Legal Principle: No remedy lies in law where an injury is caused to a person without any infringement…

The correct choice is: “Ashutosh has not violated any legal right of Gulshan, though students shifted to Ashutosh’s Centre and though Gulshan suffered loss, after he shut down his tuition Centre.”

This is the principle of damnum sine injuria (damage without legal injury). Gulshan suffered real financial loss, but he has no legal right to be free from competition, and Ashutosh was lawfully exercising his own right to run a business. Since no legal right of Gulshan was infringed, no legal remedy is available. The facts closely follow the classic Gloucester Grammar School case (1410), where a schoolmaster who lost pupils to a rival school next door could not sue.

“Ashutosh must compensate Gulshan for his loss consequent to the start of the new tuition centre.” contradicts the principle. “Gulshan cannot blame Ashutosh if he cannot retain his students.” and “Gulshan should have improved his quality with lower fees to retain his students in the light of competition brought in by Ashutosh.” are general comments that do not state the legal position (the absence of any violated legal right).