Legal Pay

In the realm of legal battles, the cost of pursuing justice can be a substantial barrier for individuals and businesses alike. However, a revolutionary solution has emerged in recent years that's changing the landscape of litigation – Third Party Litigation Funding. Commonly referred to as litigation finance or legalpay, this innovative concept is transforming how cases are funded and providing access to justice that was once considered out of reach. Understanding Third Party Litigation Funding Third party litigation funding is a practice where a financially independent third party, often a specialized firm, provides funding to cover the costs associated with a legal dispute in exchange for a share of the potential settlement or award. This arrangement not only levels the playing field for individuals who may not have the financial resources to pursue a case but also allows businesses to mitigate the financial risks associated with litigation. The Mechanics of Litigation Fin...

How Litigation Funding Can Help You Pursue Justice Without Financial Risk Or The Dos and Don'ts of Working with a Third Party Litigation Funder Or Litigation Funding: A Win-Win Solution for Claimants and Litigants “Litigation finance is the new email, not knowing what it is or how it works is simply not an option.” Litigation funding , also known as third-party funding (TPF), has become a vital tool for businesses of all sizes to manage the financial risks associated with legal disputes. Contrary to popular belief, litigation finance is not just for underdog battles but serves as a valuable resource for all parties involved in high-stakes litigation. In recent years, the global litigation finance industry has grown exponentially, offering support to both underdogs and well-backed parties in need of financial assistance. It is significant to note that TPF stands acknowledged for civil suits under Order XXV Rule 1 of CPC. Further, the Indian judiciary has discussed TPF agai...

In arbitration, a dispute is resolved by one or more arbitrators who then provide a binding decision based on the parties' agreement. Rather than going to court, parties choose arbitration as a private method of resolving disputes out of court. An arbitrator receives a dispute from the parties, he then examines the details, hears both sides, and finally makes a decision. Arbitration clauses may be mandatory or optional, and the arbitrator's decision is binding. Disputes relating to private rights may be resolved through arbitration. It is much faster than traditional court proceedings and can be used to resolve both monetary and property disputes. About Insolvency Insolvency is defined as the inability of a person or business (the debtor) to repay their debts when they are due. There can be two forms of insolvency. First is cash-flow insolvency and the second is balance-sheet insolvency. A person or business is considered to be cash-flow insolvent if they have the asset...

INTRODUCTION Litigation finance is a relatively new concept in India, which has the potential to revolutionize access to justice for the common man. This essay will discuss what litigation finance is, the current state of access to justice in India, how litigation finance can benefit the common man, and how it can help improve access to justice. LITIGATION FINANCE Litigation finance is a form of financing that allows individuals and companies to fund legal proceedings. It involves a third-party investor providing funds to cover legal costs and other expenses associated with a case. The investor receives repayment with interest only if the case is successful. This type of financing enables individuals and companies who may not have the financial resources to pursue their legal rights in court. ACCESS TO JUSTICE IN INDIA The Indian legal system has long been plagued by delays, backlogs, and a lack of resources. This has resulted in millions of cases being stuck in court for years withou...

Introduction Third-party litigation funding (TPLF) is an arrangement whereby a third party, usually a professional investor, provides finance to a claimant or litigant in return for a share of any damages or settlement awarded by the court. It has been gaining prominence in recent years as it provides an opportunity for individuals to pursue legal claims without bearing the financial burden of litigation costs.  In India, TPLF is still at a nascent stage. There are very few players offering this service, and most of them are start-ups. The industry is highly unregulated, as there are no specific regulations governing this sector. This article will discuss the current scenario of third-party litigation funding in India and its potential future. Developments in the Recent Time There has been a growing trend towards third-party litigation funding in India over the last few years. This has been driven by various factors, such as increasing awareness among litigants about their...

Embedded Lending in India Embedded lending is a form of financial product that combines traditional banking services with other products and services. It is a type of loan product that is offered to customers by banks or other financial institutions. Embedded lending provides customers with an opportunity to access funds for their businesses without having to go through the traditional banking process. This type of loan product has become increasingly popular in India, as it offers customers an alternative to traditional banking services. Benefits of Embedded Lending Embedded lending offers several advantages to customers, including: 1.    Lower interest rates: Embedded lending can provide customers with lower interest rates than traditional loans. This can help reduce the cost of borrowing and make it easier for businesses to access funds. 2.    Flexibility: Embedded lending allows customers to tailor their loan terms and conditions according to their s...

The demand for legal services exists in times of adversity as well as growth, as is evident from the Covid-19 situation. Even before 2021, legal costs in India were rising with each passing year but dipped in FY 2021 which was still 12.42% higher than FY 2019. Market difficulties, regulatory responses, stimulus programmes, changes in employment, and other stressors provide potential sources of demand for legal services. India has acquired a reputation of an expensive legal system. For perspective, India’s GDP in 1991 was $266 Billion and is expected to cross $5 Trillion by 2025. Such growth in the economy runs parallel to growing legal complexity. India’s booming unicorn landscape has been a catalyst for a higher than ever investor & founder disputes. Debt and equity financing, private equity, mergers and acquisitions and venture capitalists are some areas that are witnessing increased commercial cases and arbitrations. This spectacular economic growth will fuel the Indian market f...

The world has entered a phase where we cannot rule out the possibility of a global recession. The global economy has slowed down due to the compounding damage done by the covid 19 and the outbreak of the Russian-Ukraine war. As the capital markets are falling and inflation is rising, we need to realise that our money's value is depreciating daily. Many investors across the world have started to take a shift from traditional ways of investing to alternative investment opportunities. Alternative investments are non-conventional financial assets. Stocks, bonds, and cash are common. Private equity, venture money, hedge funds, managed futures, art, antiques, commodities, and derivatives are alternative investments. With their complicated nature and high degree of risk, most alternative investments are owned by institutional investors or high-net-worth individuals. Compared to mutual funds and exchange-traded funds, many alternative investments have higher minimum investments and fees...

The Insolvency and Bankruptcy Code, 2016 (IBC) stipulates a period that is 180 days which can be extended to a maximum of 330 days. In this period the Corporate Insolvency Resolution Process (CIRP) should be completed. Financial Creditor, Operational Creditor of the Corporate Debtor (CD), or the Corporate Debtor itself, can initiate the CIRP. When the CIRP is initiated by the Adjudicating Authority an Interim Resolution Professional (IRP) is appointed, who acts on behalf of the Directors of the Corporate Debtor. Role of CoC When the claims of various creditors are verified by the IRP, a Committee of Creditors (CoC) is constituted. This CoC Comprises of financial creditors and is the decision-making body for the Corporate Debtor's administration. The Code and the regulations made confer various powers on the CoC, including appointing the IRP as the Resolution Professional (RP), supervising their functioning and conduct, and even replacing the RP if the RP's conduct is not satisf...