Legal Pay

As per the reports by Daksh India, the average cost (other than fees of lawyers) incurred by a litigant is ₹1,039 per case per day, and the average cost incurred due to loss of pay/business is ₹1,746 per case per day. Legal expenses of listed Indian companies were Rs 36,973.75 crore in the fiscal year ended March 31, 2021 Thus, litigation has been an expensive affair since the very beginning. In the past few decades, many jurisdictions have introduced the concept of third-party litigation funding to ease this burden. Third-party litigation funding companies supply the capital to litigators in exchange for a portion of the settlement or other remedies. This funding is non-recourse which means that if the lawsuit fails, the funded party is not required to pay the funder after the case. The funders provide capital to businesses and business owners to help them protect and enforce their commercial rights and interests and strengthen their legal positions. On the ‘demand side’, companies ...

INTRODUCTION Did you know that government secured debt can also be at the same level of priority as workman’s dues in the waterfall mechanism under the IBC? The recent Supreme court ruling in judgment State Tax Officer (1) Vs Rainbow Papers Limited [1] sheds light on this unexplored area of IBC jurisprudence. BRIEF HISTORY OF THE PARTIES Respondent was engaged in the business of manufacture and sale of Crafts and Oars within and outside the State of Gujarat. An amount of Rs.53,71,65,489/- was due from the Respondent to the Sales Tax authorities. On or about 8th July, 2016, recovery proceedings were initiated against the respondent, in respect of its dues for the year 2011- 2012, and the appellant attached the property of the respondent being land estate. The appellant filed a claim before the RP, claiming that Rs.47.36 crores was due and payable by the respondent to the appellant towards its dues under the GVAT Act. After admission of the CIRP and appointment of the RP, one Kushal Lim...