indian State Bar Council have the right of audience in the courts, tribunals and quasi-judicial bodies subject to some exceptions.
- Specialist tribunals, however, allow non-lawyers to represent their clients, for example NCLT allows the Company Secretaries, Chartered Accountants or cost accountants to conduct the cases.
- In addition parties can be represented by themselves in court proceedings, also the court may permit a person, not enrolled as an advocate, to appear before them as per the Advocates Act, 1961. However, it is advised to seek the assistance of experienced corporate lawyers in Delhi or a corporate lawyers in Gurgaon or your city to represent you in the courts, as they have a better understanding of the legal provisions involved.
- The Supreme Court has recently ruled out the representation of foreign lawyers or law firms to offer legal service in the country on a permanent basis. They can offer advice in casual visits only which shall not amount to regular practice of law.
- A foreign lawyer could be permitted to appear in India-seated arbitrations and shall be governed by the code of conduct applicable to Indian Lawyers.
Conclusion-
Other than the party being a non-resident of the country, a civil suit brought upon the company based in India, shall be governed as per the provisions provided by the country. In case there is a provision in the contract signed by the parties to sort out a dispute through the process of arbitration or court proceedings in a particular court, all you are supposed to do is follow the procedure of law. Thus, the proceedings shall remain the same. However, it is advised to seek the advice of experienced corporate lawyers in Noida, so as to have a better understanding of the legal procedures involved in your case.
Lead India offers you a team of experienced advocates who have been successfully dealing with various civil suits and can provide you with the required legal assistance or advice related to your case.
Visit us: - https://www.leadindia.law
Call Us: - +91-8800788535
Email: care@leadindia.law
YouTube: - https://www.youtube.com/c/LeadIndiaLawAssociates
Facebook: - https://www.facebook.com/leadindialaw
LinkedIn: - https://www.linkedin.com/company/76353439
Twitter: - https://twitter.com/leadindialaw
Pinterest: - https://in.pinterest.com/lawleadindia
Instagram: -https://www.instagram.com/leadindialawofficial
corporate lawyers in delhi, corporate lawyers in gurgaon, corporate lawyers in Noida
