Author Archives: supremelaws

The success of a startup lies in the vision and passion of its founders, who strive to craft distinctive solutions that offer real value and unmatched customer experience. But amidst the rush to build your product, brand, or team, it’s easy to overlook crucial legal requirements that form the backbone of a sustainable enterprise. Ignoring these essentials can lead to costly disputes, compliance penalties, or even the collapse of your venture before it truly begins.

From creating a founders’ agreement to protecting your brand and managing contracts, every entrepreneur should know the basic laws that apply to their business. Staying updated with legal rules helps avoid trouble and keeps the startup on the right track. Here are some key legal points every Indian startup should know before starting or turning an idea into a business.

1. Choose the Right Business Structure

Your business structure determines your tax obligations, personal liability, and ability to raise capital. Common options include a sole proprietorship, partnership, limited liability company (LLC), or corporation. Consulting a business attorney can help you select the structure that best protects your interests.

2. Protect Your Intellectual Property

Your brand name, logo, product design, or software are valuable assets. Registering trademarks, copyrights, or patents ensures that your ideas remain yours and prevents competitors from copying your work.

3. Draft Solid Founders’ and Partnership Agreements

A handshake isn’t enough when building a company with others. Clearly define ownership percentages, decision-making authority, roles, and exit strategies in writing. Well-drafted agreements prevent misunderstandings and protect relationships as your business grows.

4. Understand Your Compliance and Licensing Requirements

Depending on your industry and location, you may need licenses, permits, or regulatory approvals. Failing to comply with local, state, or federal regulations can lead to costly penalties or even business closure.

5. Adhering to labour laws

Labour laws are important for every startup, big or small, and following them is mandatory. Once your company is set up and you start hiring employees, you must comply with various labour regulations, no matter the size of your business. The few labour laws applicable under this scheme are:

• The Industrial Disputes Act, 1947
• The Payment of Gratuity Act, 1972
• The Trade Unit Act, 1926
• The Employees’ State Insurance Act, 1948.
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Industrial Employment (Standing Orders) Act, 1946
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

6. Protect Yourself With Proper Contracts

From supplier agreements to client contracts, every deal should be put in writing. Clear, enforceable contracts reduce the risk of disputes and protect your rights in case something goes wrong.

7. Understanding taxation and accounting laws

Taxes are an essential part of every startup. Entrepreneurs should understand the applicable tax laws before starting their business. Depending on the type and location of the business, central, state, and local taxes may apply. Since different sectors attract different taxes, knowing these in advance can help in better planning and compliance.

8. Plan for Employment and Data Privacy Laws

If you’re hiring employees or contractors, you must follow employment laws, including wage, benefits, and anti-discrimination rules. Additionally, ensure you comply with data protection laws to safeguard customer information.

Saurav Goyal, a top corporate lawyer in Chandigarh, said that launching a startup without legal guidance is like sailing without a map. An experienced business attorney can help you anticipate challenges, avoid costly mistakes, and build a strong foundation for long-term success.

Tarlok Singh, the best corporate lawyer in Chandigarh, says that whether it is a startup company or a well-established firm, adhering to legal requirements is very important for everyone. Hiring a corporate law firm or a legal counsel to provide advice is one of the best ways to ensure that your startup business is always safe and does not face legal complications and consequences.

Divorce is a difficult and emotional process, and navigating the legalities can feel overwhelming. If you’re considering a divorce in India, understanding the basic legal framework is the first crucial step.Here’s a simplified look at how to get a divorce in India, outlining the two main types of divorce and their respective procedures.

The Two Paths to Divorce

Himanshi Garg, a divorce lawyer in Chandigarh, says that in India, divorce proceedings are primarily governed by the Hindu Marriage Act, 1955, for Hindus, Sikhs, Jains, and Buddhists, while other communities have their own personal laws (like the Indian Divorce Act for Christians and the Parsi Marriage and Divorce Act for Parsis). Regardless of the specific law, there are two ways to get the divorce:

1. Mutual Consent Divorce (Section 13B of the Hindu Marriage Act)

This is the easiest & quickest way to get a divorce. It applies when both the husband and wife agree to the separation and have amicably settled all related issues.

• Key Requirements:
  • You should be living separately for one year period or more.
  • Both parties must agree that they are unable to live together and have mutually decided to dissolve the marriage.
  • You must reach a consensus on all matters, including alimony, child custody, and the division of assets.
• The Process:
  • First Motion: A joint divorce petition is filed in the Family Court. Both parties appear before the judge to record their statements and verify their consent.
  • Cooling-Off Period: After the first motion, the court mandates a cooling-off period, typically six months, to give the couple a chance to reconsider their decision. The Supreme Court has, in certain cases, allowed for the waiver of this period.
  • Second Motion: If the couple still wants to proceed after the cooling-off period, they file a second motion. They appear before the court again to reaffirm their consent.
  • Final Decree: If the court is satisfied, it issues a final divorce decree, officially dissolving the marriage.

2. Contested Divorce (Section 13 of the Hindu Marriage Act)

A contested divorce is a more complex process that occurs when only one spouse wants to get a divorce, or when both parties cannot agree on the terms of the separation. The party seeking the divorce must prove a specific legal ground for the dissolution of the marriage.

• Common Grounds for a Contested Divorce:
  • Cruelty: This includes both physical and mental cruelty that causes harm or endangers the life, limb, or health of the other spouse.
  • Adultery: When one spouse has voluntary sexual intercourse with a person other than their spouse.
  • Desertion: When one spouse has abandoned the other for a continuous period of at least two years without a valid reason.
  • Conversion: When one spouse converts to another religion.
  • Mental Disorder: When a spouse is suffering from an incurable mental illness or disorder that makes it unreasonable to expect the other to live with them.
  • Venereal Disease: When a spouse is suffering from a communicable venereal disease.
• The Process:
  • Filing a Petition: The spouse seeking the divorce files a petition in the Family Court, outlining the specific grounds and providing evidence.
  • Summons and Reply: The court issues a summons to the other spouse (the respondent), who then has an opportunity to file a reply, accepting or denying the allegations.
  • Mediation: The court often refers the parties to mediation to attempt an amicable resolution.
  • Evidence and Hearings: If mediation fails, the case proceeds to trial. Both sides present evidence, examine witnesses, and engage in cross-examination to prove their claims.
  • Final Decree: After hearing all arguments and reviewing the evidence, the judge passes a final decree, either granting or denying the divorce. This process can be lengthy, often taking two to five years or more.

How a Lawyer Can Help

While it’s technically possible to file for divorce without a lawyer, it’s highly advisable to seek legal counsel. A qualified divorce lawyer can:

• Explain your rights and obligations under the relevant personal laws.
• Draft and file all necessary petitions and documents, ensuring they are legally sound.
• Represent you in court and handle all legal proceedings.
• Negotiate settlements on your behalf, especially in matters of alimony, child custody, and property.

Navigating a divorce can be a complex and emotionally charged journey. Having the right legal guidance can make the process clearer and less stressful and can help ensure the best outcome.

 

The Punjab and Haryana High Court in “AU Small Finance Bank v. State of Punjab and Others” has strongly criticized revenue authorities  for failing to comply with a lawful order of Section 14 under the SARFAESI Act, 2002. The case was brought by Bank, which had obtained a possession order in February 2025 for a secured property, but local officials delayed its execution without justification.

The Bench, led by Chief Justice Sheel Nagu and Justice Ramesh Kumari, observed that such negligence weakens the entire recovery mechanism under the SARFAESI Act. “Non-Performing Assets are a burden on the public exchequer. Prompt enforcement is essential for financial stability,” the Chief Justice said. Despite a clear legal mandate, the Tehsildar-cum-Duty Magistrate failed to carry out the order. The Court reminded authorities of the binding precedent set in Bank of Maharashtra vs. District Magistrate, Hisar (2024), which specifies strict timelines for executing such directives.

Highlighting repeated non-compliance, the Court suggested that officials are either unaware of the law or deliberately ignoring it. It ordered the Chandigarh Judicial Academy to hold a special training programme for all District Magistrates and Tehsildars across Punjab, Haryana, and Chandigarh. Saurav Goyal, the top banking lawyer said that the Hon’ble Court has also observed that any future failure to act on Section 14 orders will be treated as contempt of court.