Legal Pay

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...

The objective of enacting Insolvency and Bankruptcy Code, 2016 is eminent to all. However, the undefining haircut offered to the creditors in Jet Airways and Videocon has opened a pandora’s box of criticism which has eventually questioned the foundation of the code. Distressed companies undergoing CIRP have become an easy bait for the financially viable companies by which they get the assets of stressed companies at a price way below the market price. A year ago, Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Rajya Sabha stated that 4,540 companies are undergoing CIRP out of which only 394 companies stand resolved with 36% realisation of claims by financial creditors under IBC. A common factor in all the CIRP is that the resolution professional has to run the CIRP with limited funds or mostly with no funds, though Section 14 of the Code provides some relief to the sick company by granting moratorium but the RP still has to ...