Jammu and Kashmir High Court: Lawyers barred from taking clients’ compensation as fees, says it’s misconduct. Litigant disputes lawyer’s request for a share of her Rs. 13.5 lakh Lok Adalat compensation.
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Srinagar: Recently, The High Court of Jammu and Kashmir and Ladakh emphasized the ethical standards that legal professionals must adhere to, especially regarding financial dealings with clients.
Justice Sanjay Dhar, leading the court, clearly stated that it is considered professional misconduct for a lawyer to request a share of the compensation granted to a client in a litigation case as their professional fees.
The problem emerged when a litigant raised concerns with the High Court regarding her lawyer’s actions. She claimed that her lawyer requested a portion of the Rs.13.5 lakh compensation she received from a Lok Adalat in September 2023. This compensation was initially granted to her by a Motor Accidents Claims Tribunal (MACT) in Kathua and became a point of disagreement between her and her legal representative.
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“The lawyer cannot demand a portion of the compensation received by their client as a fee. If such a situation occurs, it constitutes professional misconduct on the part of the lawyer. Such behavior is not acceptable from a member of the legal profession.”
-Justice Dhar articulated, emphasizing the sanctity of ethical practice within the legal profession.
Furthermore, the litigant asserted that the dispute over the fee caused a delay in the release of her rightfully awarded compensation. She claimed that the Motor Accidents Claims Tribunal (MACT) withheld the compensation due to the disagreement, which left her in a financially and emotionally precarious situation.
“If the Tribunal is withholding the amount awarded to rightful claimants due to a dispute between the claimant and their counsel regarding professional fees, such actions are highly objectionable. A court or tribunal should not involve itself in disputes over legal fees between a litigant and their lawyer.”
– the Court noted, expressing its disapproval of any judicial or quasi-judicial body that becomes entangled in disputes over lawyer fees.
The Court ordered the MACT to release the compensation to the claimant immediately upon her request, thereby ensuring that justice was not only served but seen to be served without undue delay or encumbrance due to financial disagreements.
Case Title-
Munni vs. Presiding Officer, Motor Accident Claim Tribunal Kathua.
