by Aggarwals Associates | Sep 13, 2021 | Divorce Lawyer
As per the ancient perspective, marriage is a formal ceremony and religious tie that can’t be broken. On the contrary, nowadays majority of the people are of the view that if a person does not want to stay in married life and does not want to extend any longer then he/she should break that knot. But at the same time, it’s not easier for some people to take decisions for separation. Under these circumstances, there is a concept called Judicial separation through which a person of disturbed married life can take some time for self-analysis. Usually, the courts grant time to the parties to re-think their decision of separation.
Many individuals often get confused about the concept of judicial separation and sometimes, they consider it the same as divorce. Although in layman language both terms connote the same meaning, the outcome of both terms in a legal context is different. In fact, judicial separation is a legal remedy to temporarily suspend the marriage. Law allows the couples having strained marital relationships a free space and independence to think about their future path. It is usually a final resort before choosing for a divorce. Section 10 of the Hindu Marriage Act deals with the concept of judicial separation.
We, Aggarwals & Associates, being a Best Law Firm in Chandigarh have a team of the Best Divorce Lawyers in Chandigarh, which is efficient to assist the clients in all kinds of matrimonial disputes.
Now, let’s start to differentiate both concepts and their legal outcomes.
Primarily, the basic difference between the two is their tenure. Like, a divorce is permanent in nature, whereas, the judicial separation is temporary as it relieves the parties from their marital obligations for some limited period of time.
Moreover, a petition for judicial separation can be filed at any time after the marriage. Conversely, as per the Hindu Marriage Act, a divorce petition could be filed only after completion of one year of marriage unless permission has been sought from the higher court under special circumstances. Apart from this, under the judicial separation, the parties can think about reconciliation, but under divorce, they lose this opportunity.
Additionally, upon filing the divorce petition, firstly a chance is given to the parties to mitigate their differences to save the marital knot, and upon failure of the same; an order for divorce is granted. However, in case of filing the judicial separation, the court usually grants the order upon being satisfied with the grounds. The best Divorce Lawyer in Chandigarh can enlighten you in an effective manner in case of such kinds of queries relating to judicial separation and divorce.
Apart from these, one cannot remarry after obtaining the decree of judicial separation, while upon attaining the finality to the divorce decree a person can perform a marriage.
Can divorce be a judicial separation?
No, a divorce can’t be a judicial separation. Yet, judicial separation may convert into divorce. To exemplify, a couple who got the decree for judicial separation may sort out their differences and decided to not have a divorce. But in some cases, they may choose for divorce, therefore, a judicial separation may result in divorce.
Can I file a divorce during the period of judicial separation?
Yes, a divorce petition can be filed at any time after the pronouncement of the decree of judicial separation with the help of Divorce Lawyers in Chandigarh. Howbeit, one has to wait for the completion of one year of marriage in the case where the judicial separation is granted within 12 months of marriage.
Also Read: File Divorce with the help of Divorce Attorney in Chandigarh
by Aggarwals Associates | Sep 10, 2021 | General
Debt financing basically refers to a business raising capital by borrowing. When a company borrows money to be paid back in coming times with an interest is known as debt financing. It may be in a form of a secured as well as an unsecured loan. Usually, companies take up a loan to either finance working capital or an acquisition. Fascinatingly, in debt financing, the company doesn’t lose its ownership. As per literal meaning, debt is an amount of money that needs to be repaid back and financing means providing funds for use in business activities.
Debt financing is a time-framed activity where the borrower needs to pay back the loan along with interest at the end of the agreed period. The payments can be made on a monthly, half-yearly basis, or towards the end of the loan tenure.
What are the options for debt financing in India?
There are different options available for the companies to generate funding for their business. Some of the options are enumerated below: –
Corporate Bonds: –
Corporate bonds are debt securities that are issued by companies to raise money for a variety of purposes. One has to lend the money to buy a corporate bond, and in exchange, the company issues the bond by promising to return that money. Notably, buying corporate bonds doesn’t give an ownership interest in the company unless the one purchases the equity stocks of the company. Under this method, the funds are raised through either public issues or via private placements.
In public issues, an offer is made to the general public to subscribe to the bond, whereas in private placement such an option is given to a limited number of persons. Such a method of debt financing assists in expanding the sources of financing and reducing the credit risk concentration in the banking sector.
Commercial Paper: –
This is an option for the companies which are looking for short-term funds requirements. This debt instrument is issued in a form of a promissory note. The minimum maturity period of commercial paper is seven days and the maximum is one year from the date of issuance. The companies with high ratings from a recognized credit rating agency often sell these commercial papers at reasonable prices. Generally, the commercial papers are sold at discounted prices for the sake of face value and carry higher interest rates than bonds.
Trade Credit: –
Companies generate money through trade credits by taking advantage of lower global interest rates and the ability to borrow at longer maturities. Trade credits are those credits that are granted by the overseas suppliers, banks, and financial institutions for maturity up to 5 years for imports into India. This credit includes both suppliers’ credit and buyers’ credit depending upon the source of finance. Suppliers’ credit relates to the credit for imports into India granted by the overseas supplier, whereas buyers’ credit is a loan for payment of imports into India arranged by the importer from an overseas bank or financial institution.
Masala Bonds: –
The International Finance Corporation (IFC) launched the Masala bonds to fund infrastructure projects in 2014. Indian companies issue Masala bonds in Indian Currency outside India to raise funds. Both the govt. and private entities can use this debt instrument. The Masala Bonds are also known as “Maharaja Bonds” as their name suggests the Indian culture. Importantly, the money raised through these bonds cannot be invested in real-estate activities and capital markets. Howbeit, these bonds can be used for the development of integrated township or affordable housing projects. The other important condition of these bonds is that these bonds can only be issued to a resident of a member country of the Financial Action Task Force.
Other instruments: –
Apart from these debt instruments, these are some instruments that are being used by the Companies including corporate fixed deposits and non-convertible debentures. Corporate fixed deposits are equivalent to unsecured loans as these instruments do not give any assurance to the investors in case of default. On the other hand, non-convertible debentures are secured and redeemable bonds which are usually issued by high-rated companies in the form of a public issue to accumulate long-term capital appreciation. As compared to convertible debentures, it offers higher interest rates.
Conclusion: –
The levels of debt begin to look more challenging as the cycle turns with the combination of falling asset prices, a decline of profitability, and turbulent markets. Moreover, with the increasing reliance of Indian companies on foreign borrowings, attracted through the super low global interest rates, the exchange rate has taken on the bigger role in generating stress not only in the foreign exchange markets but also on the overall financial system. These changing circumstances are demanding changes in the formulation of market regulations as well as a system for the operation of the monetary policy.
-Kiranpreet Kaur
Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali
by Aggarwals Associates | Sep 2, 2021 | General
Like other contracts, construction contracts also consist of purpose and terms and conditions to achieve that specific purpose. Every contract has its own purpose, which makes it different from other contracts. To illustrate, a lease agreement showcases the intention of parties to lease out the property for a certain period of time. Generally, a contract is a mutual legally binding document between two parties based on conditions, duties of parties, and consideration, etc. recorded in written form.
Importantly, an agreement has no fixed format and parties can set the terms and conditions according to their requirements as well as to better protect their interests. Yet, certain rules of the Indian Contract Act and any other applicable law must not be violated while drafting the contracts.
What is a construction contract?
The construction contract is a legally binding document in writing, in which two parties are involved, one part can be one or more property owners and the second part could be one or more contractors. Under this contract, a property owner is called a client and the contractor is known as a service provider. The motive behind entering into this contract is to construct a particular thing for the client by the service provider.
Why it is important?
The relationship between the client and contractor is delegated in nature; if the client and the contractor do not clear all the points properly including quality, quantity, budget, and time as per requirement then it creates assumptions on some point, which creates ambiguity in the future, hence give rise to the dispute in coming times. The poor quality of the used material in the construction of the building and delay in delivery of the project are the major reasons for disputes between the client and the contractor.
In absence of a proper agreement between the client and the contractor, there are chances that issues may arise between the parties, therefore, to avoid such kinds of situations, it would be better to enter into a well-drafted construction contract so that future hassles may be eliminated.
What are the types of construction contracts?
There are different types of construction contracts according to the suitability of the client and the contractor. The basic difference between these different categories of contracts lies with the mode of paying consideration. Some of the types are elaborated below: –
- Lump sum contracts: – This is a fundamental type of construction contract, under which an amount is fixed for all the completed work. This type of contract is not lengthy and most preferred in small projects.
- Time and materials contracts: – Where the consideration for delivering the project is fixed on the basis of time i.e. per hour or per day and materials used in the project, in such cases, the parties opted to enter into such kind of contract. According to this contract, the contractor has to provide the quotation of materials for attaching the same with the agreement.
- Cost-plus contracts: – The consideration is decided on the basis of the cost incurred on the project and the additional fixed amount as a profit to the constructor. The percentage of such cost is mutually decided by the parties.
- Guaranteed Maximum Price contracts: – Under this category, a maximum limit of cost for construction is fixed, and in case, the limit for the same extends, then the contractor has to bear an extended amount.
- Unit price contracts: – As per this contract, the construction work is divided into different units, and a quotation for such different phases is given by the contractor. The consideration is mainly based on the measurements, and, therefore, these types of contracts are also known as measurement contracts.
What must be a part of the construction contract?
There are a number of significant clauses that must be a part of the construction agreement. The minutiae of these clauses are given below: –
- Scope of work: – This is the key clause of the agreement which describes the work and obligations that are to be carried out by the contractor. Under this clause, the quality and the brand of the products to be used for the constructions must be specified clearly.
- Duration: – The time period for completion of the construction work is mutually decided by the parties. This clause determined the time till when the contractor is supposed to complete the allotted work and obligations. The consequences of not completing the project within a prescribed time must also be a part of this clause.
- Consideration: – Consideration is an amount that is decided to be paid by one party to another party in exchange for rendering services or delivering products. Under the construction contracts, such an amount is paid by the client to the contractor for construction work. This clause contains the fixed amount of the project and the points and factors on which the final consideration can be calculated. Further, the mode of paying the consideration must also be mentioned under this clause like how payment will be paid either to be paid in a lump sum or to be paid in installments.
- Remedy clause: – Under this head, the consequences of breach of an agreement are defined. If any party fails to fulfill its obligations and perform the duties as assigned under the contract, then it creates a breach of contract. In case of a breach, the aggrieved party can exhaust the available legal remedies as specified under the agreement.
- Dispute resolution: – This clause throws light on the mechanism through which the dispute between the parties will be resolved. Basically, arbitration and mediation are the most preferred dispute resolution methods which are being chosen by the parties.
- Jurisdiction and governing law: – This part specifies the place of litigation i.e. where the parties can resolve their dispute and the applicable laws to the agreement.
Conclusion: –
It is crucial for both i.e. client and contractor to clarify the expectations in terms of quality, quantity, consideration, and time period for delivery of the project, etc. to protect the interest of both sides. Such agreements help parties to fulfill their purpose without affecting each other’s rights. It is always advisable to carefully go through and analyse the agreement to make sure that it caters to your requirements and better protects your side.
-Kiranpreet Kaur
Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali
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