Consists of legal proposition(s) principle(s) (herein after referred to as 'principle') and facts. Such principle 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 those 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 testy your interest towards 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 law.
Therefore, to answer a question, 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, an 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: $A B$ 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 good profit. This was going on for the past several years. During a session, T, one of the very good and popular trainer of $A B C C$ , has some difference of opinion with the owner of $A B C C$ and left the coaching centre. In August $2016$ , T started another Entrance Coaching Centre closer to $A B C C$ which resulted in a substantial drop in its students and huge financial loss. The owner of $A B C C$ wants to file a case against T for the loss sustained by $A B C C$ . What do you think is the right legal position?

T will be liable to compensate the loss to

A B C C

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T has not violated any of

A B C C^{'} s

legal right though they sustained some financial loss, and not legally bound to compensate

A B C C

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'T' should have consulted

A B C C

before starting his coaching centre

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T started the new coaching centre near

A B C C

intentionally, and shall be liable to compensate the loss of

A B C C

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Solution

The correct option is A T has not violated any of $A B C C^{'} s$ legal right though they sustained some financial loss, and not legally bound to compensate $A B C C$
T has not violated any of $A B C C^{'} s$ legal right though they sustained some financial loss, and not legally bound to compensate $A B C C$ .
Because of a difference of opinion between T and the owner of $A B C C$ , T left working for $A B C C$ . The coaching centre experienced financial loss after T opened another Entrance Coaching Centre closer to $A B C C$ . None of this is a violation of a legal right of $A B C C$ and there will be no compensation.

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