Clasis helps UK firm Clyde to sue Indian client for unpaid fees

Clasis Law’s UK-headquartered best friend Clyde & Co has sued the Indian arm of integrated telecom infrastructure company Nu Tek, in the Delhi high court, for non-payment of Rs 2.1 crore ($315055) of the law firm’s dues.

Clasis litigation head and partner Sumeet Lall with associate Sidhant Kapoor is acting for Clyde which filed a company petition in the high court in May, asking for winding up of Nu Tek, for non-payment of an “admitted debt of AED 1,241,771.34 (Dhirams)”.

Delhi high court justice Sudershan Kumar Misra had, on 23 May, restrained Nu Tek from disposing of, alienating, encumbering or parting with the possession of its assets to the tune of the debt – Rs 2.15 crore - except in the ordinary course of business or for the payment of salaries and statutory dues.

Justice Misra had also directed to serve a winding up notice on the company and its directors and for them to file their reply to that notice by today.

Nu Tek did not respond to an email for comment sent earlier today, while Lall declined to comment as the case is still pending in court.

This is the first reported case, in our knowledge, of a foreign law firm suing an Indian client in India for non-payment of dues. [Correction: We had earlier reported that this was the first case of a foreign firm suing an Indian client but that’s not true, as a commenter has pointed out: Allen & Overy had sued its Indian client in Singapore in 2011. What we probably meant to say was, that this is possibly the first case of a UK firm suing an Indian client in an Indian court…]

A client sued Fox Mandal for £100,000 in the London high court, in 2014, for alleged negligence, but his claim was set aside, as then reported by us.

Comments

Lexpert 6 Oct 2016, 12:28
+1 -0
Not correct - as reported by you in 2011, Allen & Overy sued Indian company Nimbus for recovery of legal fees in Singapore High Court. URL - http://www.legallyindia.com/Legally-Wired/fri-aao-sues-indian-client-for-fees-sick-minds-made-land-acqn-act-sc
kianganz 7 Oct 2016, 05:58
+0 -0
Thanks Lexpert, that's some good memory - I'd completely forgotten about that one.

It may still be a first though about a UK firm seeking enforcement in an Indian court... :)
Lexpert 7 Oct 2016, 06:22
+0 -0
Agreed, Kian :)
Scooter- 7 Oct 2016, 06:29
+0 -0
you admittedly agreee to have forgotten about your 2011 report. You admittedly agree that a post fact in terpretation can be made that its a first based on the criteria mentioned.

However, you mention in the clarification (in the body of the pieece) that your actual intention was to say first vis a vis indian courts.

Why fooling us?
kianganz 7 Oct 2016, 06:34
+0 -0
Are you feeling fooled? :) No intention to do that.

But yeah, we should have phrased a bit more precisely, hadn't really considered / remembered Indian clients getting sued abroad for fees, but we were under the impression that this was probably a first somewhere. :)
CityLad 8 Oct 2016, 05:53
+0 -0
Most engagement letters would have an arbitration clause. MC firms typically have an LCIA one. Indian clients are regularly known to not pay fees. Definitely first in terms of someone suing in Indian courts.
Classy 6 Oct 2016, 12:45
+4 -3
Great! First you don't have any Market standing and then you go around sueing local clients. No wonder no one comes to you.
What will happen when you become Clyde. You think anyone will come to a firm that sues its own clients?
Scooter- 7 Oct 2016, 06:29
+2 -0
who wants clients which dont pay?

Im sure they didnt sue within 2 months of non payment.
Jim 7 Oct 2016, 07:41
+3 -0
It's suing :-)
Vakeel#1 6 Oct 2016, 17:06
+2 -0
Since when does Clasis do court work? Aren't they a backoffice for Clyde?
#01 18 Oct 2016, 10:24
+0 -0
They have a full fledged litigation team with a well known Partner.
Jee Jus 7 Oct 2016, 05:16
+0 -0
Why is this news?
Scooter- 7 Oct 2016, 06:31
+11 -0
Since there have been no exits from cam for the past month.
Roady 9 Oct 2016, 11:06
+2 -0
Winter is coming. Temperatures are getting low. All the innocent animals who sought refuge in that oasis will move to greener pastures. The water isn't what it once was. The sheikh poisoned it because he wants to use the oasis for drilling oil.
SCAMSTER 9 Oct 2016, 14:50
+0 -0
Can you please clarify who is the sheikh in your comment? :-)