Joint Venture helps entities to capitalize on positive opportunities. JV entities gain access to resources. JV helps you to build up new products. You can have access to new markets across the world when you are solo company. ASK Advocates Law Chamber offers the best legal services for Joint venture disputes in Chennai.
ADVOCATES FOR JOINT VENTURE DISPUTES
Lawyers for JV Disputes in Individuals and Organisations
Individuals/organizations enter into JV deals to expand their markets and increase profits. The joint venture deals are profitable to both parties. This deal involves the sharing of knowledge, asset, technology, and profits. JV is not mergers and acquisitions.
Mergers and acquisitions involve the transfer of ownership. Due to compliance difficulties in mergers, entities opt for quick JV agreements. JV can be to access intellectual property rights or confidential information also. JV disputes advocates in Chennai offer the best litigation services in Tamil Nadu, South India
Corporate Attorneys for Joint venture disputes
Through joint ventures you can pool resources and talent into your business. Risk and liabilities sharing is a big plus with JV. Corporate Attorneys help to achieve it and Solve issues.
Mediation and Arbitration in JV Disputes
Sometimes there can be deadlocks and disagreements between parties. Corporate advocates can advice and help with any disputes of joint venture. Our experienced JV advocates in Chennai assess your matter and suggest suitable mediation or arbitration provisions. We have close interaction with our commercial lawyers team.
If you would like to discuss about any aspect of joint venture or any other disputes, Get in touch with us!
Advantages of joint venture deal
Resources use to full potential is possible through joint venture. Parties can help each other with capital and resources. Full use of Technical knowledge is possible through JV deals. You can go deeper in to local market through joint ventures
Kinds of Joint Venture Deals
Short-term JV deals:
Here the agreement may be for a short period of time. The parties team up to work with each other for period ranging between 6 months up to 1 year.
Full-term JV deals:
Here the JV agreement lasts for longer period of time. It can range from 5 to 10 years. They cover wide range of services. It points about products developed together by the parties.
Limited JV deals:
JV agreements is being limited in nature. There can be limitation on information sharing or product manufacturing etc.
International Joint Ventures:
It is one of the famous types of JV deals. Here foreign investors can have access to Indian resources through joint venture deals. In fact, Many cross-border transactions can happen with international joint ventures.
Why do you need a perfect Joint Venture agreement?
A perfect JV agreement prevents disputes. The anticipation of problems and solutions to deal with problems is possible. Among other things, a JV contract should have shares, roles & duties of parties. The Decision-making process, reward structure, and exit clauses are important. No JV agreement can lead to bitter disputes among parties. Time and money to resolve the disputes is higher than the cost of drafting a JV agreement. It is wise to be in protection through a JV agreement than facing disputes later.
Common reasons of Joint venture disputes
- Business share disagreement
- Income terms and capital Disagreement
- Input or commitment Disagreement
- Business diversion from JV to separate business
- Disagreement over future business directions like expansion, acquisitions etc.
- Terms of Entry of more partners Disagreement
- Disagreement over the price at business gets put up for sale.
Let us see what are the reasons for disputes are in a JV agreement. How can we resolve the same?
Dispute resolution
Joint venture agreements should have effective clauses for dispute resolutions. The stakes are more in JV. The rift among parties may result in loss along with damaged business reputation.
It is important to bear the following points in your mind while finalizing a joint venture deal
- Documentation language
- Location convenience
- Law flexibility to allow regulation of affairs of parties
- The litigation process needs to be efficient and familiar
- Judiciary independence
- Enforceability of award or judgment
- Damage level and awarded cost
- Representation choice available
Find the best Corporate Advocate for Joint venture Disputes
Arbitration and mediation are common ways of resolving disputes in joint venture deals. In arbitration settlement, you need to have arbitration clause in your JV agreement. Independent arbitrator gets appointed by mutual consent. The award / judgment given by independent arbitrator is legal and binding on parties. Many establishments choose to resolves their issues through arbitration than litigation. Litigation is costs more and time consuming too. Litigation attracts public attention. Advocates in this Law firm offer quality litigation services for JV disputes in Chennai
Benefits of arbitration over litigation
Impartiality– The arbitrator appointed is impartial in his judgment.
Privacy-In case of disputes where you want no public attention, arbitration is best.
Enforceability- The award / judgment of arbitrator is final and legal. It is enforceable in a easy manner.
Expertise of tribunal– The panel of tribunal are experts in the field. Arbitrator experienced in respective sector gets appointed as tribunal member.
Few examples of failed Joint venture
India has its own share of failed joint venture deals. Many are from automobile sector.
Kinetic Group made an offer to Honda Motor Company. They agreed to buy 51% shares in joint venture Kinetic Honda motors. The deal got finalized. Later deal fell out as consumers expectations were not met leading to dissolution.
Stringent compliance and operational challenges
Wal-mart and Bharti enterprises got into a JV deal named Bharti Walmart Pvt. Ltd. Wal-Mart started cash & carry operations in India through JV with Bharti Enterprises. Due to stringent compliance and operational challenges the venture went sour.
Tata Motors and Fiat Spa came together with a JV deal. Mainly, Fiat spa cars used the distribution network of Tata Motors. The deal got called off due to dismal performance of fiat brand in Indian markets.
