Legal Solution Provider Company in Delhi

One of the leading puzzles in cross border cash flow is the phenomena of Round Tripping.

Where money from one country flows to some other country and again is reinvested in the primary country from which cash flow originated as a Foreign Direct Investment (FDI).

Tax concession allowed in foreign countries encourages Round Tripping as money flows out from the primary country as an investment in a foreign country and later the same money will be invested back in the primary country.

• Many a time black money is transferred to a second country and is returned by them as FDI which translates the black money into white by the help of FDI.
• Mauritius is the largest source for Round Tripping in India.

Commerce and industry minister Piyush Goyal on Friday said the government will not overlook if audit firms advise e-commerce companies to circumvent laws and engage in multi-brand retail trade in the country.

“We are firm in multi-brand retail trade. One should not find loopholes in law...that will not be possible for us to overlook,

As of today Round Tripping is not illegal however RBI (Reserve Bank of India) and SEBI (Security and Exchange Board of India) are taking the necessary steps to regulate it.

• SEBI regulates Round Tripping in India
• RBI Notification against Round Tripping -

Indian companies or their AD (authorized dealer) Category – I banks are not allowed to issue any direct or indirect guarantee or create any contingent liability or offer any security in any form for such borrowings by their overseas holding/associate/subsidiary/group companies except for the purposes explicitly permitted in the relevant Regulations.

Further, funds raised abroad by overseas holding/associate/subsidiary/group companies of  Indian companies with the support of the Indian companies or their AD Category – I banks as mentioned at (i) above cannot be used in India unless it conforms to the general or specific permission granted under the relevant Regulations.

Start-Up – The New Privilege Holder

Definition of a Start-Up As Per Law:

 (a) An entity shall be considered as a Startup: 

i. Up to a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India. 

ii. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees. 

iii. The entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’ 

Eligibility Criteria for Startup Recognition:

1. The Startup to be eligible for the scheme shall be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership to be eligible for a startup.
2. Turnover should be less than INR 100 Crores in any of the previous financial years
3. An entity shall be considered as a startup up to 10 years from the date of its incorporation and shall have been incorporated within the past 5 years from the date the policy was initiated. A company shall cease to be a start-up after completion of 10 years.
4. The most essential precondition of the entire Startup India Scheme is that establishing a business must develop an entirely new product or service to be recognized as a startup.

This criterion has the following three conditions:

(a) The startup must be working towards – Innovation, Development, Deployment or Commercialization of new products, processes or services, driven by either technology or intellectual property.

(b) The startup must aim to develop and commercialize – A new product or service or a significantly improved existing product or service that will create or add value to customers.

(c) A startup must not be merely engaged in – Developing products or services which do not have the potential for commercialization, undifferentiated products or services, product or services or processes with no or limited incremental value for customers or workflow.

5. It is mandatory for every startup to obtain approval for its innovation by submitting an application to the Inter-Ministerial Board (IBM) set up by the Department of Industrial Policy and Promotion (DIPP). 

6. The headquarters of the business shall be established in India.

Procedure for Recognition as a Start-up

You may visit the official portal of startup India along with the required documents and get yourself registered for free.

 Documents required for registering as a startup

1. Name of the entity - Is the business a Private Limited Company, Limited liability partnership or registered partnership.
2. Industry - The of the industry you are dealing with ( for example -food, fashion, education, etc)
3. Sector - Name of the sector you are dealing with 
4. Categories - You need to choose the appropriate category (for example consulting, consumer internet, engineering, etc)
5. Incorporation/registered no - The incorporation registered no. of the business is to be provided.
6. Pan number - Pan details of the owner or the business subject to conditions
7. Full address office - Full address of the office is to be provided
8. Authorized representative details - Details of the person who is your authorized representative.
9. Directors/Partners Detail - Documents of the Directors/Partners need to be submitted.
10. Information Required ( current no. of employees) - Number of employees working in the business
11. Startup activities - ( If an award or recognition received by the entity) upload award document
12. What is the problem the startup is solving - You need to address detailed activities of your business along with the problems they are solving.
13. What is the uniqueness of your solution - How is your business unique to other businesses.
14. How does your startup generate revenue - A list of activities by which the startup is generating revenue.
15. Registered Certificate - Upload registered certificate of your business

For any further assistance, you may contact Solutions Legalis

WRIT PETITIONS - An angel to safeguard your constitutional rights

Writ Petition is an order by a higher court or a supreme court to a lower court or courts, directing them to do something or stop them from doing something. A writ is a form of written command in the name of the court. It directs you to act in a specific way.

In the Indian legal system, you can file or draft a writ petition under Article 226 in the High Court and under Article 32 of the Indian Constitution in the Supreme Court. Article 32 and Article 226 of the Indian constitution elaborate on the process and meaning of the writ petition. You can even file a criminal or civil writ petition in the High Court or the Supreme Court, depending on the subject matter. If a person is unsatisfied by the order of the High Court than a suitable petition may be applied in the Supreme Court.

What is a Writ Petition?

Writ in India is the formal order of the court directing the authorities if there is a violation of the Fundamental Rights by a government authority or body. You can file a writ petition in the Supreme Court under Article 32 of the Indian Constitution where there is a violation of fundamental rights, whereas you can file the writ petition in High Court under Article 226 of the Indian constitution where there is a violation of other constitutional rights. You can also file Writ Petitions in India for a civil or a criminal act.

There are five writ petition types in the Indian constitution, which you can file either before the High Court or Supreme Court such as:

• Habeas Corpus - The writ of habeas corpus, often shortened to habeas corpus, is the requirement that an arrested person be brought before a judge or court before being detained or imprisoned.
• Mandamus  - Mandamus ( means we command) is a judicial remedy in the form of an order from a court to any government, subordinate court, corporation, or public authority, to do (or forbear from doing) some specific act which that body is obliged under law to do (or refrain from doing), and which is in the nature of public duty, and in certain cases one of a statutory duty. It cannot be issued to compel an authority to do something against a statutory provision
• Prohibition  - The Writ of prohibition means to forbid or to stop and it is popularly known as 'Stay Order'. This writ is issued when a lower court or a body tries to transgress the limits or powers vested in it. The writ of prohibition is issued by any High Court or the Supreme Court to any inferior court, or quasi-judicial body prohibiting the latter from continuing the proceedings in a particular case, where it has no jurisdiction to try. After the issue of this writ, proceedings in the lower court, etc. come to a stop.
• Certiorari - Literally, Certiorari means to be certified. The writ of certiorari can be issued by the Supreme Court or any High Court for quashing the order already passed by an inferior court, tribunal or quasi-judicial authority.
• Quo Warranto - The word Quo-Warranto literally means "by what warrants?" or "what is your authority"? It is a writ issued with a view to restraining a person from holding a public office to which he is not entitled. The writ requires the concerned person to explain to the Court by what authority he holds the office. If a person has usurped a public office, the Court may direct him not to carry out any activities in the office or may announce the office to be vacant. Thus High Court may issue a writ of quo-warranto if a person holds an office beyond his retirement age.

For any assistance, regarding the filing of Writ petitions, you may contact Solutions Legalis.

The Right Step to Delayed Compensation

It is quite common in India for employers to deny salary to employees, especially at the time of firing them. There are several legal processes that can be followed by an employee to recover salary or wages. 

A well-drafted Legal Notice should be sent to the Company thereby giving them an opportunity to clear dues before you go ahead with the case. A person should have proper evidence to prove that he/she has not received the salary. 

Section 4 of the payment of wages Act states – Fixation of wage period every person responsible for the payment of wages under Section 3 shall fix periods in respect of which such wages shall be payable. No wage period shall exceed one month.

Some Laws to safeguard Employee: -

• 1. You may file a complaint addressing the Labour Commissioner to resolve the dispute. If the issues are not resolved, then the Labour Commissioner will refer the matter to the Labour Court and a case against your employer will be filed in the court.
• 2. You may even file a suit against your employer under the Industrial Dispute Act to recover the dues.
• 3. If a suit against a company is filed for recovery of money with interest, then it becomes fraud under the Companies Act, 2013.

Important Points to keep in mind - The notice is a very important psychological tool, and getting a

salary in less time is a psychological game. If the employer understands the consequences quickly, he will settle before you need to go to court, which keeps costs low as well. However, only a few lawyers do this kind of work because it may not be very profitable for them. There are many cases in India where the employer does not pay a salary for a month or couple of months and easily get away with the same. A good example is of Kingfisher Airlines. When it shut down its operations, many workers were not paid their dues. 
Contact for Extra Information about any legal issues.

Court Marriage in Delhi

Don't hesitate to seek legal advice before taking any step.         

For any further assistance, you may contact Solutions Legalis.

Indian Contract Act - Bailment

What is a Bailment

Bailor refers to the original property owner, while bailee refers to the person who temporarily has possession of the property.

Bailment is different from a contract of sale. This is because the object of the contract of sale is to transfer the ownership of the property to one person from the other. In a bailment, ownership of the property does not get transferred, only the possession of the property gets transferred for a limited amount of time.

In order for a bailment to exist, the bailee must have the intent to possess the property, and thereafter actually possesses the property. The bailor expects that the property shall be returned to him at the end of a specified period of time, or after the purpose for which the property was given.

Elements of a Bailment

Most disputes arise because of the failure of the Bailee to safeguard the property of Bailor. In order to prove that a bailment existed, and therefore that the bailee had a duty to reasonably protect the property, three elements must be proven. These include:

• Delivery. The property must be delivered to the actual care and/or control of the bailee. Control of the property does not necessarily require actual physical possession in some cases, but by giving a means of access to the property, such as providing keys to a storage unit where the property is kept, the bailor engages in constructive delivery of the property.
• Acceptance. A bailee must knowingly accept possession and control the property. This means that no one can unintentionally become a bailee, as, because a bailment is a type of contract, knowledge, and acceptance of the bailment terms are essential elements.
• Consideration. There shall be a consideration in a bailment. When a bailment is created for the sole benefit of the bailee, such as when one party loans the use of his car to another, just to be a good friend, a bailment is created, even though the bailor receives nothing of value.

Termination of a Bailment

Termination of a Bailment occurs when its intended purpose has been achieved, or when the parties agree that the object of bailment is completed. If a bailment is created for an undefined period of time, it may be terminated at will by either party by providing the other party with due notice of the intent to terminate. Following the completion of the purpose of the bailment, the bailee has a responsibility to return the property to its owner.

In some cases, if the return of the property is impossible, due to no fault of the bailee, the bailee is not held liable for non-delivery. This might occur if the property was destroyed in a fire that was not the bailee’s fault, etc.

For any further assistance, you may contact Solutions Legalis

Contact:- +91- 8851087095

Understanding the concept of Contract Law

The Indian Contract Act,1872 defines the term “Contract” under its section 2 (h) as “An agreement enforceable by law”

An agreement is not a contract, as an agreement is just coming into harmony with regard to the terms and conditions of the parties, whereas an agreement enforceable by law in a Contract.

We can say that a contract is anything that is an agreement and enforceable by the law of the land.

Difference between a void and a voidable contract - 

Void Contract - It a contract that is not applicable by the nature of it, as it violates the clauses of the Indian Contract Act.

Voidable Contract - Voidable contracts are contracts that can be terminated by the consent of the parties as it does not violates the provision of the Indian Contract Act. It only violates the provision of the agreement and which shall be subject to the parties if they want the contract to be invalid.

Essentials Features of a Contract

1. Two Parties - There shall be to or more parties to a contract. A single person can not come to a contract single-handedly.
2. Free Consent - A contract shall be mutually accepted without any force from either of the parties.
3. Lawful Consideration -  Quid Pro Quo means ‘something in return’ which means that the parties must accrue in the form of some profit, rights, interest, etc. In simpler words, we may say that in a contract each party shall be capable and will to provide something in return as consideration.
4. Competency Of the Parties - Section 11 of the Indian Contract Act, 1872 states “Who are competent to contract:

• Every person is competent to contract who is Of the age of majority according to the law to which he is subject. 
• He/She is of sound mind.
• And, is not disqualified from contracting by any law to which he is subject.

5. Possibility of the performance of the contract - The contract shall be in such a nature so that becomes possible to fulfill. Suppose two people decide to get into an agreement where a person A agrees to bring back the person B’s dead relative back to life. Even when all the parties agree and all other conditions of a contract are satisfied, this is not valid because bringing someone back from the dead is an impossible task. Thus the agreement is not possible to be enforced and the contract becomes void.

Damages under Breach of Contract

• Section 73 of the Contract Act lays down the provision relating to damages. It provides that the party, who breaches a contract, is liable to compensate the injured party for any loss or damage caused, due to the breach of contract. 
• Section 74 of the Act deals with the situation where the parties to a contract agree that the contract itself will stipulate the penalty for the breach of the contract 

For any further assistance, you may contact Solutions Legalis

Contact us to getting more extra information:- +91- 8851087095

Real Estate Regulatory Authority

RERA – Real Estate Regulatory Authority

The bill was passed in the parliament in the year 2016.

The Real Estate transactions were very uneven and were heavily in favor of the developers. The home buyers had a hard time dealing with the real estate principles and rules. There was a lack of transparency in the dealings of the real estate. For preventing these loopholes, the government took an initiative and proposed its the model which provides equitable and fair deals and transactions between the buyer and seller.

Importance of RERA

The introduction of RERA is of great importance for the Real Estate sector as it is one of the leading revenues generating sector of our country and it needed some transparency and a Regulating Authority which could keep a check on transactions dealt with by the developers.

Scope of RERA

The scope of RERA is very wide with respect to the Real Estate Sector. It covers all the new as well as ongoing projects that are under construction projects and it also includes both the residential and commercial buildings. It covers all the parties included in Real Estate projects. Even the Real Estate brokers and agents also fall under the ambit of this Act. The main motive of RERA is to provide ease and comfort for the homebuyers that is why every state is required to set up an Appellate Tribunal for addressing the grievances of the homebuyers.

All the builders are required to register the projects with the Tribunal before the initiation of those projects. The registration mandates them to express the details of the project and the deadline for the completion of the project and if the deadline is not met, the builders have to face the penalties and criminal charges. They even need to compensate the home buyer for the delay in the project. Before the existence of the RERA Act, the builders used to divert the funds of the ongoing project to start a new project because of which delay occurred in the completion of individual projects. Now, the builders have to deposit the 70% of the fund in a separate bank account so that the fund is not diverted and is used in the project for which it was sanctioned.

Objective of RERA

The main object of the RERA is to revive the faith of the buyers in the Real Estate sector and to bring transparency in Real Estate transactions. RERA aims to protect the rights of the buyers by establishing the Real Estate Regulatory Authority (RERA) will provide a grievance system in the Real Estate sector. It also aims to increase the credibility of the Promoters, Real Estate brokers and agents which would aid in preventing the unnecessary delay in the completion and delivery of the projects. The RERA Act provides for the establishment of the Appellant System for Grievance Redressal and to prescribe the penalties and charges for the defaulters.

The Present Scenario

 Even though the RERA has established quite some time ago, the operational status of it still varies in most states. 74% of buyers are not even aware that, under the regulations, they are required to check if the project has been registered with the RERA.

While in states like Maharashtra the websites have already been set up and are functioning efficiently, in many more states like Haryana, builders have to physically go to the RERA offices to verify their registration and the status (completed or not) of their projects.

For any assistance, you may contact solutions Legalis.