Disputes on SLA breaches and service credit obligations
Contract disputes in India are governed by the Indian Contract Act 1872, the Specific Relief Act 1963 (as amended in 2018), and sector-specific legislation. Disputes range from breach, repudiation and termination to force majeure, liquidated damages, indemnity, non-compete enforceability, and warranty claims. The 2018 amendment to the Specific Relief Act makes specific performance the default remedy (rather than damages), substantially changing litigation strategy. AMLEGALS advises on dispute strategy and represents clients before civil courts, commercial courts, arbitral tribunals and the High Courts.
Commercial disputes above the specified value are adjudicated by Commercial Courts under the Commercial Courts Act 2015. Pre-institution mediation under Section 12A (introduced by the 2018 amendment) is mandatory for suits that do not seek urgent interim relief. Arbitration clauses in commercial contracts are enforced under the Arbitration and Conciliation Act 1996 (as amended in 2015 and 2019). AMLEGALS evaluates the dispute-resolution clause, advises on the optimal forum, and pursues or defends claims through negotiation, mediation, arbitration or litigation.
Analysing the contract, the breach, the available remedies and the optimal dispute-resolution strategy (negotiation, mediation, arbitration or litigation).
Issuing demand notices, responding to counter-claims, and pursuing pre-institution mediation under Section 12A of the Commercial Courts Act.
Filing and defending suits in civil courts and commercial courts, including applications for interim relief (injunctions, receiver, attachment).
Initiating or defending arbitration proceedings, appointing arbitrators, and pursuing or opposing interim measures under Section 9 or Section 17 of the Arbitration Act.
Quantifying damages, proving loss, and pursuing specific performance under the Specific Relief Act 1963 (as amended in 2018).
Executing decrees, enforcing arbitral awards, and recovering amounts through attachment and sale proceedings.
Yes. After the 2018 amendment to the Specific Relief Act, specific performance is the default remedy for breach of contract. The court must grant specific performance unless the contract is such that damages would be an adequate remedy. The earlier position (specific performance only where damages are inadequate) has been reversed.
Section 12A of the Commercial Courts Act 2015 (inserted by the 2018 amendment) requires pre-institution mediation for commercial disputes that do not seek urgent interim relief. The mediation must be completed within three months (extendable by two months). If mediation fails, the plaintiff may file the suit.
Section 27 of the Indian Contract Act declares agreements in restraint of trade void, with the sole exception of the sale-of-goodwill restraint. Post-employment non-competes are generally unenforceable in India. However, non-solicitation clauses and confidentiality obligations may be enforced if reasonably scoped. Garden-leave clauses are enforceable during the notice period.
Under the Limitation Act 1963, the limitation period for suits on breach of contract is three years from the date the right to sue accrues. For suits on registered documents, the period is six years. For arbitration, the limitation period runs from the date the cause of action arises.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
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