In a major move to level the playing field in India’s legal system, LegalPay has announced a strategic plan to deploy ₹100 crore over the next 18 months. The initiative is designed to scale litigation finance operations nationwide, ensuring that legal disputes are decided on their merits rather than the financial “staying power” of the parties involved.
The capital will target 20–30 high-quality commercial and insolvency cases, with individual funding commitments ranging between ₹2 crore and ₹5 crore.
Tackling India’s Judicial Backlog
With over five crore cases pending in Indian courts, the cost of justice has become a significant barrier. Prolonged timelines—often stretching five to seven years—frequently force small businesses and individuals to abandon strong claims or settle for pennies on the rupee.
LegalPay’s expansion addresses this structural imbalance through non-recourse litigation funding:
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Upfront Costs Covered: LegalPay bears the burden of all legal expenses.
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No Risk to Claimant: The funding is repayable only upon a successful outcome. If the case is lost, the claimant owes nothing.
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Operational Focus: Businesses can preserve their working capital for growth rather than locking it up in legal fees.
“What we see repeatedly is not a lack of legal merit, but a lack of financial staying power,” said Kundan Shahi, Founder of LegalPay. “When a case runs for years, the cost itself becomes a pressure tactic. Our objective is to remove that pressure.”
Strategic Focus: Commercial & Insolvency
The ₹100 crore corpus will primarily be directed toward:
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Commercial Disputes: Breach of contract, shareholder disputes, and intellectual property rights.
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Insolvency & Bankruptcy (IBC): Helping creditors and Resolution Professionals (RPs) pursue high-value claims without draining the company’s remaining resources.
Since the inception of the Insolvency and Bankruptcy Code (IBC), claims worth several lakh crore rupees have been admitted, creating a massive demand for third-party funding to navigate extended resolution processes.
A Disciplined Investment Framework
LegalPay doesn’t fund every case. Each matter undergoes a rigorous legal and financial due diligence process. The firm evaluates:
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Merits & Recovery Potential: The likelihood of a successful judgment.
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Enforceability: The ability to actually collect the awarded amount.
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Jurisdiction & Timelines: Assessing how long the capital will be deployed.
By: Vanshika Tayal
