16 August 2018 (New Delhi) – Building a future where anyone irrespective of their economic background will have access to timely justice says, Kundan Shahi, Founder and CEO of advok8.in
Litigation Finance is becoming well known as more and more people are becoming aware of it. Litigation Finance has been evolving for the past 20 years. It first originated in Australia 20 years back, where litigations came to be looked at as company assets and insolvency practitioners could invest in it.
In India, Litigation Finance is relatively a new concept. With third-party funding gaining increasing international significance in providing parties access to justice, it’s for India to formally open its doors to dispute finance in arbitrations, and eventually even for domestic litigation.
Compared to different common law jurisdictions, India has comparatively fewer hurdles in its way to Litigation finance. Judicial precedent since 1876 has held that the common law doctrines of champerty and maintenance are not applicable to India in the strict sense and therefore litigation funding has not been held, per se, ineligible and hence, enforceable in most cases. This progressive outlook, therefore, provides fertile ground for the event of third-party funding in India.
Advok8.in is single-handedly dominating the litigation funding market in India.
The company came into existence in 2016 and offers a host of services from litigation funding, case tracking, and digital appointment. Advok8.in sees a significant number of daily visits from its mobile app with 10000+ lawyers reading legal articles and the latest legal news on its Legisl8 platform. The mobile app also enables lawyers to see the latest developments in their case anywhere they wish to. Apart from it, a bulk of litigation funding requests also comes from the mobile app.
Advok8.in has received more than 350 requests for litigation funding till date.
These cases were submitted by lawyers, law firms, individual litigants and business houses. After a careful evaluation, Advok8.in has finalized 4 cases for funding and 2 cases out of 4 have been successfully funded. The cases that were shortlisted are commercial disputes in nature like, Breach of Contract, Trademark infringement, Medical Negligence and Patent infringement.
Under this, they invite individual investors to invest in the verified legal claim, with moderate investment cycle which typically matures within 2-4 years, shorter than any other asset class. The average funding size of a case is approx. 5 lakhs. The value of the claims varies from 1 crore to 4 crores. Advok8.in has opened a different asset class for investment in India. The return on this investment is in an average of 150% to 200%. These Legal claims are uncorrelated to broader capital markets and macroeconomic factors.
As in-house counsel, people are constantly trying to find ways to turn the cost centre into a revenue centre. By making use of advok8.in third-party funding, what was once a costly burden, now can transform into a functioning profit centre.
Advok8 carefully vets every case listed on its portal through their expert case selection team, thereby mitigating any risk. The success ratio of cases on Advok8.in portal is very high Thus, an investor just has to invest in a legal claim and track the progress of the case through Proprietary of advok8.in in case tracking system. This will also keep investors notified in real-time on case progress. Once the case is finalized they’ll get the return from the recovery amount as decided in their contract. The entire process is very simple and transparent and advok8.in takes all endeavors to ensure the interest of the case investors are protected throughout the process.