Legal Aspects of International Trade & Enterprise: A Case Study

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Legal Aspects of International Trade &
Enterprise
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Table of Contents
Introduction.................................................................................................................................................3
Identification of legal issues........................................................................................................................4
Tribunal’s Decision.....................................................................................................................................5
Organizational or structure..........................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Introduction
The case of Bank of India v. Gobindram Naraindas Sadhwani is the case of the legal documents
which is bank guarantee and loan papers. They both areas guarantors for the loan against the
company they created in foreign for business purposes. In this paper, the case is also recorded for
one or two other couples who are not living in India but belongs from India so they connected to
Bank of India for the business guaranteed loan. The rules that are applied to this case are also
detailed by the IRAC method. In this case, the Company is dishonored and Bank Of India is
claimed $540,000 USD against the international trade company. The Bank of India decided to
case filed in Court of Hong Kong against the company. Then the Sadhwani Couple decided to
use against the Bank of India in Hong Kong High Court. So the process of the legal papers is too
important for the base of any loan and business agreements to company or any business and
statement.
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Identification of legal issues
The Sadhwani and his wife are belonging from India but some reasons they live in Japan. They
want to start a business in Hong Kong and took a loan against the mortgage in India from Bank
of India. The guarantee of the agreement is filed in the bank of India and they insisted couple
undertake the loan in the name of the company (Dixit, 2016). The former of the company not
agreed for the guaranty agreement.
After days the Company was disrespected and the bank of India had to claim a huge amount as
$540,000 USD from International Trade Company. After this, the Bank filed a case against the
Bank Guaranty of Sadhwani couple in High Court of Hong Kong.
The problem is there is the rules are in India and Japan is different. The guarantors are Japanese
Law signed and filed the Argument. The couple was free from the liability as Bank of India and
they accepted the same. The Issue is which law is towards the case and guarantee contract is
India or Hong Kong. The defenders chosen project in India. The Bank of India is dishonor of
payment against the guarantor. The charge and arguments are pointed for India's side, want
justice and reimbursement.
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Tribunal’s Decision
The Facts of this case is as follows:
1. The defenders are the citizen of Hong Kong (Luker, 2013).
2. The Bank of India is from India and has headquartered in Bombay to deal the case and
defenders.
3. The Bank of India Branch is also in Japan.
4. The Bank of India filed the case in Hong Kong where they live and the Hong Kong high
court is interposed in this case.
5. Issues are there laws and regulations are different in every country, one country rule is
not obeying in the foreign country in case of business and any legalizations.
6. So in this case which country law preferred is taken place a problem.
7. According to rules, the guarantee rule is legal for the bank of state not for the world.
8. Rules and regulation: According to the rule in a normal way the law governs only state
and country which is particular (Jain, 2016). The place in norms and law is closed than laws also
closed and no penalty beyond this. After the closed boundary the case as a dispute and not legal
in other countries which shows the intention of expressed the actual law and regulations are
absent.
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Organizational or structure
The business and organization which is responsible for the undertaking must create the policies
and certification from the government. It pretends from the fraud and big losses and safe from
payment dishonored (Roper, 2017). The papers of the legalization are surely clear the points like
residence, business place, authorities, partner details, etc. The Conditions if the business is not
being successful to repay the local installment for banks. The rules are obeyed by the company
behalf of payment and rents is to be clearly mentioned on agreements.
In this case, the family belongs from India so the loan for business filed from Bank of India. The
business project is also established in India. Then the Guaranty is transferred for transfer and
transactional purposes. The defenders are showed that after bank corruptly they make fool both
laws which seem like no law for the world. And continually stay away from the judgment.
Structure of the law aspects is not clear in business cases. If the business is want to loan on
guarantee should make clear the place of business takes place and recovery of the interest and
main volume. The guarantee on the property should be authorized by the law of all over the
world because of these cases the fraud and loose of bigger than the property of guarantee.
If citizenship is used in the process of loan should be mandatory for only one country then this
type of case should be decreased in number. If any of the businessman proof defaulter and bank
corrupt which is world same law for all countries not only on boundary dead law. The bank
should increase the boundary if other countries have the headquarters they both country make
law separately for people. These are the flexibility for the government not taking a risk from
bank corrupt and fake businesses. The paper of agreement should be clear about all information
and places even inspected properly the way of business (Davies, 2017). The oath on the
agreements will be legal for all country which should not be dishonored by any businessman in
another country. Special law generated by the Government for two or more countries
businessman for the loan and transactional money limit with their details also submitted in the
bank as proof.
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Conclusion
This international business case has issues of Dishonored to bank and company,
unaccountability, ever-growing disputes, change in agreements, moral irresponsibility and
negative intentions. All these virtues were taken into account when the Bank of India had filed
the case. The defender makes fool on the basis of to countries rules where actual facts and issues
are under different country is interpose. This is an unsolved case of negligence of guaranty and
agreement both by the Sadhwani couple and brothers. This type of many cases in business fraud
is established a typical case study of business and bank corrupts which may unsolve and lack of
justice. It is a type of crime by birth from the laws of the country. So the legal aspects are based
on the documents should be clear in place also and boundaries of court justice.
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References
 Davies, M. D. (2017). The administration of international organizations: top down and
bottom up. Routledge.
 Dixit, D. (2016). Performance analyis of private sector and publice sector banks with
reference of ICICI bank and SBI. Internoational journal of applied research.
 Jain, A. a. (2016). A comparative study of financial performance of SBI and ICICI bank
in India. International Journal of Scientific Research , 1-6
 Luker, T. (2013). Decision making conditioned by radical uncertainty: credibility
assessment at the Australian Refugee Review Tribunal. International Journal of Refugee
Law, 25(3), 502-534.
 Roper, S. D. (2017). Designing criminal tribunals: Sovereignty and international
concerns in the protection of human rights. Routledge.
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