Quiz 3: Advanced — Legal Notices and Pre-Litigation Strategy

Question 1 of 5

A Section 138 demand notice was sent by speed post. The tracking shows delivery to the address, but the drawer claims she was traveling and did not personally receive the notice. Effect on the Section 138 complaint?

ADismissed because personal receipt was not proven BThe complaint can proceed — delivery to the address with tracking proof establishes service; personal receipt by the addressee is not required CThe 15-day period is extended until actual personal receipt DThe notice must be re-served after the drawer's return

Question 2 of 5

A creditor sends an IBC demand notice claiming Rs. 3 crore. The debtor responds within 10 days disputing Rs. 1 crore but not the balance Rs. 2 crore. What is the creditor's position?

ADispute of any portion defeats the entire IBC application BThe creditor can proceed under IBC for the undisputed Rs. 2 crore portion (which exceeds the Rs. 1 crore threshold); the disputed Rs. 1 crore must be resolved through other means CThe creditor must wait for the dispute to be resolved before filing under IBC DThe IBC threshold cannot be met on partial claims

Question 3 of 5

A legal notice is sent alleging breach of a confidentiality obligation. The recipient responds arguing that the confidentiality obligation was invalid under Section 27. The subsequent litigation strategy for the sender should:

AIgnore the Section 27 defence as clearly wrong BTreat the Section 27 defence seriously in framing the plaint — anticipate it, distinguish confidentiality from general restraint of trade, and cite the case law supporting confidentiality obligations CAmend the notice to remove the confidentiality claim DRefer the matter to arbitration to avoid the Section 27 issue

Question 4 of 5

A large corporation receives a legal notice from a former employee claiming Rs. 25 lakh. The company's HR verifies Rs. 5 lakh is genuinely due but the balance is disputed. Most strategic response?

AIgnore the notice entirely to see if the employee sues BSend a substantive response acknowledging the Rs. 5 lakh, offering to pay it, and providing detailed reasons for disputing the balance; document the response and settle if possible CDeny all claims to strengthen the negotiating position DSend a counter-notice claiming damages from the employee

Question 5 of 5

A notice is sent claiming Rs. 20 lakh. The recipient responds offering Rs. 8 lakh in settlement. The sender rejects and files suit for Rs. 20 lakh. The court eventually awards Rs. 10 lakh. Most likely issue?

AThe sender's costs will be reduced by the court because the sender rejected a settlement close to the actual award BThe sender is entitled to full costs because they won the suit CThe Rs. 10 lakh award is void because it does not match either party's position DThe recipient can appeal on grounds of excessive award

Quiz 3 — Advanced