Legal Pay

Litigation financing has emerged as a viable option for companies involved in mergers and acquisitions in India. This form of financing involves a third party, often a litigation financing company, providing financial support to a party involved in a legal dispute in exchange for a share of any monetary damages that may be awarded. In the context of mergers and acquisitions, litigation financing can be useful for both the acquiring and acquired company. The acquiring company may use litigation financing to fund any legal challenges that may arise during the acquisition process, such as shareholder disputes or regulatory hurdles. On the other hand, the acquired company may use litigation financing to level the playing field in negotiations with the acquiring company and ensure that its interests are protected. There are several benefits to using litigation financing in the context of mergers and acquisitions. First and foremost, it allows companies to fund costly legal proceedings wit...

Introduction Of the numerous expenses that a business faces, legal expenses such as lawyer fees, court fees, etc. seem to be increasing each day. According to the U.S. Bureau of Labor Statistics, legal services prices have increased by more than 10% in recent years, despite the economic turmoil caused by COVID-19, which highlights the sharp increase in legal expenses faced by businesses. Sometimes even continuing the lawsuit appears like a poor financial choice for the corporation as the expenses keep on rising over time which makes access to justice inaccessible for many businesses. What are the causes of increasing legal costs in India? The following factors are the primary drivers of rising lawsuit expenses - ·         Redundant Formalities and Inefficient system - According to the Chief Justice of India, there are over 40 million cases outstanding in subordinate courts in India, which illustrates the slow pace of case processing. Even with th...

“Litigation funding allows lawsuits to be decided on their merits, and not based on which party has deeper pockets or stronger appetite for protracted litigation”   Bond and stock markets both witnessed bull runs from 1980 to 2021, resulting in higher returns for investors. These strong returns have made equity valuations at historically high levels and bond yields at historically low levels, implying that expected returns are currently lower than their historical averages. As a result, the current situation presents difficulties for conventional portfolios, such as a "balanced" 60 per cent equity/40 per cent bond portfolio.   This has caused numerous investors, both institutional and retail, to search for a variety of alternative investments , each with its own set of risks and returns. As a result, they have dramatically increased their allocations to alternative investments, which have significantly less exposure to the economic cycle risk of stocks and bonds as well a...

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...

On 13 th November 2020, Insolvency and Bankruptcy Board of India (“ IBBI ”) issued the Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2020. One of the major purposes, for which this amendment was brought in was to ease the process of sale of liquidation assets. As we all are aware that realization  of some assets (such as continent claims, disputed receivables, disputed assets, refund from government etc.) have been an uphill task for any liquidator. Since realization  of these assets may take quite some time, they are referred in these regulations as ‘Not Readily Realizable  Asset’ or NRRA, which term has been introduced by inserting Regulation 37A. There is always a sense of urgency in a liquidation process and liquidator tries to ensure that the creditors of corporate debtors are able to realize maximum value of the assets of corporate debtor. However, these NRRAs create a sort of hurdle in this urgent process. Regul...

Litigation Financing, also popularly known as ‘third-party litigation or ‘litigation funding’ is a non-recourse funding alternative wherein a party with no direct interest in an ongoing or potential litigation/arbitration funds the litigation/arbitration cost completely or partially and gets a portion out of the final claim in return. Litigation Funding helps in lowering the litigation/arbitration burden on the claimant as the cost of litigation/arbitration falls heavy on the pockets of claimants which is the biggest factor people worry about when it comes to lawsuits. Litigation Financing is not only a boon for an individual claimant, it is also a great tool for start-ups and other businesses. Start-ups on any given day face a number of challenges in the attempt to make a name and sustain themselves in the market. These hurdles often get take the form of disputes and get routed towards the doors of the courts and tribunals. In India particularly, litigation is a lengthy and expens...