Introduction to Prospect Legal

Prospect Legal is a premier law firm with 15+ years of expertise in corporate litigation, mergers and acquisitions (M&A), and dispute resolution. Our seasoned team of attorneys specializes in resolving complex disputes involving investment bankers, ensuring compliance with the Companies Act, 2013, and safeguarding client interests during high-stakes transactions. With a proven track record in NCLT proceedings, we provide strategic solutions for breaches of duty, misrepresentation, and contractual failures by investment bankers, empowering businesses to secure fair outcomes.

Where You Can Find Remedies?

Investment banker disputes in M&A are adjudicated by the National Company Law Tribunal (NCLT) under Sections 230-232 (schemes of arrangement) and Section 242 (oppression/mismanagement) of the Companies Act. Additional forums include:

• Arbitration Tribunals: If the dispute is governed by an arbitration clause in the engagement agreement.
• SEBI (Securities and Exchange Board of India): For regulatory breaches in listed company transactions.

Facing an investment banker dispute? Contact Prospect Legal to protect your interests and secure timely resolutions.

📞 Call us at 7000-12-7225

Understanding the Legal Process

Voluntary Process (Pre-Litigation Resolution):

1. Internal Review: Assess contractual obligations and banker performance.
2. Mediation/Negotiation: Engage in settlement talks to resolve disputes amicably.
3. Contractual Remedies: Enforce penalty clauses or claim damages as per agreements.

Compulsory Process (NCLT Intervention):

1. File Petition: Submit an application under Section 242 for oppression/mismanagement or Section 230 for flawed M&A processes.
2. Tribunal Hearing: Present evidence of negligence, misrepresentation, or breach of fiduciary duty.
3. NCLT Order: Secure remedies like compensation, contract annulment, or restitution.
4. Enforcement: Implement tribunal directives to recover losses.

Legal Protection Under Key Provisions

Section 230 of the Companies Act: Schemes of Arrangement

• When Can a Claim Be Filed?
  • If the investment banker’s negligence led to an unfair merger valuation.
  • When misrepresentation in the scheme of arrangement harms shareholder interests.
  • If statutory disclosures in the M&A process are incomplete or fraudulent.

Section 242 of the Companies Act: NCLT’s Remedial Powers

• Powers of the Adjudicating Authority (NCLT):
  • Award compensation for losses caused by the banker’s misconduct.
  • Restrain the banker from further involvement in the transaction.
  • Order fresh valuations or audits to rectify discrepancies.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

• Contract Review: Analyze engagement agreements, valuation reports, and banker deliverables.
• Breach Identification: Detect negligence, conflicts of interest, or non-disclosure.
• Financial Impact Assessment: Quantify losses from flawed advice or misrepresentation.
• Strategy Formulation: Advise on NCLT litigation vs. arbitration/mediation.

Step 2: Legal Documentation & Filing

• Draft Petitions: Prepare NCLT applications under relevant sections with evidence of breach.
• Evidence Compilation: Gather emails, valuation models, board minutes, and expert opinions.
• NCLT Compliance: File petitions in the correct jurisdiction (based on company registration).
• Interim Relief: Seek urgent orders to halt detrimental M&A steps.

Step 3: Compliance & Negotiations

• Regulatory Liaison: Address SEBI/RBI compliance issues, if applicable.
• Settlement Talks: Negotiate with investment bankers for out-of-court settlements.
• Tribunal Representation: Advocate in pre-trial hearings to establish liability.
• Stakeholder Coordination: Align with shareholders/creditors affected by the dispute.

Step 4: Resolution & Final Actions

• NCLT Advocacy: Argue for compensation, contract termination, or transaction reversal.
• Judgment Enforcement: Recover funds through asset attachments or bank guarantees.
• Appeal Management: Challenge adverse rulings in NCLAT under Section 421.
• Post-Case Advisory: Strengthen future contracts with robust banker accountability clauses.

For expert legal representation, reach out to Prospect Legal now.
📞 Call us at 7000-12-7225