Litigation finance start-up helps Brains Logistics recover dues from Hero MotoCorp

LegalPay, a third-party litigation finance and interim financing start-up, has financially helped logistics company Brains Logistics to recover outstanding dues of an undisclosed amount from leading two-wheeler manufacturer Hero MotoCorp.

Hero MotoCorp and Brains Logistics had entered into an agreement for the manpower deployed by Brains Logistics. However, Hero Motocorp failed to clear the unpaid invoices raised by Brains Logistics for the services provided by it under the agreement.

Thereafter, 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 Punjab and Haryana High Court at Chandigarh challenging the lower court judgment.

“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.

He further added that such cases are on the rise and LegalPay plans to solve such issues faster and in an efficient manner.

The appeal proceedings are at final stage and it is believed that the High Court shall not interfere in the judgment passed by the lower court as well as the arbitral award and Brains Logistics will be able to recover its contractual dues from Hero MotoCorp soon, said a statement issued by the start-up.

BT has reached out to Hero MotoCorp. The story will be updated as and when the company responds.