Home Madrid Economy Insurance, Rent, Commercial Dispute Loan: How to Prepare an Defensible Case to Win Legally

Insurance, Rent, Commercial Dispute Loan: How to Prepare an Defensible Case to Win Legally


Legal Dispute: Every form of document is useful in preparing or defending a case in court. The things that are necessary for anyone are creating proper and relevant documents and keeping them at a proper place or with an authorized person.

By Rajnish Kumar Jha

Many times while pleading for my clients in court, I find that there are missing lines in the client’s history or other errors of a similar nature (e.g. having incorrect or insufficient documents) made by them . This often happens because of a lack of knowledge on their part of the facts of the matter or the existing laws dealing with the particular situation. Keeping this in mind, I will try, through this article, to elaborate on some of the relevant points that should be kept in mind by everyone when entering into any sort of transaction.

Common documents required for a case of any kind.

Any dispute of a civil or commercial nature, when brought before a court, is mainly settled on documents. It is pertinent to emphasize here that when I say documents, I mean any document, whether signed and recorded, signed and notarized, written, or Email, SMS & WhatsApp chats, phone call recordings, audio/video recordings, etc. Simply put, every document has a certain value in court. It is also very relevant to draw everyone’s attention to the fact that each document mentioned above is admissible, that is to say accepted by the Court. But, each admitted document has a different probative value. A document can be admitted as evidence but, at the same time, cannot be relied upon by the honorable courts.

For example, where under a provision of a law a document must be registered and it is an unregistered document, honorable courts may refuse to treat this unregistered document as evidence in certain situations. However, the factum of execution of such a document cannot be denied by the Court. Here, the Honorable Courts can search for other documents to complete the chain of transactions and also for the reasons of non-compliance by the litigant concerned with the legal provisions. Meaning it is always legally advisable to have the proper documentation, required by law, to ensure and show that the party seeking relief in the Hon’ble Courts complied or was more than willing to comply. comply with the requirements of the relevant legal provisions.

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Apart from the registration of the documents, there is another important aspect, namely the proper payment of the stamp fees required for the execution of the documents by the party seeking relief. Many times, as I have seen, some litigants, while entering into an agreement, especially, in a loan transaction, have executed the agreement on up to one hundred rupees of stamp paper for a transaction ranging in lakhs. It should be noted that by doing this, the person can save money for the time being, but when the same agreement, signed on insufficiently paid stamp paper, comes to court for relief on the basis of these documents , the Honorable ‘ble Court may deny the relief sought, merely, on the ground of non-compliance with the provisions of the Indian Stamp Act, 1899.

Having discussed the probative value of proper documents and the reliability of these documents by the honorable courts, I will now discuss the nature of the documents required in the following transactions:

business dealings,
Individual transactions,
consumer transactions, and
Insurance operations.

Commercial transactions:

Business transactions are primarily document-based. One of the main reasons for this is that in present times, the nature of employment in companies/organizations is either transferable, fixed term, consultancy etc. record every detail of transactions, meeting minutes and share them with the opposing party through the appropriate channel.

General guidelines under the main headings are as follows:

business legality,
company compliance,
The contractual obligations of the company,
The social issues of the company,
Real Estate – Who has title to the property and if selling the property through a landlord.
Insurance Liability
I. Group

ii. Staff

Licenses and Accreditation,
Profitability of transactions,

It is important to note that in a general sale – purchase agreement which also amounts to commercial transactions, the parties are required to consider the following: (i) Written purchase order, (ii) Approval of price /of the products, (iii) Product delivery note, (iv) Disputes on the quality of the products within the prescribed deadlines, (v) Jurisdiction clause, etc.

Under Order 13 A of the Commercial Courts Act 2015, the Legislature introduced a new concept called summary judgment in a commercial suit in which the honorable court may adjudicate a claim and enter judgment on a request filed by a party before recording the oral evidence. This means that properly executed and compiled documents always favor the relying party.

Individual transactions

Capacity to contract, i.e. if the person entering into the contract is:

Minor or crazy

Free consent of the person entering into the contract: The person entering into an agreement must be free from influence and must be willing to enter into the agreement without fear or favor.

Consideration valid for the contract: – The consideration (money or work, etc.) must be legally authorized.

Object/lawful purpose of the contract: – The purpose of the agreement must be legal. An agreement, which has an illicit and illegal object, is not enforceable in court.

Legality of documents/agreements: – Documents must be correctly signed on sufficiently stamped paper.

Complaint under Section 138 of the Negotiable Instruments Act: it is advisable to transact, i.e. grant a loan to anyone through legal channels. For example, payment by check or online transfer is the safest form of transaction. If, in the event, an amount is granted as a loan in the form of cash, this should be accompanied by a legally signed agreement and the plaintiff should be prepared to explain the source of the amount to the court. In commercial transactions, the check must be accompanied by the purchase order, invoice and other receipts.

Marital disputes

Pursuant to Section 21 C of the Hindu Marriage Act 1955, no document shall be inadmissible in evidence in any proceedings at the trial of a petition (divorce, judicial separation, alimony, etc.) on the ground that it is not duly stamped or registered. . In addition, it is important that the parties keep the documents of each transaction. It is true that in marital relations there may be some delay in bringing a complaint to the competent authority but it is equally important to note that excessive delay in raising the matter is always admitted with suspicion on the factum of the incident. Therefore, it is important that the parties keep the documents of each transaction in their possession.

Consumer transactions

Object of the transaction

Receipt of payment for the transaction,
Authorized Seller,
Real estate,
Approval of the project by the Authorities,
License for the construction of buildings,
Payment of the loan as the construction of the project progresses,
Builder Buyer Agreement Terms.

It is to be noted that many times the loan amount is disbursed to the promoter by the Bank/NBFC without complying with the terms of the Tripartite Agreement, i.e. payment is to be made according to the construction of the project, therefore, it is always advisable for the parties to keep an eye on the development of the project to ensure compliance with the terms of the builder-buyer agreement.

In accordance with the provisions of the Consumer Protection Act 2019, to benefit from the said provisions, transactions must not be for commercial purposes. Here it is important to write that the business purpose does not include the use by a person of goods purchased and used by him exclusively for the purpose of earning a living, by means of self-employment.

Insurance operations

Insurance conditions,
Period of insurance.

It is often found that the insurance conditions are in several pages. Therefore, it becomes difficult for the policyholder (Insured) to go through the entire document. Moreover, another thing, which creates a problem after the death of the policyholder, is the name of the beneficiaries. It is advisable to read the insurance conditions or sign an insurance policy only after proper checks and also write the names of the beneficiaries carefully.

Online transactions (E)
Authenticity of products,
Means of payment,
Refund/return terms.

General clause applicable to each transaction: –

Place of resolution of the dispute, i.e. place of prosecution/jurisdiction. Skill is of three types;

  • pecuniary jurisdiction
  • Territorial jurisdiction
  • Jurisdiction

In accordance with Articles 15 to 20 of the Code of Civil Procedure 1908, subject to other conditions, there are three main criteria which guide the parties in deciding the place of jurisdiction, (i) Where the object is located, (ii) Opposite party/defendant, at the time the lawsuit is commenced, resides, operates a business or works for profit, and (iii) a cause of action arises.

Additionally, if there are multiple jurisdictions where the cause of action arose, the suing/plaintiff may choose one of them. More importantly, the parties, of their own free will, can also agree to an exclusive jurisdiction clause.

Dispute resolution method

Currently, with the advent of Alternative Dispute Resolution (ADR), parties can voluntarily agree to resolve their disputes through processes such as arbitration, mediation and conciliation without going to court. honorable first instance. Once the parties have agreed, after complying with legal provisions, to resolve their respective disputes by arbitration, they are bound to follow the terms of the contract agreed between the parties.

Communication by default:

In any transaction, it is the responsibility of the parties seeking compensation to bring the dispute to the opposing party within the agreed period. Suppose the party, claiming the repair, used the products for the intended purpose but later, when there is a demand for payment of the products by the seller, the buyer raises the question of the quality of the products which will be itself rejected by the honorable courts. It is up to the party to raise the dispute within the time allowed and to return the property to the seller.

In short, it is important to note that each form of the document is useful in preparing or defending a case in court. The things that are necessary for anyone are creating proper and relevant documents and keeping them at a proper place or with an authorized person.

(By Rajnish Kumar Jha, Founding Partner, Actus Legal Associates and Advocates. The author can be contacted at [email protected])