New Delhi, March 29th: LegalPay, India’s first and only third-party litigation financing and interim financing start-up, has announced that it has financially helped logistics companyBrains Logistics Pvt. Ltd to recover outstanding dues of an undisclosed amount from leading two-wheeler manufacturer Hero MotoCorp.
Hero MotoCorp and Brains Logistics had entered into an agreement in relation to the manpower deployed by Brains Logistics Pvt. Ltd. However, Hero Motocorp failed to clear the unpaid invoices raised by Brains Logistics for the services provided by it under the agreement.
As a result, Brains Logistics initiated arbitration proceedings against Hero MotoCorp for recovery of its contractual dues. The Sole Arbitrator had passed the arbitral award in favor of Brains Logistics, which was later on challenged by Hero MotoCorp before the lower court. The lower court had dismissed the said petition and upheld the arbitral award. Thereafter, Hero MotoCorp filed an appeal before the Hon’ble Punjab and Haryana High Court at Chandigarh challenging the lower court judgment.
“Brains Logistics approached LegalPay for financial support in defending against Hero MotoCorp’s appeal before the High Court. We took the burden of legal costs of Brains Logistics and financially supported it in its ongoing recovery proceedings against Hero MotoCorp,” said Kundan Shahi, Founder of LegalPay adding that such cases are on the rise, and LegalPay aims to solve such issues faster and in an efficient manner.
The appeal proceedings are at final stage and it is believed that the High Court shall not interfere in the judgment passed by the lower court as well as the arbitral award and Brains Logistics will be able to recover its contractual dues from Hero MotoCorp soon.
LegalPay provides non-recourse funding to corporates of any size, MSMEs, and small businesses for recovering their commercial debts in exchange for a mutually agreed share in the final recovery made by the Litigant. In other words, the litigant has to pay only upon a successful realization of the claim. LegalPay’s business model affords businesses easy access to justice without any fear of the legal costs involved. Litigation Finance provided by LegalPay empowers these businesses, who can now invest their limited capital in revenue-generating businesses instead of getting it wasted in litigations. LegalPay is a VC-backed start-up with support from prominent names such as 9 Unicorns, LetsVenture, VentureCatalysts, and Amity Innovation Incubator.
LegalPay has also emerged as a significant player in providing interim finance to companies that have entered into insolvency under the Insolvency and Bankruptcy Code, 2016. This finance is provided at market competitive interest rates with structures suiting the requirements of the company.
