Third-Party Litigation Funding
NoLegalPaisa · Litigation Finance

Third-Party
Litigation Funding

We share your risk and fund your fight.

If money is holding you back from filing or continuing a strong case, a funder covers your legal costs — and you repay only from what you recover. Lose, and you owe nothing for the funded costs.

Check If My Case Is Fundable → Apply for Funding
₹0
Upfront — non-recourse
~20–30%
Negotiated funder share
5 days
Initial case review
₹0
Owed if you lose

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Non-recourse: pay only if you win Independent funders + advocates Confidential, structured review You keep final control

Money should never decide
who gets justice.

We share your risk — so a lack of cash never stops you from filing, fighting, or finishing a case you deserve to win.

A legal battle, backed by capital A legal battle, backed
Why you need it

Strong cases die for one reason — cash.

Litigation is expensive and slow, so meritorious claims get abandoned or settled cheap. Funding flips it: a funder carries the cost and the downside, so you pursue full value without betting your own capital.

  • Preserve cash for your business, not legal bills
  • Negotiate from strength, not desperation
  • Move the claim off your balance sheet's risk column
  • Pursue full value instead of a discounted exit
Check If My Case Is Fundable →
How the funding works

Your case, backed by capital

Here's exactly what funding covers — and why there's nothing to pay unless you win.

What funding gives you

Your litigation funding package

Capital to pursue a strong claim — with the funder carrying the downside.

  • Litigation costs covered — lawyers' fees, witness fees & legal consultancy
  • Non-recourse — lose the case and you owe nothing for the funded costs
  • You keep final control of your case and key decisions
  • Independent funders + advocates — no conflict of interest
  • Clear, transparent term sheet (Litigation Funding Agreement)
  • Progressive disbursement & monitoring through to outcome
What you pay upfront
₹0non-recourse
You repay only from what you recover — and nothing if you lose.
It's not a loan — no EMIs, no personal liability
Funder's share is negotiated upfront (often ~20–30%)
On success: funder repaid first, the balance is yours
Built for high-value, meritorious claims
Apply for Funding → Run a 15-sec Fundability Check
Confidential review · share documents securely
Important — detailed funding disclaimer ▾
  • Non-recourse, not a loan. If the case is lost, the funder bears the funded litigation costs and you owe nothing for them. Funding is repaid only from a successful recovery (settlement or award).
  • Funder's return. In exchange for capital and risk, the funder receives an agreed share of the recovery on success — negotiated upfront and case-dependent (commonly ~20–30%). On a win, the funder's capital and agreed share are repaid first; the balance goes to you.
  • No guarantee of funding. Every case undergoes a confidential, multi-stage evaluation of merits, quantum, documentation, recovery prospects and risk. Many cases are declined. The 15-second check is an indicative signal only — not an offer, approval, or commitment to fund.
  • No guarantee of outcome. Funding does not assure success in the dispute.
  • What is / isn't covered. Funders typically cover lawyers' fees, witness fees and legal consultancy. Court fees and stamp duty are generally NOT covered.
  • You retain control. The agreement preserves the claimant's final decision-making power, with confidentiality and disclosure obligations.
  • Lawyers cannot be funders. Under the Bar Council of India Rules, advocates cannot charge a result-contingent fee or share litigation proceeds — so your lawyer cannot fund your case.
  • Legal position in India. TPLF is recognised through judicial precedent (e.g. Ram Coomar Coondoo (1876); Bar Council of India v. A.K. Balaji (2018)) and certain state CPC amendments (Maharashtra, Gujarat, Madhya Pradesh), not a single statute. Agreements remain subject to Section 23 of the Indian Contract Act, 1872, and may be struck down if extortionate, unconscionable or made for an improper object.
  • Eligibility & role. Acceptance depends on case type, jurisdiction, party profiles and ROI thresholds. NoLegalPaisa facilitates structured evaluation and connections with independent funders; this page is informational and not legal or financial advice. Final terms are governed by the signed Litigation Funding Agreement.
You pay only when you win
The deal, simply

Win, and we share the upside.
Lose, and you owe nothing.

That's the whole promise of non-recourse funding. The funder backs your claim, carries the cost, and is repaid only from a successful recovery — never from your pocket if the case fails.

  • If you win or settle: funder is repaid first, the balance is yours
  • If you lose: the funder bears the loss, you owe nothing
  • Reviewed within ~5 working days, then capital deployed
Join the Funding Program ↗
What we back

Cases we commonly fund

Built for high-value, meritorious disputes with a real recovery path.

💼

Commercial Disputes

B2B, contract & partnership disputes

🧾

Cheque Bounce & Recovery

Dishonour, demand & recovery actions

💡

IP Claims

Infringement, licensing & royalties

🛒

Consumer Protection

High-value consumer & service matters

📊

Debt & Contractual Recovery

Unpaid dues, breach & damages

🛡️

Insurance Claim Disputes

Rejected or under-settled claims

🏗️

Real Estate & Builder

Possession, refund & RERA disputes

⚖️

Arbitration & Enforcement

Other high-value, meritorious claims

Want to know if your case can be funded? Run the 15-second check or share your documents for a confidential review.

The honest filter

How real funders look at your case

We don't fund every case — that's the point. The filter protects serious claimants and serious funders alike.

✅ Green flags
  • High-value commercial / arbitration / enforcement disputes.
  • Strong documents: contracts, emails, orders, financials.
  • Identifiable defendant with assets or a 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 a 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 a guaranteed win or guaranteed funding.

If you're in the green or amber zone, submit details and our team will run a structured evaluation.

Crystal clear

What funding covers — and what it doesn't

No surprises. Here's exactly where the funder's capital goes.

✅ Covered by the funder

  • Lawyers' fees
  • Witness fees
  • Legal consultancy
  • Most litigation-related expenses

⛔ Not covered

  • Court fees
  • Stamp duty

These statutory costs remain with the claimant, separate from the funded litigation expenses.

See how it works

From a strong claim to capital deployed

Watch how third-party litigation funding works at NoLegalPaisa: submit your case, pass a structured evaluation, sign a transparent term sheet, and let a funder carry the cost and risk.

  • Share documents securely & confidentially
  • Non-recourse — owe nothing if you lose
  • Keep final control of your own case
Watch how litigation funding works
▶ Watch: Litigation Funding at NoLegalPaisa
Knowledge Bank

An easy guide to Litigation Funding

What TPLF is, where it stands in Indian law, how the process works, and what's covered — explained simply.

Easy Guide

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 — if the case is lost, the funder bears the cost and the litigant owes nothing.

In short: the funder shares your risk. You get the capital to pursue a strong claim, and you only pay back from what you actually recover.

Legal Status in India — Champerty & Maintenance

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 & 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 Ram Coomar Coondoo v. Chunder Canto Mookarjee (1876), established that the English 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 recovered, is not per se opposed to public policy.

Legal Status — Recognition, Lawyers & States

B. Judicial recognition & caveats

  • Supreme Court's view: In cases including Bar Council of India v. A.K. Balaji (2018), the Court reaffirmed that third-party funding by non-lawyers is not prohibited in India.
  • Public-policy test (Section 23, Indian Contract Act, 1872): Agreements are subject to judicial scrutiny and may be struck down if extortionate or unconscionable, or made for an improper object (e.g. gambling in litigation or fomenting vexatious suits).

C. Role of lawyers (critical restriction)

Under the Bar Council of India Rules, advocates cannot charge a fee contingent on the result or share the proceeds — so an Indian lawyer cannot act as a third-party funder for their client's case.

D. State-specific amendments

Maharashtra, Gujarat and Madhya Pradesh have CPC amendments (e.g. Order XXV) explicitly recognising a plaintiff's right to transfer an interest in the subject matter of a suit to a financier — giving formal recognition to TPLF in those states.

The TPLF Process (Steps 1–5)

Step 1 — Enquiry & initial assessment

The claimant or lawyer approaches a funder. The funder reviews legal merit, potential recovery amount, and enforceability of the judgment or award.

Step 2 — Due diligence & risk analysis

If viable, the funder conducts deep due diligence using legal and financial experts — reviewing evidence, defence strategy and total cost estimates.

Step 3 — Funding agreement (LFA)

A detailed, non-recourse agreement is signed: funding amount & coverage, the funder's return / profit share, the non-recourse clause, control clauses keeping final power with the litigant, and confidentiality obligations.

Step 4 — Disbursement & monitoring

Funds are released progressively to cover legal expenses, and the funder monitors progress through reports and updates.

Step 5 — Outcome & settlement

If won / settled: recovery first reimburses the funder's capital and agreed share; the balance goes to the claimant. If lost: the funder bears the full loss and the claimant owes nothing.

Coverage & Who Can Apply

What is covered

  • Lawyers' fees
  • Witness fees
  • Legal consultancy

What is not covered

  • Court fees
  • Stamp duty

Who can apply

  • Individuals with commercial claims.
  • Businesses facing financial constraints due to litigation costs.
  • Companies looking to allocate capital to growth instead of legal costs.
Cases are typically reviewed within 5 working days. Once terms are agreed, capital is deployed as per the pre-agreed thesis.
Questions

Frequently Asked Questions

How does third-party litigation funding work?+
The plaintiff 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 only on a favourable outcome — a settlement or a judgment award.
Is funding only available for certain types of cases?+
No. It can be used for various legal cases — including commercial litigation, personal injury, class actions and intellectual-property disputes. Eligibility is based on the strength of the case and its potential for success.
What does the funder get in return?+
In exchange for their investment, the funder typically receives a percentage of the final settlement or award — negotiated upfront, commonly ranging from about 20% to 30% depending on complexity and the funding required. If the case is unsuccessful, the funder receives no repayment.
How is the funder's percentage determined?+
It's based on the risk involved and the likelihood of success, negotiated between you and the funder — typically in the region of 20% to 30% of the final award.
What criteria decide if my case will be funded?+
Evaluation runs in stages — preliminary screening (case type, jurisdiction, party profiles), merit screening (legal strength, documentation, quality of legal representation), financial assessment (claim value, defendant's ability to pay, costs & ROI), risk assessment (legal & reputational risks), and a final investment decision by an approval committee. Exact thresholds are confidential.
How long does it take to review a case?+
We review all cases within about 5 working days. If accepted, your team may be contacted for additional information; once terms are agreed, capital is deployed as per the pre-agreed thesis.

Let your case fund itself.

Non-recourse capital for high-value, meritorious claims — pay only from what you recover, and nothing if you lose. Run the 15-second check or apply for a confidential review.

Check If My Case Is Fundable → Apply for Funding