Corporate Litigation

A corporate litigation lawyer provides corporate litigation services including commercial litigations and corporate litigations services.

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Corporate Litigation in India

Corporate litigation refers to the legal cases related to corporations, pertaining to the business operations and dealings, regulatory problems or financial issues. As businesses develop, the character and number of legal matters increase along with the development of the business. Fields of corporate litigation include insolvency, arbitration, regulatory compliance and civil disputes.

What is Corporate Litigation?

Corporate litigation may encompass:

Commercial and Contractual Disputes: Breaches of contract, shareholder disputes, joint venture issues and claims for non-performance.

Regulatory and Compliance Litigation: SEBI, RBI, MCA and various statutory authorities are engaged in such cases.

Insolvency and Bankruptcy: Dispute Resolution in matters of Insolvency and Bankruptcy covered under the Insolvency and Bankruptcy Code, 2016.

Debt Recovery Matters: Proceedings conducted at the Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs).

Corporate Fraud and Mismanagement: Cases relating to fraud, oppression and mismanagement in terms of the Companies Act.

Employment disputes: Termination, wage, gratuity or PF cases involving employment and labour disputes.

ADR and arbitration: Both are utilised for the resolution of disputes regarding contracts which have been concluded in the contract.

Major Forums and Bodies in Corporate Litigation

1. National Company Law Tribunal (NCLT)

NCLT is the main adjudicating body for company affairs including:

• Insolvency and bankruptcy proceedings (under IBC)
• Oppression and mismanagement petitions under the Companies Act
• Mergers, demergers, and amalgamation approvals
• Revival and rehabilitation of sick companies

2. DRT: (Debt recovery tribunal)

Banks and financial institutions resort to DRT for the final disposal of cases relating to recovery of debts. These tribunals operate under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

3. Arbitration Tribunals

Arbitration is the first choice for resolution of disputes in commercial contracts due to speed and confidentiality. These proceedings are regulated by the Arbitration and Conciliation Act, 1996.

4. Civil Courts and High Courts

Where no alternative is mentioned, conventional civil litigation still has a role to play in the resolution of business conflicts. In such circumstances, parties can approach a civil litigator for suitable recourse.

Role of a Lawyer for Insolvency

A lawyer for insolvency plays an important role where a business is in financial difficulty. They:

• Advise creditors or debtors before the NCLT
• Advise on Corporate Insolvency Resolution Process (CIRP)
• Help prepare insolvency petitions
• Ensure compliance with timelines under IBC

They also stay abreast of insolvency case law & judgments that become a legal precedent. In resolution, liquidation and restructuring processes, the help of an insolvency law professional becomes a necessity.

Arbitration in Corporate Litigation

Arbitration is a cost effective and efficient way to resolve disputes out of court. This allows parties to nominate appropriate arbitrators with related industry expertise. If a commercial contract has a properly drafted arbitration clause, it can prevent long drawn litigation.

Types of arbitration are:

• Domestic arbitration
• International commercial arbitration
• Institutional arbitration (e.g., ICC, LCIA, SIAC)

The Arbitration and Conciliation Act provides that Arbitration awards are enforceable and may be challenged under limited conditions.

Significance of Corporate Legal Services

Corporate legal services in the current complex regulatory scenario comprise:

• Contract drafting and vetting
• Legal due diligence
• M&A advisory
• Compliance audits
• Policy and procedure development

Several companies offer litigation services, as well as corporate legal consulting, in an attempt by the businesses to avoid risks and prevent conflicts in the future.

What is a Civil Litigator?

A civil litigator is an attorney who defends clients in non-criminal legal disputes. In the context of a company, a civil litigator can address matters such as:

• Breach of contract
• Tortious claims
• Shareholder conflicts
• Intellectual property violations

Civil litigation could also involve injunctions, damages, and  relief. Their legal drafting, courtroom presence, and negotiating skills play a pivotal role in safeguarding business interests.

Why Timely Legal Intervention Matters

Minor litigations can escalate to full-fledged litigations because of delays in availing legal assistance. Timely legal counsel, whether it is the reply to a legal notice or challenging a bankruptcy petition, helps you get more time for safeguarding rights and less harm.

Consequently, corporate clients are urged to avail timely corporate legal counseling which entails examinations of the firm's business procedures, contracts and compliance levels. 

Conclusion

Business law practice in India encompasses corporate litigation which is a critical component of the business. Since there is a significant involvement of different forums such as tribunal NCLT, DRT and arbitration panels, it requires a collective legal strategy. 

FAQs

Q1. What is corporate litigation?

Corporate litigation involves legal disputes over business disputes relating to contracts, compliance with regulations, insolvency and financial recovery.

Q2. Against whom can a case be filed in NCLT?

Cases like insolvency, oppression or for merger approval can be filed through the petition in NCLT by the company, its shareholders or the creditors.

Q3. How are civil litigators engaged in corporate cases?

A civil litigator handles court proceedings arising due to non criminal corporate controversies such as breach of contract or shareholder controversies.

Q4. When should you approach an insolvency lawyer?

If your company is in financial trouble or is at risk of facing insolvency proceedings or gearing itself to get into resolution under IBC then you must consult an insolvency lawyer.

Q5. Is arbitration better than court proceedings?

Arbitration is certainly quicker, private and less confrontational and is appropriate for commercial disputes to be settled within a short time.

Q6. What are litigation services in corporate law?

Litigation services are provided for the cases before NCLT, DRT, Civil courts, Arbitration Tribunals etc including legal drafting, advice and negotiation during disputes.