IndiaLaw LLP

With the rapid globalization of the economy and the resulting increase in competition there has been a significant increase in commercial disputes. The outpaced rate of development has led to increase in industrial growth, modernization, improved socio-economic circumstances, technological development which in turn has led to an increase in case overloads for the already overburdened courts. Development and disputes are two sides of the same coin, which means that the alarming rate of development has its snag, which is the increasing number of the disputes in various sectors. The multiplying of outstanding cases in the courts, exorbitant delays in the administration of justice and expenses of litigation have continued to plague people thereby undermining their faith in the justice system. The issue at hand is to examine and choose a right formal legal system, such as Alternative Dispute Resolution procedures. India has a standing as being one of the oldest in the history of the ...

Wait for justice in India can be agonisingly long as the first tier of the country’s justice administration system, district courts, is burdened with over 30 million pending cases and this number is increasing. More than two thirds of the pending suits are criminal cases, showing a lack of effective prosecution and early disposal. Large number of pendency of criminal cases are worrisome for two reasons. Firstly, it denies the access to justice to a large number of victims of crime. Secondly, because of slow progress of the criminal cases, a large number of undertrial prisoners continue to languish in jails, sometimes, they end up spending more time in jail as undertrials than the prescribed term of imprisonment for the crime they have been accused of committing. In September 2018, just before taking the charge, Chief Justice of India, Ranjan Gogoi had expressed concern over the huge pendency of court cases while addressing a group of young lawyers. “Two things are troubl...

Running a business in India can be extremely stressful and challenging. In fact, a study on entrepreneurial well- being by ASCENT Foundation and Mariwala Health Initiative recently found that nearly 8% of younger entrepreneurs and 6% of older entrepreneurs who are in family-owned businesses have had suicidal thoughts. Majority of the study participants said they experienced anxiety, confusion, irritability and frustration sometimes during their entrepreneurial journey.  The study, which received response from 186 entrepreneurs (of family run businesses and new age entrepreneurs) from the ASCENT cohort, between the age group of 20 to 60 years, showed that stress due to financial cash flows, fear of failure and disagreements with partners or family members are the top stressors, irrespective of their age and years in business . Add to this the cumbersome documentation and paperwork to be taken care of at every step of the process. All these hurdles function as impediments for...

In India, the Insolvency and Bankruptcy Code, 2016 is one matured step towards settling the legal position with respect to financial failures and insolvency. To provide easy exit with a painless mechanism in cases of insolvency of individuals as well as companies, the code has significant value for all stakeholders including various Government Regulators. Introduction of this Code has done away with overlapping provisions contained in various laws – Sick Industrial Companies (Special Provisions) Act 1985, The Recovery of Debts Due to Banks and Financial Institutions Act 1993, The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, and The Companies Act, 2013. Before the enactment of this Code, there were multiple agencies dealing with the matters relating to debt, defaults, and insolvency which generally leads to delays, complexities and higher costs in the process of Insolvency resolution. The ‘Board for Industrial and Financial R...

India has jumped 14 places to rank 63rd out of 190 countries in the World Bank's Doing Business 2020 report on account of significant improvement in resolving insolvency and obtaining construction permits. This is a major development, considering the fact that the government has been focusing on targeting to take India among the top 50 in the ease of doing business ranking. Explaining that the government was working on policies to promote inflows from domestic as well as foreign sources to achieve this vision, the PM stressed that the "policies are not designed to get some short-term benefit out of transient disruptions" being seen around the world. Instead, the government is focused on improving India's competitiveness through long-term reform measures such as steps towards improving the ease of doing business rankings, tax reforms with lowering of tax rates and simplifying procedures, labor sector reforms to encourage formalization and FD...

The real estate industry has been one of the most prominent pillars of the Indian economy. With a contribution of close to 6-8% to India’s Gross Domestic Product (GDP), it stands second in terms of employment generation. The sector has been at the cusp of transformation with policy changes, fall-out of funding agencies and their subsequent cautiousness towards residential projects, developers experimenting with new sectors and offerings, etc.  According to data released by the India Brand Equity Foundation, which is a government trust, by 2025, the country’s real estate sector is expected to contribute 13 per cent of the country’s GDP. By 2030, it is expected to reach US$ 1 trillion. Without relying on any more numbers, it would suffice to say that lawyers feed off such a healthy industry and a lavish five-course meal sort of feed off, at that. As regards the changes brought in by the Real Estate Regulation Act, the long-term prospects of these chan...

The constraints of expatriate life make it challenging for a lot of Non-residential Indians (NRIs) to deal with situations, which are beyond their reach and control. One such situation is of course the handling of legal proceedings.  The legal ecosystem in India can discourage even those living in the country, considering the pendency and the hassles-- the delays, the appearances, the bureaucracy, the hearings, the adjournments, and the corruption. All this along with the constraints of non-residents having to travel back and forth to India and limitations of resources or time requires special legal assistance especially crafted for NRIs. And more so because legal cases involving NRIs may require engagement with multiple areas of law and dealing with the Indian authorities. For instance, they need advice on a hoard of subjects, ranging from investments, to regulatory and compliance, real estate acquisition and documentation, and dispute resolution.  NRIs should be able...

Indian Banking sector comprises of 27 public sector banks, 21 private sector banks, 49 foreign banks and 56 regional rural banks. Indian Banking sector has registered strong growth in the past decade. Demand for loans has grown for both corporate & retail, particularly in services, real estate, consumer durables & agriculture allied sectors.  Government efforts to promote banking technology and expansion in rural areas has significantly improved the financial inclusion in the past few years. Sectoral level employment data (2017) suggests that Banks are providing huge employment opportunities in the country, nearly around 21% of total employment and is among the top 5 best growing sectors of India. With this ecosystem, while businesses can flourish, it is still important for them to focus on running a profitable business, instead of getting entangled in the heavy documenting, auditing and reviewing paperwork or procedure, as any distraction could lead to a loss of cror...

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. In a market with ever-changing policies, the management of risk and creation of value to ensure the bank-ability of projects requires not only excellent contract drafting skills but also a robust understanding of the law and regulations affecting a project, together with deep industry knowledge.  Practitioners in this area should be adept at handling a wide portfolio of projects and tasks, including Public private partnership projects; concession agreements; engineering, procurement and construction contracts; construction contracts; and operations and management contracts. Further, these practitioners should be equipped to represent developers & project owners, a...

Environmental and regulatory compliance issues are now part of everyday life for most businesses, even if they are not engaged in evidently hazardous activities. In such an environment of constantly changing climatic conditions, regulatory demands continue to widen, in response to increasing international environmental, human rights and trade concerns. Navigating through this mesh of compliance, national and international, requires guidance from experts with a global outlook and understanding of legal principles. This is where experienced law firms step in.  A law firm hired for such guidance and support should have an understanding of the balance between development and the sustainable impact of such development as well. Only with such sensitivity and grasp can a law firm do justice to the myriad of regulations and compliance that exist in the sphere.  The firm should be capable of engaging in all aspects relating to environmental complianc...

India has finally brought in an effective Mechanism for initiating insolvency proceedings against the Financially defaulting Companies by way of The Insolvency and Bankruptcy Code, 2016. The IBC offers a standardized, comprehensive financial condition legislation encompassing all corporations, partnerships and Sole Proprietorship. The Code provides that where a corporate debtor has defaulted in paying a debt that has become due and payable but not repaid, the corporate insolvency resolution process may be initiated in the manner as provided in this Chapter in respect of such corporate debtor by a financial creditor, an operational creditor or the corporate debtor itself. Naturally, the processes are complicated and the stakes are high. This increases the necessity of expertise being sought from firms or individuals with requisite experience to handle such cases and do what is best for their clients. Not everybody can advice and resolve matters involving multiple stakeholders with...

The news was recently abuzz with Hyderabad being recognised as one of the top 10 fastest growing cities in the world between 2019-2035. It was also cited as one of the strongest performers, according to a global economic research report. Hyderabad also recently replaced Mumbai to join the top three cities when it comes to attracting talent. Club this with the fact that the legal industry was in fact featured among the top five fastest-growing industries in the second half of 2018. No wonder that quite a few law firms are eyeing the city for establishing their offices. However, any such ambition will have to be clubbed with a new approach to the city. This is especially in view of the fact that several tier-1 law firms have in the past tried to exploit the city’s market but have failed, leading to shutting of their offices. In contrast, the city has also witnessed thriving practices, with firms opening not one but two offices in Hyderabad. What are the second category of firms doing ...

Gujarat’s pro-business model of governance has often been appreciated and even attempted to be replicated throughout the country. The evolution of Gujarat as a vibrant economy has its genesis in the growth of the industrial sector in the state. Owing to this, the state's economy has sustained a growth momentum of double digit per year.  However, within Gujarat, it is Ahmedabad which is often credited with being the unstoppable growth engine and the economic powerhouse of the state. The city has in fact been recognised for its growth and proactiveness numerous times by institutes all across the world. For instance, it ranks second in the top 20 global cities, which are seeing rapid growth in venture capital deals. In such a scenario, it’s a wonder then that law firms have not begun establishing their presence with any prominence in the city. Those law firms which have recognized its potential still only have their back offices in Ahmedabad, rendering th...

Law firms are always on the lookout for emerging cities and markets in the country to set shop. Any good law firm has an expansion plan in place, in order to make its presence felt in not just the two major hubs—Delhi and Mumbai—but also other cities, in order to expand their customer base, and therefore, increase their revenue. Being early entrants to a new market also increases a firm’s chances of establishing a stronger practice than entrants who enter later. The latest in the list of new, emerging markets being eyed by law firms across the country, is Chennai.  It is Chennai’s business culture that is being recognized as the primary booster for law firms to establish branches in the city. Therefore, succession planning, family disputes and mergers and acquisitions showcase ample scope for law firms in the region. Further, much like Mumbai, the city also houses a vibrant film industry. Popularly known as the “Detroit of Asia”, Tamil Nadu is also a manuf...

The youth of the country has been bit by the startup bug, owing to the various success stories sprouting from various parts of India. The country is being viewed as a hotspot for business to dive in. According to the International Monetary Fund (IMF), India will be the fastest growing major economy in 2018, with a growth rate of 7.4% that rises to 7.8% in 2019 with medium-term prospects remaining positive. However, starting up is a lot more than the glitzy image formed by these success stories. The ever-evolving regulations governing the entire ecosystem can pose several barriers for new business owners. Besides, it has often been advised to view India not as a single market, but as a series of interconnected regional markets, where the regulatory and investment environment may change from one state to another.  Hence, while improvements are being introduced to digitalize processes and procedures, understanding the complexities of the same mi...