LegalPay, third-party litigation financing and interim financing startup, has announced that it has financially helped logistics company Brains Logistics Pvt. Ltd to recover outstanding dues of undisclosed amount from leading two-wheeler manufacturer Hero MotoCorp, in a press statement.
Hero MotoCorp and Brains Logistics had entered into an agreement in relation to the manpower deployed by Brains Logistics Pvt. Ltd. However, Hero Motocorp failed to clear the unpaid invoices raised by Brains Logistics for the services provided by it under the agreement, the startup said.
As a result, Brains Logistics initiated arbitration proceedings against Hero MotoCorp for recovery of its contractual dues. The Sole Arbitrator had passed the arbitral award in favour of Brains Logistics, which was later on challenged by Hero MotoCorp before the lower court. The lower court had dismissed the said petition and upheld the arbitral award. Thereafter, Hero MotoCorp filed an appeal before the Hon’ble Punjab and Haryana High Court at Chandigarh challenging the lower court judgment, the statement added.
“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 of LegalPay. adding that such cases are on the rise and LegalPay aims to solve such issues faster and in an efficient manner.
The appeal proceedings are at final stage.
