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LEGAL 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.
FACTUAL SITUATION: ABC Coaching Centre was a poplular 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. During a session, T, one of the very good and popular trainers of ABC, had some difference of opinion with the owner of ABC and left the coaching centre. In August 2016, T started another Entrance Coaching Centre closer to ABC which resulted in a substantial drop in its students and huge financial loss. The owner of ABC wants to file a case against T for the loss sustained by ABC. What do you think is the right legal position?

A
T will be liable to compensate the loss to ABC.
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B
T started the new coaching centre near ABC intentionally, and shall be liable to compensate the loss of ABC.
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C
T should have consulted ABC before starting his coaching centre.
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D
T has not violated any of ABC's legal right though they sustained some financial loss, and not legally bound to compensate ABC.
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Solution

The correct option is D T has not violated any of ABC's legal right though they sustained some financial loss, and not legally bound to compensate ABC.
Injuria sine damnum means injury of legal rights without damage. It basically states that infringement of an absolute private right without any actual loss or damage.
The maxim 'Damnum sine injuria' means that "no action will lie if there is actual loss or damage but there has been no infringement of legal right". Where there has been no infringement of any legal right, the mere fact of harm or loss will not render such act or omission actionable although the loss may be substantial or even irreparable. This maxim has been propounded in the above mentioned case law as T had not violated any of ABC's legal rights.

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Q. 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: 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 good profit. This was going on for the past several years. During a session, T, one of the very good and popular trainer of ABCC, has 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?
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