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Consists of legal proposition(s)/ principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every question.
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option.
Principle: A violation of a legal right of someone, whether results in a legal injury or not, gives rise to an action in tort for compensation. At the same time, action by someone, which results in some loss or damage to somebody else is not actionable, if there is no violation of a right of that somebody.
Facts: AB Coaching Centre was a popular CLAT coaching academy with several good trainers. A lot of aspirants used to attend its coaching classes from all over and was making a good profit. This was going on for the past several years. During a session, T, one of the very good and popular trainers of ABCC, had some difference of opinion with the owner of ABCC and left the coaching centre. In August 2016, T started another Entrance Coaching Centre closer to ABCC which resulted in a substantial drop in its students and huge financial loss. The owner of ABCC wants to file a case against T for the loss sustained by ABCC. What do you think is the right legal position?
Options
T will be liable to compensate for the loss to ABCC.
T has not violated any of ABCC's legal rights though they sustained some financial loss, and not legally bound to compensate ABCC.
'T' should have consulted ABCC before starting his coaching centre.
T started the new coaching centre near ABCC intentionally and shall be liable to compensate for the loss of ABCC.
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Solution
T has not violated any of ABCC’s legal right though they sustain ed some financial loss, and not legally bound to compensate ABCC.
Explanation:
T has not violated any of ABCC's legal rights though they sustained some financial loss, and not legally bound to compensate ABCC. Because of a difference of opinion between T and the owner of ABCC, T left working for ABCC. The coaching centre experienced financial loss after T opened another Entrance Coaching Centre closer to ABCC. None of this is a violation of a legal right of ABCC and there will be no compensation.
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