Indian Legal Terms Dictionary

Every legal term explained in simple English and Hindi

43 terms
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Novation
नवीकरण / प्रतिस्थापन (Navikaran)
Replacing an existing contract with a new one, either by changing the terms, the parties, or both. Under Section 62 of the Indian Contract Act, if parties agree to substitute a new contract, the original contract is discharged.
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Notice Period
सूचना अवधि (Soochna Avadhi)
The advance notice required before terminating a contract or leaving a job. Both parties must serve notice, and it should ideally be equal. Either party may pay salary/rent in lieu of notice to waive this period.
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Non-Disclosure Agreement (NDA)
गोपनीयता समझौता (Gopniyata Samjhauta)
A legal contract binding one or both parties to keep shared information confidential. It defines what's confidential, the obligations of the receiving party, and the duration of secrecy. Can be one-way (one party shares) or mutual (both share).
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Non-Compete Clause
प्रतिस्पर्धा निषेध (Pratispardha Nishedh)
A clause restricting a person from working with competitors or starting a competing business. In India, post-employment non-compete clauses are VOID under Section 27 of the Indian Contract Act, 1872. During employment, reasonable non-compete restrictions may be valid.
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Notarization
नोटरीकरण (Notarikaran)
Getting a document attested by a notary public — a government-appointed officer who verifies signatures and identities. Notarization adds authenticity but does NOT equal registration. It's useful for affidavits, declarations, and documents going abroad.
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Subrogation
प्रतिस्थापन (Pratisthapan)
When one party (usually an insurer) steps into the shoes of another to pursue a claim or recover costs. After paying your claim, the insurance company gets the right to sue the person who caused the damage, in your place.
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Security Deposit
सुरक्षा जमा (Suraksha Jama)
An upfront payment by the tenant to the landlord as security against non-payment of rent or property damage. In India, deposit amounts vary by state — Tamil Nadu typically 2-6 months, Maharashtra max 3 months. The deposit must be refunded after deducting legitimate costs.
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Stamp Duty
मुद्रांक शुल्क (Mudrank Shulk)
A tax paid to the government on legal documents like property purchases, rental agreements, and power of attorney. Rates vary by state and document type. Unstamped or under-stamped documents may not be admissible as evidence in court.
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Surety
प्रतिभू / ज़ामिन (Pratibhoo / Zaamin)
A person who guarantees to perform the contract or pay the debt if the primary party defaults. Under Section 126 of the Indian Contract Act, the surety's liability is co-extensive with that of the principal debtor — meaning the surety is equally liable.
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SARFAESI Act
सरफेसी अधिनियम
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It allows banks to seize and sell assets of loan defaulters WITHOUT going to court. The bank must send a 60-day default notice, and the borrower has 30 days to object.

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