A claim's headline value does not, by itself, tell us what the claim is worth. Before any recovery is realised, the matter may have to pass through jurisdiction, liability, quantum, challenge and enforcement.
Commercial disputes generate large volumes of information. Contracts, correspondence, pleadings, witness statements, expert reports, procedural orders, judgments, awards and financial records can accumulate over several years.
India has no blanket prohibition on third-party litigation funding. We trace the legal history from the champerty doctrine through the Supreme Court's landmark Bar Council v AK Balaji ruling and the Tomorrow Sales Agency decision to the current SEBI AIF framework.
India has made significant strides in recent years to position itself as a leading arbitration jurisdiction.
Legal finance offers a mechanism to unlock billions of dollars of capital trapped in disputes and convert it into immediate growth capital.
Jurisdictions seeking to position themselves as arbitration-friendly hubs are increasingly recognising litigation finance as part of the dispute resolution ecosystem.
Legal finance requires decisions to be made before a dispute has reached its conclusion.
A company may describe a dispute as a ₹500 crore claim. That tells us the amount being asserted. It does not, by itself, tell us what the claim is worth economically.
Important Notice: These articles are educational and do not constitute an offer or solicitation to invest. Five Rivers Capital Fund I is a SEBI-registered Category II AIF (Reg. No. IN/AIF2/24-25/1652) and is available only to eligible investors as defined under SEBI AIF Regulations, 2012. Investments in Alternative Investment Funds are subject to risks including possible loss of principal. Past performance is not indicative of future results. Please read the Private Placement Memorandum carefully before investing.
