LegalPay Extends Helping Hand To Brains Logistics To Recover Dues From Hero MotoCorp

New Delhi: In a legal battle between Brains Logistics and two-wheeler giant Hero MotoCorp over the unpaid invoices, third-party litigation finance and interim financing start-up, LegalPay, financially helped later to recover outstanding dues.

As per reports, Hero MotoCorp and Brains Logistics had entered into an agreement for the manpower deployed by Brains Logistics. However, the two-wheeler manufacturer failed to clear the dues raised by Brains Logistics for the services provided by it as per the agreement.

Following this, Brains Logistics initiated arbitration proceedings against Hero MotoCorp for recovery of its contractual dues. Later, judgment came in favour of Brain Logistics. However, unhappy with the verdict, the Hero MotoCorp approached the lower court and challenged it.

The lower court too upheld the arbitral award by dismissing the petition of HeroMotoCorp. Again Hero MotoCorp filed an appeal before the Punjab and Haryana High Court at Chandigarh challenging the lower court judgment.

From here, LegalPay entered into the ongoing scenario and helped Brains Logistics financially in defending against Hero MotoCorp.

"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, LegalPay,'' Business Today quoted Kundan Shahi, Founder, LegalPay as saying.

While appreciating LegalPay for its service, the Shahi asserted that such cases are on the rise, and LegalPay plans to solve such issues faster and in an efficient manner.

''Presently, the proceedings are at the final stage and it is expected that the High Court shall not interfere in the judgment passed by the lower court as well as arbitral award and Brain Logistics will be able to recover its contractual dues from Hero MotoCorp soon,'' LegalPay said in a statement.

What Is LegalPay?

LegalPay, a Delhi-based startup has introduced an investment scheme 'Litigation Financing Product'. Although this is quite unique to India, but such investment funds are already working in many developed countries.

In Litigation Financing Products, third-party funding is usually used for the legal battle going on between two companies. Such funding companies or funds mostly invest money in the legal cases going on in the arbitration courts.

The disposal of cases in these courts is faster and within a stipulated time. In such a situation, the return on funding of these cases is also available in the stipulated time.

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