{"id":388340,"date":"2026-06-24T12:00:17","date_gmt":"2026-06-24T06:30:17","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=388340"},"modified":"2026-06-24T11:46:41","modified_gmt":"2026-06-24T06:16:41","slug":"counsel-entitled-to-agreed-fees-adjustable-against-compensation-del-hc","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/06\/24\/counsel-entitled-to-agreed-fees-adjustable-against-compensation-del-hc\/","title":{"rendered":"

Advocate Entitled to Agreed Professional Fees Adjustable Against Compensation Amount: Delhi HC Dismisses Client’s Appeal on Failure to Prove Payment<\/p>"},"content":{"rendered":"

\n

Delhi High Court:<\/span> In an appeal arising from a regular second appeal challenging the Additional District Judge (ADJ)’s judgment and decree dated 22 December 2023, wherein the decree granted in favour of appellant (client) for recovery of ₹60,000 but simultaneously allowed the counterclaim of respondent (appellant’s advocate) for recovery of professional fees amounting to ₹36,000, directing adjustment of that amount from the decretal sum, the Single Judge Bench of Neena Bansal Krishna*, J., affirmed the impugned judgment, holding that an advocate entitled to agreed professional fees adjustable against compensation amount.<\/p>\n

Also Read: Supreme Court Extends ‘A Final Act of Forgiveness’ to Senior Advocate Yatin Oza; Suspends His Contempt Conviction<\/a><\/p>\n

Factual Matrix<\/h3>\n

The appellant, an employee of M\/s Bass Electric Industry, was terminated from service on 10 October 1993. He challenged his termination before the Delhi High Court via a writ petition wherein the employer was directed to pay enhanced compensation of ₹80,000. When the employer failed to comply with the directions of the Court, the appellant initiated contempt proceeding. For both proceedings, he had engaged respondent, as his counsel. During the pendency of the contempt proceedings, the employer settled the matter and handed over the compensation amount of ₹80,000, consisting of a demand draft of ₹20,000 and ₹60,000 in cash, to the respondent on behalf of appellant. Consequently, the contempt petition was dismissed as not pressed on 25 April 2011.<\/p>\n

The appellant alleged that while the demand draft of ₹20,000 was subsequently sent to him, the cash amount of ₹60,000 was never delivered. Despite repeated requests, legal notice, and a complaint before the Bar Council of Delhi, the amount remained unpaid. He therefore claimed recovery of ₹60,000 with interest and litigation expenses. The respondent denied retaining any money belonging to the appellant and asserted that the entire compensation had been paid over. He further maintained that the appellant had agreed to pay professional fees of ₹25,000 for conducting the writ petition and ₹11,000 for pursuing the contempt proceedings, which remained unpaid, entitling him to recover ₹36,000 as professional charges.<\/p>\n

Also Read: Gujarat High Court denies bail to law student posing as advocate and swindling over Rs 80 Lakh<\/a><\/p>\n

Procedural History<\/h3>\n

The appellant instituted civil suit seeking recovery of ₹60,000 along with interest and costs. In response, the respondent filed counter-claim for recovery of ₹36,000 towards his professional fees. After recording evidence, the Civil Judge found that the respondent had admittedly received ₹60,000 in cash and ₹20,000 by demand draft on behalf of the appellant. Accordingly, the suit was decreed for ₹60,000 with pendente lite and future interest at 9% per annum. The counterclaim, however, was dismissed on the ground that the alleged fee bill had not been proved and there was insufficient evidence to establish the claim for professional fees.<\/p>\n

Aggrieved, the respondent preferred an appeal before the District Judge, who affirmed the decree in favour of the appellant, holding that there was no evidence that the cash amount of ₹60,000 had ever been paid to him. However, it reversed the dismissal of the counterclaim, observing that the parties were at consensus regarding the agreed fee of ₹36,000 and that appellant had failed to substantiate his plea that the professional charges had already been paid. The appellate court therefore decreed the counterclaim and directed that ₹36,000 be adjusted against the amount recoverable by the appellant, leaving a balance of ₹24,000 payable to him.<\/p>\n

Thereafter, the appellant filed the present Regular Second Appeal under Section 100, Civil Procedure Code, 1908 (CPC) challenging only the decree of the counterclaim.<\/p>\n

Issue for Determination<\/h3>\n

Whether any evidence whatsoever had been led by Respondent in proof of his Counterclaim, for recovery of ₹36,000 as his profession fee?<\/p>\n

Also Read: Advocate General can represent any autonomous body\/Corporation of State or charge independent professional fees: MP High Court<\/a><\/p>\n

Analysis<\/h3>\n

The Court noted that there was no dispute that respondent had represented the appellant in both proceedings and that a fee arrangement existed. The Court noted that as per the respondent, fee of ₹25,000 had been agreed for the writ petition and ₹11,000 for the contempt proceedings and these figures were not seriously disputed.<\/p>\n

The Court was critical of respondent’s conduct of wrongfully retaining cash amount of ₹60,000. However, it noted the circumstance of the present case explains why respondent had remained silent regarding his fee claim immediately after receiving the settlement amount. It was only after appellant instituted recovery proceedings and the possibility of returning the money became imminent that respondent formally asserted his claim for fees.<\/p>\n

Nevertheless, the Court found that the evidence established the existence of an agreed professional fee which remained unpaid. The parties had understood that the fee would be adjusted from the compensation amount whenever it was received. Once respondent received the compensation on 25 April 2011, he ought to have either returned the entire amount and separately claimed his fee or adjusted the fee and returned the balance. Instead, he retained the whole amount.<\/p>\n

The Court remarked that “while the conduct of Mr. Rathore was unfair in having retained the entire amount of Rs.60,000\/- instead of adjusting his fee, the fact remains that the Plaintiff\/Appellant had also not led any evidence, to show that the professional fee was ever paid to C.S. Rathore.”<\/span><\/p>\n

The Court emphasised that the controversy did not ultimately depend upon proof of the fee bill. What mattered was whether the evidence demonstrated payment or non-payment of the agreed fee. The Court found that appellant had neither pleaded nor proved when, how, or by what mode the professional fee had been paid. There was not even “an iota” of evidence regarding payment.<\/p>\n

Accordingly, the Court held that the appellate court’s conclusion that the agreed professional fee of ₹36,000 had remained unpaid was a proper appreciation of the evidence rather than a finding based on conjecture or no evidence.<\/p>\n

Decision<\/h3>\n

The Court held that the District Judge had correctly appreciated the evidence and rightly decreed the counterclaim for ₹36,000. Consequently, the appeal was dismissed and all pending applications stood disposed of.<\/p>\n

Also Read: Court Fees (Delhi Amendment) Act 2026: When Can Litigants Get a Full Refund under the Revised Refund Rules?<\/a><\/p>\n

[Prem Singh<\/span> v. C.S. Rathore<\/span>, 2026 SCC OnLine Del 4612<\/a><\/span>]<\/p>\n

*Judgment authored by Justice Neena Bansal Krishna<\/span><\/strong><\/p>\n\n

Advocates who appeared in this case:<\/p>\n

For appellant:<\/span> Mr. B. Anand, Counsel<\/p>\n

For Respondent:<\/span> C.S. Rathore, in person<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Court also acknowledged that the advocate’s conduct was improper in retaining the entire amount of Rs.60,000\/- received on behalf of the client.<\/p>\n","protected":false},"author":67514,"featured_media":388341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,10],"tags":[108018,108021,2543,21354,69162,25854,108020,108019,108022,34349],"class_list":["post-388340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-advocate-fees","tag-advocate-client-dispute","tag-Delhi_High_Court","tag-duties-of-advocates","tag-justice-neena-bansal-krishna","tag-legal-ethics","tag-legal-fees-recovery","tag-professional-fees","tag-professional-standards-and-ethics","tag-section-100-cpc"],"yoast_head":"\nUnpaid Advocate Fees Adjustable Against Client's Compensation: Delhi HC | SCC Times<\/title>\n<meta name=\"description\" content=\"The 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