The world of cross border issues

Common legal issues businesses face when expanding internationally 

1)  Regulatory and compliance issues : LOCAL BUSINESS LAWS :

Each country has their own laws governing business formation ,operation, licensing and permits This incudes regulations for specific industries 

2)  Data Protection and Privacy : 

Laws like GDPR (EUROPE) CCPA (California) and other world wide dictate how personal data must be collected stored processed and transferred across borders , non compliance lead to massive fines

3) Anti corruption and Anti bribery laws

 laws like the US FOREIGN CORRUPT PRACTICES ACT (FCPA) and the UK BRIBERY ACT have extra territorial reach meaning they can apply to your company’s conduct even in other countries

4) consumer protection laws 

Regulations vary regarding product liability ,warranties, advertising and consumer rights 

5) Environmental REGULATIONS:

Businesses must comply with local environmental standards which can differ significantly 

2) Corporate and Structural issues

Entity formation :

Deciding on the appropriate legal structure eg,; subsidiary, branch office ,joint venture ,representative office in the foreign country each with its own implications for liability taxations and operational flexibility 

Corporate governances

Adhering to local corporate governances rules board structures and shareholders right 

Mergers and Acquisitions 

If expanding through M&A navigating complex due diligence regulatory approvals and post merger integrations in a foreign legal landscape 

3) Contractual issues 

Choice of law and jurisdiction 

Determining which country’s laws will govern contracts and where disputes will be resolved (eg ; courts , arbitration) this is critical for enforceability

Language and interpretation 

This is very interesting issue that come in countries

Ensuring accurate translation and legal interpretation of contracts as nuances in languages can significantly alter meaning 

Cross border agreements

Drafting and negotiating  contracts with foreign partners suppliers employees and customers considering local legal requirements and cultural practices 

(4)  Intellectual Property issues

Registration and Protection 

Safeguarding trademarks patents copy rights and trade secrets in each target country as IP rights are territorial 

Enforcement 

Developing strategies to enforce IP rights against infringement counterfeiting and piracy in different jurisdiction 

Licensing and technology transfer

Legal complexities involved in licensing IP or transferring technology across borders

 5) Employment and labour laws issues

Hiring and firing : 

Compliances of local labour laws regarding employment contracts wages working hours benefits termination procedures and severances

Employee relations

Understanding collective bargaining rights trade union regulations and workplace safety  standards

Immigration  and visas

Ensuring compliances with immigration laws for expatriate employees

(6) Taxation issues

International tax laws 

Navigating  complex international tax regulations including corporate income tax withholding tax  GST 

/ VAT and custom duties

Tax treaties

Understanding double taxation avoidance agreements between countries countries to minimize tax liability 

Transfer pricing 

Ensuring compliance with rules governing pricing of transactions between related entities in different countries 

7) Dispute resolution 

Litigation:- Understanding the local court system and litigation process which can be vastly different and time consuming 

Arbitration and Mediation 

Exploring alternative dispute resolution mechanism like international arbitration often preferred for its neutrality and enforceability across borders 

Acquittal cases in Ni Act

 Material alteration in cheque appeared from naked eyes resulted in acquittal 2011-Kant LJ -6-476 case title MB Rajasekhar v Savithramma 

Cheque duly signed and voluntarily made over to payee was in discharge of debt or liability arises and it is immaterial that cheque was post dated or blank cheque for filling by payer or any other person unless there is an evidence of undue influence or coercion , case reported in (2021 )  5 SCC 283 title Kalamani Tex and another v/sP Balasubramanian May be referred to

Cheque issued for an existing debt   The drawer cannot issue instruction to bank for stop payment not his liability be absolved by giving a notice to the payee not to present the cheque  case reffrrrd to AIR 1998 sc 1056  Modi cements limited v a Kuchil kumar Nandi 

Complainant has to show to the court that he had capacity to lend huge  amount to the accused (  2019) 15 SCC 550

Returning of cheque unpaid due to closer of account amounts to offence , if the cheque given long back sec 138 not attracted when cheque was post dated (2008 ) 1 SCC 689 title Subodhji S Salaskar v/s  Jaiprakash M shah 

When account was closed not on the intimation given by the accused to Bank but  closed as per rules of the bank , acquittal case reported 2008 (1) crimes 167!Kar Nagaraja Upadhyay’s v/s Sanjeevan 

Where the cheque is returned by the bank for want of full signature, no offence Vinod Tannu v Zaheer Siddiqui( 2002 ) 7 SCC 541

If the cheque to be signed by two persons but signed by one no offence made out Masistrate can not take cognisance , 

Sec 139 NI Act the burden is on the accused to rebut the presumption , to say the complainant Had no source of income to lend huge amount 2015) 1 SCC 99

In  case of signed blank cheque if the drawee dishonestly fills up any excess amount drawer has no obligation to

List of cases where Court acquitted as per facts of case 

1) kumar Exports v Sharma carpets (2009)

2)Basalingappa v/s Mudibasappa (2019)

(3)  Girish kumar suneja v/s CBI  (2017)

(4) Dasrath Rupsingh Rathod v/s state of Maharashtra 

(5)Krishna Janardan Bhat v/sDattatraya G. Hegde (2008)

(6) M/s Gimpex Private Limited v/sManoj Goel  2024 SCC on line Supreme Court 123 Feb 2024 

Grounds of Defense /Acquittal 

1)No legally recoverable debt 

(2)Notice not properly served

(3)Delay in filing complaint 

(4) Material alteration in cheque 

(5)  full payment made before complaint 

(6) Part payment made but it accordance to sec 56 of NIAct no endorsement of payment upon cheque 

7) cheque was given for security and part payment was made thereafter , to give notice of whole amount was not legally enforceable debt 

The burden lies upon the accused to ask question in cross examination to complainant with the  copy of his bank account in evidence so as to get his admission and courts knowledge ( for similar facts of case  citation up held by supreme court in Criminal appal/2022 title Dashrath bhai Trikambhan Patel v/s Hitesh Mahendra bhai Patel decided on dt 11/10/2022 

Partnership runs as per deed

 The question of law when the partnership firm having two partners and one died during business then  partnership would have  dissolved  and reconstitution of firm required as per law

Partnership act 1932 sec :42 :that the partnership will stand dissolved inter Alia on the death of partner but  this is applicable in cases where there are only two partners constituting the partnership firm 

The aforesaid principle would not apply where there are more than two partners in firm and the deed of partnership provides otherwise that firm will not stand automatically dissolved on the death of one of partners 

Supreme Court in case title  Special leave petition (civil) 1381/2025 decided on dt 14 July 2025 title Indian  oil corporation Limited &ors v/s M/s Shree Niwas Ram Gopal & others up held the decision of  single Bench and division Bench of High court of Calcutta  and  dismissed  with observation while relying upon case M/s Wahid Ali Abid Ali v/s commissioner of income tax Lucknow 1988(supp)SCC 193

This latest authority is important in relevancy to facts of the case which were : In this case IOC has refused to recognise the reconstituted firm on the pretext that all the heirs of the deceased partners have not joined or expressed their willingness either way to join or not to join the firm 

The Supreme Court up held that IOCL has no role to play in determining as to who is the competent heir of the deceased partner , it should be left on the  wisdom of the existing partner