Join the litigation program

"We will share your risk - If money is holding you back from filing or continuing your case."

How to Start the Process – 5 Simple Steps

1

Connect with Us

Contact our team and share basic details.

2

Submit Case Documents

Send core pleadings, notices, orders & evidence.

3

Evaluation & Approval

We review merits, quantum & recovery prospects.

4

Funding Agreement

Negotiate and sign a clear, transparent term sheet.

5

Get Funded

We share costs & risk while you pursue your claim.

Cases We Commonly Fund

Want to know if your case can be funded? Share your documents securely with NoLegalPaisa for a structured, confidential review.

You pay only when you when

In 15 seconds, see if your case is fundable.

Built for high-value disputes. No fluff, no fake promises — just an honest signal based on how real funders think.

  • Non-recourse funding: pay only if you win / recover.
  • Independent funders + independent advocates.
  • Transparent filters: claim size, merits, documents, recovery.
Quick fundability check
No signup. No commitment.
Indicative fundability signal
LowPossibleStrong

How real funders look at your case

Green flags

  • High-value, commercial / arbitration / enforcement disputes.
  • Strong documents: contracts, emails, orders, financials.
  • Identifiable defendant with assets or clear enforcement path.
  • Realistic claim value & cost estimates.

Amber zone

  • Decent claim size but patchy documentation.
  • Enforcement possible but needs deeper diligence.
  • Complex facts but commercial logic exists.

Red flags

  • Very small claim with heavy cost expectations.
  • Purely emotional / revenge-driven litigation.
  • No documents, no clear defendant, no recovery story.
  • Seeking guaranteed win / guaranteed funding.

We don’t fund every case. That’s the point. The filter protects serious claimants and serious funders. If you’re in the green or amber zone, submit details and our team will run a structured evaluation.

Legal battle looks different

An Easy Guide to Third-Party Litigation Funding

What is Third Party Litigation Funding?

Third-Party Litigation Funding (TPLF), also known as Litigation Finance, is a mechanism where an unrelated private entity (the funder) provides capital to a party (the litigant/claimant) to cover the legal costs of a dispute, in exchange for a portion of the financial recovery if the case is successful. This funding is typically provided on a non-recourse basis, meaning if the case is lost, the funder bears the cost, and the litigant owes nothing.

1. Legal Status and Position in India

The legal position on TPLF in India is not governed by a single, comprehensive statute but is established primarily through judicial precedents and common law principles.

A. Inapplicability of Champerty and Maintenance

  • Historical Context: The doctrines of maintenance (support of litigation by a stranger) and champerty (maintenance in return for a share of the spoils) originated in English Common Law, where they were traditionally illegal.
  • Indian Position: The Privy Council, in the pre-independence case of Ram Coomar Coondoo v. Chunder Canto Mookarjee (1876), established that the English common law rules against champerty and maintenance do not strictly apply to India.
  • Key Principle: A fair agreement to supply funds to carry on a suit in consideration of a share of the property, if recovered, is not per se opposed to public policy.
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B. Judicial Recognition and Caveats

  • Supreme Court's View: The Supreme Court of India has, in various cases, including Bar Council of India v. A.K. Balaji (2018), reaffirmed that third-party funding by non-lawyers is not prohibited in India.
  • Public Policy Test (Section 23, Indian Contract Act, 1872): Any funding agreement is subject to judicial scrutiny under the Indian Contract Act, 1872, particularly Section 23, which voids agreements opposed to public policy.
    • Invalid Agreements: Courts will "carefully watch" the agreements and may strike them down if they are found to be:
      • Extortionate or Unconscionable: Where the funder's agreed share is excessively high or shocks the conscience of the court.
      • Made for an improper object: Such as gambling in litigation, abetting an unrighteous suit, or fomenting vexatious litigation.

C. Role of Lawyers (Critical Restriction)

  • Contingency Fees are Prohibited: Under the Bar Council of India Rules (Rule 20, Section II, Part VI), advocates are prohibited from stipulating a fee contingent on the results of litigation or agreeing to share the proceeds thereof. This effectively means that an Indian lawyer cannot act as a third-party funder for their client's case.
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D. State-Specific Amendments

Some states, notably Maharashtra, Gujarat, and Madhya Pradesh, have amendments to their respective Civil Procedure Codes, 1908 (CPC) (e.g., Order XXV Rule 1 and 3) that explicitly acknowledge the right of the plaintiff to transfer an interest in the subject matter of the suit to a financier, thereby giving formal recognition to TPLF in civil suits in those states.

2. The process of Third-Party Litigation Funding (TPLF)

Step 1: Enquiry & Initial Assessment

  • The claimant or their lawyer approaches a TPLF provider with a case (commercial, arbitration, insolvency, etc.).
  • The funder reviews the case for:
    • Legal merit and strength,
    • Potential recovery amount,
    • Enforceability of judgment or award.

Step 2: Due Diligence & Risk Analysis

  • If viable, the funder conducts deep due diligence using legal and financial experts.
  • Reviews evidence, defense strategy, and total cost estimates.
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Step 3: Funding Agreement (LFA)

This stage is crucial as funding is non-recourse (loss borne by funder).

  • A detailed agreement is signed between the funder and litigant.
  • Key terms include:
    • Funding amount and coverage,
    • Funder's return or profit share,
    • Non-recourse clause (no repayment if case is lost),
    • Control clauses ensuring the litigant retains final decision power,
    • Confidentiality and disclosure obligations

Step 4: Fund Disbursement & Monitoring

  • Funds are released progressively to cover legal expenses.
  • The funder monitors case progress through reports and updates.

Step 5: Case Outcome & Settlement

  • If Won / Settled: The recovery first reimburses the funder's capital and agreed profit share; balance goes to the claimant.
  • If Lost: The funder bears the full loss; claimant owes nothing.
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What is covered?

Mostly, the funders bear all litigation-related expenses, including:

  • Lawyers' Fees
  • Witness Fees
  • Legal Consultancy

What Is Not Covered?

  • Court Fee
  • Stamp Duty

Who Can Apply?

  • Individuals with commercial claims.
  • Businesses are facing financial constraints due to litigation costs.
  • Companies looking to allocate capital to growth instead of legal costs.
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Frequently Asked Questions

The plaintiff party applies for funding to cover expenses such as attorney fees, and other costs. The funder evaluates the case and, if they decide to proceed, provides the required funding. The plaintiff repays in a favourable outcome, such as a settlement or a judgment award.

No, third-party litigation funding can be used for various types of legal cases, including commercial litigation, personal injury, class actions, and intellectual property disputes. The eligibility is based on the strength of the case and its potential for success.

In exchange for their investment, the funder typically receives a percentage of the final settlement or judgment award. This percentage is negotiated upfront and typically ranges from 20% to 30%, depending on the case's complexity and the amount of funding required. If the case is unsuccessful, the funder receives no repayment.

The percentage is based on the risk involved in funding the case and the likelihood of success. It is negotiated between the party and the funder, typically ranging from 20% to 30% of the final award.

The evaluation process for determining suitability of a litigation/proposed litigation for litigation finance through NLP involves assessing cases to determine their viability for funding. While the exact markers/thresholds for determining such suitability are confidential, below is ageneric summary of the same:

  1. Preliminary Screening – Stage 1
    • Case Type: NLP only accepts disputes falling within certain categories. If not, the case will not be considered.
    • Jurisdiction: NLP accepts disputes pertaining only to certain jurisdictions within India.
    • Claimant & Defendant Profile: Assess credibility, financial standing, and background of parties involved.
  2. Merit Screening – Stage 2
    • Legal Strength: NLP analyses the foundation, precedents, and probability of success. Cases below threshold are not accepted.
    • Adequacy of Documentation/Evidence: Case must be well supported by contracts, communications, and strong evidence.
    • Legal Representation: Experience and track record of the lawyer/legal team are assessed. Weak representation disqualifies the case.
  3. Financial Assessment – Stage 3
    • Claim Value: Expected damages or settlement must cross a minimum threshold.
    • Defendant’s Ability to Pay: Defendant must have assets/insurance to cover potential decretal/settlement amount.
    • Costs & ROI: NLP calculates legal costs, litigation duration, and expected ROI. If ROI falls below threshold, funding is not considered.
  4. Risk Assessment – Stage 4
    • Legal Risks: Procedural issues, jurisdictional risks, counterclaims, and appeals are considered.
    • Reputation Risks: Any ethical or reputational concerns may disqualify the case.
  5. Investment Decision – Stage 5
    • Approval Committee Review: A team of legal and financial experts makes the final decision.
    • Funding Agreement Structuring: Define amount, repayment terms, ROI %, and withdrawal/termination conditions.

We reviews all cases within 5 working days. If accepted, your team may be contacted for additional information. Once the terms are agreed upon, capital will be deployed as per the pre-agreed thesis.

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Your vision, our expertise. Connect with us to explore possibilities. We will be happy to hear from you.

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info@nolegalpaisa.com
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