Legal Pay

Online dispute resolution (ODR) refers to the use of technology, specifically the internet, to facilitate the resolution of disputes between parties. It is a relatively new field that has grown in popularity in recent years, particularly due to the increase in online transactions and the convenience of resolving disputes remotely. ODR can take various forms, including mediation, arbitration, and negotiation, and can be used in a variety of contexts, such as consumer disputes, intellectual property disputes, and employment disputes. ODR is more accessible than traditional methods, particularly for parties who live in different countries or who have mobility issues. ODR allows parties to participate in the dispute resolution process remotely, using their own devices, rather than requiring them to travel to a physical location. This can make the process more convenient and less burdensome for parties, and can also help to reduce the costs associated with dispute resolution. ODR can al...

Insolvency and Bankruptcy Code 2016 (hereinafter ‘ IBC ’) became a revolutionary step by providing comprehensive, efficient and robust mechanism in resolving corporate distressed entities. The code not only focuses on reviving the company but also to pay off the creditors. However, IBC has still a long road to walk as there are certain areas which are left wide open and need to be visited by the law framers. Areas like Cross-border Insolvency which was untouched by the framers prior to Jet Airways case [1] but as the need arose, the legislature adopted UNCITRAL’s model laws on Cross Border Insolvency (Draft Part Z) [2] . One such area which has now presented itself before the framers is Group Insolvency. In this article the author would focus primarily upon the concept of Group Insolvency and the loopholes. It has been a practice that some companies form other subsidiaries to expand their business operations thereby forming a group structure or entities. These entities are connected...

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...

In recent years, the Indian market has witnessed an upsurge in distressed asset investments . With the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016, the Indian market saw a shift in the way distressed assets were handled. The IBC has created a legal framework that allows insolvency professionals to resolve the corporate insolvency resolution process in a timely manner. This has led to an increase in distressed asset investment opportunities in India. The Indian market has seen a growing number of distressed asset investors in recent years. With the introduction of the IBC, investors are now able to take advantage of attractive investment opportunities in the distressed asset domain. Given that the legal framework establishes a defined set of guidelines for the sale of these assets, the IBC has made it simpler for investors to invest in these assets. Distressed asset investments offer a number of benefits to investors. These investments [TK1]   [KK2]   can ...

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...

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 ...