Legal Due Diligence

By Milind Kumar Charu Mathur, Advocates

Introduction

Due Diligence can be widely defined as a broad spectrum of investigative procedures in relation to an acquisition of a company's shares or of assets in a commercial context, a joint venture project, a financing transaction, the issue of securities and other general pre-contractual inquiries.

Due Diligence has become a sophisticated and intricate process requiring very special skills on which the most delicate business decisions are founded. As defined above due diligence require a whole lot of investigation into affairs and health of a company. In India there is as such no law or case law on due diligence. Jurisprudence of Due Diligence is closely associated with concept of Notice. A notice can be actual, constructive or imputed.