There is a company having domain name www.xyz.com, but this company cheated me. So, just to expose this company i have taken www.xyzfraud.com. Is there any legal issue related to it. Please help me and advice me on this.
You bet there are potential legal issues. You're not going to get legal advice here for free, although you can get "suggestions". There are various decisions detailing exactly what you've done. The important thing is to know what you're doing, why, and expect the worst. These disputes are fact-intensive. Should it reach Court or an administrative proceeding, how it'll turn out depends on what facts and details are provided and evaluated by those overseeing it.
i didn't register the domain in my name and this site is running on free hosting that also not in my name...
You're welcome. And I'd appreciate it if you can specify how my suggestions are horrible when you asked for "advice". You expect people to be nice around here and give you legal advice for free? If yes, then you're expecting too much.
Using another company's trademark is usually infringement - although the courts have ruled that "xyzsucks" isn't because a normal person wouldn't think that the trademark holder is operating the site, and such a site is protected "free speech". However, you can still be sued for the content of the site. You need to be very careful about what is said about the company. Opinions are usually protected, but statements of fact such as "fraud" can be "libel per se" - you really should consult an attorney about any content you post if you want to protect yourself from a costly lawsuit. In the US, anyone can sue you, and even if you win in court, you can't recover your legal fees in most situations. The fact that you registered the domain in another name isn't going to give you much protection. If they sue you, they can get a court order to find out the IP address used to access the hosting account, who paid for the domain, etc.
It may be my fault, that i didn't even think about it... I never expected such answers in this thread which i should... that's why i said "" horrible suggestion "". I don;t expect anybody to give me free advice... but i was just trying to share something with you people, i found everyone is great.. and helping me out in this matter... But i have a question, if i didn't register this domain in my name, how will it be proved that i made this website.. Neither the company has any record for the payment, because i made the payment only in cash.
Registering a domain in a false name is against ICANN rules and can result in loss of the domain. If someone sues you, they can get a court order to obtain information to find the operator. This includes the location of the IP address used to upload the site, which they then go to the ISP to see who was using the IP address. If you are running advertising, they can get the records of whom payment is being made to, bank information, etc. They can eventually find you. The music industry is also looking for criminal cases against some infringement, so you own the door to possible law enforcement involvement. If you are looking to limit liability, your best bet would be to form a LLC or incorporate. This wouldn't shield you from any criminal charges (which aren't likely unless the site is large, imo). The first thing to consider is if you want to put time into a site that can be shut down or taken even if monetary damages and criminal charges are not a concern?
AFAIK no domain providers accepts payment via cash. It sounds like you dealt with a reseller for an actual domain registrar, which is the only possible way of being able to do what you say you just did. In any case, try to give more thought on what you really want to do with it. I sincerely hope you find a win-win solution, if possible.
Basically if you registered xyzsucks.com you'd be safe, because you have a right to state your opinion, but by registering xyzfraud.com, you're outrightly implying that they are committing fraud, and unless you have ample evidence of that, you could be held liable for defamation. I'd drop the name and register the xyzsucks.com alternative, because then you'd have a much higher legal ground to stand on.