2021 (2) TMI 81 - HC - Indian Laws

Non-payment of professional fee/retainership fee bills of empanelled lawyers of the GNCTD - Clearance of outstanding dues - HELD THAT - Lawyers and counsels who are engaged by various Governments/Departments render their professional services to the said Departments and Governments. The respective Governments /Departments are expected to clear the professional bills of the lawyers within a reasonable time. Under no circumstances should a counsel who has been engaged by the Government/Department be forced to sue his/her own client, especially a government or its agency, and seek legal remedies for seeking clearance of his/her professional fee. The fact that the Petitioner was forced to approach this Court is extremely unfortunate. Though the professional bills of the Petitioner are stated to have now been cleared, his retainership fee is still not being paid. Since there is no dispute on the factum that retainership fee is to be paid, this Court directs the GNCTD to clear the pending retainership payments to the Petitioner within one month from today. Petition disposed off.

Summary

Issues:
Non-payment of professional fees to the Petitioner appointed as a lawyer for representing the GNCTD before the High Court of Delhi.

Analysis:
The Petitioner was appointed as the Additional Standing Counsel (Civil) and submitted numerous bills for professional services rendered, totaling to ?26,31,200. Despite the Petitioner's appointment being withdrawn, the bills remained unpaid, leading to the petition for a writ of mandamus for payment.

The Court noted that while some amounts had been credited to the Petitioner's account, the monthly retainership amount agreed upon had not been paid. The GNCTD acknowledged the retainership agreement but had not provided a timeline for payment, prompting the Petitioner's legal action.

Citing legal precedents, including a Supreme Court case and a recent Division Bench decision, the Court emphasized the obligation of Governments/Departments to promptly clear professional bills of lawyers engaged by them. It highlighted the unfortunate nature of lawyers having to sue their own clients, especially government agencies, for fee clearance.

The judgment directed the GNCTD to clear the pending retainership payments to the Petitioner within one month, emphasizing the undisputed nature of the retainership fee obligation. Furthermore, all Governments/Departments were instructed to ensure timely payment of lawyers' fees to avoid the need for legal intervention.

Ultimately, the petition and all pending applications were disposed of, with a strong directive for prompt payment of lawyers' fees by government entities to prevent unnecessary legal actions by the legal professionals.