Civil · 9 min read · 13 min 55 sec listen · Published 5 August 2026

Conflict of Interest and 25% Fee in MACT Claim – Legal Remedies

When a lawyer takes 25% fee and defends the opposite party, it raises ethical and legal issues. Learn your rights and remedies in a motor accident claim.

Conflict of Interest and 25% Fee in MACT Claim – Legal Remedies
One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: A lawyer can't take a 25% cut of the compensation in most fee agreements, and representing both the victims and the at-fault driver is a clear conflict of interest. You can get that lawyer removed from the case, challenge the fee before the Motor Accident Claims Tribunal, and file a complaint with the Bar Council.

Arjun Mehta was 15 when his world collapsed. His mother, Priya, and sister, Kavita, were killed instantly in a road accident near Nagpur in May 2022. A speeding truck plowed into their car. The family was shattered. Arjun's father, a quiet man named Ramesh Mehta, was in no state to think clearly. A distant relative took him to a lawyer named Prakash Joshi in Nagpur. Without any written agreement, Joshi demanded 25 percent of whatever compensation the family would get. Ramesh agreed. Grief does that to you. Now, four years later, Arjun is 18 and he started tracking the MACT case online. What he found stopped him cold. The e-court portal showed the very same lawyer, Prakash Joshi, also appearing for the truck driver. A lawyer fighting for both sides. That's not just unfair — it's gross professional misconduct. Arjun's earlier attempts with a local non-specialist had yielded nothing. Then the family approached the Chamber of Advocate Sudhir Rao.

Key Facts of the Case

  • Two deceased victims: mother (aged 43) and sister (aged 21), both died in a road crash in Nagpur in May 2022.
  • Truck driver was at fault; MACT claim filed by the father and son for compensation.
  • The lawyer engaged by the father demanded a 25 percent share of the final award — no written fee agreement.
  • The same lawyer was later discovered to be simultaneously representing the truck driver (the opposite party) as per e-court records.
  • The son turned 18 during the pendency of the case and gained independent legal standing.
  • Earlier attempts to resolve the issue through a general practitioner did not address the conflict of interest.
  • The Chamber of Advocate Sudhir Rao identified the dual ethical and procedural violations and mapped out a corrective strategy.
Can a lawyer take 25 percent of the compensation in a MACT case?

No blanket rule forbids a contingency-fee arrangement, but here the fee was shockingly disproportionate and not reduced to writing. The Advocates Act and Bar Council of India Rules require that a lawyer's fee be fair and transparent. A 25 percent cut from a poor family's compensation is prima facie excessive and can be challenged before the MACT tribunal itself or by a separate civil suit. The tribunal has the power to scrutinise wrongfully deducted fees and protect claimants.

Is it legal for the same lawyer to represent the victim's family and the accused driver?

Absolutely not. It's a direct conflict of interest. The Bar Council of India Rules forbid an advocate from acting on behalf of a party where there is a conflict of interest with an existing client. Once a lawyer has taken instructions from the victims, he cannot turn around and defend the truck driver. Doing so is professional misconduct and makes him liable for disciplinary action and removal from the case by the tribunal.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Immediately, you must file an application before the MACT judge seeking removal of the conflicted lawyer from the array of parties. Attach the e-court screenshots as proof. Also, submit a simple letter or affidavit revoking the earlier vakalatnama given to that lawyer. And here's the thing, you need a fresh legal representation that is entirely independent. MACT work involves both procedural knowledge and emotional patience — traits not every advocate brings. Specialist handling matters. An experienced motor-accident lawyer will also guide you on documenting the excessive fee demand and, if necessary, initiating a complaint before the State Bar Council. Don't delay. The older the case gets, the harder procedural corrections become.

Applicable Sections of Law

  • Motor Vehicles Act, 1988: Section 166 (claim application), Section 168 (award of compensation), and Section 140 (interim no-fault compensation) are central.
  • Bar Council of India Rules: Part VI, Chapter II, Rule 7 and Rule 33 prohibit conflict of interest and mandate fair fee.
  • Indian Contract Act: Section 23 — an agreement contrary to professional ethics or public policy may be void.
  • Specific Relief Act, 1963: Section 27 and related provisions can help seek rescission or declaration regarding the fee agreement.

Jurisdiction — Where to File the Case

The Motor Accident Claims Tribunal (MACT) where the accident occurred — in this case, Nagpur — has exclusive jurisdiction over the compensation claim. That same tribunal also has the power to decide on the removal of a counsel engaged in a dual role, as it's a procedural matter. If the advocate's misconduct requires disciplinary action, the complaint goes to the Bar Council of the state where the lawyer is enrolled. Remember, territorial jurisdiction for the claim is fixed at the accident spot or the claimant's residence; for the misconduct complaint, it's the State Bar Council where the advocate practices.

Limitation Period

For filing the claim petition, the Motor Vehicles Act now provides a window of six months from the date of accident. But since the claim was already filed, that's not the issue. For challenging the fee agreement or seeking declaration that it's void, the limitation period is three years under the Limitation Act, 1963. However, the unjust enrichment continues, so the clock hasn't strictly run. And where the client was a minor at the time of the agreement, limitation gets extended. The sooner you act, though, the better.

Interim Reliefs Available

In a MACT case, the most common interim relief is under Section 140 of the Motor Vehicles Act — the no-fault liability clause. The tribunal can direct interim compensation of ₹50,000 for death and ₹25,000 for permanent disablement, even before the main trial concludes. That money can be crucial while the family waits. For the conflict-of-interest issue, the immediate relief is an order from the tribunal discharging the defaulting advocate from both sides and staying any further steps until proper representation is in place.

If You Are the Victim

  • Obtain a digital copy of the e-court cause list or order showing the lawyer appearing for both sides.
  • Draft a simple application to the MACT tribunal to cancel the vakalatnama and remove the advocate.
  • Engage a new lawyer who handles MACT cases regularly — not a general litigator.
  • If any compensation has been received, immediately file a petition for accounting of the fee deduction.
  • File a complaint online or in person with the State Bar Council under Section 35 of the Advocates Act.

Documents You Must Keep Ready

  • Aadhaar card and PAN of both claimants
  • Copy of the FIR filed after the accident
  • Post-mortem reports and death certificates
  • Any medical bills or treatment records before death
  • Proof of age and income of the deceased (salary slips, IT returns)
  • Photographs of the accident site and vehicles, if available
  • Screenshots or downloads from the e-court portal showing the dual appearance
  • The original vakalatnama, if the family has a copy

What Evidence Is Required?

  • Certified copy of the MACT case order sheet where the lawyer's name appears for both sides.
  • Any correspondence or messages where the lawyer acknowledged the 25% demand.
  • Bank account details that the lawyer opened for the father — to trace possible unauthorised withdrawals.
  • Witness statements from the relative who first took the father to that lawyer.
  • Digital evidence: call records, WhatsApp chats, emails, even if informal.
  • Father's affidavit narrating the oral fee agreement and his mental state at the time.
  • The truck driver's insurance details and charge-sheet from the police investigation.

How Courts Typically Approach Such Cases

Tribunals and High Courts view conflict of interest very sternly. Once the dual representation is proved — mostly through the court's own record — the advocate is usually removed without much resistance. Courts often also initiate suo motu contempt or disciplinary proceedings if the conduct is blatant. On the fee question, courts lean in favour of the bereaved family. They won't enforce an oral, excessive fee that wasn't voluntarily consented to when the client was in a position to bargain. And if the lawyer has already withdrawn a share, the court may order restitution. Patience, documented proof, and right legal arguments make all the difference.

  • Application for removal: 1–2 hearings; court may pass an order within a month.
  • Appointment of new counsel: instant; file fresh vakalatnama.
  • Regular MACT trial: filing of written statements, issue framing, evidence (documentary and oral) — typically 6 to 18 months depending on workload.
  • Arguments and judgment: 3–6 months post evidence closure.
  • Bar Council complaint: inquiry may last 12–18 months, with a disciplinary order at the end.
  • Appeal (if any): to High Court — adds another 12–24 months.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Can the Matter Be Settled Out of Court?

Yes, two aspects can be settled. The compensation claim with the truck owner and insurer can be settled through mediation or a Lok Adalat, which offers a binding award. Settlement often gets the family money faster. The fee dispute and conflict-of-interest complaint against the lawyer cannot be "settled" informally — they are acts of professional misconduct that must be brought before the tribunal or Bar Council. However, if the lawyer voluntarily returns the excess fee, the family can withdraw the complaint. But the ethical violation remains on record. Think twice before letting it slide; it's about more than one family's case.

Common Mistakes People Make

  • Agreeing to a high-contingency fee under emotional distress without written terms.
  • Not inspecting the court's cause list or e-court portal regularly, allowing a conflicted lawyer to continue unnoticed.
  • Going to a general civil lawyer instead of an advocate who specifically handles motor accident claims — procedural and evidentiary fine points get missed.
  • Hesitating to revoke the vakalatnama, fearing the case will collapse. A case survives a lawyer change.
  • Failing to keep a record of the bank account that the lawyer opened and the transactions in it.
  • Posting details of the case on social media, which can harm the family's legal position and give the opposite side ammunition.

FAQs People Normally Have

What if the lawyer has already taken a percentage from the awarded amount?

File an execution petition or a separate application before the tribunal for restitution. The tribunal can order him to refund the excess with interest.

Is a 25 percent fee illegal on its own?

Not automatically illegal, but if extracted from a distressed family without informed consent, it becomes exploitative and can be struck down. Courts will reduce it dramatically.

How quickly can the conflicted lawyer be removed?

Once you present the e-court evidence, the judge usually passes a removal order within a couple of hearings.

Will filing a Bar Council complaint affect the MACT case?

No. It's a separate disciplinary proceeding. The MACT case stays on track with your new lawyer.

Can the family get interim compensation while all this is sorted?

Yes, under Section 140 of the Motor Vehicles Act. File a separate application; the tribunal can award it fast.

This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.

Advocate Sudhir Rao, Supreme Court of India

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