Advocate Fees based on a share in subject matter is professional misconduct & cannot be the basis of a Complaint U/s. 138 of NI Act: SC

B. Sunitha Vs. The State Of Telangana & Anr. (Supreme Court of India)

The first question which needs consideration is whether fee can be determined with reference to percentage of the decretal Second question is whether the determination of fee can be unilateral and if the client disputes the quantum of fee whether the burden to prove the contract of fee will be on the advocate or the client.

The Bombay High Court in Re: KL Gauba held that fees conditional on the success of a case and which gives the lawyer an interest in the subject matter tends to undermine the status of the profession. The same has always been condemned as unworthy of the legal profession. If an advocate has interest in success of litigation, he may tend to depart from ethics.

In in the matter of Mr. G.: A Senior Advocate of the Supreme Court, this Court held that the claim of an advocate based on a share in the subject matter is a professional misconduct.

In VC Ran gadurai versus D. Gopalan, it was observed that relation between a lawyer and his client is highly fiduciary in The advocate is in the position of trust.

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