How to Manage Corporate Disputes in India?

Corporate Litigation » How to Manage Corporate Disputes in India?

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What is a Corporate Dispute?

A corporate dispute is a conflict between a company’s board or the executive branch and a stakeholder. It is much more than an escalated workplace strife or miscommunication. Corporate disputes arise in situations involving money, power, and influence, and it often occurs due to discrimination, fraud, or misinformation. Since a company is considered a legal entity, corporate disputes come under the jurisdiction of several state and central bills. 

Classification of Corporate Dispute

Corporate disputes can be classified into five broad categories, namely employment, product-related, environmental, regulatory, and commercial. 

Some of the most common forms of corporate disputes are:

  • Breach of Contract
  • Antitrust
  • Breach of Fiduciary Duty
  • Mala-Fidei
  • Business Torts
  • Class Actions
  • Fraud and Misrepresentation,
  • Cyber Security
  • Product Liability
  • Shareholder Disputes
  • Tax disputes

Also Read: Step-by-step guide on corporate litigation matters

Major Types of Corporate Disputes

There are two forms of corporate disputes: 


Internal corporate disputes are intra-organizational conflicts that arise between members of the same corporation. The two entities driving the conflict can belong to either the executive branch, management, employees, shareholders, or the contractual branch.


The external disputes are inter-organizational conflicts between a company’s board or a liable agent and a third party with a quid pro quo relationship. This can include customers, agents, stakeholders, and the government.

How Corporate Disputes are Settled in India

The world of corporate disputes is complex and layered. There are many terms and clauses that are signed by employees, shareholders, and stakeholders during onboarding. Many corporate disputes are settled along the lines of pre-agreed terms. Furthermore, there are multiple courses of action which can be applied to resolve conflicts in the corporate world.

The conventional dispute resolution system includes filing a case, reaching out to arbitration, and mutual concession. Whereas the multi-tiered process such as Med-Arb and Mediation + concession are seen as the last resort towards resolution. Most cases of corporate disputes do not come down to a win-lose scenario for the parties. Once the private processes are played out with the help of inter-corporate and inter-institutional systems, dissatisfied parties can move on to non-traditional ways of conflict resolution.

1. Legal recourse

  1. A straightforward way to deal with corporate and business law disputes is to take legal recourse. The parties can present the case in court with assistance from qualified corporate law firms. When the court believes that the components of the agreement are acceptable to the parties, it orders the settlement under Section 89 of the Code of Civil Procedure (CPC). Courts reserve the final order to remake the potential settlement and submit the case for further processes such as arbitration, mediation, or conciliation

    Here are the laws which govern corporate disputes in India. 

    • Companies Act (1956)
    • Bankruptcy Code (2016
    • Arbitration and Conciliation Act
    • National Company Law Tribunal (NCLT)
    • Companies Mediation and Conciliation Rules (2016)

2. Mediation and Conciliation

The Law of mergers and acquisitions is one of the common laws that we can see in managing corporate disputes in India. Mediation and conciliation are two-tiered processes towards reconciliation and conflict resolution. Here’s how it unfolds:

  • Mediation: Mediation is settled with the inference of a third party. The contending parties are persuaded by an agent who brings them to a common table and contends with them to manage the issues. It is a methodical procedure, and the mediator must reach an amicable agreement which can be enforced in a court of law. 
  • Conciliation: Conciliation is the process of settling a dispute with the means of an extra-judicial process. Both parties negotiate towards a common goal and continue to work through the conflict until they meet a roadblock in the form of a disagreement. The conciliator enters the scene only after the occurrence of a disagreement. The conciliator’s decision is commonly known as the ‘award.’

Mediation + conciliation is a unique approach to conflict resolution. The approach caters to unexpected issues in institutional operations that may not have been managed. 

Jurisdiction: Mediation + conciliation comes under the Companies (Mediation and Conciliation) Rules of 2016, and Section 442 is inserted in the Companies Act (2013).

3. Arbitration

Arbitration is the process of involving a third-party counsel or arbiter to make binding decisions regarding a dispute. Arbitration is the most common dispute resolution in the world of corporate affairs and the top recommendation of the best corporate lawyers. Arbitration is a proven way to settle disputes and avoid the court. Thousands of commercial disputes are resolved using the ADR processes every year. The multi-tiered process of arbitration signals the parties to pursue clear communication and sign agreements beforehand. 

Jurisdiction: Arbitration is enforced by the Arbitration and Conciliation Act of 1996. The concerned parties are given an opportunity to select a neutral arbitrator. India has numerous established arbitral institutions such as the Indian Merchants Chambers, the Indian Council of Arbitration, the International Chamber of Commerce, etc.

4. Mediation-Arbitration (Med-Arb)

Mediation-Arbitration is a combined process applied for inter-corporate conflicts. In cases where both parties refute the arbitrator or disagree on common grounds, the final attempt is pursued through mediation. Med-Arb is the final resort in cases of amicable disagreement between the parties. According to the lawyers at LEX Solutions, the process has a couple of advantages. For starters, mediation allows for a fresh assessment of the situation. The process also increases the likelihood of acceptance of the outcome.

5. Education on the corporate legal culture

Prevention is the best cure, as they say. Experts agree that corporations and financial institutions will do well if regular lessons about corporate legal structures and legal activities are distilled in all parties from the start. Seminars on conflict resolution, education on arbitration, and proactive resolution are some of the ways to minimize corporate disputes.

Also Read: What happens when a Company goes Bankrupt?

In Conclusion,

While lakhs of corporate disputes a year are settled with the above methods, thousands are resolved behind closed doors as well. Whenever there is a scope for the settlement, the parties prefer conciliation and mediation for resolution. An unpredictable economy and the lack of a unionized workforce are a lethal combination. Corporate laws and resolution methods are dedicated to settling disputes between the parties on the basis of common sense laws.

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.


  • 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.